BizTimes Milwaukee | July 22, 2019

MID-YEAR ECONOMIC FORECAST

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» JUL 22 - AUG 4, 2019

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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 25, Number 8, July 22, 2019 – August 4, 2019. BizTimes Milwaukee is published bi-weekly, except monthly in January, July 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 2019 by BizTimes Media LLC. All rights reserved.

Contents

4 Leading Edge 4 NOW

BY THE NUMBERS 5 BIZ LUNCH 6 INNOVATIONS 7 IN THE NEIGHBORHOOD 8 BIZ COMPASS 9 GETTING THERE BIZ POLL 10 PROJECT PITCH IT

12 Biz News 12 SEEN AND HEARD AT THE FAMILY & CLOSELY HELD BUSINESS SUMMIT 14 THE INTERVIEW 16 MADE IN MILWAUKEE 17 BIZTIMES MILWAUKEE WINS NATIONAL AWARDS

18 Real Estate COVER STORY

20

40 Strategies 40 LEADERSHIP Jerry Jendusa 41 MANAGEMENT Aleta Norris 42 TIP SHEET

MID-YEAR ECONOMIC FORECAST

Special Report

46 Biz Connections 46 NONPROFIT 47 SBA LOANS 48 GLANCE AT YESTERYEAR COMMENTARY

38 The Business of Nonprofits Nonprofit leaders explain how they have drawn from their corporate career experience to run charities effectively.

49 AROUND TOWN 50 5 MINUTES WITH…

TOWN BANK WELCOMES OUR NEWEST DIRECTORS

CECELIA GORE

Executive Director, Brewers Community Foundation

REBECCA KLEEFISCH

44 Lieutenant Governor of Wisconsin th

BILL O’TOOLE

414-273-3507 | townbank.us

President & CEO, Catholic Financial Life

biztimes.com / 3

Leading Edge

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

NOW

A rendering of the planned Nexus facility.

Pharmaceutical company to build plant in Pleasant Prairie

By Alex Zank, staff writer Nexus Pharmaceuticals Inc. plans to build its first sterile injectable drug manufacturing facility in Pleasant Prairie.

The Lincolnshire, Illinois-based pharmaceutical company recently revealed details of a $250 million, multi-phase project expected to be completed within 10 years in Pleasant Prairie. As part of the first phase, Nexus will invest $85 million

in a new 100,000-square-foot, three-story production operation, construction of which will begin in August and finish by 2021.

To staff it, Nexus plans to hire 77 workers for high-tech production, engineering, quality control and supply chain management.

The average annual salary of these workers will be $70,000.

Commercial production at the

BY THE NUMBERS

About

15,000

people came to Milwaukee earlier this month for the League of United Latin American Citizens’ National Convention & Exposition, which was held at the Wisconsin Center.

4 / BizTimes Milwaukee JULY 22, 2019

facility is expected to begin in 2022.

The facility will be built on a 16acre parcel in the Prairie Highlands Corporate Park, located along I-94 north of Highway 165. Nexus will join German candy manufacturer Haribo, health care provider Advocate Aurora and IT firm OFFSITE as the initial park tenants. The corporate park is being developed on land the village purchased from Abbott Laboratories in 2017.

“This investment is needed to drive the continued growth of the U.S. pharmaceutical manufacturing industry,” said Mariam Darsot, chief executive officer of Nexus. “There is increasing patient demand for high-quality and accessible generic injections. The addition of our Wisconsin facility will enable Nexus to produce a more stable and reliable supply of sterile injectables, a category that is particularly susceptible to drug shortages.”

In addition to the 77 jobs being created at Nexus’ new manufacturing plant, the Wisconsin Economic Development Corp. estimates the project will indirectly generate 134 additional jobs. Altogether, those 211 new jobs are expected to generate up to $512,000 annually in state income-tax revenue.

The construction phase could directly support another 237 jobs and a total of 379 direct and indirect jobs.

“This is one of the most significant pharmaceutical investments in Wisconsin in years,” said Gov. Tony Evers. “Southeast Wisconsin is increasingly becoming a destination of choice for high-value manufacturing jobs that require a skilled, educated workforce.”

