The Future of Wisconsin

Transcription

July 2014: Issue 11
Official magazine of Wisconsin Manufacturers & Commerce
The Future of Wisconsin
Creating a 20-year plan for the Badger State
Page 8
Inside: Lead Article: The State of Business Development p. 20
Guest Column from Mary Burke p. 28
Corporate Safety Award Winners p. 24
Making Wisconsin Irresistible to Business p. 2
WISCONSIN
Business Voice
From the
Editor
What if we could make
Wisconsin irresistible for
business?
We seem to be doing pretty well
at this point. Amazon is moving
here, Uline announced last
month they are expanding, and
we are confident there is more
good news to come. It's been
reported that Wisconsin has seen
a net increase of 17,000 new
businesses since January 2011.
We are hopeful the Badger
State’s environment will continue
to attract new – and encourage
existing – businesses to expand and thrive.
The lead story in this edition of Wisconsin Business Voice
focuses on business development in Wisconsin (see page 20),
which pairs nicely with WMC’s commencement of The Future
Wisconsin Project, a 20-year strategic plan for the state (see
pages 8 and 9.) The numbers you’ll see in a few columns this
edition are staggering – it’s predicted we’ll have only 0.4 percent
working-age population growth by 2030. That's a problem
because it's also predicted we will have an additional 317,310
jobs in only 10 years and not enough people to fill them. The
Future Wisconsin Project aims to tackle these issues and more.
Stay tuned for further developments!
In this issue…
2
Making Wisconsin Irresistible to Business
4
Moving Forward on Worker’s Compensation Reform
6
Defeating Bad Bills: Just as Important as Passing
Good Ones
Kurt Bauer, WMC
Chris Reader, WMC
Scott Manley, WMC
8
The Future Wisconsin Project
Jim Morgan, WMC Foundation
State Campaign Finance Developments
10Recent
Impact Business
Mike Wittenwyler, Godfrey & Kahn SC
Aren’t Your Grandpa’s Environmentalists
12These
Eric Bott, WMC
and Risk: A Global Issue
17Fraud
Penny Foust, Bank Mutual
World: A Crash Course in
18Business
Entrepreneurship!
Steve Benzschawel, WMC/Wisconsin Business
World
20-23
LEAD STORY: BUSINESS
DEVELOPMENT IN WISCONSIN:
ARE WE ON THE RIGHT TRACK?
Corporate Safety Awards
24Wisconsin
Janie Ritter, WMC/Wisconsin Safety Council
Crossing Oceans
26Cranes
Mike Shoys, WMC
You Should Hire a National Guard Member
27Why
Major General Dunbar, Wisconsin National
Guard
for Success
28Investing
Mary Burke
Katy Ryder Pettersen
Editor, Wisconsin Business Voice
[email protected]
Freight Demand Requires Rail Solution
29Growing
Jason Culotta, WMC
DNR Working for You
31Your
Secy. Cathy Stepp, Wisconsin Dept. of Natural
Resources
Issue Advocacy: The Time to Give is Now!
32WMC
Jim Pugh, WMC Issues Mobilization Council, Inc.
Domino Effect – Reverse it!
34The
Linda Hansen, Prosperity 101, LLC
Wisconsin Business Voice is published quarterly by Wisconsin Manufacturers &
Commerce. WMC is Wisconsin’s chamber of commerce, manufacturers’ association,
and safety council representing businesses of all sizes and from every sector of the
economy. Send address changes to WMC, P.O. Box 352, Madison, WI 53701-0352.
WMC's physical address is 501 E. Washington Avenue, Madison, WI 53703,
(608) 258-3400. This publication is proudly printed on paper made in Wisconsin.
Kurt R. Bauer, WMC President/CEO
Katy Pettersen, Editor ([email protected])
Jane Sutter, Designer ([email protected])
from Retiring Legislators
38Thoughts
Representatives Clark (D-Baraboo) and
Severson (R-Star Prairie)
Corner: Opportunities with African
40Chamber
American Businesses
Dr. Eve Hall, African American Chamber of
Commerce
Making Wisconsin Irresistible
to Business
Kurt R. Bauer, WMC President/CEO
W
isconsin’s working-age
population will grow by
just 0.4 percent by 2030, according
to the UW-Madison Applied
Population Lab. During the same
period, Wisconsin’s 65 and over
population will grow 94.7 percent.
Those two numbers beg the
question; how can Wisconsin attract
the workers/taxpayers the state’s
economy will need in the future?
It’s a tough question to answer because there is no one magic
solution as Japan and many European nations facing the
same population challenges can attest.
federal immigration reform?
The simple answer is by making the state’s business climate
irresistible, which the Merriam-Webster Dictionary defines
as “impossible to resist especially because of strength or
attractiveness.”
Business leaders from all sectors need to see that locating or
expanding in Wisconsin gives them a competitive advantage
other states can’t match. If we accomplish that, people – i.e.,
workers/taxpayers – will see that Wisconsin is the place to be.
On that score, Wisconsin is already headed in the right
direction. Site Selection Magazine recently ranked us the 13th
best state for business. Chief Executive Magazine improved
Wisconsin to 14th best in the nation, up from 41st in 2010.
Both of those rankings matter because they don’t use the
Japan is attempting to change the cultural tradition that
arbitrary metrics often favored by economists and academics.
pressures women not to work after marriage. Germany is
They are surveys of the people who actually decide where to
encouraging workers to delay their retirement. The Danes
locate or expand a business based on factors like tax rates,
have a cheeky campaign to encourage higher birthrates called
regulatory culture, the legal environment and, of course,
“Do It for Denmark.” Many European nations, including
workforce.
Germany and Italy, have embraced liberal
immigration policies in order to
The WMC Board discussed what
“Business leaders from all
attract workers.
reforms would make Wisconsin
sectors
need
to
see
that
locating
or
irresistible during its recent strategic
The latter two solutions have the
expanding in Wisconsin gives them planning meeting. Among other
same common denominator.
things, Board members identified the
Couples generally decide to start a competitive advantage that other need to lower the state’s traditionally
or expand a family when they have
states can’t match…”
high income and property taxes,
the financial wherewithal to do so. That
maintaining transportation infrastructure at
means having a good paying and stable job.
a time when gas tax proceeds are declining, ensuring K-12
Similarly, people move to places where there is economic
students are better career- and college-ready (both four year
opportunity. That is why so many Americans (including
and technical), enhancing the national reputation of our
Wisconsinites) have moved to North Dakota in order to take
metropolitan areas, encouraging entrepreneurship, creating
advantage of the energy boom and the high paying jobs it has
a cooperative and predictable state regulatory culture and
created.
protecting the affordability of the state’s energy supply.
Unfortunately, Wisconsin doesn’t have shale deposits so we
have to find other ways to attract workers. We’ve done it
before. Wisconsin’s original European settlers came from
Norway and Germany beginning in the 1840s looking
for the upward mobility that was denied them in the “old
country.” In the early 1900s, Wisconsin attracted thousands
of African Americans to move from the Deep South to
Beloit, Milwaukee and Racine to work in factories.
But how do we encourage our youth, especially the best
educated and most skilled, to stay in Wisconsin in 2014 and
beyond? How do we encourage people to raise their families
here? And how do we encourage people to move here from
other states and countries, notwithstanding the need for
2
Wisconsin isn’t alone in facing unfavorable population trends,
which means the race is on to see who can find solutions that
work. Making Wisconsin irresistible to business should be
one of those solutions. WMC is committed to finding others
via our ambitious new initiative, The Future Wisconsin
Project, designed to create a statewide 20-year strategic
economic plan (see page 8). BV
Follow Kurt on Twitter @Kurt_R_Bauer
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EQUAL HOUSING
leNDeR
WORKER'S
COMPENSATION
Chris Reader
WMC Director of Health &
Human Resources Policy
Moving Forward on Worker’s
Compensation Reform
T
he Wisconsin Manufacturers’
Association was founded on January
18, 1911 by a group of business leaders
in Milwaukee, led by F. J. Sensenbrenner,
to ensure that the voice of employers was
heard by state lawmakers. The association
later merged with the State Chamber of
Commerce and the Wisconsin Council
of Safety and moved to Madison. This
entity is now what you know as Wisconsin
Manufacturers & Commerce (WMC).
One of the key policies that prompted
Sensenbrenner and his colleagues to form
the Association in 1911 was the creation
of the Wisconsin Worker’s Compensation
system, which also started in 1911. This
government program was essentially a
no-fault system where injured workers
received set compensation for losses
incurred from injuries sustained while
working, and employers were held harmless
in tort actions for unintentional workplace
injuries. That basic premise remains today.
WMC has been involved in the system
since 1911, representing the interests of
employers before state government.
Historically, a package of reforms is
negotiated every two years between
management and labor through a process
that has been statutorily defined since 1968
as the Worker’s Compensation Advisory
Council (WCAC), and those reforms are
forwarded to lawmakers. Because those
reforms are agreed to by both management
and labor representatives, they tend to not
be very controversial with lawmakers and
easily become law.
Earlier this year, however, something
different happened. Per usual, a unanimous
10-0 proposal came out of the WCAC
4
process, but instead of being an easy, quiet
bill for lawmakers to pass, the bill this year
became one of the most lobbied bills of
the session. Organizations of all stripes
lined up for and against it – a total of 57
groups registered lobbying activities with
the Government Accountability Board.
Because of that pressure, the bill ended up
not moving forward – the first time since
World War II that a law wasn’t passed
during the legislative session to update the
worker’s compensation laws.
While it was historic, that level of lobbying
was not surprising. Unlike most other
years, the agreed-bill this session included
significant reforms, including the most
controversial item, a fee schedule to
control the growing cost of medical bills
for worker’s compensation claims. Cost
containment has been on the to-do list
of management members of the WCAC
for years, but this session was the first
time organized labor agreed reform was
necessary to control costs, giving the issue
its first real shot at becoming law.
Once management and labor
representatives on the WCAC agreed to
include a fee schedule, strong opposition
quickly arose from medical providers.
Typically allies with WMC and the general
business community on legislative matters,
the fee schedule issue drove a wedge
between the medical providers and the rest
of the business community that doomed
the worker’s compensation reform bill this
session from the start.
As we work at WMC to achieve our
mission of making Wisconsin the best state
in the nation to do business, we recognize
the important role medical providers, such
as hospitals, play in our local communities
getting injured workers back to work,
keeping our families healthy and improving
the overall character of our state. We also
continue to hear from other employers,
however, that the high cost currently
associated with worker’s compensation puts
our state at a competitive disadvantage for
job creation. We believe there is a place
where the entire business community,
including hospitals, can agree on a path
forward on this contentious issue. To that
end, we have convened a working group
of diverse WMC member companies
with a stake in the worker’s compensation
system, including manufacturers, insurance
companies, hospitals and doctors, and
trucking and construction firms, to work on
this issue this summer and help us find that
united path forward. BV
Follow Chris on Twitter @ReaderWMC
Save the Date
Business Day
in Madison
March 4, 2015
Monona Terrace
Community &
Convention Center
COME
TOGETHER.
MIKE HAUPERS
President
Swiss Precision Machining Inc.
YEARS ATTENDING IMTS
25
GOAL FOR IMTS 2014
To identify new equipment, tools, and
technologies that will enhance our abilities –
giving us the competitive edge needed to
expand into new markets. After 40 years in
the machining industry, I’m still amazed at how
much more there is to learn. IMTS is where I go
to get smarter.
LEAVE
SMARTER.
Where else can you meet the minds that are moving manufacturing forward?
Nowhere but IMTS 2014. With a focus on success through cooperation, the week will
be filled with technology, education, and ideas that we can all benefit from. Join us
at McCormick Place Chicago, September 8–13, 2014. Learn more at IMTS.com.
REGISTER NOW • IMTS.COM
COME TOGETHER.
LEAVE YOUR MARK.
LEGISLATIVE
UPDATE
Scott Manley
WMC Vice President of
Government Relations
Defeating Bad Bills
Just as Important as Passing Good Ones
P
resident Franklin Delano Roosevelt once said “In politics,
nothing happens by accident. If it happens, you can bet it was
planned that way.”
That’s especially true with respect to the pro-growth reforms
enacted at the Capitol since January, 2011. Those reforms didn’t
happen by accident – they happened because we had a pro-job
majority in both houses of the Legislature and a Governor with the
courage to tackle tough issues.
Thinking about the magnitude of those reforms, it’s nothing short
of remarkable: collective bargaining reform, historic tort and
legal reforms, sweeping unemployment insurance reforms, broad
regulatory reforms and significant tax reforms, among many others.
Public policy is headed in the right direction in Wisconsin. With
95 percent of WMC’s member companies saying Wisconsin is
on the right track, it’s easy to get complacent and develop the
expectation that good policy will continue indefinitely.
Yet it was only three legislative sessions ago that Wisconsin
businesses were the target of massive tax hikes, expanding legal
liability and expensive new regulatory burdens. It’s easy to forget
how badly policy can go off the tracks when the wrong people are
making the decisions in government.
