BizTimes Milwaukee | January 20, 2020

ECONOMIC TRENDS 2020

A preview of the year ahead in manufacturing, technology, real estate, retail and more.

Annual macroeconomic outlook Q& A with Michael Knetter 17 20 startups to watch in 2020 28

Big tourism year on tap for Milwaukee area 32

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 25, Number 19, January 20, 2020 – February 2, 2020. BizTimes Milwaukee is published bi-weekly, except monthly in January, July, August and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42. Single copy price is $3.25. Back issues are $5 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2020 by BizTimes Media LLC. All rights reserved.

Contents

4 Leading Edge 4 NOW

BY THE NUMBERS 5 FRESH DIGS 6 REV UP 7 IN THE NEIGHBORHOOD 8 GETTING THERE BIZ TRACKER 10 STYLE 11 BIZ POLL ON MY NIGHTSTAND

12 Biz News 12 K AREN VERNAL PASSES THE TORCH TO FORMER CLIENT 13 MADE IN MILWAUKEE

14 Real Estate

COVER STORY

17

37 Strategies

Consumers carry the economy

Special Report

17 Economic Trends 2020 This comprehensive report includes a macroeconomic outlook and outlook reports on manufacturing, retail, real estate, tourism and insurance.

37 ENTREPRENEURSHIP John Howman 38 FAMILY BUSINESS David Borst 39 TIP SHEET

42 Biz Connections 42 NONPROFIT 43 SBA LOANS 44 GLANCE AT YESTERYEAR COMMENTARY 45 AROUND TOWN 46 5 MINUTES WITH…

36 Workforce development Coverage includes a report about how manufacturers in southeastern Wisconsin are collaborating to address talent shortages.

WE’RE PROUD TO BE

WISCONSIN’S BANK FOR BUSINESS ™

414-273-3507 | townbank.us JAY MACK President & CEO

JOHN JOHANNES Executive Vice President, Commercial Real Estate

DENNIS KRAKAU Executive Vice President, Commercial Banking

biztimes.com / 3

Leading Edge

BIZTIMES DAILY – The day’s most significant news → biztimes.com/subscribe

NOW

5312 104th St.

Big projects bringing more jobs to Kenosha

By Alex Zank, staff writer Major developments in Kenosha will bring more jobs to the city, which remains a hot spot, especially for warehouse and distribution facilities, along the I-94 corridor between Milwaukee and Chicago.

A 729,600-square-foot warehouse and distribution facility with a truck and trailer parking

lot is planned for a site now used as farmland near I-94 and the Kenosha Airport. The $48.3 million project would create up to 480 full-time jobs.

The facility is being proposed on roughly 67.7 acres, located south of 38th Street, west of Canadian Pacific railroad tracks and

BY THE NUMBERS Fiserv and ExxonMobil have partnered with Amazon to offer gas payments via Alexa, which will initially be available at more than

11,500

Exxon and Mobil stations in the U.S. 4 / BizTimes Milwaukee JANUARY 20, 2020

east of 88th Avenue in the town of Somers. The site is across 88th Avenue from the Kenosha Airport.

The two parcels that make up the development site would be annexed by the city of Kenosha and rezoned for industrial uses.

Brian Wilke, Kenosha development coordinator, said the project would be co-developed

by Downers Grove, Illinois-based Transport Properties LLC and Riverside, Missouri-based NorthPoint Development. NorthPoint would own and manage the warehouse as a transport logistics facility. The entire building could be leased to one user or divided up for multiple users.

“NorthPoint Development has a significant client portfolio that are looking to expand their operations in the Chicago/Midwest area and will have no difficulties filling lease vacancies in the proposed warehouse,” the developers said in an application with the Wisconsin Department of Natural Resources to fill wetlands at the site.

The project would provide work to 250 construction workers, and once built would create 360 to 480 full-time jobs, according to the application. Those end-use jobs would have an average salary of $38,000.

Meanwhile, a Waukegan, Illinois-based logistics company is moving across the border to a

recently constructed industrial building in Kenosha.

Milwaukee-based Zilber Property Group announced it is leasing the 250,000-square-foot building it developed at 5312 104th St. to Trifinity Specialized Distribution, a logistics firm that ships to retailers such as Walmart, Sam’s Club, Target, Costco and most drug store chains.

Trifinity will be operational in the facility this month. All of its approximately 50 employees will work in the new building.

Thomas Boyle, senior vice president of Lee and Associates of Illinois LLC, represented Trifinity in lease negotiations.

James Merlo, Trifinity founder and chief executive officer, said in a news release that he tasked Boyle in early 2019 with identifying locations for a new Trifinity facility.

After an extensive search, Trifinity chose to relocate to Kenosha after meeting with its mayor, John Antaramian. “(Antaramian) is a great leader and has created a business-friendly atmosphere in Kenosha where Trifinity can grow,” Merlo said.

The news about the NorthPoint project and Trifinity’s move come shortly after Uline announced in November that it plans to build two new distribution centers along I-94 in Kenosha, a $130 million project that would add 350 jobs. n

LILA ARYAN PHOTOGRAPHY

FRESH DIGS

MORTENSON CONSTRUCTION OW N E R / DE V E LOPE R : Greywolf Partners A RC H I T E C T: HGA Architects C ON T R AC TOR : Mortenson Construction C O S T S : Undisclosed Y E A R C OM PL E T E D : 2019

GOLDEN VALLEY, Minnesota-based Mortenson Construction recently moved its Wisconsin offices from Brookfield to the fourth floor of the Honey Creek Corporate Center II building in Milwaukee.

Location is a big reason Mortenson chose to move from Brookfield, where it had been for 25 years, to Milwaukee’s west side. Scott Heberlein, Mortenson vice president and general manager, said it was key to find a central location for employees, many of whom travel regularly to job sites. The Milwaukee office has about 150 non-craft employees, about 80 of whom have a primary office at Honey Creek and another 70 of whom primarily work at job sites.

“The location here just really seemed to hit all the elements that made sense for us,” he said.

The modernized space has smaller private offices near the middle of the office floor, while cubicles are located closer to the exterior walls, meaning those workers enjoy more natural light than before.

Other features include sit-stand desks at workstations, a large training room with retractable glass wall panels, an open cafeteria area, numerous meeting rooms with Wisconsin-themed names, an area specifically set aside for employees who are in between field projects, multiple workspace options and an outdoor patio. n – Alex Zank biztimes.com / 5

Leading Edge

@BIZTIMESMEDIA – Real-time news

JAKE HILL PHOTOGRAPHY

REV UP

HEALTHFUSE

LEADERSHIP: Nick Fricano, chief executive officer and founder; Jon Myhre, chief operating officer and co-founder; Cody Clayton, executive vice president; Nick Corrao, senior director of client development; Kelly Welch, vice president of client services.

H E A D Q U A R T E R S: 324 E. Wisconsin Ave., Suite 1300, Milwaukee W H AT I T D O E S: Health care revenue cycle vendor performance management F O U N D E D: 2011 E M P L OY E E S: 30 NEX T GOAL: Deliver more value for hospital partners and give back to the community

Healthfuse uses tech, analytics to improve hospital vendor management

By Brandon Anderegg, staff writer

6 / BizTimes Milwaukee JANUARY 20, 2020

Nick Fricano, Jon Myhre, Kelly Welch and Nick Corrao.

HEALTHFUSE achieved record growth in 2019 after more than eight years in a unique segment of the health care industry.

The Milwaukee-based company provides revenue cycle vendor management services to hospitals and health systems to reduce costs while increasing collection performance of vendors.

In exchange for its services, Healthfuse retains approximately one-third of overall savings that it identifies, which is on average $1 million to $5 million per client, said Nick Fricano, Healthfuse chief executive officer and founder.

“Actual results from these vendors fall short of expectations for a lot of reasons,” Fricano said. “That can result in millions of dollars lost annually, which hospitals just can’t afford to forfeit.”

Healthfuse combines technology, analytics and research to review revenue cycle vendors and help health care organizations establish revenue cycle best practices. The company works to provide transparency around vendor processes so hospitals can better gauge their overall performance.

“We have really unique technology that allows us to audit every patient account that a hospital’s vendors may be touching, whether it’s coding, billing or collection related,” Fricano said.

With no upfront fee for hospitals, the company’s business model can be thought of as a

capital partnership or a risk/reward relationship – a unique approach to savings in the health care industry, Fricano added.

“We’ll take your risk but then also we’ll share on the upside, and that’s how we’ll fund our efforts,” Fricano said.

In 2019, Healthfuse grew by 40% yearover-year and added 53 more hospitals to its portfolio, which increased its market penetration by 30%. The company is now partnered with approximately 153 hospitals across the U.S., Fricano said.

Healthfuse said it identified $86 million in recurring revenue for new clients and $186 million in revenue for existing clients, with a three-year project impact of $258 million in 2019, Fricano said.

Hospitals and health systems are currently debating whether to build out their own vendor management tools or rely on companies like Healthfuse. However, Fricano senses a shift towards the latter, which he says is evident in the company’s recent growth spurt.

“I see right now from an adoption perspective, we’re over the early adopter phase and we’re into the majority of the market that I think will be compelled to do something,” Fricano said. “I think the numbers are too big to ignore now and they’re getting the attention of hospital boards, executive teams and beyond middle management.” n

IN THE NEIGHBORHOOD What products do you make and what type of clients do you serve?

Jim Ladky, president: “We produce specialty, safety-critical thread-rolled parts, fasteners and threaded bar. Industries served include aerospace, oil and gas, power generation, water control, heavy equipment and many more.”

ROLLED THREADS UNLIMITED LLC 1404 Pearl St., Waukesha NEIGHBORHOOD: Waukesha FOUNDED: 1985 OWNERS: F. W. Ladky Associates EMPLOYEES: 30 SERVICE: Manufacturers of threaded bar

Who are your customers?

“Some of our large customers are Siemens, GE Aerospace, Generac, Komatsu, Parker Hannifin, Fastenal and Mercury

Marine. Manufacturers and distributors from all corners of the country, Canada and some overseas seek us out for our unique capabilities and the need for the higher strength attributes of a thread-rolled product.”

What is it like to work at Rolled Threads?

“Each day, since we are a job shop with a large customer base, we are presented opportunities to review new parts and projects. We make such a large variety of parts, employees at all levels are fully engaged

in our processes.”

What’s most rewarding about your work?

“We have four family members employed at Rolled Threads: President Jim Ladky, vice president of sales Ted Ladky, vice president of manufacturing Ben Ladky and vice president of marketing Matt Ladky. It is a rewarding experience working hard together with a goal to continually grow the business.

Staying busy, growing the business and having common goals help us avoid the pitfalls of running a family business.” n

A Lifetime of Service.

A Legacy of Excellence.

Baird celebrates the life, leadership and legacy of our former Chairman G. Frederick Kasten.

We’ll continue to honor his memory and philosophy through our commitment to our clients and the communities we share.

He will be missed but never forgotten. To read more about Fred’s legacy, please visit rwbaird.com/FredKasten. updated: 10/09/2017

Fred Kasten 1939-2019

©2019 Robert W. Baird & Co. Incorporated. Member SIPC. MC-416503.

biztimes.com / 7

Leading Edge

BIZTIMES MEDIA – Like us

GETTING

THERE

What’s a challenge you overcame to get here?

“Moving from government legal work into private practice is not always easy for those looking to make a career change. Potential employers may question your ability to succeed on the business side of legal practice.

To quell those concerns, I educated myself on those aspects of private practice so I would be prepared to make the change when the opportunity came.”

The latest area economic data.

45.1

The Milwaukee-area manufacturing index for December was

Any reading below 50 indicates a contraction in the sector.

Wisconsin grew by 15,028 people, a 0.26% increase, in 2019 to bring its estimated population to

5,822,434.

What are you most looking forward to in your new role?

“I am proud of the work I did in my past role, but I am very much looking forward to the ability to focus on a smaller number of cases and give my clients the extra attention that comes with having more time.”

Advice for law students and early-career attorneys?

“Learn as much as you can about the actual practice of law, regardless of the subject area. My skills are what they are today because my experience in both trial and appellate practice provided me with a unique perspective on how to effectively litigate a case. I also believe that creativity is so important to quality practice. Interesting legal questions are present in almost every case if you keep an open mind and look closely enough.”

8,590 A total of

workers in Wisconsin were affected by mass layoffs in 2019 that require state notification, a 1.9% increase from 2018.

Favorite thing to do in your free time?

“Hands down, my favorite thing to do is to spend time with my family – my husband and two little boys. They are the best.” n

NICOLE MASNICA Associate, Gimbel, Reilly, Guerin & Brown AGE: 33 HOMETOWN: Delafield EDUCATION: Bachelor of Arts degree in political science with minors in sociology and philosophy from University of Minnesota Twin Cities, and juris doctor degree from the University of Wisconsin Law School PREVIOUS POSITION: Assistant state public defender in the trial and appellate offices of the Wisconsin State Public Defender

8 / BizTimes Milwaukee JANUARY 20, 2020

$1.82 billion Wisconsin exported

in goods during November, a drop of $1.6 million or 0.09%. For the first 11 months of the year, the state’s exports were down 4.15%.

Of the respondents to the semi-annual Wisconsin Manufacturers & Commerce survey,

58%

said the state’s economy is “strong” or “very strong” while 36% described it as “moderate.”

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CATCH UP ON RECENT EPISODES: MONDAY, JANUARY 20, 2020

David Riemer: Senior Fellow, Community Advocates Public Policy Institute MONDAY, JANUARY 13, 2020

Kimberly Kane: Creating the Type of Company You’d Love to Work For MONDAY, JANUARY 6, 2020

Steve Glickman: The opportunity created by Opportunity Zones MONDAY, JANUARY 6, 2020

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spor ts memorabilia GIANNIS ANTETOKOUNMPO-AUTOGRAPHED JERSEY $795 at Jeff’s Sports, Brookfield This Milwaukee Bucks jersey signed by the Greek Freak himself is displayed with a laser-cut double matting and photo.

RAY NITSCHKEAUTOGRAPHED DISPLAY $3,000 at Waukesha Sportscards, Waukesha An autographed jersey by Green Bay Packers legend Ray Nitschke is a rare find. The premium-framed display behind non-glare museum glass includes replicas of the team’s 1967 and 1968 championship rings.