Nexus produces specialty and generic injectable drugs used by hospitals throughout the U.S. The company, formed in 2003, has nine FDA-approved lifesaving medications and six commercially available generic injectables used in 2,500 hospitals and health care facilities.

Its products include several recent launches of first-to-market FDA-approved generic drugs.

The company will receive $1.5 million in state income tax credits over the next four years from WEDC. The actual amount of tax credits to be awarded is contingent upon the number of jobs created and amount of capital investment during that four-year period. It will also receive support from Kenosha County’s High Impact Fund.

“Nexus brings the high-value job opportunities that our region seeks and can capably support.

The company’s decision to invest here highlights – once again – our success in attracting companies that require skilled knowledge workers,” said Gale Klappa, cochair of Milwaukee 7 and executive chairman of WEC Energy Group. n

1

BIZ LUNCH

Lunch

MAREDITHE MEYER

Biz

THE MECCA SPORTS BAR AND GRILL WEBSITE: themeccamke.com

CONTRIBUTED

2

A D D R E S S: 1134 N. Vel R. Phillips Ave., Milwaukee

CUISINE: Elevated sports bar fare C H E F: Matt Kerley M O O D: Like you’re at the game PRICING: Lunch and dinner entrees, $13-21; Appetizers, $6-14 The Milwaukee Bucks have touted their new concept, The MECCA Sports Bar and Grill, as the city’s premier destination for watching all things sports. But with newly expanded hours, now starting daily at 11 a.m., The MECCA has positioned itself as a lively and unique lunch spot for downtown business professionals.

The Mecca is one of four bar/restaurant concepts that opened earlier this year along the Entertainment Block near Fiserv Forum.

The two-story, 11,500-square-foot restaurant has become known for its centerpiece, a nearly-floor-to-ceiling 38-foot HD screen that broadcasts all varieties of sporting events, from Bucks playoff games to the Women’s World Cup. It also has two full-sized bar areas, first- and second-floor outdoor seating and a private event space.

Its elevated bar fare menu includes Wisconsin staples like cheese curds and nachos, as well as tacos, wings and handhelds. The MECCA Burger is a top seller. 

3

1 2 3

The MECCA Burger is two smashed beef brisket patties topped with garlic dijonnaise sauce, pickled red onion, arugula and sharp cheddar on a sesame bun. MECCA’s full bar selection celebrates a variety of local breweries and distilleries.

The crispy shrimp, topped with sesame seeds and green onion, is one of the most popular appetizers on the menu.

The MECCA can be rented for private events for up to 750 people. It has “arena-style” seating on the second floor, while some seating is secluded from the restaurant’s main viewing areas for diners seeking for a quieter experience. biztimes.com / 5

Leading Edge

INN Fiveable gains investors with social learning platform

Fiveable Milwaukee

INNOVATION: Live-streamed social learning platform FOUNDER: Amanda DoAmaral FOUNDED: 2018 fiveable.me

6 / BizTimes Milwaukee JULY 22, 2019

@BIZTIMESMEDIA – Real-time news

VAT I MARCUS LEMONIS had something up his sleeve.

The Marquette alumnus and Camping World chief executive officer turned off his microphone and whispered to Summerfest CEO Don Smiley and event organizers Matt Cordio of Startup Milwaukee and Kathleen Gallagher of the Milwaukee Institute while the crowd grew restless.

Lemonis hatched his plan as he judged the 5 Lakes Pitch competition at Discovery World on Milwaukee’s lakefront in late June. The contest, part of Summerfest Tech, pitted four startups against each other in competition for a $7,500 cash prize and in-kind services.

That top prize went to health care interoperability startup OneChart Health.

But the celebrity entrepreneur decided on the spot to invest $10,000 of his own money in the promising second-place startup, Fiveable.

Amanda DoAmaral, founder and chief executive officer of Fiveable, also announced at the event that – after being established in Maine last year, stopping in Philadelphia and moving to Madison for the gener8tor program this spring – the company was moving its headquarters to Milwaukee.

The company has found early success based on the platform it has built to connect teachers and students for virtual after-school help sessions via livestreaming.

DoAmaral came up with the idea after five years of teaching 9thand 10th-grade history in Oakland, California. She had left teaching and moved near family in Maine.