There are many ways to define victory, and sometimes preventing
bad things from happening is every bit as important as helping
to make good things happen. The 2013-14 legislative session is a
compelling case study.
There were some truly awful bills introduced last session that
WMC was able to defeat with the help of pro-growth lawmakers.
Following is a list of some of the most egregious anti-business
proposals we were able to defeat because the right people were
making the right decisions at the Capitol.
Proposals Defeated:
• Assembly Bill 898 – Rep. Cory Mason (D-Racine)
Would require employers to pay mandatory paid sick leave to
their employees at their regular rate of pay, and mandate that
employees may accrue up to 72 hours of sick leave each year.
• Assembly Bill 872 – Rep. Chris Taylor (D-Madison)
A package of tax increases on businesses and individuals that
raise the tax burden by an estimated $200 - $300 million per
year.
6
• Assembly Bill 894 – Rep. Sondy Pope (D-Cross Plains)
Would create a new per-employee tax collected from employers
to fund a paid family medical leave program.
• Assembly Bill 342 – Rep. Chris Taylor (D-Madison)
Would prohibit an employer from inquiring about a job
applicant’s conviction record prior to a job interview. Also
defines asking about conviction records as employment
discrimination.
• Senate Bill 660 – Sen. Mark Miller (D-Monona)
Establishes expensive new global warming regulations expected
to cost businesses and homeowners billions of dollars, including
a 30 percent renewable energy mandate.
• Assembly Bill 755 – Rep. Mandela Barnes (D-Milwaukee)
Creates a new class of employment discrimination based upon a
job applicant’s status of being employed or unemployed.
• Assembly Bill 868 – Rep. Brett Hulsey (D-Madison)
Would establish an extraction tax of $1 per ton for industrial
sand, saddling this growing industry with millions of dollars in
new taxes to stifle growth.
• Assembly Bill 887 – Rep. LaTonya Johnson (D-Milwaukee)
Would force employers to pay for half the cost of their
employees’ food stamp benefits and BadgerCare Plus healthcare
benefits.
Looking at this list of bad bills, one can easily see how much
damage the Legislature could inflict upon the business community
and our economy as a whole if the wrong people are making bad
decisions.
Nothing in politics happens by accident. WMC’s advocacy at the
Capitol is constantly working to ensure the Legislature keeps its
focus on pro-growth policies, while rejecting the anti-business
proposals that would harm your business.
It’s all about making sure the right people at the Capitol are
making the right decisions. To see the decisions your own
lawmaker made on legislation impacting businesses during the
2013-14 legislative session, visit www.wmc.org and review WMC’s
legislative scorecard. BV
Follow Scott on Twitter @ManleyWMC
Congratulations
to the Working
for Wisconsin
Award Recipients
WMC is traveling around
the state this summer
to honor legislators who
supported Wisconsin
business with a 80% or
better voting record.
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WISCONSIN LEGISLATIVE VOTING RECORD: 2013-14 SESSION
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edition of Wisconsin
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Wisconsin Individual Safety Award Winners
Safety Hall of Fame Inductee
Don Zietlow
CEO and Owner of
Kwik Trip, Inc.
Lifetime Achievement Award Winners
Warren Brockmeyer
Retired from Wisconsin
Department of Workforce
Development
Robert Anderson, Sr.
Retired from InSinkErator
FUTURE
WISCONSIN
Jim Morgan
WMC Foundation President
The Future Wisconsin Project
“T
hose who cannot remember the past are condemned to
repeat it.”
That is a famous quote from George Santayana’s The Life of Reason.
Wise words for Wisconsin when you consider the following:
What if 20 years ago, when we knew there was a severe labor
shortage coming (and we did know) we had put a plan in place
to address it?
What if 20 years ago, we had branded the state… not as
cheeseheads from the frozen tundra… but as entrepreneurs
from the state of innovation… as an attractive place for the next
generation?
What if 20 years ago, everyone… Republicans and Democrats
alike… had agreed upon a set of measures and goals that would
ensure Wisconsin’s economic competitiveness?
What if 20 years ago, we had established an academic and
career plan, and work experiences… for every student… to
guide them and their parents in selecting a meaningful career
track?
What if today, we decided not to let history repeat itself ?
A Georgetown University study suggests Wisconsin will create
317,000 jobs this decade. The Applied Population Lab at UWMadison says we will add 15,000 working age people in that same
timeframe.
Georgetown University Study
2010 Total WI Jobs: 2,812,590
2020 Total WI Jobs: 3,129,720
Applied Population Lab
Additional Jobs = 317,130 (10 years)
Additional Workers = 15,150 (30 years)
Since 1997, the number of kindergartners has not been replacing
our graduating seniors.
Wisconsin will double its 65-year-old and older population in the
next 25 years, from 750,000 to 1.5 million.
8
Do you see the problem yet?
How about the loss of Wisconsin college graduates? 14,000
every year.
How about the economic uncertainty caused by political swings
in the past 10 years?
How about the skills gap we have seen throughout Wisconsin
as students pursue degrees that do not lead to careers, while jobs
go wanting skilled applicants?
How about some good news? We can overcome all of these
challenges. ENTER: The Future Wisconsin Project.
For more than 100 years, Wisconsin Manufacturers & Commerce
has been the state’s leading business association. The organization’s
commitment to making Wisconsin the most competitive state in
the nation has been a constant. In 1982, the WMC Foundation
was founded to complement the work of the association by looking
beyond policy cycles and taking a longer term look at the state’s
economic health through programming and research. The Future
Wisconsin Project is the culmination of that vision.
To ensure prosperity for the communities of Wisconsin, and
rewarding and high-paying careers for our citizens, the Badger
State must be positioned as a leader in the following areas:
• Talent Development, Attraction and Retention
• Business Competitiveness
• Global Engagement
• Government Effectiveness
• Life Quality
• Entrepreneurial Spirit
These six areas are known as the Competitive Quality Indicators
(CQIs) – areas of focus that are critical if Wisconsin is to be a
competitive place to do business 20 years from now, and beyond.
With the cooperation of the University of Wisconsin System,
Wisconsin Economic Development Corporation and the
Wisconsin Technical College System, as well as our long-time
partners the local chambers of commerce, we are positioned to
effectively plan for the future.
Already more than a year in the making, the project has seen the
engagement of Wisconsin businesses, educators and leaders begin
the discussion of ensuring a competitive state. Advisors with
Wisconsin Population
2010 census vs. 2040 projections
Age
# People
Growth
0-17
+ 27,438
+ 2.1%
18-64
+ 15,150
+ 0.4%
65-84
+ 598,121
+ 90.8%
85+
+ 168,205
+ 141.9%
Save the Date
94.7% of the growth is people over the age of 65!
expertise in the six focus areas have been identified to react to ideas
generated by hundreds of Wisconsin citizens. And a culminating
event has been planned for December 3 in Milwaukee to organize and
prioritize the initiatives we will take forward together. This process will
be repeated every year to ensure Wisconsin’s competitiveness.
Though there are barriers to overcome such as access to venture capital,
the worsening skills gap, infrastructure problems, an image problem,
issues with the state’s largest cities, and obstacles for growing jobs and
the economy, we have great strengths. The Badger State boasts business
diversity, a strong work ethic, a high quality of life, great business and
education partnerships, good schools, an improving business climate
and a “can do” attitude.BV
December 3, 2014
Wisconsin Center, Milwaukee
www.futurewi.org
Follow Morgan on Twitter @JimMorgan1960
State of Wisconsin Business Luncheon
Wednesday, October 15, 2014
Monona Terrace Community & Convention Center, Madison
Register online at www.wmc.org
Guest Speakers
Dan Ariens
President and CEO, Ariens
Company
Dr. Martin A. Regalia
Senior Vice President for
Economic and Tax Policy
and Chief Economist, U.S.
Chamber of Commerce
Governor Scott Walker
Damond Boatwright
Regional President/CEO,
Hospital Operations at
SSM Health Care of
Wisconsin
John Pfeifer
President, Mercury Marine
Recent State Campaign Finance Developments
Impact Business
By Mike Wittenwyler
A
new law and two recent court
decisions affect how campaigns will
be financed in Wisconsin in 2014 and
beyond.
2013 Wisconsin Act 153
2013 Wisconsin Act 153 revises portions
of Wisconsin’s campaign finance and
lobbying laws. Highlights of the new law
include:
• In soliciting funds for its PAC or
conduit, a corporation may now spend
significantly more money – up to
$20,000 or 20 percent of annual PAC
or conduit contributions.
• A process was created for the
redirection of conduit funds contributed
by a member who no longer can be
located.
• Lobbyist campaign contributions can
now be made earlier in an election
year – April 15 of an even year for a fall
election.
• Lobbyists may now deliver and
discuss PAC, conduit and nonlobbyist
campaign contributions at any time.
• An individual’s volunteer Internet
activities are now free from regulation
including sending or forwarding emails,
linking to another person’s Internet site
or blogging.
McCutcheon v. Federal Election
Commission (U.S. Supreme Court)
On April 2, 2014, in McCutcheon v. FEC,
the U.S. Supreme Court struck down
federal limits on aggregate individual
contributions to federal candidate
campaigns, political party committees
and PACs. The court held that the First
Amendment rights of donors are violated
by the federal campaign finance law. As
a result, aggregate contribution limits in
eight states – including Wisconsin – are
also considered unconstitutional and
unenforceable.
Under McCutcheon, the Court held that
federal limits on aggregate individual
contributions to federal candidate
campaigns, political party committees and
PACs violate the First Amendment rights
10
of donors. Any restrictions on campaign
contributions can only be justified when
the limits prevent a direct quid pro quo
corruption. Because aggregate contribution
limits do not relate to a threat that any
single candidate will be corrupted, the
Court held these limits cannot be upheld.
McCutcheon does not address base
campaign contribution limits to
candidates, political parties and PACs.
Those contribution limits remain in
place. Similarly, corporations are strictly
prohibited from making campaign
contributions under federal and Wisconsin
law. These source restrictions also remain in
place after McCutcheon.
The Government Accountability Board
(“G.A.B.”) subsequently announced that
it is no longer enforcing Wisconsin’s
$10,000 annual aggregate individual
contribution limit. As a result, individuals
may make an unlimited overall amount of
campaign contributions provided that each
contribution is within the respective base
limit amount. Moreover, an individual is
also now able to contribute an unlimited
amount to a PAC or state political party
committee.
Wisconsin Right to Life v. Barland (7th
Circuit)
In 2010, the G.A.B. adopted an
administrative rule that greatly expanded
the scope of communications subject to
regulation as independent expenditures. As
a result, issue advocacy communications
in the 30/60 days before an election that
identified a candidate would have been
presumed to be independent expenditures
and subject to full PAC regulation under
state campaign finance law, including
donor disclosure.
In response to the G.A.B.’s adoption of
this highly controversial rule, three lawsuits
were filed almost immediately after the rule
took effect. On May 14, 2014, the Seventh
Circuit U.S. Court of Appeals issues a
decision in the last of those lawsuits:
Wisconsin Right to Life v. Barland.
The plaintiff prevailed in virtually all of its
arguments, including:
Watch a video explaining the Wisconsin Right to
Life v. Barland 7th Circuit Court decision on WMC's
YouTube channel WMC501.
- Wisconsin’s ban on corporate political
spending is unconstitutional under
Citizens United;
- The administrative rule that treats
issue advocacy during the 30/60 day
preelection period as fully regulable
express advocacy/independent
expenditures is unconstitutional; and,
- An administrative rule that imposes
PAC-like registration and reporting
requirements on all organizations that
sponsor independent expenditures is
unconstitutional as applied to sponsors
who are not superPACs (such as 501(c)
(4) organizations and other noncommittee sponsors).
The WRTL decision also is an excellent
summary of the history of campaign
finance regulation and litigation in
Wisconsin during the last 20 years. It
covers in detail successful legal challenges
brought against the Elections Board
/ G.A.B by our law firm on behalf of
Wisconsin Manufacturers & Commerce.
And, it discusses how despite losing in each
of these instances, the G.A.B. continued to
push for greater regulation – not less – of
political speech.
In short, the WRTL decision makes clear
that the government’s authority to regulate
political speech extends only to money
raised and spent for speech that is express
advocacy and that “ordinary political
speech about issues, policy, and public
officials must remain unencumbered.” BV
Mike Wittenwyler is an
administrative and regulatory
attorney with Godfrey &
Kahn. He can be reached at
(608) 284-2616.
Safety Training | July - December 2014
The Wisconsin Safety Council, a division of WMC, is Wisconsin's leading provider of safety training and programming.