MILWAUKEE BRAVES HANK AARON BOBBLEHEAD

BY FOREVER COLLECTIBLES

“WISCONSIN’S FINEST” $1,195 at Jeff’s Sports This 23-by-33-inch MVP tribute features autographed photos of Giannis Antetokounmpo, Aaron Rodgers and Christian Yelich, matted and custom framed in-house.

10 / BizTimes Milwaukee JANUARY 20, 2020

$900 at Waukesha Sportscards This 3-foot-tall Hank Aaron bobblehead is part of a limited 20-piece collection from Somerset, New Jerseybased Forever Collectibles.

Only available at Waukesha Sportscards, the item has been a top seller.

BIZ POLL

on my nightstand...

A recent survey of BizTimes.com readers.

What is your economic outlook for your industry in 2020?

GROWTH:

STABLE:

DECLINE:

30.4%

52.2%

17.4%

JUSTIN KERN Communications officer American Red Cross of Wisconsin

‘The Death and Life of the Great Lakes’

By Dan Egan

Share your opinion! Visit biztimes.com/bizpoll to cast your vote in the next Biz Poll.

Advertise in these upcoming special reports and get your message in front of area business executives.

JUSTIN KERN has lived near a Great Lake for most of his life, but reading “The Death and Life of the Great Lakes” illuminated for him the serious threats facing those familiar bodies of water.

Milwaukee Journal Sentinel reporter Dan Egan’s 2017 book explores the history of the Great Lakes, the perils they face and the possibilities for restoring them in the future.

“It’s a pragmatic re-introduction to the five Great Lakes and their

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connected waterways and watersheds, our backyard front-line for global challenges with climate, sustainability, industry and potable water,” Kern said.

The book topped Kern’s list of favorites last year.

“Like many people, I had enjoyed Dan Egan’s dedicated journalism on Lake Michigan for years,” he said. “With this book, he puts important historical perspective behind the development of the Great Lakes as we think we know them.” n

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IT DOESN’T HAVE TO BE LONELY AT THE TOP! MMAC’s CEO, CFO, Senior Executive and Sales Management Roundtable programs are designed to give top-level executives a way to share best practices and address the unique issues they face.

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BizNews FEATURE Karen Vernal and Laura Piotrowski hold the 1996 Atlanta Olympics torch.

Karen Vernal passes the torch to former client

By Brandon Anderegg, staff writer LAURA PIOTROWSKI attributes the leadership training of Milwaukee-based Vernal Management Consultants with helping her rise to an executive position within Robert W. Baird early on in her career.

Now, Piotrowski owns the firm that helped shape her own leadership.

After 20 years as president and chief executive officer of Vernal Management Consultants, its founder Karen Vernal recently passed the torch to Piotrowski, selling her the business in October. The firm, which specializes in leadership development and executive coaching for businesses and organizations, has changed its name to Vernal LLC with Vernal remaining involved as a consultant and close advisor.

Since 1999, Vernal and her team have trained thousands of leaders across several industries, working with all-sized companies, 12 / BizTimes Milwaukee JANUARY 20, 2020

mostly local, including Northwestern Mutual, Baird, Rockwell Automation and Harley-Davidson.

Piotrowski, founder and president of Cavendish Consulting, LLC, was previously the chief financial officer and vice president of human resources at Stein’s Garden & Home. However, Piotrowski spent the majority of her career at Baird, where she was managing director of finance.

When she received training through VCM, Piotrowski said it allowed her to track her functional competency and reflect on insightful questions posed by her coach.

“What it did for me and what I see it doing for other leaders is that accountability,” she said. “It holds you accountable for moving that needle yourself.”

Throughout Vernal’s career, she’s discovered that most executives become leaders because of their functional competency, meaning they are good at their

particular job. However, just because someone is a great engineer, doctor or accountant, it doesn’t always equate to expert leadership skills, she said.

“People have some intuitive ability, but it’s a different tool box,” Vernal said. “Organizations, I think, have the responsibility to really provide the tools for their leaders to be successful.”

It’s not uncommon for executives to have never experienced a confidential relationship where they can raise concerns over competency in a safe space, Vernal said. Even if a leader can ask those questions, he or she is often too busy working in the business, leaving little time to work on the business or on themselves, Piotrowski added.

“To have a moment or an hour to reflect with someone that is providing the time and energy around focusing internally, your behaviors and thoughts, it’s a huge leader-

ship advantage,” Piotrowski said.

Emotional intelligence is at the core of Vernal LLC’s model, with self-awareness and bridge building as major components of the company. Vernal LLC is one of two firms in the country certified in emotional intelligence by the Institute for Health and Human Potential.

With Piotrowski now at the helm of Vernal LLC, the company continues its legacy of having a team with a variety of backgrounds.

In 1999, Vernal, who previously served as director for behavioral health agency Hawkins Donovan and Associates’ corporate division, purchased the division from Jo Hawkins Donovan, who laid the foundation for what Vernal LLC is today. Vernal is a BizTimes Milwaukee strategies columnist, and Hawkins Donovan is formerly a BizTimes Milwaukee strategies columnist.

When Hawkins Donovan signed over the business to Vernal, the deal was sealed over a lit candle and a bit of poetry – the beginning of what Vernal considers a successful career guided by an “uncommon” approach to leadership training, she said.

“I think it’s a reflection of the way we have humanized our work and how we help leaders humanize their work as leaders,” Vernal said.

Fast forward to 2020, Vernal and her team’s style of leadership is still heavily influenced by Hawkins Donovan’s background in mental health and counseling but has evolved to include Vernal’s background in social work, and Piotrowski’s wealth of corporate experience.

“It’s not about me or us,” Vernal said. “It’s about the engagement of the clients. They have to do the work. We can help to guide, but leaders that really want to learn and grow, the opportunities for them are endless.” n

MGS has big ambitions for its Germantown campus IT DOESN’T NECESSARILY look like it from Maple Road, but MGS is creating a health care center of excellence at its Germantown campus, investing $20 million and consolidating Illinois operations, and 115 jobs, into the facilities.

Inside, the company has around 45,000 square feet of clean room space that turns out millions of pounds of resin to turn out billions of parts a year. MGS also has a 60,000-square-foot tooling center with 100 toolmakers. The company says it is among the 10 largest centers in North America.

MGS also has operations in Menomonee Falls and Oak Creek, along with facilities in Mexico and Ireland and its revenues now top $250 million.

The latest expansion added 13,000 square feet of clean room space to the Germantown campus for a company that started in 1982 as a small mold making shop for the plastic injection molding industry.

Founded by Mark G. Sellers, it grew to be a $15 million tooling organization by the mid-1990s.

The company began incorporating some design services and a few molding machines to sample products for customers. With Motorola as a major customer, the company rode the growing popularity of cell phones and its customer’s need to produce multiple models per year, each with its own tooling, to become a $100 million company.

“As quickly as it grew it seemed to move twice as fast to China by the mid-2000s,” said Paul Manley, who has been with the

company for 25 years and is now president.

Manley acknowledged it was a classic case of customer concentration issues and at one point Motorola might have accounted for 80% of the business.

“It was a scramble to build a more diversified custom molding business and tool shop,” he said.

That’s when health care entered the picture with the 2006 acquisition of All West Plastics in Antioch, Illinois.

In contrast to the fast pace of change that defined consumer electronics like cell phones, the health care sector offers long product lifecycles and sustainable organic growth, Manley said.

Originally a tool shop, today, MGS provides services from design and engineering to mold making, automation, production and assembly. Manley said the health care industry pairs well with the capabilities MGS has developed over the years, particularly the drug delivery devices and diagnostic components the company supplies.

“They require precision plastic parts. It always has to be right considering the critical nature of the components and the devices that they go into,” Manley said. “It limits competition to those of us in the industry that can rise to the level of service and quality.”

“Zero defects isn’t just a saying or goal; it’s required to protect patient health,” he added.

MGS, acquired by Milwaukee-based private equity firm Mason Wells in 2016, has contin-

The tool room at MGS’s Germantown campus.

MGS

W188 N11707 Maple Road, Germantown INDUSTRY: Plastic injection molding EMPLOYEES: 1,800 (600 locally)

mgsmfg.com

ued to invest in serving the health care industry over the past five to 10 years. The goal now is to grow the industry to be more than 50% of the business.

While the opportunity for sustainable growth makes sense, it doesn’t answer why the company chose Germantown for its center of excellence.

“We chose Germantown based on the high level of technical talent in this area but specifically within our group,” Manley said.

Technical talent and people in general have grown to be particularly important as MGS has expanded its offerings beyond tool making to include designing and building the automation systems used to produce parts and then actually running production for customers.

“Our real value proposition to our customers is when we apply all of the capabilities of MGS,” Manley said. “It helps provide a single point of accountability for our customers (and) simplifies their supply chain.”

But having all of those offerings makes MGS more of a service provider and less of a manufacturer.

Manley pointed out that in every

service industry, people are key.

“It’s always going to be the most important differentiator,” he said.

MGS also isn’t done growing its Germantown campus with the latest expansion. The company has other operations in the area that could be consolidated to the site at some point in the future.

“That’s the master plan for the campus,” Manley said. “We have the ability to add approximately 250,000 square feet and really be able to be the epicenter of MGS.” n

ARTHUR THOMAS Associate Editor

P / 414-336-7123 E / arthur.thomas@biztimes.com T / @arthur8823

biztimes.com / 13

Real Estate

REAL ESTATE WEEKLY – The week’s most significant real estate news → biztimes.com/subscribe

Racine Mayor Cory Mason and chief innovation officer William Martin.

Statewide opportunity fund could provide needed attention to Wisconsin projects

A new opportunity zone fund with a focus on investing in Wisconsin-based developments and businesses could open the door to projects that have been largely overlooked by similar funds.

In December, the city of Racine announced the creation of the Badger State Opportunity Fund.

The fund, which is being spearheaded by the city, will partner with both the public and private sectors to attract capital for development projects, business expansions and new business startups.

Rather than focusing on one particular project, it will direct investment dollars into a variety of project types and locations.

The fund, like many others created around the U.S., is designed to take advantage of the federal Opportunity Zone program. Created in 2017, the program provides tax benefits to investors who invest in projects or businesses located in a designated opportunity zone.

Benefits include a temporary tax deferral for capital gains reinvested in an opportunity fund, an increase in basis of the original investment if that investment in the opportunity zone is held by the

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American Family recently announced it has chosen to locate the new office in the 110-year-old former Mandel printing building near the northwest corner of West McKinley Avenue and North Dr. Martin Luther King Jr. Drive. The building and a nearby parking lot were acquired in December by a joint venture of the company and MB Acquisition LLC, the building’s previous owner.

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thing in Milwaukee, since it’s in a hotter market.

Stu Wangard, chief executive of Wauwatosa-based developer Wangard Partners, said he sees the benefit to a statewide fund that invests in multiple projects.

“As an investor, you do want to receive some of the benefits of diversity for risk management,” he said. “That doesn’t assure anybody that a comingled fund will outperform a single-asset fund, but it should mitigate some risk.”

He added that he likes the matchmaking aspect to it, in that it connects investors with communities that on their own may not have a high enough profile to attract attention.

Martin said he and others working on the fund used the final days of 2019 to review new final regulations issued in late December by the U.S. Treasury Department. They then began reaching out to communities that have opportunity zones and separately sent “introductory emails” to accountants, financial planners and wealth advisors.

He said the fund would choose to invest in companies, businesses and projects that are located in one of Wisconsin’s 120 opportunity zones, have financial support from both the public and private sectors, are expected to generate an annualized rate of return of 8-16%, are suitable for a hold of at least 10 years to maximize the program’s incentives, and those that benefit communities by creating jobs or addressing an unmet need. n

ALEX ZANK Reporter

P / 414-336-7116 E / alex.zank@biztimes.com T / @AlexZank

ENGBERG ANDERSON ARCHITECTS

taxpayer for at least five years, and a permanent exclusion from taxable income of capital gains from the sale of an investment in an opportunity zone if the investment is held for at least 10 years.

The fund seeks to raise between $15 million and $25 million.

“Its mission is to work with, and on behalf of, investors as well as the public and private sectors to aggregate quality projects, deploy capital profitably and create more inclusive economic opportunity across Wisconsin’s urban and rural communities,” said William Martin, Racine’s chief innovation officer.

Rebecca Mitich, partner at Husch Blackwell, said opportunity funds come in various forms. The funds could be for a specific project, or those located in a certain area, or even those focusing on a certain theme, such as agricultural businesses or renewable energy.

Mitich said Wisconsin projects could stand to benefit from even more state-specific funds than just the one.

“It’s just very difficult to get dollars from outside of the state into the state, which is why something like this Badger fund is important, and why I think it’s important to have more of these funds,” she said. “We need more than just one Wisconsin fund.”

What Wisconsin projects have going against them is both their size and geography. There also hasn’t been a concerted effort to draw the attention of outside opportunity funds to state projects.

“The vast majority of opportunity zone projects in the state have come from funds that the project itself created, and investors invested into that fund,” Mitich said.

A $500 million fund, for instance, looks to invest in something like five $100 million projects rather than 50 $10 million projects.

That many projects would be too hard to manage, she said.

Another disadvantage Wisconsin projects have is that investors want to direct money toward what they feel are the “best” opportunity zones. For instance, it is less risky to invest in a skyscraper in downtown Portland than in any-

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Econonomic Outlook | Employment Trends | Innovation | Manufacturing

COVER

STORY

Consumers carry ca the economy ECONOMIC TRENDS 2020 A preview of the year ahead in manufacturing, technology, real estate, retail and more.

A YEAR AGO, MANY ECONOMIC EXPERTS PREDICTED THAT THE U.S. ECONOMY WOULD SLOW IN 2019.

“There is little doubt in my mind that real economic growth will slow down in 2019,” Michael Knetter, the president and chief executive officer of the University of Wisconsin Foundation and a former staff economist for presidents George H.W. Bush and Bill Clinton, said a year ago.