“It was actually a couple of former students that lit the path for me,” DoAmaral said. “They had gone into their junior year with AP U.S. History and they were feeling frustrated by a lack of resources and frustrated by their teacher that year.”

So, she offered to help them prepare for their AP test via lives-

NS

tream.

“Then I started thinking, ‘I bet there are a lot of other students that are in the same boat as my students right now,’” DoAmaral said. “At first it was out of Amanda DoAmaral presents Fiveable during the 5 convenience and then Lakes Pitch competition at Discovery World in June.

I realized I could reach more kids this way.”

She got the word out on social space to collaborate around them.” media, Reddit and by reaching out Fiveable has been cobbling toto teachers via email. In Fiveable’s gether its platform with third-party first month-and-a-half, a little more webinar products, but has now dethan 2,000 students tuned in to the veloped a minimum viable product livestream. for its own system that it plans to Fiveable started bringing in launch in January in conjunction other teachers who were experts with the start of the spring semesin other subject areas, such as ter, she said. psychology, English and biology.

The new platform is scalable And then the company added and tailored to how Fiveable will professional development for AP use it. It will also allow the compateachers themselves, interviewing ny to pull more data around how textbook writers and creating teachers and students are using livestreams covering each part of the platform. an exam and how to pace a class The users have provided valiaround the subject. dation for Fiveable every step of Now a four-person full-time the way, encouraging DoAmaral to staff, Fiveable has wrapped up its continue, she said. first full school year with $6,000 “They latched on early on in monthly recurring revenue and wanting to help me build it, want1,200 members in May. The startup ing to spread the word,” she said. is currently raising $600,000 from “Every time we talk through what investors, and is about halfway we’re doing, why we’re doing it… with the help of Lemonis’ investwe just see so much excitement in ment, the $5,000 grant it earned students and teachers and a desire in 5 Lakes Pitch and the $80,000 to be a part of it.” n gener8tor contributed as part of its equity incubator program.

The company has found success by identifying teachers who have proven results and giving them a wider platform.

“I know that there are a lot of other resources that students and teachers use. But it’s pretty decentralized and one of the frustrations is a lack of collaboration and comMOLLY DILL munication across teachers and Managing Editor students,” DoAmaral said. “It’s not P / 414-336-7144 that there’s a lack of curriculum or E / molly.dill@biztimes.com content, it’s that there’s a lack of T / @BizMolly human interaction within them and

IN THE NEIGHBORHOOD Why were you interested in working in real estate?

“The thought of real estate has always been intriguing. What attracted me to real estate was the potential of making large commissions, but also still dealing with people. I like to make people smile; that’s what gets me up for the day. Being part of the buying or selling of their home is a very intricate part of their life and I like to make relationships more than just the sale. Being part of someone’s life is something that I really enjoy.”

CORLEY REAL ESTATE LLC 569 E. Erie St, Milwaukee NEIGHBORHOOD: Historic Third Ward FOUNDED: 2013 OWNER: Chris Corley EMPLOYEES: Four SERVICE: Condo brokerage

How do you help customers pick out the right place to live?

“It starts off by asking questions and being a good listener. You also need to ask how they live their life: ‘In a perfect world, what would you like? Okay, now in reality, how do you actually live? What are things you don’t like about your current living place?’ There’s obviously a reason why you’re changing, whether it be for a job or age or different things; you need to listen to that. And even though somebody might be stuck on that they want to live in the Third Ward, they

might say they want lake view over river view. It’s important to be a good listener.”

What’s your favorite part of your job?

“Getting to see people’s homes and how they live, from the finishes to the furnishings to artwork, and listening to their stories. A home is a very large part of somebody’s life and when they open that door and allow you in, it’s a very unique opportunity. It’s something most people don’t get the chance to do, and I really enjoy it. I enjoy meeting the people as much as I do seeing their property.” n

TEACHES YOUR EMPLOYEES

to make

Contact us today to learn more about offering this free financial wellness program for your workplace.

SummitCreditUnion.com | 800-236-5560 | 608-243-5000 FinancialWellness@SummitCreditUnion.com

Insured by NCUA. © Summit Credit Union.

biztimes.com / 7

Leading Edge BIZ COMPASS

How do you sustain CULTURAL CHANGE IN YOUR ORGANIZATION?