WSC offers training throughout the year at locations across the state.
www.wisafetycouncil.org
MADISON AREA
FOX VALLEY/GREEN BAY AREA
August 4-6
October 14
Instructor Development Course (IDC) – First Aid/CPR/
AED
August 11-14
Principles of Occupational Safety & Health (POSH)
August 20
Coaching the Emergency Vehicle Operator (CEVO) Trainthe-Trainer – Ambulance & Fire
Job Hazard Analysis
WAUSAU/STEVENS POINT/
MARSHFIELD AREA
August 21
November 12-13
OSHA 10hr Voluntary Compliance for General Industry
Coaching the Lift Truck Operator, Train-the-Trainer
November 18
Supervisor Development: Safety & Health Fundamentals
September 22-25
Wisconsin’s No. 1 Dental Plan
September 29
Ergonomics: Managing for Results
October 1
RCRA Compliance for Hazardous Waste Generators (AM)
DOT HazMat Transportation Refresher (PM)
October 7-8
Worker’s Compensation Law Symposium & Best Practices
October 9
Incident Investigation: A Root Cause Analysis
October 13-16
Safety Management Techniques (SMT)
October 21
Safety Inspections
October 23
November 3
Selection & Proper Use of Fall Arrest Systems
November 6
Crisis Management Conference & Expo
November 10
Safety Communication & Training Techniques
December 9
Effective Team Safety
MILWAUKEE AREA
July 16
Job Safety Analysis
July 23
Safety Inspections
August 5-6
August 19
BECAUSE IF
YOU IGNORE
YOUR TEETH,
THEY’LL GO
AWAY.
Creating a World Class Safety Culture
September 11
Effective Team Safety
September 18
Confined Space (AM), Train-the-Trainer
Lockout/Tagout (PM), Train-the-Trainer
October 22
December 1-4
Delta Dental of Wisconsin is dedicated to keeping your
employees healthy. That’s why our benefit plans emphasize
preventive services. Simple oral health additions to your
wellness plan can make a difference in your employees’
overall health.
December 11
How to Handle an OSHA Inspection
Better health starts with a healthy mouth. And a healthy
mouth starts with Delta Dental.
Chapter of
DeltaDentalWI.com
ENVIRONMENT
Eric Bott
WMC Director of
Environmental & Energy Policy
These Aren’t Your Grandpa’s
Environmentalists
I
n 1909, the man who coined the term
“Conservation Ethic,” U.S. Forest Service
Chief Gifford Pinchot, engaged in a very
public row with then U.S. Secretary of
the Interior Richard Ballinger. Pinchot
was concerned that Ballinger might be
engaging in what we would today call crony
capitalism through the preferential sale of
the nation’s mineral, timber and hydrological
resources to well-connected elites.
Pinchot did not seek to leave these resources
untouched but quite the contrary; he wished
to see them developed in a responsible
manner to the benefit of his fellow
Americans. Indeed, Pinchot would go on
to define forestry as “the art of producing
from the forest whatever it can yield for the
service of man.”
By January 1910, the dispute between
Pinchot and Ballinger had grown so heated
that President William Howard Taft was
forced to dismiss Pinchot, causing a split
in the Republican Party and igniting a
rift between Taft and Pinchot’s close
ally Theodore Roosevelt. Two years later
Roosevelt would mount a third party
challenge to Taft, resulting in the election
of America’s first progressive Democratic
President, Woodrow Wilson.
Pinchot’s philosophy, that we can
simultaneously preserve our environment
and utilize its resources toward the
economic benefit of the nation, was once
so powerfully held by conservationists that
it contributed to the end of five decades
of near total Republican dominance in
presidential elections (Grover Cleveland
excepted).
12
Today that philosophy is largely absent
in mainstream environmentalism. Little
concern is paid to the costs of policy on
working families and almost none for
businesses. These days, environmentalists
almost seem to have adopted the attitude
that if it’s good for humans, it must be bad
for the environment.
such policies
contribute to larger and more destructive
forest fires.
This growing inflexibility should concern
business. As these ideas radicalize, their
influence is growing. A common debate in
political circles is whether or not the green
movement has supplanted labor as the chief
One of the latest green fads is to argue
source of influence in the Democratic Party.
for a halt to economic growth. Let me
Looking at Keystone XL and the War on
state that again. A growing number of
Coal at the federal level or iron and sand
environmentalists are calling for an end to
mining in Wisconsin, the greens are batting
economic growth. Drive around Madison
a thousand whenever they play against labor.
and you’ll see bumper stickers reading,
Wealthy donors such as fossil fuel investor“Growing the economy is shrinking the
turned-environmentalist Tom Steyer,
ecosystem.” These are not your grandfather’s
who has pledged $100 million to elect
environmentalists.
likeminded Democrats to the U.S. Senate
this fall, are furthering the rise
So what is the
in influence of hardline
“...environmentalists almost
philosophy of
greens.
seem to have adopted the attitude
modern greens?
At times it
that if it’s good for humans, it must be Practically speaking,
can be hard
this means the partisan
bad for the environment.”
to tell. Today’s
divide will continue to
environmentalists
grow and our federal regulators
claim to support replacing coal-fired power
at the EPA and other agencies will be more
plants with natural gas and nuclear. Yet they apt to push ever bolder and costly regulatory
oppose hydraulic fracturing to obtain the
schemes. That’s bad news not just because it
needed gas, building pipeline infrastructure
creates a drag on our economy but because
to move it, or constructing any new nuclear
when environmental policy becomes a
facilities.
political weapon, everybody – including the
environment – loses. BV
Other times their agenda seems
contradictory. They oppose importing
petroleum from Canadian oil sands even
when the practical alternative is importing
equally heavy crude from Venezuela with an
even greater carbon footprint. They oppose
proper forest management practices because
‘nature should be left untouched’ even when
Follow Eric on Twitter @BottWMC
WMC at Home and on the Road
2
1
1
WMC was integral in passing SB 547 (now Act
378) – Phosphorus reform that will give employers
a better tool to address phosphorus impairment
in Wisconsin’s waterways in a smarter, more cost
effective way. Pictured with Gov. Walker are bill
authors Sen. Rob Cowles (R-2nd District) and Rep.
Amy Loudenbeck (R-31st District).
4
3
2
Dr. Ausaf Sayeed, Consul General of India to the U.S. visited with WMC, WEDC and local
chambers to discuss economic development opportunities available in India. Pictured here
are (L-R) Phil Fritsche, President of the Beaver Dam Area Chamber of Commerce; Dr. Sayeed;
Secy. Reed Hall, WEDC; and Van Nutt, Exec. Director of the Middleton Chamber of Commerce.
3
The Wisconsin Safety Council’s 72nd Annual Safety & Health Conference and Expo hosted
more than 1,200 safety and health professionals in Wisconsin Dells. Pictured with Janie
Ritter, WSC Director, is Keni Thomas, former U.S. Army Ranger who keynoted the opening day
of the conference.
4
5
More than 165 high school students from Waupaca attended Mini Business World, produced
by WMC and hosted by the Waupaca Area Chamber of Commerce, to learn about the free
enterprise system and opportunities available in Wisconsin.
WMC’s Kurt Bauer visited Saint Thomas More High School in Milwaukee in April to see its
STEM program in action. Pictured is Dr. Mark Joerres (left), the school’s chief administrator,
with student Rachel Welch, who helped build the robot pictured. Welch will be attending
Worcester Polytechnic Institute this fall.
6
7
WMC Chairman Dan Ariens, President & CEO of Ariens Company in Brillion, met with
Republican and Democratic Legislative leaders including Assembly Speaker Robin Vos
(R-Burlington).
5
WMC hosted a lunch to hear about trade opportunities in Canada. Pictured here are (L-R) Kurt
Bauer; Secy. Reed Hall, Wisconsin Economic Development Corporation; Roy Norton, Consul
General of Canada to the U.S.; and Secy. Rick Chandler, Wisconsin Department of Revenue.
6
7
Mercury Marine: Growing Strong in Wisconsin for 75 Years
F
or the past 75 years, Mercury Marine has been a leader in
manufacturing, technology and innovation in Wisconsin. The
company’s rich history dates back to 1939 from the early days in
Cedarburg to present day in Fond du Lac. Mercury employs 3,100
people at its Fond du Lac World Headquarters and directs 5,600
employees globally. Mercury Marine has benefited the entire state
-- each new job at Mercury creates approximately 0.6 additional
jobs in the community. That’s 1,860 jobs created in the communities
surrounding Fond du Lac.
In 2009, Mercury employed 1,500 in Fond du Lac; present day, that
number has more than doubled.
Imagine Wisconsin and the Fox Valley without Mercury Marine –
it’s an image no one wants to think about.
“I don’t want to imagine our state without Mercury Marine,” said
Fond du Lac City Council President Sam Meyer. “It would cripple
our community. I don’t think anyone should underestimate the value
Mercury has to the entire state of Wisconsin.”
Mercury’s successes have been well documented. In 2014, its 75th
Anniversary, the company won the Wisconsin Manufacturer of
the Year award which
honored its robust list of
accomplishments in the
workplace.
“The past 12 months have
set the foundation for our
future growth,” said Mercury Marine President John Pfeifer. “We’ve
completed several multi-million dollar expansions which created
jobs and growth opportunities that we plan to keep in the state of
Wisconsin.”
Those expansions, which added an additional 150,000 square feet to
Mercury’s headquarters, were completed at the end of 2013.
Mercury continues to hire – more than doubling its workforce from
2009-2013 – and there are still a number of job openings available
today. Recovery in this industry will be prolonged and uneven but
Mercury Marine says it will continue leading the charge to make
boating more affordable while hiring a world-class global workforce
committed to quality and efficiency in every product leaving its
production line.
14
Pfeifer says during the
economic downturn
in 2009, Mercury
Marine dedicated
itself to strengthening
core principles
and continuing to
manufacture products
of the highest quality.
Consumer Engagement,
Extreme Reliability,
Intuitive Design and
Proactive Support are the brand pillars that Mercury Marine
lives by. It is the foundation of the company’s global marketplace
activities which has served them well for 75 years and will continue
to do so well into the future.
“While the industry remains in flux, we are confident with our
momentum and our body of work over the past few years, we will
set the tone for the entire industry and remain a leader in marine
technology and a company very
proud to be based in Fond du
Lac,” Pfeifer said.
In April, Mercury opened the
doors to its new museum in
Fond du Lac. The facility is a
trip down memory lane for the
company and the thousands of
people who have contributed
to its success. The museum
showcases 75 years of innovation
and technology – it also
showcases a few non-marine
exhibits such as the ZR-1
Corvette as well as snowmobiles,
chainsaws and Mercury’s early
dominance in NASCAR. BV
A Profitable
Partnership with
the Disabled
By David Laudon
Owner, Venture Products, LLC
V
enture Products produces driveway
markers and other lawn and garden
supplies. Since 2007, we have worked with
Eisenhower Center, a vocational training
center for people with disabilities, in
Milwaukee.
Growing up, I was blessed to have had an
aunt who was mentally disabled. Aunt Diane
was a big part of our family. One of the most
memorable things she ever said to me was,
"You know, nephew David, I have a job."
To me, that simple statement was replete
with pride and dignity. A paycheck was a
part of the process, but the benefits went way
beyond monetary value.
Working with Eisenhower Center is
personal for me. But I am also a capitalist,
so quality output is important. The clients
at Eisenhower Center assemble parts, apply
UPC stickers, repackage our product — and
they do it well.
As a business owner, I can testify that there
is no better feeling than running a profitable
venture while helping those less fortunate
live as fully and independently as possible.
A Place in the Business World
for People with Disabilities
By David Ordan
C
an people with severe disabilities hold their own in today’s competitive business
environment?
The answer is yes – and here’s why.
For more than 30 years, Eisenhower Center has been helping people with disabilities
gain vocational skills and job opportunities through its 66,000 sq. ft. center in
Milwaukee.
Our clients are challenged with a range of developmental disabilities. These include
cerebral palsy, traumatic brain injury, Down syndrome, autism, emotional disorders
and a host of physical ailments that leaves the majority of our clients in wheel chairs.
Many require one-to-one assistance to complete daily living tasks that most of us take
for granted, such as eating and using the
bathroom facilities.
Despite these challenges, Eisenhower
Center has been able to create a vibrant
workplace that occupies a valuable niche
in the business marketplace. Working with
businesses and manufacturers throughout
Wisconsin, Eisenhower Center offers
competitive bids on a range of projects,
including assembly, sorting, product re-work
services, mail order and more.
For business owners, we are experts in
projects that cannot be automated, are not
worth sending overseas and which are an inefficient use of able-bodied employees’
times.
In 30 years, Eisenhower Center has never lost a single contract due to quality control
issues. Our workforce is motivated, eager to learn and professional. Yes, our clients have
disabilities – but that has never stopped the center
from helping them live as fully and independently as
possible.
Business owners who work with Eisenhower Center
are confident they work with a full partner, who is
equally concerned about their bottom line. BV
David Ordan is the Development Director for
Eisenhower Center in Milwaukee. Visit www.
eisenhowercenter.org for more information.