The economy did slow down in 2019, but not much. After U.S. gross domestic product grew 2.9% in 2018 (the best since 2015), it grew 3.1% in the first quarter, 2.0% in the second quarter and 2.1% in the third quarter of 2019. GDP growth for the fourth quarter is projected at 2.3% by the Federal Reserve Bank of Atlanta. That adds up to only a slight dip in U.S. GDP growth in 2019.

What happened? Consumers, whose confidence has been buoyed by an unemployment rate at or near 50-year lows, have spent enough to keep the U.S. economy’s record-setting growth streak alive, even as many businesses became more cautious largely due to uncertainty from tariffs and trade wars instigated by President Donald Trump.

Trump has been aggressively cutting taxes and regulations to help grow the economy and has criticized the Federal Reserve for not doing more to help out, even though the Fed cut interest rates three times in 2019. The trade

wars have hurt some industries, including the agricultural and manufacturing backbone of Wisconsin’s economy, but Trump says they will pay off in the long run with better deals for the United States. Recently, Congress finally moved to adopt the United States-Mexico-Canada Agreement and Trump recently signed a first phase trade deal with China. The new trade deals could boost the U.S. economy in 2020.

Many economists are predicting continued, but still slow, growth for the U.S. economy in 2020.

How the economy performs could have a major impact on the presidential election this year.

For more insight on what to expect in 2020, BizTimes Milwaukee editor Andrew Weiland recently conducted his annual interview with Knetter, who will once again provide a macroeconomic outlook at BizTimes Media’s annual Economic Trends event on Friday, Jan. 24 at the Italian Community Center in Milwaukee.

BIZTIMES: U.S. economic growth slowed in 2019, but perhaps not as much as expected. Why? What is your take on the state of the economy heading into 2020?

KNETTER: “The economy indeed remains stronger than most observers and prognosticators would have imagined as we entered 2019, having been through a deep correction in equities and declining

MICHAEL KNETTER consumer confidence in its wake. I believe that the main reason the economy has continued to forge ahead is the major reversal in monetary policy that has occurred over the year. The Fed had been steadily tightening up through the end of 2018 and then sharply reversed course with several rate cuts during 2019 and a suspension of the planned unwinding of the quantitative easing policy that was used to help the economy out of the depths of the Great Recession. The combination of lower rates and greater liquidity was constructive for the equity market, the dollar, consumer and business confidence/expectations, and ultimately spending.

“It is important to note that President Trump has put an unusually high degree of focus on economic performance relative to most previous presidents, as evidenced by relaxation of regulatory actions from many agencies that oversee business, jawboning of the Fed to loosen policy, relatively expansive fiscal posture (tax cuts), and pressure on trading partners. It was clear coming into the year that his odds of reelection would hinge heavily biztimes.com / 17

STORY COVER on whether the economy could maintain its momentum far enough into 2020 that he could run against a backdrop of continued growth and low unemployment. He has seemingly used every lever available to him to achieve that objective, including perhaps holding back on resolving the China trade tensions as long as practical to ensure an additional boost as we enter 2020.

“While it is not possible to parse out attribution for the performance of the economy to the Trump administration, the Fed (who may have cut with or without the president’s pressure), the Congress, or most importantly all the firms and households whose decisions shape our outcomes, we have simply never seen a president as active (sometimes chaotically) in promoting his desired economic policies. And those desired policies put a premium on growth now. They may or may not be ideal for the longer term performance of the economy (we don’t talk much about the federal deficit, but we surely will in the next recession and that will be unpleasant) or the environment. On both accounts, Trump seems to understand the tendency of many Americans toward materialism in the present versus sacrificing today for a potentially better future. He is doing his best to throw shade on conservation practices that many Americans find inconvenient and I suspect this is part of his electoral calculus.

“So, we have a strong and seemingly stable economy entering 2020. It is the longest economic expansion in U.S. history and it has been marked by uncannily stable growth rates year on year.

This likely reflects the continued progress in managing supply chains (avoiding big swings in inventories that previously added volatility) and the continued growth in the service sector as a share of GDP (it is much less volatile than manufacturing and construction). While we are always only one big shock away from growth getting derailed, those shocks are by definition unpredictable and it is hard to see how this expansion dies a policy-induced death anytime soon. With no inflation pressure, it is hard to say we are overheating, even at historically low rates of unemployment. That may be due to the looming threat of technology change and innovation that can displace labor.”

BIZTIMES: Confident consumers are powering the U.S. economy right now as businesses have been more cautious. Why is that? Can consumers continue to carry the economy on their backs?

KNETTER: “Consumers have indeed shown great confidence in their spending behavior and it looks like the holidays put an exclamation point on that trend. Consumers are working and earning and the markets are making us all feel a little wealthier than we probably have a right to feel (given they can go down, too), so I do not see the end of the U.S. consumer as a driver of growth. Businesses have been more cautious in sinking fixed investments in some sectors due to all the trade policy chaos. If 18 / BizTimes Milwaukee DECEMBER 16, 2019

that settles down, they might drive the next phase of growth.”

BIZTIMES: What do you expect for U.S. GDP in 2020?

KNETTER: “One way to think of GDP growth is the growth in hours worked plus the growth in productivity. I think we will grow at less than 2% on the year, maybe 1.7%, simply due to the math of lower growth in employment (due to declining growth in new entrants and not many unemployed workers to be absorbed into jobs) and the low likelihood of a surge in productivity growth. The less certain of these two factors is the productivity growth. It is possible that we are riding a wave of labor-saving technology that can boost output per worker and temper wage growth.”

BIZTIMES: The U.S. unemployment rate is at a 50-year low. Job growth is slowing as many businesses say they are struggling to find people to hire. This labor market is obviously good for workers, but isn’t it a problem holding back business growth?

KNETTER: “You are right that the tight labor market is holding back business growth, but it is hard to label low unemployment a ‘problem.’ It is a fact of life right now and firms with the best growth opportunities will have to pull workers away from firms that are more marginal in order to grow. That may be the key to boosting productivity.”

BIZTIMES: With that tight labor market, wages finally are rising. Will we see that accelerate in 2020?

KNETTER: “I do think we will see that accelerate in 2020. But I thought we would see more of that in 2019 and I was mostly wrong about that. Here’s to better luck in 2020!”

BIZTIMES: “Tariffs on U.S. goods in response to President Trump’s multi-front trade war have been a burden for the U.S. economy and especially for manufacturers and farmers. Now that Congress has approved the United States-Mexico-Canada Agreement and a preliminary phase one trade deal has been reached with China, where do you think things stand for the U.S. economy and trade? What impact will these new deals have on the U.S. economy in 2020?

KNETTER: “The resolution of these two fronts of the trade war will be constructive for business confidence and the economy in 2020. I say this without having read all the details of these agreements, but knowing that any agreement at this point is likely better than continued uncertainty about the rules.

I prefer a multilateral, rules-based trade regime in theory, so I am somewhat uncomfortable with all of the bilateral efforts that have been undertaken by the current administration. But more clarity on our situation is going to help people make decisions, assuming they feel fairly confident the new rules will last for a good while.”

BIZTIMES: The Federal Reserve cut interest rates three times in 2019. President Trump complained often that the Fed was not being aggressive enough to

help the U.S. economy. What do you expect the Fed to do in 2020?

KNETTER: “I think 2020 will be a quieter year for the Fed simply because right now we seem to be in the ‘Goldilocks’ economy. Not too hot, not too cold.

Until it moves toward inflation and overheating or a growth slowdown, I think the Fed will sit back and watch.”

BIZTIMES: Is inflation something we need to worry about right now? What about the growing national debt?

KNETTER: “There is no strong sign of inflation at the moment, but we need to be vigilant given the tight labor market. I’m more concerned about the national debt. If inflation did materialize, nominal interest rates would likely rise and the cost of financing the existing stock of debt would rise along with them. And even if rates stay low for now, piling on more and more debt seems unwise to me. Both monetary and fiscal policy seem to me to be favoring the current generation at the expense of future generations. While I am not saying that is totally surprising for a nation as materialistic as we seem to be, it does worry me. I don’t think our generation is leaving a great legacy on economic, environmental, geopolitical or social dimensions.

But I’m going out to dinner tonight!”

BIZTIMES: The U.S. stock market rebounded in 2019 after a terrible year for the market in 2018. Why? What do you expect from the stock market in 2020?

KNETTER: “I believe the Fed policy reversal was the main reason for the turnaround. I think the market will remain strong into the beginning of 2020 (not necessarily going up much more from here but staying on the nice perch we’ve reached, give or take a little) and then will be heavily influenced by the fall election, one way or the other. It is still not clear what the matchup will be for the presidential election and how that might shape market sentiment. One thing that does concern me regardless of the matchup is that the election year rhetoric could be very divisive this fall and that might darken sentiment.”

BIZTIMES: In the middle of 2019, some were worried that a recession was around the corner. Those fears seem to have passed for the most part. Are we out of the woods as far as having to worry about a recession in the near-term?

KNETTER: “I felt a year ago that the looming election meant that the president would do everything possible to hold off a recession in 2019, and that those actions would be enough to carry the economy through the year. Whether that was the reason or not, we are still growing as we enter 2020, and at this point I expect we will be growing as we enter 2021, but much more slowly. We can certainly avoid recession in 2020 given how we will enter the year, but slowing growth can dent confidence of businesses and consumers which can cause a downward spiral. I just don’t see that in 2020 right now unless there are some unexpected dynamics related to the election.” n

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Special Report ECONOMIC TRENDS

GRAEF CEO envisions strong year for company, city

By Alex Zank, staff writer 2020 IS SHAPING UP to be a big year for GRAEFUSA Inc. The Milwaukee-based design and engineering firm at the end of last year officially moved into its new downtown offices at The Avenue, the mixed-use redevelopment of the former Grand Avenue mall space at 275 W. Wisconsin Ave. Work on the space is still being completed.

John Kissinger, chief executive officer of GRAEF, said he sees more good things ahead on multiple fronts, beginning with Milwaukee’s Westown neighborhood, where the firm is now located.

The downtown area west of the Milwaukee River will benefit from continued development activity, he said. In addition to the Avenue, other major projects include Milwaukee Symphony Orchestra’s redevelopment of the Grand Warner Theatre, the renovation of a number of office buildings and further development potential in the Milwaukee Bucks’ Deer District.

“I tell people now is the time to get into Westown,” Kissinger said. “I think it’s a really emerging neighborhood in the city.”

Also on the horizon are big opportunities for the rest of the city, the state and the U.S., said Kissinger, who will be a speaker at BizTimes Media’s annual Economic Trends event on Jan. 24.

“Milwaukee and Wisconsin are both poised to have a good year,” he said, citing the 2020 Democratic National Convention and the Ryder Cup as shining moments for the region, along with the extra attention Wisconsin will receive as a battleground state in the presidential election.

On a macro level, Kissinger expects another good year, though perhaps not quite as strong as 2019. In predicting that, he points to strong consumer demand and low unemployment.

GRAEF sees opportunity to grow its business in the southeastern region of the U.S. and among cli-

JOHN KISSINGER ents facing climate change-related issues, such as those dealing with rising sea levels or those preparing for increasingly common severe weather events.

The firm in 2018 acquired a Miami-based consulting engineering company for that very reason.

Beyond that, GRAEF is seeing heightened interest from both public- and private-sector clients on how to make structures that are more resilient to

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large storms.

“We’re trying to get heavily involved in coastal engineering because there’s a lot of issues on the coast with hardening for storms and rising sea levels,” he said. “Even in the Midwest, you see concern about how do you design infrastructure for larger and larger storms.”

For instance, clients in Miami are dealing with regular flooding as the high tide moves in. They have responded by rebuilding properties further inland and raising street levels.

Coastal engineering makes up less than 5% of GRAEF’s business, but Kissinger said he expects it to “more than double every year over the next four, five years.”

GRAEF is also looking to grow further through acquisitions this year if the right opportunity presents itself, he said.

“We’re actively seeking acquisitions and have been (doing that),” Kissinger said. “We have to be very strategic in what we do.”

Because of GRAEF’s size, a bad choice in acquisition would prove more harmful for the firm compared to larger companies.

Beyond that, Kissinger said he would like the company to continue the trend of organic growth it

Courtesy of GRAEF

ECONOMIC TRENDS

Rendering of GRAEF-USA Inc.’s new office space in downtown Milwaukee.

has seen in recent years, including in the Midwest.

He added that its Minneapolis office will “really hit its stride” in 2020.

“We’re also growing organically at about 7-10% per year, and have been the last few years,” he said.

Although Kissinger expects a good year on the whole, both for GRAEF and the general economy, he anticipates a few challenges.

For one, Wisconsin hasn’t found a sustainable method of financing all of its needed infrastructure improvements. The aging public infrastructure in areas such as Milwaukee is a “real problem,” he said.

However, he pointed to some recent successful public-private endeavors to rebuild or construct new cultural assets, including the MSO’s project in Westown, Fiserv Forum and several projects happening at the Milwaukee County Zoo. “They’ve been able, in a public-private fashion, to upgrade their facilities,” Kissinger said. “The strictly public sector has struggled to upgrade those facilities, and those are the same age.”

Other cultural assets and public infrastructure in Milwaukee that are in need of attention include the Mitchell Park Domes and portions of the freeway system, he said. n

FOR N E P O S TION A N I M O N

NOTABLE WOMEN

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Your company, and its executives, are invited to submit a nomination that will help us determine this year’s honorees. The special section will run in print and online, recognizing the chosen individuals for their leadership and accomplishments.

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Beyond workforce challenges, the one thing that’s certain in manufacturing is uncertainty

By Arthur Thomas, staff writer turing, a survey of area businesses, hit a peak in February 2018 of 75.2, just before the first announcements about tariffs were made. Any reading above 50 indicates growth in the manufacturing sector and for nearly two years now the index has been generally trending down. It was below 50 during the entire second half of 2019 and seven of the past eight months (see chart).

Marko Bastl, assistant professor of supply chain management at Marquette, noted that many manufacturers in Wisconsin are both buyers and suppliers from and to markets hit by tariffs, making the state particularly susceptible to the impact of tariffs.

“Wisconsin literally sits in the middle,” he said.

Bastl pointed to Federal Reserve research that suggests, at the national level, the drag on hiring, rising input costs and retaliatory actions are outweighing the protectionist benefits of Trump’s tariffs.