RATHMANN 1 PETER

President and CEO, Allis Tool & Machine Co.

“Sustaining culture change is easy once you have the right people rowing in the same direction. Building the culture required painting a picture of success, changing mindsets, leading and living by example, feeding the right activities that reinforce the culture, and most importantly, you must kick out the cancerous attitudes.”

2 TOM KENNEDY

Chief operations officer, La Macchia Group

1 3

“We regularly bring our ‘family’ of employees together for non-work gatherings. It’s an opportunity for more seasoned employees to engage with those who are new to La Macchia Group. Additionally, we talk about our culture and goals, adding a layer of accountability to our employees and our clients.”

3 JEFF KERLIN

President and chief executive officer, Tailored Label Products

“Determine what attributes you like about or want in your culture and make decisions on people based on their demonstration of living out those attributes. Be extremely careful with who you place or leave in leadership. Leaders at all levels must be champions of the company’s culture.”

2 5

4 MARIKRIS CORYELL

President, St. Joan Antida High School

“Cultural change is sustained through being deliberate about the message and consistent about the behavior that supports the change. Once the change is communicated, then make sure you execute with visible action – consistently.

Attach a new behavior to an existing meeting so it becomes embedded as a habit. Don’t slip backwards!”

5 J. MICHAEL NAUMAN

President and CEO, Brady Corp.

4 8 / BizTimes Milwaukee JULY 22, 2019

“Cultural change requires people of all perspectives and backgrounds in the company to be open to others’ perspectives and to be open to doing things differently than we’ve always done them. The driving element has to be creating an inclusive environment, because it’s a natural draw for high-talent and people who want change. We have an entrepreneurial spirit that makes people accountable and rewards them for what they do. That automatically drives change.” n

GETTING

THERE

What attracted you to QPS? “I was so excited to be able to combine making a difference in people’s lives … but I also had this really strong desire to be part of the true running the business of a company. For me, QPS checked literally all the boxes of being really involved in the community, making a difference in the lives of people in the community and me getting to work with a large team of really smart people across the Midwest.”

What does your board service mean to you?

“I think any time you have a chance to give back you should look to do that. I’ve been fortunate to be able to do that in a leadership role. …

Both my wife and I are graduates of Wisconsin Lutheran High School … to say that it’s near and dear to my heart is an understatement. It’s given a lot to me and the family I am with, so I want to give back, so that one is easy. The Vince Lombardi Cancer Foundation has a really great cause … but it’s also pretty great because we get to work with some pretty interesting and prominent sports figures …They couldn’t be on two opposite ends of the spectrum, very different networks, but two things I’m pretty passionate about.”

What are your hobbies outside of work?

“I picked up racing, believe it or not, in my mid-life crisis, so I’ll be running at Road America in two weeks; I do that a few times a year. I race in an old vintage series that has become lots of fun and my wife could not hate it more. ... my favorite hobbies in the world are my two girls. I’ve got two daughters, one is 12 and one is 14, so I’m a dance dad on the side.”

BIZ POLL

A recent survey of BizTimes.com readers.

What is the outlook for your business for the second half of 2019?

Improvement:

35.6% Decline:

26.8%

Stable:

37.6%

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

C O S B E ’ S 1 0 TH A N N U A L E X E C U T I V E ROUNDTABLE B R E W E R S O U T I N G

thank you TO OUR SPONSORS

GRAND SLAM SPONSOR

RYAN FESTERLING President and COO QPS Employment Group AGE: 44 HOMETOWN: Pewaukee EDUCATION: Bachelor’s in finance, marketing and public administration, University of WisconsinLa Crosse PREVIOUS POSITION: Executive vice president of human resources, Kohl’s Corp.

INNING SPONSORS

Associated Bank N.A. Central Office Systems Creative Business Interiors Delta Dental DeWitt LLP Law Firm Godfrey & Kahn S.C. National Exchange Bank & Trust Sikich LLP SVA Public Accountants

MMAC’s FREE Executive Roundtable programs help top-level executives share best practices and address their unique issues.