Wisconsin Business Voice
15
MADE IN WISCONSIN
…the summer edition
Ariens Company
655 West Ryan Street
Brillion, WI 54110
(920) 756-4688
Year Established: 1933
Number of Employees: 1,800
www.ariens.com
The scent of fresh-cut grass is one of the most obvious
signs of summer and there is probably no chore more
synonymous with summer than mowing the lawn. But did
you know that a company in Brillion makes some of the most popular riding and
walk behind mowers for commercial and residential mowing? For more than 80
years, Ariens® has been the choice of discerning homeowners when it comes to
the purchase of lawn and garden equipment. Ariens also manufactures trimmers,
edgers, lawn sweepers and other equipment useful for keeping a lawn looking impeccable all summer. Ariens
products are available at independent power equipment dealers in North America and Europe, The Home Depot
stores, broadline maintenance, repair and operating (MRO) suppliers, regional farm retailers and select online
retailers. The next time you step outside on a bright, sunny day and see neighbors mowing the lawn, know there
is an excellent chance their mower was made in Wisconsin.
Schoep’s Ice Cream
Given that Wisconsin is "America's Dairyland" it should come as no surprise that nearly
everyone’s favorite summer treat is ice cream. What you might be surprised to learn is
that Wisconsin is home to a company that produced 12 million gallons of ice cream last
year; that’s nearly a quarter of a billion scoops! Schoep's also manufactures frozen yogurt,
lite ice cream, frozen custard, sherbet and novelties. Considering their modest start in
1928, making ice cream in the back of a Madison grocery store, they are quite proud of their current ranking
as Wisconsin's largest independent ice cream manufacturer. The Schoep's "Home Pak" half-gallon line, familiar
to ice cream connoisseurs throughout the Midwest, was first introduced after World War II and is still the heart
of the Schoep's product line today. The next time you open the freezer for a cold snack on a blistering summer
day, remember it’s extremely likely that your ice cream was made in Wisconsin.
514 Division Street
Madison, WI 53704
(608) 249-6411
Number of Employees: 140
www.schoepsicecream.com
Johnsonville Sausage, LLC
There are few foods as critical to summer in Wisconsin
as the bratwurst. Many meat lovers are probably already
aware that the company with the No. 1 brand of sausage
in America is headquartered in Sheboygan Falls. Since
P.O. Box 906
its beginning in 1945, Johnsonville Sausage has become
Sheboygan Falls, WI 53085 well-known for using its family recipe to make the sausage with the BIG TASTE.
(920) 453-6900
Their award-winning product lines include bratwurst, Italian, smoked-cooked, breakfast, and snack sausage.
Johnsonville products are now available in all 50 states and in about 30 additional countries, including Japan,
Number of Members
France, Mexico and Canada. Each year on Memorial Day weekend, Johnsonville Sausage sponsors Brat Fest in
(Employees): 1,400
Madison, rain or shine, with proceeds benefiting local charities that help staff the event. The next time you grill
www.johnsonville.com
this summer and brats are on the menu, know that it is almost certain they were made in our great state.
Harley-Davidson Motor Company
Harley-Davidson Motor Company, the only major U.S.-based
motorcycle manufacturer, produces custom, cruiser and touring
motorcycles and offers a complete line of Harley-Davidson
motorcycle parts, accessories, riding gear and apparel, and general merchandise.
Founded in Milwaukee in 1903, Harley-Davidson is proud to call Wisconsin home with
its corporate headquarters located in Milwaukee, the Willie G. Davidson Product Development Center in
Wauwatosa, and manufacturing facilities in Menomonee Falls and Tomahawk. The 912,000-square-foot Pilgrim
Road Powertrain Operations facility in Menomonee Falls produces engines and transmissions for the Touring,
Softail®, Dyna®, and Sportster® model families and Custom Vehicle Operations™, and the 192,000-squarefoot Tomahawk Operations facility produces windshields, Tour-Paks and saddle bags for Harley-Davidson
motorcycles. Fulfilling dreams of personal freedom is more than a phrase at Harley-Davidson. It’s a purpose and
a passion. And it's headquartered right here in Wisconsin.
3700 W. Juneau Avenue
Milwaukee, WI 53201
Number of Employees: 6,500
www.harley-davidson.com
Fraud and Risk: A Global Issue
By Penny Foust
T
he war against internal and external fraud remains. The current
fraud landscape continues to change the types of fraud, how
it impacts businesses, and the best practices needed to mitigate
potential fraud loss. New twists on fraud schemes and techniques
surface as payment options change. Although today’s sophisticated
technology and online information tools provide more convenient
ways to conduct business, they are also turning payments fraud into
a global issue.
Building an effective deterrence plan is critical, since a great
deal of time and money is spent trying to reconstruct fraudulent
transactions to track down the perpetrator and reclaim missing
funds. Most people who commit fraud in the workplace are not
career criminals; they are long-time trusted staff members with
no criminal history. Most frauds are not one-time events either.
The famed criminologist, Donald R. Cressey, originated the Fraud
Triangle hypothesis, outlining the three factors that must be present
for an ordinary person to commit fraud: pressure, opportunity, and
rationalization. The Fraud Triangle applies to most embezzlers and
occupational fraudsters but it does not apply to the person who
takes a job with the intent to steal from the company.
All companies – small, medium and large – are vulnerable to
fraud, which leaves room for a variety of considerations. Does your
company have adequate controls in place to prevent it? Do you test
your company’s fraud health, and if so, how frequently? You should
also take steps that may help prevent fraud. Some ideas include
conducting an annual fraud risk assessment, which is a best practice
that can easily be implemented with little to no expense to your
business. Utilize free training resources featuring checklists and
videos; samples can be found on the Association of Certified Fraud
Examiners (ACFE) website: www.acfe.com. Become familiar with
a fraud prevention checklist that can help you identify inherent
risks and implement policies and procedures to mitigate the risk of
fraud loss.
We see a number of financial fraud cases originating from phishing
emails to keystroke loggers, to more sophisticated attacks like
ZeuS malware. However, standard check fraud continues to be the
number one type of fraudulent attack, despite the decline in overall
check use. According to the Association for Financial Professionals’
2014 Payments Fraud and Control Survey, the second most popular
vehicle for payments fraud is corporate and consumer credit and
debit cards. On a more positive note, ACH or electronic debit fraud
has decreased in the past year.
Financial losses from check fraud reach into the billions of dollars
each year and affect companies of all sizes and industries. Although
ACH fraud decreased in the past year, the increased volume of
ACH payments still creates an increased potential for ACH Fraud.
This white-collar crime is no longer limited to large corporations
either.
Financial institutions must make fraud protection tools, such
as check and ACH positive pay, an integral part of their cash
management product and service offering. These powerful
transaction management tools are designed to prevent and mitigate
losses due to check fraud and unauthorized ACH debits.
Most fraudsters understand best practices and technology may vary
with the size of a company. Where larger companies might have
sophisticated technology and staff dedicated to more advanced
security measures, many smaller to medium-size companies may
not. Remember to be on guard against inside jobs, which include
long-term, loyal employees, too. Ensure you have procedures in
place to detect and deter fraud. Educate your staff not to click on
links or open attachments from unsolicited emails. Never supply
confidential information, even if it appears to be from a company
with whom you do business. Utilize resources to help mitigate
fraud risk, which today are available to companies of any size. Talk
with your trusted advisors to understand what tools are available to
mitigate risk and understand what insurance you have in place. BV
Penny Foust, CTP, is Vice President/Director of
Treasury Management for Bank Mutual. She may
be contacted at (414) 257-8210.
WMC in the News
WMC's Scott Manley was featured on Wisconsin Public Television's
Here and Now to talk about the EPA's proposed mandate on carbon
emissions.
Kurt Bauer debated Wisconsin job growth on Up Front with Mike
Gousha.
17
BUSINESS
WORLD
Steve Benzschawel
Director of Business World
Business World - A Crash Course in
Entrepreneurship!
T
his summer more than 300 high school students
came to Business World for a hands-on experience in
entrepreneurship. Hosted at Edgewood College in Madison and
St. Norbert College in De Pere, our programs continue to teach
and inspire the next generation of entrepreneurs and business
leaders.
Working in groups of twelve,
students embark on a four-day
business venture, competing to
create the most innovative product
at camp. An executive management
team is elected and department
positions are staffed - the process
begins! The production team works
diligently to construct a prototype
from a pile of everyday items. Every
company needs solid branding, so the
marketing department crafts an image and brand consistent with
the company values identified by the young executives. The finance
department monitors the fiscal health of the fledgling company
through an online simulation that introduces students to basic
corporate finance and the elements of running a manufacturing
company.
Students learn the risks and rewards of entrepreneurship firsthand as they compete against other companies at camp and learn
the free market has winners and losers – you don’t get a trophy
just for showing up! Okay, they do get plenty of swag items,
but the trophies and ribbons are earned! Competitions at camp
include a trade show, a commercial contest and shareholder report
presentations complete with tough questions from the adult panel
of “shareholder” judges.
The creativity doesn’t stop with
our simulations at camp. I see
true entrepreneurial qualities in
our Business World students. The
stalwarts are there – baby sitting
and lawn care – but we also are proud to see our alumni starting
ventures like a photography business and a smartphone repair
company! Others are
utilizing their
entrepreneurial
spirit as engineers
and production
personnel
working for
Wisconsin
companies like Briggs &
Stratton, John Deere and
Georgia-Pacific.
For over 30 years, students have come to Business
World to learn about our free market economy and
the value of entrepreneurship to society. Students
learn skills and gain information that will continue
to serve them throughout their professional
careers. Some alumni get so much out of the program they return
to teach the next generation of BW students. Eileen Baus (Class of
’86) and Andy Lemorande (’94) are both former students turned
company advisors.
Twelve students, one adult
volunteer, and a pile of
everyday items. The rest, is
Business World. BV
With this summer’s programs behind us, it is
time to shift the focus to the Mini Business
World programs for the 2014-15 school year. We
take our Business World program on the road
to communities all around Wisconsin. Contact
us to learn about sponsorship opportunities and
how you can bring BW to your hometown!
@WiBusinessWorld
Wisconsin-Business-World
www.wibusinessworld.org
18
Check out our website;
www.crystal-clean.com or
call 877-938-7948 and ask for Dean Popovich
for more information on our services and
member only discounts and pricing.
BUSINESS DE
20
EVELOPMENT
Business Development in
Wisconsin
Are We on the Right Track?
By Mark Crawford
T
rying to define Wisconsin’s business
appeal can be challenging—not only
is the economic climate changing, there
are geographic conditions beyond our
control (winter!), as well as long-standing
preconceived ideas about Wisconsin
(cows, cheeseheads, beer) that are hard
to break. We’re also coming out of a
damaging recession—how many of our
new gains are due to natural recovery,
and how many are due to policies and
structural improvements implemented by
Governor Scott Walker? Can Wisconsin
draw serious investment capital? Are there
enough talented workers to go around?
This mix of variables makes it hard for
businesses to decide if Wisconsin should
be on their short list of places to locate
or expand.
“There is great potential today for business
development throughout Wisconsin,”
says Reed Hall, CEO/Secretary of the
Wisconsin Economic Development
Corporation (WEDC). “We are making
policy decisions today that are intended
to assure long-term success for our
residents, businesses and those companies
considering investing here.”
Wisconsin’s economy has improved
steadily over the last few years. The most
recent WMC survey ( January 2014)
found 95 percent of Wisconsin employers
believe the state is headed in the right
direction (up from 10 percent in 2010).
Private-sector job losses of 133,000 have
turned into more than 100,000 new jobs.
According to Hall, nearly 20,000 net new
businesses have been created in the last
3.5 years.
The Great Recession hit Wisconsin’s
manufacturing businesses hard. Their
recovery has been aided by the state
legislature’s
Manufacturing
and
Agriculture Tax Credit, which will
eventually lower Wisconsin’s tax liability
for eligible manufacturers from 7.8
to 0.4 percent by 2016. WEDC also
administers the very successful Economic
Development Tax Credit and
Jobs Tax Credit programs.
“Wisconsin has always had a “…property taxes on a mediangreat quality of life and great
valued home decreased for the
people,” comments Eric Sauey,
CEO of Seats Incorporated first time in twelve years.”
in Reedsburg. “The business
climate had greatly improved
since Scott Walker became governor. Just
to have the highest elected official in the
state tell the world that Wisconsin wants
businesses here says volumes.”
If You Believe in Rankings…
Surveys and polls can be tricky to
interpret—that said, several surveys
indicate Wisconsin is moving up in
the ranks. For example, CNBC ranks
Wisconsin as the fifth-best state in the
nation for manufacturing job growth.
“This is good economic news,” indicates
Jay Smith, Chairman/CEO of Teel
Plastics in Baraboo. “Manufacturing is
a key part of our economic engine and
represents nearly 500,000 jobs—20
percent of the state’s workforce.”