“The bottom line, short-term at least: tariffs

Ramirez will be among the speakers at the 19th annual BizTimes Media Economic Trends breakfast on Jan. 24. Among the topics he’ll address is how Husco has managed the challenges of increased tariffs and uncertainty, including concessions from suppliers, sourcing from other countries and raising prices.

“It’s kind of all of the above and no single action is going to address 100% of the issue, but you just do your best to take as many bites out of the problem as you can,” he said.

Husco isn’t alone in facing challenges from tariffs. The Marquette-ISM Report on Manufac-

are hurting the manufacturing sector,” he said.

In the latest survey of businesses by Wisconsin Manufacturers & Commerce, more than 50% of respondents said tariffs are hurting their companies, up from 47% in the summer.

At the same time, 79% of respondents support using tariffs as a negotiating tactic to force other countries to play fair.

Bastl said some companies feel that tariffs, particularly with China, will stay in place one way or another and so they’ve started restructuring their supply chains, moving work to countries like Vietnam and Cambodia.

Source: Marquette-ISM Report on Manufacturing

AS A GENERAL RULE, uncertainty is not good for business, but for almost two years manufacturers have been getting a heavy dose of it as President Donald Trump seeks to dramatically remake the relationship between the United States and its trading partners, especially China.

“The uncertainty around tariffs is really impactful as we think about next year,” said Austin Ramirez, chief executive officer of Waukesha-based Husco International.

Husco makes components for the automotive and off-highway markets. Its facilities around the world generally make products for use in local markets but the company sources components globally, so new tariffs by the U.S. and retaliatory actions are both adding costs for the company.

In some cases, Husco has been granted exclusions that provide some tariff relief but those are set to expire soon, creating more uncertainty about how the Trump administration will treat them.

AUSTIN RAMIREZ In fact, through the first 11 months of 2019, imports from China were down by 20.5%, according to data from the U.S. Census Bureau. That $1.53 billion decrease was partially offset by increases from other Asian countries, but those gains only amount to a combined $253 million or 10% increase.

Even with the uncertainty, Bastl is cautiously optimistic about the prospects for growth in 2020, drawing confidence from the national environment, which is still trending toward growth.

“Demand is still there. It’s a little bit volatile, but it’s still there,” he said.

Tim Wiora, executive director and chief executive officer of the Wisconsin Manufacturing Extension Partnership, said it is clear the manufacturing sector has slowed down. Vendors are beginning to offer shorter lead times and better prices, but there is nothing to suggest things are about to come to a screeching halt.

“They’re still busy, but not at the rate they’ve been running for the last few years,” Wiora said.

For Husco, business is particularly weak in Europe and India while the automotive market in China is also down significantly, Ramirez said.

“North America is probably the best from a fundamental economic perspective … but there’s a lot of question about what’s going to happen (in 2020) and what demand is going to look like,” he said.

Ramirez noted that 2019 ended with many customers taking out inventory to go into 2020 in a leaner position. It could set them up for a strong year of financial performance or position them to weather a downturn, he said.

“I don’t think anybody knows which of those two scenarios is going to play out,” Ramirez said.

“The problem right now is there’s just so much uncertainty out there that manufacturers and all sorts of businesses are being very cautious with new investment because they don’t want to get over-extended and put themselves back in the position they were in 10 years ago when the market fell apart.” n biztimes.com / 23

Special Report ECONOMIC TRENDS

Insurance industry in transformation Companies investing in technology

By Brandon Anderegg, staff writer en companies, such as New York-based Lemonade, a property and casualty insurance company that brands itself as “instant everything.” It takes “90 seconds to get insured” and “three minutes to get paid” are among the promises on its website.

Companies like Lemonade and others with a customer “self-service” business model are targeting less complex policies like auto, renters and homeowners insurance and having some success, said Kevin Steiner, West Bend Mutual president and CEO. However, money that initially entered the insurtech space, which sought to disrupt the industry and even eliminate the independent agent, is instead moving towards efficiencies, Steiner added.

“As long as independent agents adapt to customer expectations and find ways to use technology, there’s still a very bright future for them,” Steiner said.

Courtesy of American Family Insurance

THE INSURANCE INDUSTRY has experienced a significant shift in the past two decades, an evolution driven by technology, data and consumer demand for a faster and more customer-friendly experience.

So much so that many of the insurance industry’s biggest players have reinvented their identity as tech companies in addition to insurance companies.

As the industry transforms, more data and technology are being used in a variety of ways, from prospecting, advertising and sales to underwriting, claims and service, American Family Insurance Group chief executive officer Jack Salzwedel said.

“The human interaction of insurance – agents (and their trusted expertise), service, claims – are still important to customers,” Salzwedel said. “But today, they’re supplemented by more self-service

American Family’s new downtown Milwaukee office will be located in the 110-year-old former Mandel printing building near the northwest corner of West McKinley Avenue and North Dr. Martin Luther King Jr. Drive.

and technology solutions to improve business and satisfy the changing needs of customers.”

Salzwedel believes the insurance industry is in an era marked by “paradoxes and contradictions.” While there’s continued investment in technology and data, insurance companies are also tightening expenses.

Salzwedel will be among the speakers at the 19th annual BizTimes Media Economic Trends breakfast on Jan. 24.

The industry has also seen a surge of tech-driv24 / BizTimes Milwaukee DECEMBER 16, 2019

Technology is replacing jobs while many organizations, including American Family, are adopting lean methods and practices to gain efficiencies at lower costs. However, the same companies are also investing more in their employees through higher pay, more intentional development, stronger employee experiences and more modern facilities.

American Family recently announced the location of its new downtown Milwaukee office – the 110-year-old former Mandel printing building

JACK SALZWEDEL near the northwest corner of West McKinley Avenue and North Dr. Martin Luther King Jr. Drive.

Once completed, between 200 and 250 employees, mostly in claims, will relocate to the building from American Family’s current Pewaukee office. The company will also create 150 new positions to be based at the downtown Milwaukee building. Those new employees will work in functions such as technology and data science, community investments and partnerships, and sales and agent recruitment.

An American Family spokesperson said the new office is part of the company’s strategy to retain a diverse and tech-savvy workforce, specifically those of the millennial generation who want to live in an urban setting.

The project will also likely take advantage of the Opportunity Zone program, a federal program created in 2017 by lawmakers to encourage investment in projects located in distressed areas.

The Mandel building is located in a designated Opportunity Zone.

Salzwedel said more companies in the industry are investing in their communities and social issues because of their employees. He cited a 2017 Cone Communications corporate social responsibility study that suggests 78% of consumers want companies to address important social justice issues.

The same research, Salzwedel said, shows Americans feel companies should have a seat at the table to solve complex and controversial social issues. In 2018, the company launched American Family Insurance Institute for Corporate and Social impact, a new venture that supports leaders of social change, coaching them in entrepreneurial thinking, processes and partnerships.

“We’re doing these things at American Family, and so are many other companies, because we believe it’s the right thing to do for the communities where we live and work,” Salzwedel said. “It’s needed to solve complex issues but it’s also being demanded by today’s workforce.” n

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Special Report ECONOMIC TRENDS

Generac leads local stock gains Market bounced back in 2019

BY ANDREW WEILAND, staff writer THE U.S. STOCK MARKET rebounded big in 2019, following a dismal 2018.

The tech-heavy NASDAQ Composite index was up 35% in 2019, the S&P 500 rose 29% and the Dow Jones Industrial Average was up 22%.

It was the best year for the NASDAQ and S&P since 2013, and the biggest gain for the Dow since 2017.

All three of those indexes recovered from declines in 2018, which was the worst year for the U.S. stock market since 2008.

Most publicly-held companies in southeastern Wisconsin also saw their stock prices increase in 2019. Of the 35 publicly-held companies tracked by BizTimes Milwaukee, 25 posted stock price increases during the year.

The biggest local gainer was Waukesha-based Generac Power Systems Inc., which saw its stock price increase 102% in 2019 to $100.59 a share.

The company made several acquisitions to push into the clean energy space in 2019 and in late October chief executive officer Aaron Jagdfeld said precautionary power outages in California implemented to prevent wildfires were creating a new level of interest in home standby generators made by Generac. The company said that could lead to $200 million in new annual sales for the company in the future.

The second biggest local gainer is on its way out of Milwaukee. Gardner Denver Hold26 / BizTimes Milwaukee JANUARY 20, 2020

ings Inc. saw its stock price rise 79% in 2019 to $36.68 a share. Milwaukee-based Gardner Denver will merge with Ingersoll Rand’s industrial segment. The headquarters for the combined operations will be in Davidson, North Carolina.

The third biggest local gainer was Milwaukee-based REV Group, which saw its stock price rise 63% to $12.23 a share. REV Group was the area’s biggest stock price loser in 2018 (its stock price fell 77% to $7.51 a share in 2018), and bounced back some in 2019.

The fourth biggest local gainer last year was Brookfield-based Fiserv, which had a 57% increase in its stock price to $115.63 in 2019.

During the year, Fiserv acquired New Yorkbased First Data Corp. in a $22 billion all-stock deal that combined two Fortune 500 firms.

The biggest loser for local stocks in 2019 was Milwaukee-based Jason Industries Inc., which saw its stock price fall 73% to just 37 cents a share. The company sold off its Metalex and fiber solutions segment (comprised primarily of Janesville Acoustics).

Of southeastern Wisconsin’s publicly-held companies, Quad/Graphics had the second biggest drop in stock price in 2019. Its stock price fell 62% to $4.67 a share.

In 2018, Sussex-based Quad announced it would acquire Chicago-based LSC Communications in a massive $1.4 billion deal, combining

the nation’s two largest printing companies.

But in 2019 those plans were spoiled by the U.S. Department of Justice, which in June sued the companies to block the deal. The DOJ argued that if the deal had been approved, Quad/ Graphics would have dominated the magazine, catalog and book printing markets.

In trying to make the case for the importance of the deal, Quad and LSC said their combined revenue would drop by more than $1.5 billion by 2022 without combining or taking other actions. However, instead of fighting back against the DOJ’s lawsuit, the companies agreed to walk away from the deal, which required Quad to pay LSC a $45 million termination fee.

Later in the year, Quad announced plans to sell its U.S. book business, which it acquired in 2010 as part of its World Color transaction and generates around $200 million in annual sales.

The company also sold Transpak, its heavy-duty industrial wood crating business, in 2019.

After the significant decline in Quad’s stock price, a pair of lawsuits was filed against the company alleging it had not adequately disclosed its performance.

The third largest local stock loser in 2019 was Wauwatosa-based Briggs & Stratton, which saw its stock price fall 49% in 2019 to $6.66 per share. The company closed a plant in Kentucky, citing a lack of demand for walk-behind mowers. Briggs reported a net loss of $54.1 million in its 2019 fiscal year, much worse than its $11.3 million net loss in fiscal 2018. n BizTimes associate editor Arthur Thomas contributed to this report

Milwaukee-area stock performance 12/31/2018 12/31/2019 Price Price

% Change

OPEN FOR

Ticker

Company name

GNRC

Generac Holdings Inc.

49.70

100.59

102%

Gardner Denver Holdings, Inc.

20.45

36.68

79%

7.51

12.23

63%

Fiserv, Inc.

73.49

115.63

57%

PLOW

Douglas Dynamics, Inc.

35.89

55.00

53%

MAN

ManpowerGroup Inc.

64.80

97.10

50%

APAM

Artisan Partners Asset Management, Inc.

22.11

32.32

46%

RXN

Rexnord Corp.

22.95

32.62

42%

After more than 100 years in business, we’re opening

WBB

Westbury Bancorp, Inc.

20.40

28.50

40%

an office in downtown Milwaukee. We may be new

Johnson Controls International plc

29.65

40.71

37%

to downtown, but we’ve been working with business

MTG

MGIC Investment Corp.

10.46

14.17

35%

customers here for years.

ROK

Rockwell Automation, Inc.

150.48

202.67

35%

WEC

WEC Energy Group Inc

69.26

92.23

33%

BMI

Badger Meter, Inc.

49.21

64.93

32%

Bank have the luxury to be prudent with your financial

BRC

Brady Corp.

43.46

57.26

32%

future. The philosophy of Professional Ownership,®

GDI REVG FISV

JCI

REV Group, Inc.

BUSINESS. Announcing our new Milwaukee office.

Located at 611 East Wisconsin Avenue.

Unlike other banks in southeast Wisconsin, we at Ixonia

Johnson Outdoors Inc.

58.74

76.70

31%

developed by Sheldon Lubar, is woven into our daily

ATU

Actuant Corp.

20.99

26.03

24%

MTW

Manitowoc Company, Inc.

14.77

17.50

18%

operations. Because we know success doesn’t just

SXT

Sensient Technologies Corp.

55.85

66.09

18%

DOC

Physicians Realty Trust

16.03

18.94

18%

SNA

Snap-on Inc.

145.29

169.40

17%

Call or visit us at our new downtown Milwaukee office

Waterstone Financial, Inc.

16.76

19.03

14%

where you’ll find the greatest returns result from

AOS

A. O. Smith Corp.

42.70

47.64

12%

mutual respect and trust.

ASB

Associated Banc-Corp

19.79

22.04

11%

HOG

Harley-Davidson, Inc.

34.12

37.19

9%

WEYS

Weyco Group, Inc.

29.17

26.45

-9%

KOSS

Koss Corp.

1.91

1.54

-19%

MCS

Marcus Corp.

39.50

31.77

-20%

STRT

Strattec Security Corp.

28.80

22.21

-23%

Kohl's Corp.

66.34

50.95

-23%

JOUT

WSBF

KSS

happen overnight, we focus on the long-term, building relationships, not transactions.

TWIN

Twin Disc, Inc.

14.75

11.02

-25%

MOD

Modine Manufacturing Co.

10.81

7.70

-29%

BGG

Briggs & Stratton Corp.

13.08

6.66

-49%

QUAD

Quad/Graphics, Inc.

12.32

4.67

-62%

JASN

Jason Industries, Inc.

1.37

0.37

-73%

414.763.2428 • ixoniabank.com

All data gathered by Robert W. Baird & Co. from Factset Research Systems. This information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.

biztimes.com / 27

Special Report ECONOMIC TRENDS

20 Milwaukee startups to watch in 2020

BY MATT CORDIO, for BizTimes THIS IS STARTUP MILWAUKEE’S exclusive list of promising startups developing innovative solutions and disruptive technologies to watch in 2020.