Learn more at www.mmac.org/roundtable.html

biztimes.com / 9

Leading Edge

PROJECT PITCH IT BLUE MANGOES LLC LEADERSHIP: Joshua Shefner, founder and CEO A D D R E S S: Milwaukee WEBSITE: bluemangoesfruit.com W H AT I T D O E S: Empowers female co-ops in developing countries to dry and sell surplus fruit F O U N D E D: 2017

Blue Mangoes expanding product line

By Molly Dill, staff writer

M

ilwaukee-based social enterprise Blue Mangoes LLC is squeezing all the juice out of its raw materials.

College engineering student Joshua Shefner launched the startup in 2017 by engineering and building solar dehydrators in Jamaica so local women could dry surplus tropical fruits for sale. Then it expanded to six other developing countries, hiring field employA selection of Blue Mangoes’ dried fruit, which is sold in 4-ounce packages. ees to train others how to build and use the contraptions. And now, Blue Mangoes has developed methods for on the most recent season of entrepreneurthe female cooperatives it employs to create ship pitch show “Project Pitch It” on WISN-TV gluten-free coconut, banana, breadfruit and Channel 12. coffee flour; sustainable coconut-shell charcoal; Having been on TV statewide this spring and local chicken feed. helped Blue Mangoes gain traction when it “They have an abundance of free, naturallaunched its $10,000 Kickstarter campaign in ly growing fruits in their communities,” said May, Shefner said.

Shefner, chief executive officer. “We started “We put (the ‘Project Pitch It’ winnings) experimenting and finding out what else we towards our work in Kenya and Tanzania and can do with the fruit.”

Haiti,” he said.

Blue Mangoes packages, markets and sells The company, which now has 16 employees the dried fruits from the U.S. as a fair trade worldwide, plans to use the investor funding product. It has sold about 2,500 bags since its to launch its products for sale online and push May product launch. into retail.

Now, the company is raising its first investor One thing that may help with the retail round of funding to accelerate its growth. The effort: This summer, Blue Mangoes is taking $600,000 pre-seed round is expected to close part in the new 15-week Target Incubator in in August, Shefner said.

Minneapolis. More than 400 startups applied Since its 2017 inception, Blue Mangoes has for the eight slots in the program. been bootstrapped with entrepreneurship “(Being sold at Target is) not a guarantee. competition winnings, a Kiva loan, a Kickstarter But we do have a lot of meetings with the merand a federal grant. It won a $10,000 cash prize chandising team,” Shefner said. n

RESERVE YOUR SPONSORSHIP TODAY! UP TO 4 SPONSORSHIPS ARE AVAILABLE TO ANCHOR THE PROJECT PITCH IT PAGE AND BRAND YOUR COMPANY AS A SUPPORTER OF STARTUPS AND ENTREPRENEURSHIP. Sponsor:

SPONSORED CONTENT

Better prepared patients, higher-value health care A well-informed patient can advocate on their own behalf

by Jim Mueller

Jim Mueller President and CEO Mueller QAAS Web: myqaas.com Social: linkedin.com/in/jim-mueller Contact: (262) 696-3610

Summer is finally here, though the Wisconsin weather can still be a bit unpredictable. Before enjoying the great outdoors, it is best to follow the cardinal rule of camping and be prepared. Like the weather, our health care system is also complex and unpredictable. This makes it hard for patients to be prepared to make the best decisions for themselves and their families.

Thankfully, improved tools and patient resources are now available that make it easier to prepare for treatment and can lead to lower cost, higher quality health care.

There are three main players within our health care system, each with their own interests. At the top, hospital administrators are mainly concerned with keeping their facilities operating smoothly and efficiently.

Physicians’ chief concern is their patients’ safety and well-being. As the largest and most important group, patients want high-quality health care services for the lowest possible price. In this environment, health care executives are focused on the bottom line and may push providers to create more revenue in less time. This could consequently mean less time for the patient than the provider would like. As a result, patients may feel under-satisfied and frustrated with their overworked physician.

Despite these challenges, patients rightfully rely on their physician for medical knowledge and guidance. However, it is important that they can advocate on their own behalf as well. A well-informed patient asks more relevant medical questions. They can also skip pricing or insurance questions that their provider may not be able to answer. Being prepared, therefore, leads to higher patient satisfaction, less frustration for the provider, and more productive visits for both parties. The time has come for patients to effectively advocate for themselves within our confusing medical bureaucracy.