21
Other favorable rankings for Wisconsin include:
• Sixteenth for total private sector jobs created (Bureau of Labor
Statistics)
• Seventh for private sector job growth per capita (Bureau of
Economic Analysis)
• Tenth for job creation (Gallup Job Creation Index)
In contrast (and perhaps showing the vagaries of economic
surveys), Forbes’ “2013 Best States for Business” survey ranked
Wisconsin a dismal 41st. Yet CNBC ranks Wisconsin 22nd in its
“Best States for Business” survey.
Regardless of survey results, “the good news is that Wisconsin has
improved significantly over the last few years,” says Paul Jadin,
president of MadREP, the economic development engine formerly
known as Thrive in Madison. “The bad news is that we started
from a very low base. Overall, though, Wisconsin demonstrates
significant potential for business development. The fact that we
have a balanced budget is certainly not lost on businesses, as it
illustrates a stable and more predictable environment.”
Wisconsin’s Strengths
Tom Still, president of the Wisconsin Technology Council,
scores Wisconsin’s potential for business development as “fair” for
several reasons, especially its improved economic diversity, which
means it can perform better during economic downturns. “The
overall fiscal condition of state government has also improved,” he
says, “which should lessen fears for companies about growing or
relocating here. Our educational system is strong and the quality
of life in Wisconsin is something that can overcome other business
development obstacles, such as weather. A longerterm benefit is our ample water supply—that’s not
true in many places across the country.”
“I also sense some deterioration of the historic Wisconsin work
ethic, which may be due to wages being depressed for so long,
cultural changes and a decline in the percentage of women in the
workforce,” says Still. “And even though there have been some
improvements, investment in Wisconsin’s start-up economy is still
short of the mark for attracting significant outside dollars.”
A big negative factor for many companies is that Wisconsin is
not a right-to-work state. “I think the first thing companies think
about, if they will be employing significant numbers of people,
is locating in a right-to-work state,” says Joe Pregont, president
of Prent Corporation in Janesville. “Very simply, Wisconsin can
greatly improve its business appeal by becoming the next right-towork state.”
Finding and retaining high-quality employees continues to be a
challenge for businesses. The state’s Fast Forward Program helps
address the growing need for skilled workers by providing worker
training grants and making other investments to prepare workers
for jobs. The program also includes resources to develop a cuttingedge labor market information system in the future.
“Not only will the system provide real-time labor intelligence, it
will also serve as an effective forum to connect job seekers and
employers with available jobs,” says Hall. “Recent legislation
provides more than $35 million in additional funding to expand the
Wisconsin Fast Forward program.”
Start-Up Funding
One of the best ways to strengthen and diversify an economy is
by providing enough financial support to home-grown, start-up
Other key strengths for Wisconsin include a wellmaintained transportation infrastructure, a highly
skilled and dedicated workforce that is supported by
outstanding university and technical college systems,
and some of the best health-care services in the
country.
“The Upper Midwest is a major center of
manufacturing and agriculture in the U.S.,” says
Sauey. “Proximity to these industries is a strategic
advantage for Wisconsin companies. We have
plenty of material suppliers, a good transportation
network for distribution, and well-educated workers.
The availability of water and electric supply is also a
big advantage, as is the quality of life in Wisconsin.”
Wisconsin’s Weaknesses
There are several issues that might cause companies
to think twice about locating in Wisconsin.
Wisconsin has failed to attract well-educated
immigrants, who are needed to expand the state’s
workforce. Although rural areas of the state offer
some strong attributes (such as affordable, hardworking labor), rural economic development is
lagging—in part because of lack of high-speed
broadband in some areas.
22
BUSINESS DEVELOPMENT
STRENGTHS
RANKINGS
START-UP
FUNDS
WEAKNESSES
MOVING
FORWARD
companies to keep them local, instead of having them move out of
state where more investment capital is available.
Unfortunately, Wisconsin continues to significantly underperform
peers such as Minnesota and Michigan in annual venture activity
and new business formation.
“To put the gap in perspective, if we just matched Minnesota's
performance, it would likely result in $500 million to $1 billion
in additional investment into the state over ten years,” says Joe
Kirgues, co-founder of gener8tor, a start-up accelerator in Madison
and Milwaukee.
Help is on the way, however—over the last five years, a number
of new venture funds have started with an emphasis on digital
technology start-ups, including 4490, CSA Partners, the state's new
Fund of Funds and gener8tor. “These entrants have significantly
improved the financing climate for Wisconsin's emerging startups,” adds Kirgues.
The Wisconsin Department of Administration’s $25 million Fund
of Funds program will start funding emerging-growth companies
this fall. BrightStar Wisconsin is a non-profit investment fund that
supports early stage companies that are focused on job creation.
4490 Ventures, a partnership between the Wisconsin Alumni
Research Foundation and the State of Wisconsin Investment
Board, will invest $30 million in financing the growing IT sector.
“WEDC understands the importance of entrepreneurship and a
strong start-up community,” says Hall. “We have great ideas coming
out of our state and we need to start, seed and scale our companies.”
For the seed stage, WEDC has launched several innovative
programs:
• Seed Accelerators provides mentoring, business modeling and
financing to take ideas/technologies to commercialization
• Capital Catalyst provides matching grants to communities and
other entities to capitalize a seed fund that supports highgrowth start-up and emerging growth companies
In the seed to scale stage, WEDC’s Qualified New Business
Venture program provides an investor tax credit to individuals
investing into high tech businesses. WEDC also has technology
development loans that match equity, grants and debt financing to
support R&D to commercialization.
the Ideadvance Seed Fund is designed to help commercialize
technology and ideas developed on UW campuses across the state,”
says Smith. “It is also open to companies that license technology
from WiSys of the UWM Research Foundation.”
Moving Forward
One of the biggest business-development challenges Wisconsin has
is refining its identity, or brand.
“I honestly don’t think the biggest thing keeping companies from
coming here is taxes,” says Still. “I think it is a lack of knowledge
about the state, perceptions that it’s off the beaten path and the
idea that Wisconsin really can’t offer the truly big-bucks incentive
packages to move. Although we are getting the state’s fiscal house
in order, what we are not doing well is marketing the state’s
number-one brand outside the Green Bay Packers and dairy—the
University of Wisconsin. Policymakers need to understand UW is a
global, high-quality brand.”
The state continues to educate site-selection consultants about the
business merits of Wisconsin.
“Thanks to targeted efforts from both WEDC and regional groups
like MadREP, we know that site selectors are impressed with what
is happening in Wisconsin,” says Jadin. “Members of the Site
Selectors’ Guild were very receptive to Governor Walker at his
recent visit to their annual conference. These key decision-makers
are paying attention to Wisconsin in a way they haven’t before.”
Hall notes WEDC must continue to develop partnerships
across the state to make Wisconsin more appealing to business
investments. Partners include Wisconsin Manufacturers &
Commerce, the state’s local chambers of commerce, regional
and local economic development entities, regional planning
commissions and banks and credit unions.
“We must also expand our international operations to make the
state more appealing to business growth,” adds Hall. “Our recent
work with foreign trade commissioners is a good example. As the
world population shifts, exports and foreign investment will take on
an increasingly important role.” BV
Crawford is a Madison-based freelance writer.
Several programs that support entrepreneurs are also available
through the UW and UW-Extension systems. “For example,
The WMC Foundation is dedicated to building a better future for Wisconsin by
providing business and economics education, workforce development initiatives, local
chambers of commerce support, safety training programs and business best practices.
Thanks to these Foundation Sponsors
23
SAFETY
Janie Ritter
Director of Wisconsin Safety Council
Wisconsin Corporate Safety Awards
F
or the past 20 years, the Wisconsin Safety Council has partnered with the Wisconsin Department of
Workforce Development to sponsor the Corporate Safety Awards. I was honored to present these at
our annual conference this spring. The awards program honors Wisconsin businesses for exemplary safety
records and excellence in health and safety management.
The awards are given in four industry sectors: manufacturing; agricultural, forestry, transportation, mining
and utilities; construction; and other. The categories are further broken down by size within those industries.
This year’s 13 winners include:
Fitesa Green Bay produces
chemically bonded carded
products with the majority
of their facility devoted to
nonwovens fabric manufacturing,
producing fabrics that are
primarily sold to the hygiene
market for use in baby diapers.
In 2013, Fitesa Green Bay
produced enough nonwovens
material to completely cover well
over 33,000 football fields. Fitesa has gone an incredible 16 years
without a lost time incident.
Agropur inc. in Luxemburg is a worldwide supplier of awardwinning cheese and whey products. Agropur recently trained
employees in CPR/First Aid/AED/ Bloodborne Pathogen
clean up. In early 2013, this
training was put to the test
when Luxemburg’s employees
administered CPR to a truck
driver who was onsite securing a
load, and who stopped breathing
and had no pulse. Their AED
was applied and activated, which
enabled the driver to regain
independent breathing before
departing in the ambulance.
Expera Specialty Solutions – Nicolet Mill manufactures a variety
of specialty papers. The Nicolet Mill has been a VPP star site since
1995, one of the first locations in Wisconsin. The mill has seen
steady improvement in safety
performance in terms of reduced
recordable injuries, and in 2012
and 2013 they achieved the
lowest injury rate ever at the
facility with just one recordable
injury each year.
24
Wausau Window and Wall
Systems manufactures
engineered window and
curtainwall systems. Ergonomic
principles are considered
whenever they purchase
or build new equipment,
or make a process change.
When implementing a new
process, they utilize ergonomic
measurement tools to evaluate
the extent of risk for each task that must be performed.
GE Healthcare – Madison is a global provider of anesthesia delivery
and ventilation systems. GE Madison participated in (and won!) the
Dane County Bike Challenge
in 2013 tallying 18,000+ miles
promoting active and healthy
lifestyles. Additionally, their
‘Green Team’ established an onsite employee garden, where they
grew fresh produce to encourage
healthy eating. Any produce not
used by the employees is donated
to the local food pantry.
Neenah Foundry produces some of the world’s highest quality
municipal and industrial castings, including manhole frames, lids,
ornate tree grates and curb boxes, and can be found in streets and on
sidewalks anywhere in the world.
Employee involvement and
adoption of safety principles has
yielded incident rate reductions
of 40 percent or higher, and no
lost work day incidents in 2013,
continuing a streak of 3.7 million
working hours.
Alliant Energy – Wisconsin
Power and Light provides
domestic utility customers in
the Midwest with electric and
natural gas services. In 2013,
Alliant Energy enhanced their
Contractor Safety Program
by partnering with ISNetworld, who now manages their
contractor safety monitoring
process. Alliant employees are
allowed, and encouraged, to take home personal protective equipment to work on projects around the house, supporting their 24/7
safety goal.
Lakehead Painting Company is a family-owned industrial and
commercial painting contractor primarily in the oil and gas industry
with a focus on painting, abrasive blasting and fiber glassing of crude
oil storage tanks. Lakehead
has added an in-house safety
and quality training facility,
implemented a new health and
safety program manual and
tool box talk books specific to
Lakehead’s safety programs and
policies. Lakehead also welcomes
all employee family members to
become certified in first aid and
CPR training at no cost.
Bassett Mechanical is a
mechanical contractor which
designs, builds and services
refrigeration, air conditioning,
heating, dust collection, process
piping and plumbing systems
for commercial, industrial and
marine applications. Bassett’s
total recordable injury rate for
2013 dropped to 1.8 from 5.2
in 2012; and proudly sits at
1,223,615 hours without a lost
time injury, which represents
649 days of work for their crews.
AZCO INC. is a full-service industrial contractor and fabricator
serving the power generation market including gas, coal and
nuclear, alternative energy, metal
casting and steel mills, and
petrochemical and industrial
manufacturing industries. AZCO
INC. committed to certify
all supervisors in the OSHA
30-hour program, and their
fabrication facilities have achieved
over 17 years without a lost time
incident.
Flint Hills Resources –
Terminal Operations is a leading
refining and chemicals company
that includes gasoline, diesel, jet
fuel, propane, asphalt binders and
asphalt emulsions. The backbone
of FHR’s safety program is its
Safe Work Permit process which
includes reviewing the hazards of
the job with the maintenance or
contract workers prior to permits
being issued.
Warehouse Specialists, Inc. has transformed itself into one of the
largest privately held logistics companies in the U.S. Safety analysis
and planning start long before the acceptance of new business at
WSI. The company utilizes
its Chemical Review Team
to review its chemical storage
opportunities and identify
the hazards associated with
the products, infrastructure
concerns, training and reporting
requirements, equipment needed
and personal protection required
to safely handle the products.
Only after the CRT review
and approval does WSI accept new chemicals into a facility. WSI’s
greatest safety and health achievement in 2013 was decreasing their
Lost Day Incident Rate by 62 percent.
Colony Brands, Inc. is one of
the world’s largest and most
successful catalog companies.
Colony Brands declared the
third Wednesday of each month
Safety Day; time is set aside
on this day for employees to
participate in safety talks, quizzes
and potentially win prizes. The
success of this safety promotion
was outstanding – the company
averaged 2,500 employees over
the past three years who participated, 10,000 quizzes were collected
and 36 safety talks were presented, with a 98 percent participation
rate company wide.