It was tough to narrow the list down to just 20 as the startup scene continues to grow and evolve here in the metro Milwaukee region.

The list this year features a diverse group of companies that are building brands and breaking industry barriers right here in southeastern Wisconsin.

AGRICYCLE, makers of dehydrated fruit products, had a busy year in 2019. The company participated in the Target incubator, rebranded and raised seed capital. The company plans

to launch three new products and continue its growth in 2020.

ALINEA is developing patient engagement software for physical therapy practices. The firm secured a partnership with Casamba and continued to grow and scale in 2019.

BRIGHT CELLARS, the wine subscription company made its wines available in stores and restaurants through a partnership with General Beverage and closed an $8.5 million series A led by Revolution, AOL founder Steve Case’s venture firm.

CLOUDUX aims to simplify cloud development, allowing developers to write platform agnostic code for major public cloud platforms

like Microsoft Azure, Amazon Web Services and Google Cloud. The company was launched as part of gener8tor’s venture studio program in Milwaukee in fall 2019.

COLLEGE PADS, the nation’s largest college housing marketplace, continued to grow at a rapid pace, launching a new program this year that helps colleges and universities digitize their off-campus housing options.

FIVEABLE, an Edtech startup that helps students study for AP courses virtually, moved to Milwaukee in early 2019 and recently closed a $615,000 seed round of financing led by Northwestern Mutual’s Cream City Ventures.

FRONTDESK, which provides corporate travelers temporary housing solutions in more than 20 markets across the country, raised a $2.75 million bridge round in 2019. Look for Frontdesk to continue its rapid growth trajectory in 2020.

GENOPALATE, which creates customized nutritional plans for individuals based on their unique genetic makeup, continued to iterate its product in 2019 and has started to raise a round of funding as it heads into 2020.

IDEAWAKE, developers of software and solutions that help large companies such as ProHealth Care, HP and Advocate Aurora Health manage their innovation programs, continued to add new clients and raise funding to sustain global growth in 2020 and beyond.

INTELAEGIS is developing a unique IOT platform that enables educational institutions to create smart campus environments. The company raised funding and is poised for growth in 2020 as more educational institutions explore how to optimize security.

PAXAFE is building an internet-of-parcel ecosystem of complementary technologies that keep supply chains secure. Its hardware and software products aggregate critical, real-time parcel data from the supply chain to enable data-driven shipping insurance. PAXAFE closed

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a $915,000 seed round led by Rondo Ventures in 2019. They plan to finalize beta testing and commercialize their product in 2020.

PROMENTIS PHARMACEUTICALS is developing innovative therapies for neuropsychiatric disorders. The company successfully conducted a 28-patient phase 2A behavior biomarker study and raised $2.5 million to study the impact of their SXC-2023 compound for treating trichotillomania, a neuropsychiatric disorder affecting about 1% of the U.S. population.

SAFIO SOLUTIONS has developed a proprietary sales analysis and forecasting platform that enables companies to better manage inventory, resulting in increased sales and, in turn, improved profits and optimal cash flow. Safio’s SaaS platform is already being leveraged by major companies around the country.

SCANALYTICS, which enables companies to collect and understand visitor data and audience engagements from their trade show exhibits, inked a major deal in 2019 to install their solution at Chicago’s McCormick Place, the largest convention center in North America.

SIFT HEALTHCARE, a healthtech company developing a software platform leveraging ma-

chine learning and AI to help providers manage their revenue cycles, continued to launch new features and gain national recognition for its product.

SOCIALEADS combines social science, data science, and advanced technologies to analyze social networks to deliver transactional insights on-demand. The firm continued to roll out its solution to partner companies such as Northwestern Mutual and raise capital from investors such as Silicon Valley-based Plug and Play Tech Center.

STEAMCHAIN leverages blockchain to help machinery manufacturers deploy machine-as-aservice business models to create new revenue opportunities that are linked to the performance of their machinery. The firm plans to raise additional capital to fuel growth in early 2020.

THERMONATOR HOLDINGS has developed and patented a delivery vessel technology that will allow your ordered food to be delivered to your home in the highest quality manner as if you are dining in the restaurant. As demand for food delivery continues to skyrocket, it will be interesting to see this Milwaukee area startup grow.

VRNACULAR is developing a language learning platform using virtual reality. The startup is backed by Titletown Tech. Founder Rebecca Mandich recently relocated to Milwaukee, where she hopes to build out a product development team as she works to pilot the solution with customers.

VYTAL HEALTH is a virtual functional medicine practice bringing health care into the future by taking the time to listen to patients and create comprehensive personalized plans to fix the root cause of their symptoms.

The company is now able to serve patients in 34 states and will continue to grow and expand in 2020.

XENA WORKWEAR went to market with its first steel-toed work boot for women in STEM fields in 2019. The maker of stylish workwear also closed on a $750,000 seed round led by Ezra Galston, founding partner of Chicago-based venture capital firm Starting Line.

The firm looks poised for growth in 2020. n Matt Cordio is co-founder and president of Skills Pipeline and Startup Milwaukee. He can be reached at matt@skillspipeline.com.

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Special Report ECONOMIC TRENDS promises to dramatically transform the Harbor District.

“It goes without saying, the Harbor District is completely red hot,” Stegeman said.

Komatsu is aiming to start construction this spring, a spokeswoman said in December.

The $285 million campus will be built south of Greenfield Avenue and east of First Street, along the Kinnickinnic River.

OFFICE PROJECTS

The BMO Tower in downtown Milwaukee is slated to open this spring.

Office, hospitality projects to headline busy 2020 for Milwaukee-area real estate market

BY ALEX ZANK, staff writer BROWNSVILLE-BASED utility and infrastructure contractor Michels Corp. began construction of the R1VER project last year in Milwaukee’s Harbor District, and 2020 is shaping up to be another big year for the development.

The first phase of the project includes a 210,000-square-foot office building and a parking structure that will hold about 1,050 vehicles. Structrual steel is currently being erected on the office building. The work is slated to finish in the fourth quarter.

Michels will occupy three floors of the building. David Stegeman, Michels’ chief legal officer and senior vice president of mergers and acquisitions and real estate, said the company is having “active discussions” with several prospective corporate tenants for the remaining office space.

As part of additional phases of the R1VER project, Michels will build an apartment building with retail space, a 90-room hotel and possibly another 120,000-square-foot office building, depending on market demand.

Construction of the apartments and hotel will begin this year, and the second office building could start going up this year or next year, said Stegeman.

The company has also entered into a franchise agreement with a “prominent national hotel franchise,” and is in talks with restaurant proprietors for the retail space. He said the hotel and restaurant operators will be announced in the first half of the year.

R1VER, along with Komatsu Mining Corp.’s proposed manufacturing and office campus,

R1VER is just one of a number of office-related projects to watch in 2020.

The Huron Building at 511 N. Broadway in downtown Milwaukee has made notable progress since its spring 2019 groundbreaking.

Just up the street, at 790 N. Water St., is the BMO Tower. That project was slated for completion in December, but a water-supply breach pushed that date back by several months. Mark Irgens, chief executive and manager of Milwaukee-based Irgens Partners LLC, said the building should open in April or May. Irgens also has plans to redevelop the existing building where BMO has offices and its retail bank branch, at 770 N. Water St. After initially considering a number of uses, such as a hotel, Irgens said his firm has decided on 770 North remaining as an office building with a first-floor space that likely will be occupied by a restaurant.

There’s plenty of activity happening across the river, as well, in downtown Milwaukee’s Westown neighborhood.

Milwaukee-based engineering firm GRAEFUSA Inc. recently moved into its new offices at The Avenue. Located at 275 W. Wisconsin Ave., the former Grand Avenue mall is being transformed into a mixed-use center consisting of apartments, a first-floor food hall and office space on the top two levels.

Renovation work also continues on 310W, the former Henry S. Reuss Federal Plaza at 310

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W. Wisconsin Ave. The building’s owner, New York-based Time Equities Inc., last summer detailed its $30 million renovation plans for the mostly empty office complex. A spokeswoman said that in 2020, the building will unveil tenant amenities such as a fitness center and a mezzanine-level café, and will open its new tenant lounge and co-working facility by the summer.

HOTELS, CONVENTION CENTERS As Wisconsin prepares to host the Democratic National Convention and the Ryder Cup, a number of developments are underway that will add hotel rooms and convention space to the Milwaukee area for future events.

The planned expansion of the Wisconsin Center in downtown Milwaukee promises to take big steps this year. The Wisconsin Center District, which owns and operates the facility, recently named the design team for the expansion project. By March, WCD should have a cost estimate on the project. Groundbreaking is slated for spring 2021.

In Oak Creek, the city is working with Wisconsin Dells-based Stand Rock Hospitality to

Construction continues on the Michels Corp.

R1VER project in Milwaukee’s Harbor District.

develop two hotels totaling up to 221 rooms and an 11,500-square-foot conference and event center on land just south of the Ikea furniture store. City officials approved a development agreement for the $30 million project, and a public hearing is scheduled for late January on proposed municipal code amendments that would allow the development to occur.

Back downtown, construction of a two-building, three-hotel project near the

southwest corner of Michigan and Jefferson streets is slated to finish sometime in the second half of the year. Coralville, Iowa-based Hawkeye Hotels and Bloomington, Minnesota-based JR Hospitality are developing the hotels, which will add 331 rooms to the market. A spokeswoman said the roofs of both buildings will soon be finished, followed by exterior finishes and interior work, such as installation of mechanical, electrical and plumbing. n

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Special Report ECONOMIC TRENDS

Steve Stricker, 2020 Ryder Cup U.S. team captain, and Padraig Harrington, Europe team captain, with the Ryder Cup trophy at Whistling Straits.

Region to capitalize on tourism dollars, media exposure in 2020

BY MAREDITHE MEYER, staff writer IN A YEAR packed with high-profile national-level events, southeastern Wisconsin is headed for a tourism boom that has the potential to leave a lasting, cross-industry economic impact.

In July, 50,000 politicians, delegates, lobbyists, dignitaries and members of the national and international media will descend upon Milwaukee for the 2020 Democratic National Convention.

The four-day event is expected to make a $200 million economic impact on the region.

Airbnb ranked Milwaukee as No. 1 on its list of top 20 trending travel destinations for the upcoming year, reporting a 729% year-over-year increase in Milwaukee bookings for 2020.

“The DNC is the gift that will keep giving before, during and after the actual convention,” said Peggy Williams-Smith, chief executive officer of Visit Milwaukee.

In September, the biennial Ryder Cup golf competition will bring players from Europe and the U.S. to Kohler Co.’s Whistling Straits golf course in Sheboygan County. Tournament officials are expecting the five-day event to generate $135 million in economic impact to the region and bring about 50,000 visitors to the course each day.

Other major events on tap this year include USA Triathlon’s Age Group National Champion32 / BizTimes Milwaukee JANUARY 20, 2020

ships and the 2020 American Cup international gymnastics meet, which will take place in August and March, respectively, in Milwaukee.

In addition, the Society of American Travel Writers selected Milwaukee to host its annual convention in October. It will bring 300 journalists, who will spend time in other areas of the state before and after the convention, generating media exposure for Milwaukee and Wisconsin.

Now that southeastern Wisconsin has succeeded in attracting some of the biggest and most notable sporting events and conventions, focus has shifted toward capitalizing on those opportunities.

“Our goal is to show that Wisconsin can do big things,” said Sara Meaney, Wisconsin Department of Tourism secretary designee. “We are capable of hosting major events, we are capable and we thrive and we excel at hosting high-profile events and everyday visitors to the state.”

The state’s tourism industry is enjoying an upward trend.

Total business sales from tourism in 2018 generated $21.6 billion in economic impact, which was an almost 5% increase over 2017.

Visitor spending in 2018 also grew by 5%, which is the highest growth rate since 2014, according to Travel Wisconsin’s most recent economic impact report.

Milwaukee’s tourism market experienced similar year-over-year growth in 2018, with total business sales increasing by 5.2% to $3.7 billion.

Williams-Smith said the surge of local tourism in 2020 and 2021 will likely boost revenue and hiring for local businesses. It will also help the city attract more talent, she said.

“You want to be in a city that’s hot and we hope to provide, through tourism, a lens on a city that makes people not only want to visit and bring their business meetings and conventions here, but they want to move their business here and live here,” she said.

As the largest metro in the state, Milwaukee leads Wisconsin’s tourism economy, which is why the DNC is considered a win for the entire state if it plays its cards right, Meaney said.

Of the anticipated 50,000 convention-related visitors, only about 4,000 are delegates who will spend the majority of the four days participating in the convention. The rest are media, family members and other special guests who would have more time to experience and learn about the city and surrounding region, Meaney said.

“All of those people have a voice, and, frankly, all of that media attention gives voice to the stories of Wisconsin,” she said. “It’s about connecting opportunity with context and telling Wisconsin’s story while people are paying attention.”

An estimated 20,000 members of the national and international media will cover the convention, shining a spotlight on the region and Wisconsin as a swing state.

In January, about 500 members of the press visited Milwaukee for a DNC “walkthrough” to learn about the city and start planning convention coverage.

“We have an opportunity to make an impression on people that have never been here before or may not even know exactly where Milwaukee is located,” said Williams-Smith.

What’s more, the Ryder Cup is expected to reach 500 million households around the world with 27 hours of news coverage, adding to the state’s reputation as a top golf destination. Ten Wisconsin golf courses, including Whistling Straits and 2017 U.S. Open host Erin Hills, made Golf Digest’s 2019 list of “America’s 100 Greatest Public Courses.”

Meaney said the Ryder Cup, DNC and past events that Wisconsin has hosted, such as the Ironman Triathlon, Reebok CrossFit Games and the EAA AirVenture, are crucial to bringing visitors to the state for the first time. After each event, the goal becomes getting people to visit regularly or eventually become residents.