Cost estimator tools are one valuable resource. For example, Fair Health Consumer’s (www.fairhealthconsumer.org) cost-estimator tool price compares low- and high-risk procedures and associated care according to insurance coverage and location. The tool is sophisticated and specific, yet very easy to use. In addition, many insurance providers now offer their own cost-estimator tools. Anthem, for instance, recently made huge improvements to their comprehensive estimator and search tools. Other carriers are making similar tools equally accessible to members in response to demand. In short, cost-comparing in an era of extreme price variation for common procedures could mean not receiving that surprise bill in the mail.

Beyond cost, care quality is most important when you or a loved one is faced with a more serious diagnosis or emergency. The National Quality Assurance Association (NCQA), for example, is a great quality resource. With scores of health care datasets at its fingertips, the NCQA creates quality-focused provider “report cards.” The report cards help patients choose a high-quality provider in any location. The association also produces articles and resources on procedures, health care transparency, and current health care news to help patients better navigate the system.

While the importance of cost and quality depend on the situation, value – highest quality for lowest cost – is what most search for in a provider above all. MyHealth Wisconsin (myhealthwi.org) contains a database that connects patients with quality facilities that have high-value providers in any chosen area. This resource uses a thorough facility-rating system and even provides specific quality measures patients should expect out of any health care facility they visit.

Sponsored Content

For our part, mueller-QAAS seeks to advocate for clients searching for value-driven, cost effective health care plans.

We also encourage our employer clients to educate their employees on accessing resources that can better inform their health care decisions. Taking advantage of every resource available and empowerment towards self-advocacy is a necessary step down the path towards better – and more valuable – health care.

biztimes.com biztimes.com // 11 ##

BizNews EVENT RECAP

Seen and heard…at the Family & Closely Held Business Summit

1

2

3

“You keep it at the door if there is something going on that you disagree with business-wise. You leave it; the door’s closed. At the end of the day, you’re family.”

– Nick Chiappetta, chief operating officer of Chiappetta Shoes

4

“Having core values are so much easier for us to articulate as a private company because we don’t have the pressures of shareholders every quarter. We can actually pause and do the right thing for the business and for the family, rather than worrying about this quarter’s earnings.”

–Dan Ariens, chairman and chief executive officer of Ariens Co.

12 / BizTimes Milwaukee JULY 22, 2019

5

6

7

“(Joe Bartolotta and I) are two people who got together early on and we said to ourselves, ‘Let’s build our core values; let’s define what’s important to us,’ and those became very obvious to us.”

–Paul Bartolotta, chef and co-owner of The Bartolotta Restaurants

8

9

“We call it the one man, one vote. The way I augmented that over the years is by joining best practices groups, where peers in the industry get together a few times a year and compare business strategies.”

–Jerry Weidmann, president of Wisconsin Lift Truck Corp., part of Wolter Group LLC, on the company being governed solely by president and owner Otto Wolter, his father-in-law.

“(Succession planning) doesn’t have to be from a traumatic event like we’re experiencing. It’s about how to get ready, how to move forward… the time is now.”

10

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–Keith Trafton, COO and managing partner of The Bartolotta Restaurants.

12

1. Futurist David Zach presented his forecasts for the future of business.

2. Paul Bartolotta and Keith Trafton explained how they have approached growth and transition at The Bartolotta Restaurants.