Again, congratulations to all of the 2013 Corporate Safety Award
winners! BV
Follow WSC on Twitter @WISafetyCouncil
The Corporate Safety Awards are sponsored by
25
EXPORTING
Mike Shoys
WMC Senior Vice President
Cranes Crossing Oceans
I
n a country that often bemoans the fact that it doesn’t “make things” like it used to, Manitowoc Cranes
is a U.S.-based company that still thrives as a manufacturer and runs an equally vibrant export business.
In fact, more than half of the company’s $4 billion in revenue is generated outside of the country, with
most of its cranes assembled in Wisconsin and Pennsylvania.
Manitowoc Cranes subscribes to an overarching theory when it comes to its exports: product support is
the essential foundation to a successful export strategy. This includes offering expertise, customer service,
job site assistance, maintenance
programs, great warranties and
more.
As explained by Larry Weyers,
global executive vice president
of Manitowoc Cranes, “Product
support generates trust in
our company’s cranes and the
services that back them. It instills
confidence among customers to
import such a large ticket item
as a multi-million dollar crane.
Customers can rest assured that
they will have help in operating,
servicing and maintaining the
crane, and are therefore willing
to import the crane into their
country.”
Take the company’s relationship
with Chunjo Ltd., a construction
company in South Korea. Chunjo
imported a Manitowoc 2,500ton 31000 in 2013, one of the
largest cranes ever made and not
a cheap machine by any standard.
Manitowoc worked with Chunjo
on selecting the crane, training the
company to operate it and sending
experts to help its operators
complete a massive power plant
project.
“Chunjo would not have
purchased this crane from us if not
for the several years we’ve worked
to cultivate the relationship
by means of excellent product
support,” Weyers said. “It’s for
this same reason that when the
power plant project was complete,
Chunjo then bought 50 roughterrain cranes from our Grove line
in a single purchase this year.”
26
Wisconsin Exporters Reap Benefits of
South Korea Free Trade Agreement
A free trade agreement (FTA) that took effect in 2012 has already
boosted Wisconsin’s exports to South Korea, and this number is
only expected to increase further as Wisconsin companies step up
to meet the demands of this growing market. South Korea fared
better than most during the recent global financial crisis.
In 2013, Wisconsin’s exports to South Korea grew by seven
percent over the prior year, to a total of $431 million, and the
country rose from 13th to 11th in the ranking of the state’s largest
export destinations. Major export categories include industrial machinery ($87 million),
medical and scientific instruments ($74 million), and meat ($46 million), which jumped
nearly 67 percent over the prior year thanks to FTA. At the beginning of this year, South
Korea’s president announced plans to focus on growing five service industries—healthcare,
education, tourism, finance,
and software.
In the medical devices arena,
Wisconsin companies are well
positioned for sales in South
Korea: Korean companies
make comparatively lowerend medical devices, and the
country depends on imports
for high-end medical devices.
The energy sector represents
another key opportunity:
South Korea has set targets
to decrease its use of coal
and oil, and increase the
proportion of its energy that
comes from shale gas, solar,
wind, geothermal and biofuels
over the next 15 to 20 years.
For more information on
exporting to South Korea
or other parts of the world,
visit www.inwisconsin.com/
exporting.
WISCONSIN EXPORTING FAST FACTS
Wisconsin companies exported more than $5.6 billion in
goods in the first quarter of 2014.
TOP DESTINATION FOR WISCONSIN EXPORTS IN FIRST QUARTER
34+66 34+12+54 46+6+48 52+5+43 57+4+39
33.7%
CANADA
12.1%
MEXICO
6.3%
CHINA
5.0%
JAPAN
3.7%
UNITED
KINGDOM
WISCONSIN’S TOP EXPORTED PRODUCTS IN FIRST QUARTER
28+72 28+9+63 37+9+54 46+8+46 56+4+40
27.5%
INDUSTRIAL
MACHINERY
9.2%
MEDICAL/
SCIENTIFIC
INSTRUMENTS
9.1%
ELECTRICAL
MACHINERY
8.1%
VEHICLES
AND PARTS
4.4%
PLASTICS
PRODUCTS WITH SIGNIFICANT GROWTH FROM Q1 2013 TO Q1 2014
624%
STEAM
TURBINES
521%
FORKLIFT
TRUCKS
108%
COMPUTERS &
COMPONENTS
40%
RAW FUR
SKINS
14%
X-RAY
EQUIPMENT
Source: U.S. Census Bureau data as reported by Global Trade Information Services
Manitowoc accomplishes this product support through a vast network of “Crane Care”
service locations around the globe. A Crane Care location in Seoul helped Chunjo
navigate its Manitowoc 31000 purchase and the projects on which it would eventually
work. These locations help companies like Chunjo make informed product purchases,
assist in lift plans for complex projects, and when needed, handle maintenance and
service support.
“If not for our Crane Care service in Seoul that provides excellent product support to
Chunjo and similar companies, Manitowoc would not be in as good a position to export
so many cranes to South Korea,” Weyers said. “They might have purchased a cheaper,
inferior crane from a manufacturer in their own region, for example. We see this
scenario playing out in countries on every continent.”
For businesses in the U.S. looking to export their products to other countries around
the world the lesson is clear: A company’s export operations can only be as good as the
product support that backs them. BV
Why You Should Hire a National Guard Member
By Major General Dunbar
W
isconsin business leaders should make hiring a National
Guard member a priority. Why? Not out of charity, but
because it makes good business sense and it is how a business can
contribute to defending this great nation. The 10,000 Soldiers and
Airmen in your Wisconsin National Guard are among the most
highly trained, educated and professional men and women in
Wisconsin. Hiring a Guardsman is an investment in America and
your business’s future.
you hire a Guardsman, you get an employee who is drug-free,
disciplined and punctual. Service members respect authority and
the chain of command in an organization. The level of responsibility
and maturity required of military service members at a young age is
unparalleled in any field.
When the Guard is mobilized, as it
has often been since September 11, 2001, employers bear a burden.
They lose the employee while he/she is deployed. However, when
your employee returns, he/she brings back incredible life experience
gained in the cauldron of a combat deployment. That kind of
leadership is unique and valuable.
Make hiring a National Guard Soldier or Airman a priority. Do
it for the right reasons. Don’t hire a Guardsman out of charity or
pity – we don’t need that. Hire a National Guard member because it
is patriotic and a way for your business to support national defense
– we all have a responsibility, not just those in uniform. Hire a
National Guard member because it makes good business sense as it
is an investment in exceptional human talent. Make it a priority –
it’s the right thing to do. BV
Military service members are challenged with constantly changing
and diverse environments where they must work together
to accomplish their mission. Many of our Guardsmen have
experienced working in different cultures around the world.
Our Soldiers and Airmen are disciplined, physically fit, and know
how to work in a team environment. They are highly skilled in
Today’s National Guard is a national treasure and fulfills two key
leadership and they know how to
roles for our nation. We are the nation’s primary combat
follow. They took an oath to
reserve for the U.S. Army and U.S. Air Force, and we
defend our nation and willingly “When your employee returns,
are the first military responders here at home when
accept that they can be
disaster strikes. When you hire a Guardsman you
they
bring
back
incredible
life
mobilized at any time for an
get a dedicated individual who has technical skills,
overseas conflict or a domestic experience gained in the cauldron leadership ability and lives by a code of core values
emergency here at home. That
of a combat deployment.”
embodying integrity, courage, selfless service, trust and
takes guts!
honor.
Our service members are experts in their military disciplines.
Those skill sets include truck drivers, engineers, carpenters, masons,
electricians, surveyors, pilots, heavy equipment operators, logistics
experts, information technology specialists, vehicle and aircraft
maintenance mechanics, human resources professionals and medical
personnel to name just a few. Each Soldier and Airman receives
continual education over his/her military career allowing them to
master both their technical skills and also leadership techniques.
Major General Donald P. Dunbar is the Adjutant
General for the Wisconsin National Guard.
Perhaps even more important than the technical skill sets are the
intangible traits our men and women in uniform possess. When
27
Investing for Success
By Mary Burke
I
’ve spent most of my thirty-year career in
the private sector. At Trek Bicycle in the
early 1990s, it was my job to open up new
European markets to sell great Wisconsin
products overseas. Later, I was the Director
of Strategic Planning and Forecasting at
Trek for nearly a decade. Now, I’m running
for Governor to make Wisconsin a thriving,
top-ten economy.
The success we’ve had at Trek informs
everything I’ve done since I left, and
everything I’ll do as Governor. From
insisting on accountability and metricsbased decision-making to making strategic
investments to grow – there’s more we can
do to strengthen Wisconsin.
That includes ensuring our tax code is
competitive with states around the country.
The best way to reduce the tax burden
while ensuring we have the workforce,
infrastructure and safe communities
businesses need to thrive is by growing our
economy and our tax base. Cutting our way
to prosperity isn’t going to get the job done,
but neither is throwing money at it – it’s
about setting budget priorities.
It’s also about bringing people together to
tackle the real challenges facing our state.
Recently, I talked with a manufacturer in
Southeast Wisconsin looking to expand
– but the workforce he needs just isn’t
there. With just two more engineers
and additional welders he could increase
capacity.
With urgency, I would bring together
industry and education leaders to devise a
game plan to fill key shortages – ASAP! If
we need 250 more engineers a year, then
we’ll do it. Leadership and foresight is
needed so our education system is meeting
businesses’ current and projected needs.
To grow a business, you need to set clear
objectives and lay out your plan, as well as
how you’ll measure your success. You have
to get the right people with the right skills
in the right positions. And you have to
encourage innovation and new thinking to
compete and win in the global economy.
It’s time we took that businesslike approach
to growing our overall economy so that
Wisconsin businesses can thrive.
Each of those elements listed above - that
successful businesses do every day - are
embedded in my plan for the state economy,
“Invest for Success.” It starts with a major
shift of our economic development and
policy focus, to concentrate on industry
clusters so we’re meeting the needs of
whole industries rather than individual
companies. As I mentioned above, a big part
of that cluster approach
is ensuring our workforce
is prepared for the jobs
businesses need to fill.
Mary Burke recently briefed the WMC Board of Directors on her
plan to grow the Wisconsin economy.
28
We need to do more to encourage
entrepreneurship and startup businesses in
order for our economy to grow – creating
more opportunity for businesses both
established and new. Competing and
winning in today’s economy means thinking
globally, and there’s a lot more to do to
increase exports and strengthen Wisconsin’s
brand internationally.
Finally, we need strong communities where
workers and entrepreneurs want to live, raise
their families and make a life.
None of the strategies in my plan are
controversial or needlessly political, nor
should they be. They are a roadmap for
leadership that puts ideas that work front
and center, regardless of whether they’re
“Democratic” or “Republican.” I’m flattered
that WMC Board Member John Torinus
called my plan “the best he’d ever seen
from a Wisconsin candidate” – and I hope
that you’ll take a look for yourself at www.
burkeforwisconsin.com/jobs.
My commitment is straightforward. As
Governor, I’ll work with groups like WMC
and businesses around the state, as well
as with labor, industry experts and our
universities to make sure our economy is
growing and businesses are thriving. BV
Mary Burke is a former
Executive at Trek Bicycle and
led the Wisconsin
Department of Commerce
from 2005-2007. She is the
Democratic candidate for
Governor.
TRANSPORTATION
Jason Culotta
WMC Director of Tax &
Transportation Policy
Growing Freight Demand Requires
Rail Solution
W
ith a brutal winter behind us and the economy showing
more signs of activity, pressure is growing on our national
infrastructure system – especially rail – to handle increasing freight
volumes.
Rail shipments for a range of commodities are growing at a strong
pace. Crude oil trains have drawn the most media attention, though
they comprise less than two percent of carloads. Shipments of grain,
intermodal containers, and sand, stone and gravel by rail have seen
strong gains this year, improving by 15 percent, 6.6 percent, and 5.5
percent, respectively, year-to-date over 2013.
Freight rail volume would grow even faster if railroads could quickly
add capacity. Increasing demand for moving freight by rail has
generated unprecedented investment from the railroad industry.
Including capital projects such as double-tracking of mainlines,
installing passing sidings and industrial spurs, and acquiring
locomotives to meet changing needs of shippers.
already speculate the rail industry will be forced to increase rates to
slow increasing demand. Will the public benefits of converting overthe-road truck freight to rail and intermodal become a focus of our
infrastructure policy debate?
Wisconsin is benefiting from the capacity expansion of the
privately-owned Class I railroads, as the BNSF, CN, Canadian
Pacific, and Union Pacific railroads have all recently made
significant investments in the state.
The state also maintains programs to encourage shipper access to
freight rail on light-density lines across Wisconsin. Short-line and
regional railroads like Wisconsin & Southern are seeing increased
carload totals as many shippers have utilized state loans (paid back
with interest over time) to move goods by rail, both on Class I and
smaller railroads.