“Most people that come to the state, our research tells us, say, ‘Wow, I had no idea, I’m definitely coming back,’” she said. “The hardest thing is getting people here for the first time.” n

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Special Report ECONOMIC TRENDS

Brookfield Square

Malls seek right mix of ‘relevant retail’

BY MAREDITHE MEYER, staff writer IN THE WAKE of a record-setting year for brickand-mortar store closures, retailers in 2020 face a need to innovate as they navigate industry disruption.

U.S. retailers last year announced plans to close more than 9,300 stores — far surpassing the previous record of approximately 8,000 store closures in 2017, according to a December analysis by Business Insider.

With so many store closures retail centers and malls have taken a hit, especially as anchor stores such as Boston Store and Sears have shut down.

But overall, retail sales have grown annually since 2010, according to the National Retail Federation. And industry leaders are optimistic about consumer spending in the midst of a strong economy, saying retail isn’t dead, it’s just evolving.

Last year brought a number of changes to the southeastern Wisconsin retail landscape that paint a picture of where the industry is headed in 2020.

Brookfield Square ended 2019 with the completion of a multimillion-dollar redevelopment of the former Sears store site at the southeast end of the mall. The building was razed and replaced with two centerpiece tenants: Marcus Theatres’ Movie Tavern and Chicago-based WhirlyBall.

“Brookfield Square is a great example of what’s happening in malls around the country, where former department stores like Sears or Bon-Ton are being replaced with new uses,” said 34 / BizTimes Milwaukee JANUARY 20, 2020

Stephen Lebovitz, chief executive officer of CBL Properties, the mall’s owner.

In 2019, 75% of CBL’s new leasing across its 108 properties were non-apparel tenants, Lebovitz said. He expects that trend to continue in 2020 as consumers increasingly value experiences over things.

He said the recipe for transforming traditional malls includes combining “relevant retail,” such as entertainment, restaurants and fitness, with “a greater density of development on the site.”

Fast-growing fitness franchise Orangetheory Fitness opened adjacent to Movie Tavern and WhirlyBall at the redeveloped Brookfield Square site, and portions of the surrounding parking lot were used as sites to build two standalone restaurants, Uncle Julio’s Mexican from Scratch and Outback Steakhouse.

As malls continue to evolve, experience-based businesses will emerge as their anchors, while big-box department stores are phased out, said Sanjoy Ghose, a marketing professor and director of the PhD program at the University of Wisconsin-Milwaukee’s Lubar School of Business.

“They are not the traditional anchors in the mall, but mall owners are hoping that they will be anchors in their own right to bring people into the mall,” Ghose said.

Southridge Mall in Greendale recently added Chicago-based escape room Sixty to Escape

to its growing roster of entertainment-based tenants. The venue will open in mid-February in the former Sears building, now home to Dick’s Sporting Goods, Golf Galaxy and the state’s first Round 1 Bowling and Amusement, as well as T.J. Maxx.

At other shopping centers, the physical footprint of traditional-use retail space will shrink to make way for non-retail uses like housing and commercial offices, Sanjoy said.

Such is the case at Bayshore in Glendale.

Work began in November on a multimilliondollar project aimed at downsizing the mall’s retail space by demolishing or converting existing buildings for alternative uses, and better connecting the property with the surrounding neighborhood’s streets and pedestrian walkways.

The project is still on track for a late 2020 completion, said Kirk Williams, managing director for Cypress Equities, which manages Bayshore.

A two-month-long demolition of the northern indoor mall portion is slated to start soon, and a new and improved outdoor centralized green space is expected to be complete by May. Williams said tenant negotiations are currently in the works with some national retailers showing strong interest in Bayshore and the North Shore area. So far, Bloomington, Minnesota-based ERIK’s Bike Shop is the only new tenant announced for the mall.

For food and beverage tenants, the focus is on the local market.

“Local F&B is a strong component because that’s the ethos of the community,” Williams said. “People want to relate, they want to go somewhere that they know.”

Malls in other parts of the country are filling space with direct-to-consumer brands, which often start as an e-commerce business and later open brick-and-mortar locations as a form of marketing or connecting with consumers.

Brian Spaid, assistant professor of marketing at Marquette University’s College of Business Administration, expects that trend to take hold locally this year.

“Those stores have their model figured out really well and the stores just become, really, a touch point for consumers in an area (the stores) determined that they have enough customers to support,” Spaid said.

Even as Amazon continues to dominate the e-retail landscape, direct-to-consumer companies, such as Warby Parker and UNTUCKit, both of which have stores in Milwaukee’s Historic Third Ward, are seeing success by trying brick-and-mortar on for size.

“They’re either selling products that are not available on Amazon or they’re offering an experience that Amazon can’t replicate,” Spaid said. n

INSIDE THE INDUSTRY

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biztimes.com / 35

Special Report WORKFORCE DEVELOPMENT

Educators and industry leaders worked together to launch CareerX, the Talent & Industry Partnership’s first program.

Region’s manufacturers collaborate to tackle talent challenges

BY LAUREN ANDERSON, staff writer FOR YEARS, employers have used various strategies to build their talent pipeline: promoting STEM activities in schools, sponsoring meetups and hackathons, hosting interns, participating in transitional job programs and even hiring competitors’ employees.

But those strategies may no longer be enough in light of the region’s pressing workforce challenges, industry experts say. In a recent Wisconsin Manufacturers & Commerce survey, 75% of respondents reported having trouble finding workers.

“Some old methods for talent retention and attraction are no longer working in this new normal,” said Susan Koehn, vice president of Talent & Industry Partnerships at Metropolitan Milwaukee Association of Commerce and Milwaukee 7 Economic Development Partnership.

“Companies used to be able to deploy short-term solutions, like poaching from each other, to solve low unemployment. But that’s a zero-sum game right now when you think about it regionally.

We need to grow the pool overall and better align with education so we don’t lose people.”

That’s the driver behind the Talent & Industry Partnership, a new coordinated effort by MMAC and M7 to create connections among the K-12 and higher education sectors and area employers, upskill existing employees and recruit talent from outside the market. The partnership’s initial focus is on the manufacturing sector, but MMAC and M7 plan to expand its scope to other industries.

Underpinning the partnership is the idea that more can be accomplished if employers work together to address large-scale workforce shortages, rather than going at it alone.

The initiative traces back to initial conver36 / BizTimes Milwaukee JANUARY 20, 2020

sations among about 30 of the region’s manufacturers in fall 2018, when Rockwell Automation and ManpowerGroup convened leaders to discuss their talent shortages and swap ideas about how to address them.

“Every company is doing something in this regard; they are reaching out (to K-12) and considering innovative ways to partner with education and workforce development,” Koehn said. “But what they may not be doing is, in a systematic way, aligning all those arrows. This was designed to surface best practices of what everyone was doing.”

From those discussions, leaders agreed they need to reach students earlier in their education.

By the time a student enters college, it’s likely too late to lure them into manufacturing, Koehn said.

In fall 2019, the partnership launched CareerX, a year-long pilot program that has connected 12 manufacturers with teachers from area high schools so they can better inform their students about career opportunities. The program takes teachers to participating manufacturers’ sites – including Astronautics Corp. of America, Diversitech, Komatsu Mining Corp., Sargento Foods and others – for a halfday “immersive experience” to build positive perceptions of manufacturing and connect what’s taught in the classroom with what’s happening on the shop floor.

Done right, the program is designed to turn teachers into “ambassadors for the industry,” Koehn said.

“It’s a heavy lift to build one-to-one partnerships with a school and take in students and provide experiences and maintain that relationship,” Koehn said. “So (companies) realized if they could find efficiencies and find econo-

mies of scale … that was the real value proposition. If we reach teachers first, and impart this exciting information about potential careers in manufacturing, then we could reach many more students as those teachers over the years have multiple classrooms and reach that many more students.”

As southeastern Wisconsin continues to attract new investment, programs like CareerX will play an important role in addressing workforce challenges, said John Koetz, president of surface mining at Komatsu.

“MMAC and M7 are doing a great job bringing companies together to tackle these concerns, leading the way to collaborative solutions that offer greater potential than single-company initiatives,” Koetz said. “We believe the efforts to make Greater Milwaukee a region of choice, enhance manufacturing opportunities through CareerX, and ongoing work to address the ‘sidelined workforce’ are all essential to our region’s growth and success, for all businesses and industries.”

The program’s effectiveness will, in part, be determined by how many students go on to enroll in additional manufacturing or engineering-related coursework or pursue employment in the industry, Koehn said.

In addition to courting new employees straight out of K-12, another focus of the Industry & Talent Partnership is to help area employers upskill existing employees. MMAC, M7 and area business leaders are developing a pilot program that would pool employers’ resources to upskill their employees.

For New Berlin-based Pindel Global Precision, a mid-sized manufacturer, onboarding and upskilling employees can be a challenge.

Because the company doesn’t bring on new employees in bulk or upskill many employees at once, it’s difficult to train them efficiently.

“When you think about all the small- and medium-sized manufacturing companies in the region, they are a lot like Pindel,” said chief executive officer Bill Berrien. “It really can be a burden to train your own people.”

Through the MMAC/M7 partnership, Berrien is working with other employers to coordinate upskilling training opportunities across the region. Under the pilot program, small- and mid-sized manufacturers could send their one or two employees to receive training alongside employees from other companies.

While companies will continue to compete, the severity of today’s workforce challenges necessitates new levels of collaboration, Berrien said.

“As an employer interacting quite frequently with other employers, I think we’ve all been coming to the realization that none of us can do this alone,” he said. n

Strategies ENTREPRENEURIALISM

Vacation rentals Middle-aged entrepreneurism finds a new home MY WIFE, LAURA, AND I own two vacation rental properties in Prescott, Arizona, and attended the conference known as Vrbo, short for Vacation Rental by Owner, held in Phoenix.

It was impressive on several levels.

Everyone there was an entrepreneur, most by accident. That’s how we came to own our properties too.

Many of the folks we met started in this industry because they owned an “extra” property – a family cottage or a large first home they weren’t using fully but they didn’t want to divest. So, they started renting the property through one of the sharing services such as Vrbo or Airbnb or both.

Many were surprised to learn that they reduced their annual expenses on their properties and actually made money. And they enjoyed the industry. They liked the model so well, they began to look for and buy more properties in places they enjoyed visiting, putting those properties in the vacation rental system as well.

Two revenue streams Some people found they were so adept at managing their rentals that they began to be sought out by real estate agents to manage rentals owned by others. That gave them two revenue streams: one risk and capital-intensive revenue stream via direct property ownership and one non-risk annuity stream via third-party property management.

For some people, the non-risk annuity stream was fast becoming the engine that drove their property acquisitions.

The majority of attendees were middle-aged or a bit past middle age. That makes sense, since it takes time to become a homeowner with equity, then longer to become empty nesters. But it was really refreshing to meet normal people who had enjoyed normal, primarily corporate careers, and who then became entrepreneurs as their “encore” careers. And like us, most of the attendees were married couples working their business together.

The Vrbo conference was a truly beautiful slice of Americana.

Vrbo’s headquarters is in Austin, Texas. It’s now owned by Expedia Group, the multi-billion-dollar company that has a large portfolio of companies such as Trivago, Hotels.com, Orbitz and Hotwire.

So, of course, given my bias toward small business, I expected to meet herds of corporate automatons, likely millennial age, reciting a party line without much depth. Laura even said she was going to do an “awesome” (a word she intensely dislikes) use count, but only counted three utterances of that word during the whole two-day conference. So much for our biases!

both big and small, being data-driven and business judgement-led, simplifying, and being open, honest, humble, positive, and assuming positive intent.

Expedia is clearly a corporate behemoth, but for us and the other conference attendees, it spoke the language of an entrepreneur.

Our politicians all like to talk about small business, entrepreneurs, and their impact on our country and our economy. But they typically like to focus on “flavor-of-the-day” businesses like tech or medicine.

I wish a few of those politicians would drop into one of the so-called flyover states and stay at a Vrbo or an Airbnb. They just might get a reality check of this new wave of entrepreneurs and this growing vacation rental industry (and maybe a relaxing vacation too to help them lighten up just a little). n

Clear guiding principles The Vrbo people were exceptional. We were also pleasantly surprised to find the Vrbo reps actually eat their own dog food. All the reps I spoke with not only had a clearly defined corporate role which they could cogently articulate, but each also owned one or more of their own vacation rental properties, some listing them not only on Vrbo, but also on competing websites.

Wouldn’t it be great if every one of our employees was also a customer and also directly experienced the competition? These reps had firsthand experience of what works, what doesn’t, and most important, the true customer experience.

Can you imagine if every HQ employee at Uber drove three nights a week? I suspect Uber would have happier drivers. (And by the way, I meet very few drivers who are happy with Uber, but that’s a story for another day.)

Expedia’s “guiding principles” are clearly and simply stated on its corporate pages, and include principles such as “wearing” the shoes of customers and partners, having a bias to action, thinking

JOHN HOWMAN As a serial entrepreneur and business and community leader since 1983, John Howman has led a variety of businesses, from technology to consumer products companies. He leads two groups for Vistage, a professional development group for CEOs, presidents and business owners. He can be reached at JHowman@AlliedCG.com. His podcast, “The Best Business Advice You Will Ever Receive” is on Apple Podcast. His wife, Laura Gille, contributed to this article. biztimes.com / 37

Strategies FAMILY BUSINESS

The Power behind the throne Part one of a series

THIS COLUMN IS supposed to be about family business. Periodically, I write when the spirit moves me to talk about issues, challenges and hopes to inspire those of you in a business passed down through the ages.

Since this article appears in BizTimes Milwaukee, suffice it to say the editors and publisher want me to discuss business-related topics. On most occasions I try to adhere to their wishes. After all, they are the ones who choose whether to publish what you read or not, so most of the time pleasing them gets me in front of you.

I started writing this column five years ago shortly after I walked away from the job I dreamed of my entire life. Writing proved to be very cathartic and allowed me to express, albeit to a limited audience in my first book, some of the reasons for my resignation. The writing continued and I found that some of you actually enjoy what I write. To date, the most talked about article I have written was the one on my family’s summer home.

Until perhaps today.

Just prior to Thanksgiving, I received the call from my father that everyone wants to avoid.

“It’s your mom. We got a problem. Meet us at Froedtert.”

As the only son in this family, I dutifully and willingly complied. The next six days were full of tests and waiting, tests and waiting. Did I mention waiting?