3. David Borst moderated a panel discussion among the family business leaders.

4. Dan Ariens, chairman and CEO of Ariens Co., explained the history of his family business.

5. Michael McDonald of Spectrum Investment Advisors Inc. participates in a roundtable session.

6. Gregg Mashack, Gordy King and Joe Weber of National Exchange Bank & Trust.

7. Ryan Black of First Business Bank and Steve Kelly of MLG Capital.

8. Hannah Smart of Smart Motors and Joseph Tierney IV of Davis & Kuelthau s.c.

9. Gina Natoli of BMG and Teresa Van Horn of Van Horn Automotive.

10. Craig Cerbins of Wintrust Commercial Banking and Jacqueline Messler of Davis & Kuelthau.

11. Matt Mielke of Vistage with Julie Albrecht and Scott Huebner of Better Business Bureau.

12. John Emory Jr. of Emery & Co. LLC, Richard Smith of raSmith and Paul Sackmann of Old National Bank.

biztimes.com / 13

BizNews

the

Interview

LONGTIME POLITICAL STRATEGIST Joe Solmonese is not one to shy away

from a challenge. He recently moved from New York to Milwaukee to spearhead the day-to-day operations of planning and executing the Democratic National Convention, which will be held here from July 13 to 16, 2020. Before he was named to that role, Solmonese served as chief executive of EMILY’s List, which backs female candidates who support abortion rights; president of the Human Rights Campaign, which advocates for LGBTQ equality; and most recently as transition chair of Planned Parenthood Federation of America. Solmonese was the featured speaker at a recent Milwaukee Press Club event, where he took questions from a panel of journalists including BizTimes Milwaukee reporter Maredithe Meyer.

What benchmarks will you aim to meet before next summer?

“Internally, I could show you reams of historic documents that I am using as measures for where we should be in terms of revenue, at what point do we begin to take up different aspects of this work from logistics to building out the stage and what happens on the stage, and of course, how we staff up. We’ve got probably a dozen people on board now between the host committee and the convention committee, but that number will reach 100 by the end of the year and will go up from there. There’s also a set of things that we will make sure we are doing externally… so that everyone who is a stakeholder who is impacted knows as quickly and readily as we can get that information out there.”

What role will security play in the planning process, and how will you manage its impact on area businesses and residents?

“We live in a time when I think it would be safe to say that both conventions are going to have a heightened degree of security. One of the very first things we are doing is making sure we are way ahead of the curve on things like physical security and cybersecurity, as well…

Once all of it is in place, we plan to engage members of the community – business and residents – and be as clear with them as we possibly can be about specifically what the impact will be and how we can help minimize that impact… If there’s an apartment building inside the security perimeter, we owe people in that building a conversation that is not something they’re going to read about on Twitter. We want to be incredibly intentional about looking business by business, household by household and making sure that we show up in a much more personal way to share what we know and that folks have an opportunity to ask as many questions as they need to.”

LILA ARYAN PHOTOGRAPHY

How will you ensure the convention’s impact will be spread throughout the city?

Joe Solmonese Chief executive officer 2020 Democratic National Convention Committee 14 / BizTimes Milwaukee JULY 22, 2019

“Every inch of the city will be having things going on and the traditional venues I have no doubt will be used. But one of the things that we want to do is to be as creative and thoughtful as possible about bringing the convention out to diverse parts of the city, to far parts of the state, to as many places as we can so that the world has an opportunity to experience all the richness and diversity of Milwaukee and the state Wisconsin, and that any community and anybody has the opportunity to engage, as well.”

What have you learned from past DNCs that will guide you in planning this one?

“We really want to create something here that is sustainable. We want to create something here that leaves a measure of goodwill when we leave.” n

THANK YOU TO ALL PARTICIPANTS OF THE

FIRST BUSINESS BANK CHARITY GOLF INVITATIONAL

On June 24, business leaders competed on behalf of charities at the First Business Bank Charity Golf Invitational at Blue Mound Golf & Country Club. First Business proudly organizes and funds all event costs so all entry donations go to winning charities.

AUSTIN RIECHERS MEMORIAL SCHOLARSHIP FUND Andrew Schwartz & Mark Petersen BEYOND VISION Bob Bell & Michael MacNeil BLESSINGS IN A BACKPACK Terry Schultz & Mike Budgins BRYON RIESCH PARALYSIS FOUNDATION Jack Riesch & Mike Payne

HIRE HEROES Mike Flynn & Carl Meyer

ST ROBERT SCHOOL Chase Kostichka & Mike Harris

HOPE HOUSE OF MILWAUKEE Dustin Van Peursem & Paul Jansen

STARS & STRIPES HONOR FLIGHT Jonathan Oaks & Jayson Boldt Matthew Neumann & Mark Neumann

MACC FUND Dustin Schwab & Michael Bielawski SAFE FAMILIES FOR CHILDREN John Beagle & Kevin Yttre

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BizNews

Banker Wire fueling growth with more space in Mukwonago LOOK OUT over the production floor at Banker Wire’s new Mukwonago facility, and it seems that a large portion is wasted space.