Access to rail is particularly important to our agricultural and forest
products industries. Moving both raw and finished products to mill
or market is crucial to those industries, especially as more of what
our state produces is exported.
The seven major Class I railroads are spending a record $15 billion
in private funds on capital expenditure
improvements this year. That compares “The seven major Class I railroads
Supply chain managers will be reevaluating their
to about $50 billion spent by the
are spending a record $15 billion in appetite for “just in time” shipping in favor of
federal government on transportation,
private funds on capital expenditure the cost-effectiveness of moving many goods
mostly on highways.
more slowly. The marketplace will require rail as
improvements this year.”
The shortfall in federal highway
well as lake and river ports to handle greater freight
funding has been widely discussed yet
volumes.
remains unresolved. The trucking industry, a crucial pillar of the
With the inevitable increase in freight, the federal government
economy, faces driver shortages and regulatory challenges that have
increasingly unable to fund highway capacity, and trucking beset by
no short-term answers.
challenges, stress on our transportation and logistics infrastructure
The Federal Highway Administration has projected a 45 percent
increase in freight volume will occur between 2012 and 2040.
Without the construction of more highway capacity and the
inevitable increase in road congestion, how is more freight going to
move? Out of necessity more freight will have to move by rail.
will continue. Rail and intermodal will play a growing role in
moving freight. BV
Follow Jason on Twitter @JGCulotta
Will we soon be discussing a shortfall in the railroad industry’s
ability to finance additional capital investment? Some analysts
29
WMC-BusinessVoice-5x7.75-HRb.pdf
1
5/20/14
9:41 AM
Follow WMC on
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Interview with Consul General of Canada.
ABR provides Work Ready Talent to meet the
administrative, call center, light industrial and skilled
industrial needs of Wisconsin businesses in:
•Appleton
•Brookfield
•Green Bay
•Oshkosh
•La Crosse
•Stevens Point
•Madison
•Sturgeon Bay
•Manitowoc
•Wausau
Interview with Consul General of India.
•Sparta
Our Candidate Centric approach attracts and retains
only the best talent! And, ABR’s talent and client’s rate
us among the top staffing firms in North America.
Business World for high school students.
Making connections between businesses
and legislators.
www.abrjobs.com
Seeking Nominations
Wisconsin Business Achievement Award
Interview with National Association of
Manufacturers' Jennifer McNelly.
Presented by the Flowers Family Foundation
Deadline August 1
Visit www.wmc.org for more information.
Legislative wrap-up with Speaker Vos.
30
Your DNR Working for You
By Cathy Stepp
A
s we enjoy summer in Wisconsin, I’m excited to share with
you some recent efforts we’re engaged in at your Wisconsin
Department of Natural Resources to better connect with businesses
and the economy.
As you have probably heard me say in previous guest columns
and at speaking events around the state, I believe protecting the
environment and ensuring economic vitality go hand in hand.
The exceptional quality of life available in Wisconsin is one of our
greatest attractions for individuals and businesses in the state.
To that end, since becoming secretary we’ve renewed our
commitment as an agency to better mesh businesses and business
development with managing our state’s world class natural resources.
Some recent activities to share with you:
We are building off our successful launch of the Office of Business
Support, Science and Sustainability by expanding the role of the
Office’s Small Business Assistance Program; this will help us go
beyond regulatory help and better connect our staff with new and
expanding small businesses.
Our sector development specialists have made great strides in
serving as the agency’s points of contact for businesses, raising our
profile in the business community. We recently added business
sector specialists to focus on broader economic issues including
waterfront redevelopment.
We continue to improve our coordination and regulatory efforts for
industrial sand mining, including adding new staff to help handle
compliance and air permit issues in this growing sector.
Finally, I am proud to say we are leaders in state government in
sharing with the public how investing in their DNR is paying
dividends, including our recently released agency report card
available online: http://dnr.wi.gov/about/documents/leanII/
DNRresultsFeb2014.pdf. The report is a one-page “dashboard” that
includes recent economic measures including meeting our goal of
faster turnaround times for issuing air and water permits, along with
meeting all our timber harvest goals.
Telling our customers how we’re performing is not new, but we
think this report card will be a great new way to show in 2014 and
beyond how we measure up and where we can improve. I encourage
everyone to take a look at the report card to see how we’re doing.
You can also see where we’ve been in our 2013 Annual
Report available online: http://dnr.wi.gov/about/
documents/2013YearReview.pdf. The annual report illustrates
the big strides we have made in communications and using new
technologies to help us be more accessible all over the state, even
when we’re sitting at our desks. We also now have more experts
and more boots on the ground to meet your business needs, for the
benefit of our economy and for our natural resources.
I am extremely fortunate to be the secretary of an agency that is
filled with such passionate and talented people, and I’m proud of
what we’ve accomplished as a state, and as an agency, by working
together. I look forward to more successful times ahead! BV
Cathy Stepp is Secretary of the Wisconsin
Department of Natural Resources.
Our lean initiative is also rolling along; staff have recently completed
a third round of process improvement projects which helped us
speed-up permit review times, reduce paperwork and save precious
budget dollars.
Celebrate Manufacturing Month in October
wimanufacturingmonth.org
WMC will once again be promoting manufacturing throughout the
month of October. The point of Manufacturing Month is to expose
students, parents, educators, legislators, and others to the career
opportunities available in the manufacturing industry.
Visit www.wimanufacturingmonth.org for
up-to-date information on tours and events
happening throughout the month.
Contact Susan Nyffenegger, [email protected]
or (608) 258-3400, for more information
or to add your event to the list.
OCTOBER 2014
31
ISSUE
ADVOCACY
Jim Pugh
Treasurer, WMC Issues
Mobilization Council, Inc.
WMC Issue Advocacy
The Time to Give is Now!
“Every year, the WMC IMC spends millions to educate the
public and drive the business agenda. We ALL benefit from
the public policy outcomes that occur because of WMC’s issue
advocacy, and therefore it is critical that we all support the
issue advocacy campaign.”
Daniel T. Ariens, President & CEO
Ariens Company, Brillion
WMC Chairman
Over the next few months, Governor Scott Walker and the probusiness lawmakers will face brutal attacks from big unions, radical
environmentalists, personal injury lawyers and others dedicated to
taking our state backwards.
They want to go back to higher taxes, more regulation and frivolous
lawsuits populated by jackpot justice.
The business community, under the leadership of WMC and the
WMC Issues Mobilization Council, Inc., needs to fight back and
deliver the business message. WMC IMC is a 501(c)(4) issue
advocacy organization dedicated to driving the business agenda
through advocacy, which is followed by WMC’s top-shelf lobbying
at the Capitol. WMC is Wisconsin’s leading business issue
advocacy organization – our policy agenda and aggressive lobbying
efforts ensure proven results.
Over the past seven years, WMC IMC has raised and spent $20
million to educate the public as the business community has
successfully achieved historic public policy victories – tax cuts,
regulation relief, lawsuit reform, mining reform and more.
We will stand up for you and your business in the face of the policy
threats posed by our adversaries.
“Governor Scott Walker and pro-growth lawmakers embraced our
vision, and we have set a course for renewal,” said WMC President/
CEO Kurt Bauer. “Wisconsin’s business community must remain
32
united in the face of policy threats that would make YOUR
company less competitive. Imagine what Wisconsin would be like
if Scott Walker were not the governor.”
As WMC’s Chairman Dan Ariens said in a recent letter to WMC
supporters, “Our opponents will be well-funded and WMC IMC
will provide the business perspective to the public.”
Truly, the time to give is now!
WMC IMC is currently taking donations in the mail and online.
You can make an online donation with your credit card at www.
wmcimc.org or you can mail your check to WMC IMC, P.O. Box
352, Madison WI, 53701.
WMC IMC needs to raise funds for television, cable television,
radio, direct mail, digital advertising, phone banks and more. All
donations to WMC IMC are kept strictly confidential, and are
not subject to disclosure under state or federal law. Donations
are unlimited, and we can accept donations from individuals and
corporations.
There has never been a more important time for the business
community in our state to stand united to advance the cause of
economic freedom.
We need to send a message to our adversaries that we will not be
intimidated and that we have the courage of our convictions to
stand in the public arena and fight back for job creation.
Please, write your check today to WMC IMC! BV
WISCONSIN BUSINESS FRIEND
of the ENVIRONMENT AWARDS
Presented May 14, 2014 at the Country Springs Hotel, Pewaukee
For the 25th year in a row, Wisconsin Manufacturers & Commerce is recognizing nine companies with the Wisconsin Business
Friend of the Environment Award. This year’s winners have been chosen for programs that demonstrate an innovative approach to
environmental protection, or a level of effort beyond that which is required by regulatory compliance. These success stories reflect
the continued commitment of Wisconsin industry to environmental protection.
Wisconsin Business Friend of the Environment award winners were selected by an independent judging panel that included
representatives from industry, the Department of Natural Resources, and the University of Wisconsin.
2014 Award Winners
Sustainability Category
New Glarus Brewing Company
New Glarus (small)
Milk Source, LLC
Kaukauna (medium)
Expera Specialty Solutions
Kaukauna (large)
Environmental Stewardship Category
Badger Alloys
Milwaukee (small)
Inpro
Muskego (medium)
Madison Gas and Electric
Madison (large)
Environmental Innovation Category
Badger Mining Corporation
Berlin (small)
BRP US Inc. / Evinrude
Sturtevant (medium)
Mercury Marine
Fond du Lac (large)
33
The Domino Effect – Reverse It!
By Linda Hansen
I
f you own or manage a business you are well aware of the
domino effect over-regulation, excessive taxation and intrusive
government mandates can have on your corporate and personal
prosperity. With each new wave of legislation, tax code changes,
executive orders or environmental regulations comes a sea of details
that need to be dealt with in order to ensure compliance. Legal
fees, reallocation of staff and resources, and a host of other expenses
combine to create a disaster for profitability. The focus becomes
how to comply and survive, rather than how to create, innovate,
and expand. The cost of compliance can become so prohibitive
that companies are often forced to cut services or products offered,
relocate, reduce their workforce, or (sadly) close their doors. The
ripple effects can be overwhelming for any business, but for the
small business owner they can be devastatingly destructive. The
dominoes fall one after the other as jobs are lost and families and
communities suffer.
and never consider the risks, personally and financially, involved
in job creation. This is yet another domino that falls when policies
do not encourage business growth, but instead promote wealth
redistribution and dependency on government. Economic illiteracy
contributes to the spread of misinformation and misdirected blame
on job providers.
Most job providers want to ensure employees are paid well, treated
fairly, and have opportunities for intellectual and career growth.
Yet, we all know employees may unwittingly vote for policies that
could put their job in jeopardy and possibly put their employer out
of business. It becomes a vicious circle of negative falling dominoes,
but the trend can be reversed.
Employers have a unique opportunity and, in my opinion,
responsibility to educate their workforce about threats to corporate
or personal prosperity. Many have expressed fear of speaking out
and facing possible criticism. However, doing so truthfully and in a
How do we reverse the domino effect? How do we encourage
non-partisan manner shows respect and concern for the employee’s
pro-business, pro-growth policies when we are
well being and encourages team building and
busy struggling just to survive? Many job
“An informed,
trust between employer and employee.
providers realize that uniting together in
educated, economically literate
Honesty about economic realities
pro-business advocacy groups, lobbying
only builds awareness, which in turn
for pro-business legislation, and electing workforce translates to an increase in
builds respect. When done properly,
leaders who understand the needs of the informed, educated, and economically educating employees about public
business community are all important steps
literate voters.”
policy issues affecting their job can be
to reversing the negative domino effect, but those
one of the most important things an employer
actions, while positive, are not enough to reverse the trend. We must can do to reverse the negative domino effects brought on by poor
first identify the cause of the problem, which lies in a cultural lack
policies. An informed, educated, economically literate workforce
of understanding about basic civics, economics, and why profits
translates to an increase in informed, educated, and economically
matter to job creation. Secondly, we must recognize and capitalize
literate voters. Voters who understand the need for policies
on opportunities to increase economic literacy, especially among
promoting growth and opportunity will elect leaders who believe in
employees, and do so in a non-partisan manner.
the same. And the domino effect will begin to reverse. BV
While many of us realize the business sector is the backbone of
Linda J. Hansen is Founder and President of
our economy providing millions of jobs and billions of dollars
Prosperity 101, LLC.
in tax revenues, not all employees share that understanding. It is
popular in our culture to demonize the successful entrepreneur
34
If you run a business, you know. The most valuable things
are also the hardest to get.
Your business didn’t grow overnight. It came from years of hard work, confidence in
what you could do, and making smart decisions. That’s why it’s so valuable.
Which is why an insurance policy from West Bend makes sense.
It protects Wisconsin manufacturers, large and small, so you can
focus on doing what you do best.
And with West Bend, you’re backed by the knowledge and experience
of an independent insurance agent.
West Bend. Insurance you buy when you can’t afford anything less.