The results? Cancer of the thyroid, lungs, liver 38 / BizTimes Milwaukee JANUARY 20, 2020

and three other places I won’t go into. The matriarch is ill – gravely ill.

For this and forthcoming columns I intend to chronicle the story of the power behind the throne, my mother. You see, without a mother, there can be no family, and without family there can be no family business.

To be transparent, I asked Mom for permission to write this series of articles. Her answer? “Well sure, every family goes through these problems…”

To be honest, I hope you grow long tired of my writing them, because that means she is still with us, but the truth be told, I simply don’t know.

For those of you dubious of my intentions to write this series, let me assure you it isn’t for the salary my articles command. But I will admit that these articles are written for selfish motives – to cope with my love and loss of a mother who has been there in good times and bad. She was there to provide me with the words of wisdom during a very personal loss of a love – “If it is meant to be, it is meant to be” – and through the vagaries of business, from loss of a job to the heights of the profession. This series of articles is being written because it allows me an expression of my own grief and one that many of you in business – especially in a family business – can identify with.

Mom was there when I came home from college after meeting with the dean of business who told me my grades in accounting stunk and that I was on probation. She heard me say I didn’t like accounting and simply asked, “Well, what do you like?” I told her I liked marketing, and she said to follow my interest. She also mentioned it might be a good idea not to mention this change to my dad as he encouraged the accounting major due to my propensity for numbers.

Family businesses frequently report to me that while the father is the worker, the maverick, the leader, he takes his cues from the mother, who is the power behind the throne. While the father is often looked upon as the soul of the organization, the soul has a beating heart and that is the mother, whether she works in the family business or not. That is true in my family. Dad controls the checkbook while in her own way, Mom controls the keeper of the checkbook.

And my degree? I graduated with a marketing degree. Shhh! Not sure Dad knows.

I hope you read this series of articles as I can assure you it is from my heart. In a business or not, the fall of our lives leads to winter. “Winter is coming” was the much-repeated line from Game of Thrones. For my family, winter is here. But this is not the vision statement this less-than-spectacular student of business hopes to leave you with ... No, the mantra for the moment is a much more uplifting and hopeful “Hug them while you have them” motto.

I plan to do just that this winter. n

DAVID BORST David Borst, Ed.D., is executive director and chief operating officer of Family Business Leadership Partners, a regional resource hub for family business. He can be reached at david.borst@cuw.edu.

Tip Sheet Three pillars for building trust and leadership

F

rances Frei is a professor of technology and operations management at Harvard Business School and a culture consultant who has worked with companies like Uber and WeWork. In

a recent episode of “The TED Interview” podcast, she discussed how building trust is a necessary but not sufficient part of being a leader.

Frei also identifies love and belonging as other factors in leadership but says there are three important pillars to developing trust: 1. Empathy Frei says that if people sense that a leader is largely self-interested, instead of interested in those they are talking to, it will make the difference in whether the leader is trusted or not.

“If you don’t totally reveal that I get you, I see you and I’m doing this for you, then nobody is going to trust you and you’re already lowering the bounds of how much you’re getting out of everyone,” she said.

2. Logic “It’s really hard for people to have faith in your logic if you don’t give them some amount of transparency to it,” Frei said.

“Trust me. ‘I’ll do it’ doesn’t work anymore.”

She said the need for younger employees to understand more of a company’s business model than in the past is an example of trust requiring logic.

3. Authenticity Frei said people can easily see when a leader is not being authentic or doesn’t believe in the message they are sharing and that will erode trust. She also cautioned that it is easy to be so empathetic to what someone wants to hear that a leader loses sight of being true to who they are.

“The trouble with that is even if it feels good in the moment, it’s not going to help anyone in the long run,” she said.

Listen to the podcast at: www.ted.com/talks/ the_ted_interview_frances_frei_s_three_pillars_of_leadership n

Bold Leaders. Bright Ideas.

Apply Today.

Accepting nominations for the 16th annual

Ideal Bravo! Entrepreneur nominees are individuals who demonstrate the best traits of entrepreneurship, including willingness to take risk, drive, perseverance, and more! Ideal I.Q. (innovation quotient) nominees are companies who develop innovative products or services, or those with notably unique and innovative processes, operational structures and/or market strategies.

To submit your nomination visit www.biztimes.com/bravo Past Bravo! Entrepreneur Lifetime Achievement award winners have included: Donald Baumgartner, Tim Keane, Carol Schneider, George and Julie Mosher, Gary Grunau, Michael Cudahy, Sheldon Lubar, Fritz and Debra Usinger, Stephen Marcus and George Dalton Past I.Q. award winners have included: Chasing Paper, DeltaHawk Engines, HellermannTyton, Jason Inc./Janesville Acoustics, Northwestern Mutual Data Science Institute, MARS IT Corp., PartsBadger, Riverwater Partners, TAI Diagnostics and TechCanary Presented By:

Sponsored By:

biztimes.com / 39

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GET THE WORD OUT! News? Press Releases? Awards?

Show them off in BizTimes’ new BizUpdates section.

Submit your company news at at biztimes.com/bizconnect

40 / BizTimes Milwaukee JANUARY 20, 2020

BIZ PEOPLE

Advertising Section: New Hires, Promotions, Accolades and Board Appointments

FINANCIAL SERVICES Alex Ribbens to Lead PNC Institutional Asset Management Team in Wisconsin. PNC Institutional Asset Management today announced the appointment of Alex Ribbens to vice president and senior business development officer for Wisconsin where he will be responsible for delivering comprehensive solutions to institutional investors.

MANUFACTURING Frank Broz named Director of Technical Sales for LifeWise Ingredients. Frank will direct and implement new sales initiatives, new product launches and enhance LifeWise Ingredients’ visibility to food manufacturers nationwide.

LifeWise is a manufacturer of flavor technologies for the food and nutraceutical industries.

INSURANCE

LEGAL SERVICES

Marsh & McLennan Agency Hires Chad Winters, J.D. as VP, Employee Health & Benefits.

Marsh & McLennan Agency is pleased to welcome Chad Winters, J.D. as Vice President, Employee Health & Benefits. Chad is responsible for business development, relationship management and delivering strategic solutions to clients.

MANUFACTURING

Attorney Nicole M. Masnica Joins the Law Firm of Gimbel, Reilly, Guerin & Brown, LLP. The Milwaukee, Wisconsin based trial and litigation law firm of Gimbel, Reilly, Guerin & Brown LLP (GRGB) is pleased to announce the addition of Attorney Nicole M. Masnica to the firm’s Criminal Defense and Appellate team.

MANUFACTURING

Hydro-Thermal Corporation promotes Sean Fulton to Vice President of Sales.

Hydro-Thermal Corporation, the global leader in steam injection fluid heating systems, today announced the promotion of Sean Fulton to Vice President of Sales.

Hydro-Thermal Corporation hires Michelle Palmquist as Chief Financial Officer.

LEGAL SERVICES Thomas A. Myers has been appointed Board of Directors for UWM Foundation, Inc. Thomas A. Myers, Shareholder in the Business Practice Group at von Briesen & Roper, s.c., has been appointed to serve a three-year term on the Board of Directors for UWM Foundation, Inc.

To place your listing, or for more information, please visit biztimes.com/bizconnect

Hydro-Thermal Corporation, the global leader in steam injection fluid heating systems, is pleased to announce the appointment of Michelle Palmquist as Chief Financial Officer.

New Hire?

Share the news with the business community!

Announce new hires, promotions, accolades, and board appointments with BizPeople.

Visit biztimes.com/bizconnect to submit your news!

biztimes.com / 41

BizConnections NONPROFIT TWO AREA LITERACY NONPROFITS MERGE Milwaukee-based Literacy Services of Wisconsin and Greater Waukesha Literacy, two nonprofit providers of adult education programs, have merged.

The combined organization, which will retain the Literacy Services of Wisconsin name, plans to expand its adult job readiness development, English language learning and GED/high school equivalency diploma programs.

LSW will maintain both its Milwaukee office, located at 555 N. Plankinton Ave., and Greater Waukesha Literacy’s location at 217 Wisconsin Ave. in downtown Waukesha.

Literacy Services of Wisconsin has been offering adult education services since 1965, when it was founded by members

nonprofit

of First Congregational Church of Wauwatosa, Christ Presbyterian Church and North Shore Congregational Church.

Today, its services include English language learning, GED/ high school equivalency diploma preparation, financial literacy, computer literacy and workforce readiness skills development.

It serves more than 1,000 adult learners annually and has about 500 volunteers. In 2017, LSW acquired Milwaukee Achiever Literacy Services.

Greater Waukesha Literacy, formerly the Literacy Council of Greater Waukesha, was founded in 1986. It works with more than 350 students annually.

— Lauren Anderson

c alendar Hardwater Freaks will host its annual ice event fundraiser for Wisconsin Hero Outdoors on Saturday, Jan. 25 from 11 a.m. to 3 p.m. at Milwaukee Yacht Club, 1700 N. Lincoln Memorial Drive. More information is available at wiherofund.org.

United Way of Racine County will host its annual Victory Celebra-

tion to conclude its 2019 campaign on Thursday, Jan. 23 at 5 p.m. at Festival Hall, 5 Fifth St., Racine. More information is available at UnitedWayRacine.org/Victory.

Real Estate Alliance for Charity will host its annual gala on Satur-

day, Feb. 29 at Jan Serr Studio, 2155 N. Prospect Ave., Milwaukee.

More information is available at reach-wi.org.

D O N AT I O N R O U N D U P The ACE Mentor Program of Greater Milwaukee recently received a $15,000 commitment from Associated General Contractors of Greater Milwaukee to grow the program to more high schools and award a $5,000 student scholarship. | Pink Umbrella Theater Co. recently met a $10,000 challenge grant from the Silverstein Family Charitable Fund. | Milwaukeebased Midwest Conservation Dogs, Inc. was awarded a $5,000 grant from the James E. Dutton Foundation. | The Northwestern Mutual Foundation recently awarded 35 students with $5,000 scholarships as part of its 2019 Childhood Cancer Survivor and Sibling Scholarship program. | Kohl’s associate volunteers recently donated about 750 gifts to Penfield Children’s Center to be distributed to the children and their families during the center’s holiday party. | The Milwaukee Bucks and Cousins Subs recently made a surprise sub delivery to nearly 100 youth at Journey House in Milwaukee as part of their Block Out Hunger campaign.

42 / BizTimes Milwaukee JANUARY 20, 2020

SPOTLIGHT

ISL ANDS OF BRILLIANCE 415 E. Menomonee St., Milwaukee (651) 236-0474 | islandsofbrilliance.org Linkedin, Facebook, Instagram and Twitter: @iobmke

Year founded: Founded in 2012; received 501(c)(3) status in 2015 Mission statement: By using creativity, technology, and one-to-one guidance, we are positively changing personal perceptions of self and promoting broader community views of those on the autism spectrum from people with disabilities to people with capabilities.

Primary focus: Early workforce development for individuals living with autism. This includes art, design, and STEM-based workshops for students on the autism spectrum beginning at age 8. Programming scaffolds into work-based transition opportunities for students 14+ through our Digital Academy learning experience. The final piece is Brilliant Studios, an integrated employment model, which hires candidates from our Digital Academy for apprentice work on production, design, and software development projects.

Other focuses: Brilliant Sandbox is a new collaboration with Milwaukee College Prep that involves pairing students on the autism spectrum with their grade level peers at workshops at the IOB studio space using traditional and digital means of creating art projects. We are looking to scale this model to create access to schools and districts throughout the Greater Milwaukee community who may be struggling to find meaningful ways to engage students living with autism.

Employees at this location: Six fulltime, two part-time

Key donors: Greater Milwaukee Foundation, Bader Philanthropies, Northwestern Mutual Foundation, Potawatomi Hotel & Casino’s Heart of Canal Street, Autism Speaks, Green Bay Packers Foundation, Richard G. Jacobus Foundation, GE Healthcare and a growing number of private contributors.

Executive leadership: Mark Fairbanks, executive director; Courtney Rogaczewski, director of operations; Margaret Fairbanks, director of education Board of directors: Kelly Scott, Katie Crawford Madlung, Margaret Fairbanks, Nydia Mauras-Jones, Steve Farr, Nicole Green, Dave Hanneken, Maggie Kuhn, Jim Locatelli and Maria Lopez Vento.

Is your organization actively seeking board members? Yes. We are currently looking to add board members with expertise in fundraising, finance and community relations.

Ways the business community can help your nonprofit: We are currently looking for corporate sponsors for our Digital Academy program; smaller design and production projects for our Brilliant Studio integrated employment model; donors and sponsors of Brilliant Sandbox for a school or district; and volunteers with a design or tech background to work with our students.

Key fundraising events: » Colors & Chords: Nov. 20 at Turner Hall Ballroom. For sponsorship information, email mark@ islandsofbrilliance.org.

SBA LOANS: NOVEMBER 2019 The U.S. Small Business Administration approved the following loan guarantees in November:

Zeige’s Integrity Mechanical LLC, 6974 S. 92nd St., Franklin, $50,000, U.S. Bank;

JEFFERSON COUNTY

Asiage Corp., 10930 N. Port Washington Road, Mequon, $694,000, Stearns Bank;

BRM Holdings Inc., 1329 W. Main St., Watertown, $2,067,200, Greenwoods State Bank; DJC Tax & Accounting LLC, 1031 S. Main St., Jefferson, $887,400, PremierBank; HMG Properties LLC, Lake Mills, $1,813,000, WBD, Inc.; KENOSHA COUNTY

Davis Dunn Holdings LLC, 1201 Pryor St., Silver Lake, $170,000, WBD Inc.; SADAT 786 Inc., 1147 Sheridan Road, Kenosha, $350,000, Waukesha State Bank; MILWAUKEE COUNTY

A&R Remodeling LLC, 2163 S. 57th St., Milwaukee, $10,000, U.S. Bank; Amazing Mays Child Care, 2741 W. Oriole Drive, Milwaukee $216,000, Educators Credit Union;

OZAUKEE COUNTY

North 48 Inc., W62 N599 Washington Ave., Cedarburg, $50,000, U.S. Bank; RACINE COUNTY

ClearCom Inc., 1443 27th St., Caledonia, $233,200, Educators Credit Union; Noble Orthodontics LLC, 109 N. Dodge St., Burlington, $37,000, JPMorgan Chase Bank; Wisconsin Smiles Inc., 4915 Washington Ave., Racine, $40,000, U.S. Bank; SHEBOYGAN COUNTY

Vinny’s Firehouse Pizza LLC, 109 Maple St., Sheboygan Falls, $30,000, Oostburg State Bank; Vinny’s Firehouse Pizza LLC, 109 Maple St., Sheboygan Falls, $225,000, Oostburg State Bank; WALWORTH COUNTY

Azim Presswala DDS LLC, 8411 W. Lincoln Ave., Milwaukee, $150,000, U.S. Bank;

Green Meadows Farm Inc., 33603 High Drive, East Troy, $1 million, First American Bank;

Connect Chiropractic LLC, 415 E. Vine St., Milwaukee, $146,000, Citizens Bank, Mukwonago;

PolyPail Inc., 1615 Grebby St., Delavan, $1.2 million, BMO Harris Bank;

Connect Chiropractic LLC, 10702 W. Burleigh St., Milwaukee, $30,000, Citizens Bank, Mukwonago;

Vintage Family Investments I LLC, N4901 Dam Road, Delevan, $3 million, Celtic Bank Corp.;

Kohl Electrical Services LLC, 427 S. 7th Ave., West Bend, $250,000, PNC Bank;

Lions Den Real Estate LLC, 4511-17 N. Oakland Ave., Shorewood, $668,000, WBD Inc.;

Poole’s Construction, 1675 Homestead Trail, Kewaskum, $40,000, U.S. Bank;

Mariah’s Family Care Home LLC, 5722 W. North Ave., Milwaukee, $336,000, Town Bank;

Skinny Vic’s LLC DBA Skinny Vic’s Diner, 804 W. Paradise Drive, West Bend, $250,000, Wisconsin Women’s Business Initiative Corp.;

N & E Enterprises LLC, 8989 55th St., Milwaukee, $110,000, Waukesha State Bank; Platform II – Wisconsin LLC, 3742 W. Wisconsin Ave., Milwaukee, $2,355,000, WBD, Inc. Ravneet Liquor Inc., 2812 W. Fond du Lac Ave., Milwaukee, $687,000, Byline Bank;

Think Pawsitive Dog Training LLC, 301 Commerce St., Waukesha, $35,000, Wisconsin Women’s Business Initiative Corp.;

W I S C O N S I N 2 0 2 0

WAUKESHA COUNTY

Be Green Lawn Care Service LLC, 1300 Capitol Drive, Ste. 10, Oconomowoc, $50,000, First Bank Financial Centre; Eckis Holdings LLC, 215 E. Pleasant St., Oconomowoc, $162,000, WBD, Inc.;

Ravneet Petro Inc. II, 2812 W. Fond du Lac Ave., Milwaukee, $140,000, Byline Bank;

Garage Floors of Wisconsin, W220 N1531 Jericho Court, Waukesha, $990,000, Live Oak Banking Company;

Rookery Brewing LLC, 505 S. 5th St., Milwaukee, $150,000, Wisconsin Women’s Business Initiative Corp.;

Garage Floors of Wisconsin, W220 N1531 Jericho Court, Waukesha, $50,000, Live Oak Banking Company;

Ultimate Contractors LLC, 1956 S. Muskego Ave., Milwaukee, $100,000, U.S. Bank;

Hot Point Heating & Air Conditioning LLC, N48 W28870 County Road JK, Hartland, $50,000, U.S. Bank;

Vera Residential Real Estate LLC, 10909 W. Bluemound Road, $30,000, U.S. Bank;

Seneca Hest Gard LLC, N87 W36605 Mapleton Road, Oconomowoc, $263,500, U.S. Bank;

Sunny Side Up Café LLC, 15744 W. National Ave., New Berlin, $395,500, First Savings Bank;

WASHINGTON COUNTY

JMX Same Day Delivery LLC, 9330 W. Lincoln Ave., Ste. 1, West Allis, $350,000, First Home Bank;

Moss Optical LLC, 1568 N. Farwell Ave., Milwaukee, $400,000, Byline Bank;

Hot Point Heating & Air Conditioning LLC, 351 S. Maple St., Oconomowoc, $94,500, U.S. Bank;

RESERVE YOUR AD NOW! Space deadline: May 20

CONTACT MEDIA SALES:

(414) 336-7112 or advertise@biztimes.com biztimes.com / 43

BizConnections GLANCE AT YESTERYEAR

VOLUME 25, NUMBER 19 | JAN 20, 2020 Send your company’s historic photos to arthur.thomas@biztimes.com

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION: 414-336-7100 | circulation@biztimes.com ADVERTISING: 414-336-7112 | advertising@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7100 | reprints@biztimes.com PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com

SALES & MARKETING

DIRECTOR OF OPERATIONS Mary Ernst mary.ernst@biztimes.com COMMUNITY ENGAGEMENT / OWNER Kate Meyer kate.meyer@biztimes.com

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com ASSOCIATE EDITOR Lauren Anderson lauren.anderson@biztimes.com ASSOCIATE EDITOR Arthur Thomas arthur.thomas@biztimes.com REPORTER Brandon Anderegg brandon.anderegg@biztimes.com REPORTER Maredithe Meyer maredithe.meyer@biztimes.com

Domes under construction This photograph shows the Mitchell Park Domes under construction. Construction of the Domes, which were designed by Milwaukee architect Donald L. Grieb, started in 1959 and was completed in 1967. Work took place in six stages, allowing the project’s $4.5 million total cost – around $40 million today – to be covered with yearly appropriations, according to the Domes’ website. The latest renovation plan for the Domes calls for a $66 million publicprivate partnership.

— Photo courtesy of Milwaukee Public Library

COMMENTARY

2020 is Milwaukee’s year to shine FOOD AND DINING WEBSITE EATER, a brand of New York-based Vox Media, recently included Milwaukee on its list of “The Best Travel Cities for Street Food and Restaurants in 2020.”

The list was comprised of 19 destinations across six continents and included the East Village of New York City; Santiago, Chile; Marseille, France; Monterrey, Mexico…and Milwaukee.

About Milwaukee, Eater said, “The blue-collar Midwestern burg, cozy against the banks of Lake Michigan and long in the shadow of Chicago … may finally be having its moment.”

Indeed, Milwaukee’s time to shine is here in 2020. While the city still faces enormous challenges with crime and poverty, downtown and surrounding neighborhoods continue to attract businesses and new residents. That revitalization has attracted national attention. In 2018, an article in Vogue described Milwaukee as “the Midwest’s coolest (and most underrated) city.”

44 / BizTimes Milwaukee JANUARY 20, 2020

The national and international attention on Milwaukee is going to grow significantly this year with the Democratic National Convention being held here from July 13-16. Hotels are already booked for that week throughout the region as the DNC is expected to attract 50,000 visitors and $200 million in economic impact to the area.

Just being selected to host the convention has already drawn major attention to Milwaukee. Airbnb said Milwaukee is its top destination for 2020. Forbes magazine named Milwaukee one of its “25 Places to Visit in 2020.”

Recently 500 members of the local and national press were in Milwaukee just to get information to prepare for the DNC. The DNC is an indication of the massive amount of attention Milwaukee and Wisconsin will get during this presidential election year, as Wisconsin is considered a crucial swing state.

President Trump recently held a rally in downtown Milwaukee. It is sure to be just the first of many that candidates will hold here this year.

In addition to the DNC, the Milwaukee Bucks appear primed for another deep playoff run that, like last season, will put Milwaukee in the national spotlight. The Ryder Cup, to be held in September at Whistling Straits in Sheboygan County, will also bring visitors and international

REPORTER Alex Zank alex.zank@biztimes.com

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com ACCOUNT EXECUTIVE Paddy Kieckhefer paddy.kieckhefer@biztimes.com ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com INSIDE SALES ACCOUNT EXECUTIVE Dylan Dobson dylan.dobson@biztimes.com SALES ADMINISTRATOR Meggan Hau meggan.hau@biztimes.com

ADMINISTRATION ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

PRODUCTION & DESIGN GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com

Independent & Locally Owned

ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

— Founded 1995 —

media attention to southeastern Wisconsin.

And that’s not all.

Milwaukee will host USA Triathlon’s Age Group National Championship from Aug. 7-9.

It’s expected to bring 5,000 athletes and 10,000 spectators to the city, making an estimated local economic impact of $6 million.

Milwaukee will also host an international gymnastics event with an American Cup meet on March 7 at Fiserv Forum. It is part of qualifications for the 2020 Olympic Games in Tokyo.

These special events join Milwaukee’s already chock-full calendar of annual events, including Summerfest, the world’s largest music festival, which will keep the city rocking in between the NBA playoffs and the DNC, and State Fair, which last year set an attendance record of 1.1 million.

Buckle up. It’s going to be quite a year in Milwaukee. n

ANDREW WEILAND EDITOR

P / 414-336-7120 E / andrew.weiland@biztimes.com T / @AndrewWeiland

AROUND TOWN

United Way 2019 campaign celebration United Way of Greater Milwaukee and Waukesha County recently celebrated the completion of its 2019 campaign at Discovery World.

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JAY MAGULSKI of Landmark Credit Union, JUAN RUIZ, and MIKE FLYNN of First Business Bank.

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AIMEE WIEDMEYER and TAREN RODABAUGH, both of Harley-Davidson.

3.

CORY NETTLES of Generation Growth Capital and AMY LINDNER of United Way of Greater Milwaukee and Waukesha County.

4.

PATRICIA CONTRERAS of Rockwell Automation, JAY MAGULSKI of Landmark Credit Union and NAFESSA BURDINE of ManpowerGroup.

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CECELIA GORE of Brewers Community Foundation, BLAKE MORET of Rockwell Automation, GEORGE OLIVER of Johnson Controls and MIKE FLYNN of First Business Bank.

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Photos courtesy of United Way

2019 Health Care Heroes awards

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BizTimes Media recently hosted its annual Health Care Heroes awards event, saluting the accomplishments of people and organizations making a positive difference on the front lines of health care in southeastern Wisconsin.

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ERIC THELER and FREY THELER, both of Progressive Community Health Centers Inc.

7.

BOB MLYNAREK of Milwaukee Regional Medical Center and CHRISTINA BINN of Lake Area Free Clinic.

8.

DR. TERRI DEROON-CASSINI and DR. MIKE DEMOYA, both of Medical College of Wisconsin.

9.

PETE HEBL of Milwaukee Health Services and MICHAEL DONOHOO of Burleigh Dental.

10. JOHN MIELKE, MARY BEUSCHER, BRYAN LEWIS, JENNY LEWIS, EMMANUEL OTU and ROB DOCOFFE, all of UW-Parkside.

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11. BRIAN CARROLL and MICHAEL MEYER, both of Children’s Wisconsin and Medical College of Wisconsin, and LYNN D’ANDREA of Medical College of Wisconsin.

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12. MADELAINE TULLY of Progressive Community Health Centers; MARIA and ANDREW TULLY, both retired; ELIZABETH KESSLER of the State of Wisconsin; and ANN HELMS of Medical College of Wisconsin.

13. DENISE BANKS of Milwaukee Center for Independence, JOHN CHIANELLI of Whole Health and MICHAEL LAPPEN of Milwaukee County Behavioral Health Division.

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14. The 2019 Healthcare Heroes awardees.

Photos by Maredithe Meyer biztimes.com / 45

JAKE HILL PHOTOGRAPHY

BizConnections

5 MINUTES WITH…

MATT WOLFERT President, Bray Architects

MILWAUKEE-BASED BRAY ARCHITECTS IS IN GROWTH MODE, both geographically and in the markets it serves. The firm recently announced a growing footprint in the Quad Cities area with the opening of a new office in Davenport, Iowa, and the acquisition of Moline, Illinois-based design and planning firm Bracke.Hayes.Miller.Mahon, Architects. The acquisition allows Bray to expand in new markets, including religious, mixed-use and tax-credit housing. The approximately 70-employee firm is also mulling an expansion of its Walker’s Point headquarters.

In a recent interview with BizTimes Milwaukee reporter Alex Zank, Bray president Matt Wolfert discussed the firm’s recent growth and projects it is working on.

GROWING IN QUAD CITIES “We are a predominantly Wisconsin-based architectural firm that has focused on K-12, higher education, municipal, a little bit of financial and some corporate (projects), but we didn’t have access to a lot of other geographic markets. About two years ago, we identified a number of key markets we’d grow into geographically, with Iowa being one of them. And the reason is the way they fund public school construction … Overall, Wisconsin does larger projects when times are good and voters approve (referendums), but Iowa funds things on a more stable, consistent basis. Both markets are important to us but the stability of Iowa is of great appeal to help offset the big swings up (and) down that Wisconsin brings.

“The acquisition of BHMM really came from about seven or eight years ago, when we had some early conversations with them about pursuing 46 / BizTimes Milwaukee JANUARY 20, 2020

projects in partnership. None of those projects came to fruition … but we developed an early relationship with them that was positive. They re-approached us about a year ago it’s been now; they were looking to merge and grow their operations in Iowa and Illinois. We found that they fit well with us culturally.”

MILWAUKEE EXPANSION “We have acquired the property to the north of us (821 S. First St.) … and are in the process of abating and we’ll eventually be demolishing that building to support the future growth and expansion of the firm and of the (headquarters) building.

“We can’t say unequivocally yet (when) we’re going to start … but we are to the point of saying that we are exploring expansion opportunities, one of which will be directly adjacent to us … Much of that will be dictated by how many team members we plan to add in the years ahead, and we’re kind of in the process of going through that strategic planning now.”

CURRENT PROJECTS “Right now, we have a number of great projects going on in the office.

Probably the largest we’re involved with is a new high school in the Sun Prairie Area School District. It’s a great project that’s currently in the design phase – a well-over $100 million project … The other one that’s local, and one that’s close to our hearts, is Cristo Rey Jesuit High School (a $33 million, 100,000-square-foot school at 1818 W. National Ave.). We’ve spent the last couple years planning and conceptualizing, and now we’re in the construction phase.” n

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