To find out more, contact an official supplier of the Silver Lining®.
Visit thesilverlining.com for the name of the one nearest you.
Movers and Makers
Two Fox Valley Tech Grads are Part of a Movement to Invigorate
Careers in Manufacturing
J
onathan Patton was inches away from a career in the NBA. But
when that dream faded, he reflected on playing in the 2005
Division 1 NCAA Basketball Tournament and learned that every
experience is a once-in-a-lifetime opportunity. Later that year,
the 32-year-old native of Picayune, Mississippi helped victims of
Hurricane Katrina.
With the support of his family, Patton looked to life after basketball.
Among his family are his brothers college football player Terry
Carter and Charles Woodson. Yes, that Charles Woodson – former
Heisman Trophy winner and 2011 Green Bay Packers Super Bowl
champion.
While attending one of his brother’s games in Green Bay, Patton
met a senior-level official at Hattiesburg Paper Company. That
friendly encounter led him down a new career path. “I had always
been interested in manufacturing because you can make virtually
anything,” he recalls. “I received a job offer at the Green Bay plant,
and I knew a career in manufacturing was for me.”
To increase his technical capabilities, Patton enrolled in the Fox
Valley Technical College’s Package and Label Printing program. “It
was a no-brainer,” he says. “Fox Valley Tech is known as the best
school for printing in the country, and going there made me more
valuable to my company.”
Patton has also participated in marketing activities with FVTC
to help spread the word about the rewards of working in
manufacturing. “In just one year, you can gain the skills needed for
a serious career in a high-growth industry,” he says. “You’ll earn a
good salary without taking on the debt you would get at a four-year
college.” Patton is now proudly enjoying a rewarding career as a
quality assurance specialist for Hattiesburg Paper Company.
Ryan Geiger of FVTC’s Machine Tool program, which has seen 100%
graduate placement.
36
While in high school, Ryan Geiger was already planning for his
career and life. The world of manufacturing expanded the aspirations
for the now 21-year-old Brillion, Wisconsin native.
Geiger’s way of thinking mirrors a proactive pathway at Fox Valley
Technical College. Last year, the college implemented its JumpStart
initiative with five regional high schools, including Geiger’s alma
mater, Brillion High School. The program is designed to offer dual
credits to high school students who wish to pursue careers in the
in-demand industry of machine tool.
Geiger graduated from FVTC’s Machine Tool Technology program
in May. The training helped advance his career at Ariens Company,
where he started as an apprentice under the JumpStart partnership
umbrella while still in high school.
Geiger will soon become a journeyman machinist, and he is
enrolled in FVTC’s Mechanical Design Technology program to
enhance his skills even further. “I love what I’m doing in advanced
manufacturing and have a tremendous start to my career and life,”
adds Geiger. BV
Jonathan Patton
(background) shares his
insight on a flexographic
press.
You see the destination.
We see your path.
Insight. Experience. Passion for business. And a promise that we’ll work
as hard making your business a success as we do our own. Because to
us, the only true measure of our success is yours.
OFFICES IN MILWAUKEE, MADISON, WAUKESHA, GREEN BAY AND APPLETON, WISCONSIN AND WASHINGTON, D.C.
© 2013 Godfrey & Kahn, S.C.
Thoughts from Ret
WMC asked retiring representatives Clark and Severson for final thoughts as
they finish their final legislative session.
By Rep. Fred Clark, 81st Assembly District (D-Baraboo)
A
fter having the honor of representing
parts of Sauk, Iowa, Columbia, and
Dane counties in the State Assembly for
three terms, I’ll be returning to the private
sector. The experience of public service in
Wisconsin is one I’ve proudly shared with
many Wisconsin citizens before me, and one
I’ll now pass on.
As the ranking Democratic member of the
Assembly Committee on Jobs, Economy and
Mining I’ve been involved first-hand in many of issues of interest
to WMC members. While we’ve disagreed strongly with our
majority-party colleagues on many policies, I’ve worked successfully
with colleagues of both parties whenever we’ve had the chance to
solve real problems and get something done. In 2013 for example,
I worked closely with Rep. Mike Kuglitsch (R-New Berlin) to pass
Act 41 which created Wisconsin’s new Venture Capital Investment
Program. Additionally, I’ve worked closely with members of the
business community at home to make sure I am representing their
interests to the best of my ability.
I am a long-time small business owner and employer who has
waded through my fair share of state regulations and oversight.
Overall I strongly believe our economy and our private businesses
do best when we have a strong and effective state government.
The kind of economic growth that creates stable, long-term
prosperity in communities of all sizes requires public investment
in quality of life issues like good roads, high-performing public
schools, desirable public parks and downtowns, and clean air and
water. Maintaining these assets requires sustained public investment
where the pay-back period is measured in decades, not quarters.
Wisconsin has long enjoyed its reputation as a state where clean
air, water, lakes and forests go hand in hand with a vibrant, diverse
economy. While it may create short-term benefits for select
business sectors, weakening or eliminating necessary regulations
and oversight and reducing taxes without attending to quality of life
issues is like having ice cream for dinner but skipping the vegetables.
38
The role of elected officials everywhere is to allocate public resources
and balance competing interests. While we all want prosperity
for our communities, the reality is that some kinds of economic
development can bring as many problems as they do benefits.
Open-pit iron mining is one example of economic development
that creates distinct winners and losers. While I do not oppose iron
mines (last I checked my 2013 F-150 was made from iron by UAW
workers in Dearborn, MI) I opposed the iron mining legislation
AB-1 last session because it failed to strike proper balance between
mining and protecting local communities and clean air and water.
Unfortunately, the role of special interests and money in politics
can make it very difficult for even the most capable and wellintentioned legislators of either party to do what’s best for the
people they represent when presented with tough choices and onesided pressure.
I believe all Wisconsin citizens will be best served whenever our
elected representatives take positions and cast votes based on what
is best for the people at home, not what is best for party leadership
or the nice people in suits who happen to represent one side. There
are always two sides to an issue and legislators doing their job will
always try to understand both.
If, instead of taking the easy road of cutting taxes and regulations,
we take the high road of balancing interests and maintaining critical
public investments, Wisconsin WILL begin a sustained recovery as
stable business and good-paying jobs grow and the quality of life for
everyone in Wisconsin improves. That is the road ahead I hope we
will follow. BV
Fred Clark represents the 81st Assembly District. He can be reached
at (608) 266-7746.
tiring Legislators
By Erik Severson, 28th Assembly District (R-Star Prairie)
T
his legislative session has been both
memorable as well as bittersweet,
as I announced that I am not seeking
reelection. While this decision was not
easy, my children are growing up and I do
not want to miss any important milestones
in their lives. Looking back on my four
years in the Legislature, I am proud of
the work that I have been a part of, most
importantly eliminating the budget deficit,
improving insufficient mental health standards, and promoting more
responsible government.
During my time at the Capitol, especially with the passage of Act
10, I know that I have made a difference in the lives of average
Wisconsinites. While the Act 10 process was a difficult time, I
fully believe Wisconsin has set the standard when it comes to
state budget control by controlling both state expenditures and
property taxes. During my four years in office the reforms we made
to the size of government and its fiscal power have benefitted both
individuals and businesses across the state. I truly believe I am
leaving Wisconsin in a better economic place than it was when I
first ran four years ago.
In addition to Act 10, I am most proud of the work I accomplished
as chair of the Health Committee, including the passage of the
mental health care package developed by the Speaker’s Taskforce
on Mental Health. It was an honor to chair the Taskforce as
we worked to improve mental health statutes that had not been
updated since the 1970s. Wisconsin can now be seen as a leader in
mental health care reform and I look forward to watching continued
improvements in coming years.
Many individuals have asked if I have any advice to pass along
to the next person representing the 28th Assembly District. My
advice to him or her would be to work hard and give your best effort
because the people of the 28th District deserve it. The residents of
Polk, Burnett, and St. Croix counties are tremendous people you
need to consider with every decision you make. By working hard to
help these great people, you will earn their respect and the respect
of your fellow Representatives. Perhaps most important is to hire
a staff that you can trust to do a great job. I have been fortunate
to have a wonderful staff throughout my time in office who have
helped me tremendously on a daily basis. The four hour drive from
the 28th District is a tough one, but it is made much easier with
a great staff. Lastly, enjoy the experience and don’t forget to have
fun while you are working at the Capitol. There are many great and
interesting people, so make the most of every opportunity you are
given. Best of luck. BV
Erik Severson represents the 28th Assembly District. He can be
reached at (608) 267-2365.
39
CHAMBER
CORNER
Opportunities with African American
Businesses
By Dr. Eve M. Hall
T
he African-American entrepreneur Madam C. J. Walker, whose
life spanned 1867-1919, reportedly stated “I am not satisfied
in making money for myself. I endeavor to provide employment for
hundreds of women of our race.” As a self-made millionaire, Walker
was ahead of her time as an entrepreneur and manufacturer of hair
care products; ultimately becoming a philanthropist and social
activist for worthy endeavors advancing the black race. She held a
Hair Culturist Union of America convention in Philadelphia for
her representatives, and rewarded high sales and recruitment with
money and prizes. According to official biographer and great-great
granddaughter of Walker, A’Lelia Bundles, this was likely the first
national meeting of businesswomen. Madam C. J. Walker employed
hundreds of African American women and reflects the research
today indicating that minority firms tend to hire other minorities.
Much of the news reported related to the state of Wisconsin and
Milwaukee is dim – the city ranks last in minority entrepreneurship,
educational outcomes for minority students, segregation,
incarceration disparities, highest unemployment of African
American men, and the highest concentration of black businesses
in the central city as compared to other metropolitan areas where
these businesses are widespread. African Americans featured in
the news often are reflected in the negative or limited to sports,
entertainment, and music. Not that these industries are unworthy of
mention, but there is so much more.
I could go on and on about what’s “not” occurring and how bad
it is. However, I challenge us to focus on the opportunities and
possibilities our landscape contains. As the President and CEO of
the African American Chamber of Commerce, my concentration is
identifying the value-add of our community versus the deficits. In
our growing chamber membership, we have hardworking African
American entrepreneurs and business owners in construction,
professional services and trades seeking to strengthen and
expand their businesses. Professional services are in the areas
of technology, engineering, printing, professional training and
coaching, public relations and marketing, and retail, to name a
few. Our state struggles with a reputation of being last in critical
categories, yet growing and enhancing minority firms, in this case,
African American, can serve as a vehicle to address the woes of
unemployment and entrepreneurship.
According to the Commerce Department’s Minority Business
Development, and U.S. Census Bureau’s 2007 Survey of Business
Owners, African American-owned firms in the U.S. increased 60.5
percent between 2002 and 2007 to 1.9 million firms; driving job
creation 22 percent beyond non-minority firms. Farah Z. Ahmad
40
from The Center for American Progress recently reported African
American women being the fastest growing segment of womenowned businesses and starting businesses at a rate six times the
national average. Their $2.7 million firms are generating $226.8
billion in annual revenue and employing 1.4 million people.
I began this article with one of my favorite past entrepreneurs,
Madam C. J. Walker, born Sarah Breedlove, to illustrate that
successful entrepreneurship and employment are part of our
past and can be part of the present. Earl Graves, Sr. for example,
founder of the magazine Black Enterprise in 1970, exemplifies an
entrepreneur whose media product remains strong today as a vehicle
to promote black entrepreneurs and communicate success stories.
When black business stories were not popular or of interest, Graves
went against the odds to challenge the industry and thus create an
employment pipeline for minorities in print media. In our own state,
we have African American newspapers and magazines delivering
success stories in education, business, philanthropy, and the arts
through minority writers and photographers.
Our city and state has the opportunity to capitalize on its assets.
According to the U.S. Census Bureau’s 2007 Survey of Business
Owners and a 2013 issue brief by the University of WisconsinMilwaukee Center on Economic Development, African American
owned businesses in Milwaukee doubled between 1997 and 2007;
from 3,872 to 8,054 in the metropolitan area with employment
increasing from 6,320 to 9,801. Let’s work together to build
upon these numbers as we approach a new report and survey to
be released in 2015. With our chamber’s Revolving Loan Fund,
Women in Business Series, Entrepreneurship Mentoring Project
and other programs and services, I am meeting with businessmen
and women committed to expansion and job creation through
their firms and corporate representatives on increased contract
opportunities through strategic partnerships.
We can use the challenging set of circumstances in our city and state
to complain or problem solve. I choose the latter as we grow our
African American chamber to become a pipeline and example for
what is right in our communities across this state. BV
Dr. Eve M. Hall is President/CEO of the African
American Chamber of Commerce.
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(L-R standing) Corey Chambas, President & CEO of First Business Financial Services, Inc.
Joan Burke, President of First Business Trust & Investments
Dave Vetta, President & CEO of First Business Bank - Milwaukee
Chuck Batson, President & CEO of First Business Capital Corp.
(L-R seated) Mickey Noone, President of First Business Bank - Northeast
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The Future of Wisconsin

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