But when you’re weaving up to 140 feet of coarse wire mesh, you need a lot of room to lay out wires before feeding them into a loom. You also need room to move product around when you embrace custom projects, even if that means shipping 10-foot by 25-foot sections of wire mesh in an angled crate.

“That would pretty much choke off the flow of our old building,” Harrison Horan said of a project with those dimensions making its way through Banker Wire’s new building in mid-June.

Banker Wire had moved into a 105,000-square-foot facility in Mukwonago in 2009, but even with additions, the company’s strong growth in recent years – from 32 employees in 2006 to 130 in 2016 – used up the available space in less than a decade.

“We were looking at our old facility a hundred different ways to try to improve some of the inefficiencies that we were seeing there,” said Horan, vice president of sales and marketing. “The types of jobs we were receiving were putting a toll on the layout of that building.”

In early 2018, the company announced plans to relocate two miles south, to a brand new 192,000-square-foot building in the Bear Industrial Park, along Highway 83 just south of I-43. The new facility allowed Banker Wire to set up its operations in a way that matched its recent growth, including room for weaving, wider aisles 16 / BizTimes Milwaukee JULY 22, 2019

to accommodate large projects and even polishing the floors to reduce the effects of friction from wires dragging along the ground in the weaving process.

Banker Wire makes woven and welded wire mesh products using wires with diameters from 0.375 to 0.035 of an inch. The kind of precision where the friction of an unpolished floor matters is a major point of emphasis for the company, especially in woven materials.

Woven mesh is made by first taking raw round wire and running it through a crimper to establish where the intersection of wires will be made, then weaving the wires together on a loom.

“The result is you get tight, form-fitted mesh,” Horan said.

Understanding how to maintain precision for industrial applications – including in detention ponds, machine guards, food production and heat treating – gave Banker Wire a solid foundation to build on when wire mesh grew in popularity for architectural uses.

Horan said the rise of the material’s use for architectural and design applications accelerated in Europe in the early 2000s before migrating to the U.S. coasts, and eventually the Midwest. Today, Banker Wire’s business is split about 60-40 between industrial and architectural.

“Our heads were always so focused in on making this perfect crimp, everything is about this crimp, so when something aesthetic-driven came to us we were already there; we were ready for that challenge,” Horan said.

Wire mesh is woven on looms at Banker Wire.

C.I. BANKER WIRE & IRON WORKS INC. 123 Boxhorn Drive, Mukwonago

INDUSTRY: Woven and welded wire mesh EMPLOYEES: 160

bankerwire.com

But making mesh with an eye to design as well as function means using more materials, more styles and more variety overall. Banker Wire now offers around 8,000 different configurations of wire mesh.

The company has invested in its own proprietary equipment that is designed to follow demand. The result is a wide range of capabilities and the ability to run projects as small as a set of kitchen cabinets or as large as materials for an entire stadium.

“Custom is not a scary word.

Custom is not a dangerous word, which lends itself beautifully both to the industrial and the creative architectural side,” Horan said.

Even with all the options and different configurations, Horan acknowledged wire mesh is a product that is on the edge of being termed as a commodity. He said Chinese manufacturers in particular provide a challenge for the company.

“There are a lot of situations where I can’t even buy the raw material for what they’re selling the landed costs of the finished goods,” Horan said. “The good

news is the quality really goes down hard and fast with the offshore material.”

On mesh with wider openings, there is a little more room for error, but precision matters even more on smaller patterns where there can be more than eight openings per inch or 96 wires per foot.

“It’s a cumulative problem,” Horan said. “A lot can go wrong over 96 wires.” n

ARTHUR THOMAS Reporter

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

AWARDS BizTimes Milwaukee managing editor Molly Dill, publisher Dan Meyer, editor Andrew Weiland and director of sales Linda Crawford hold the AABP awards.

BizTimes Milwaukee wins seven national journalism awards

By Andrew Weiland, staff writer BIZTIMES MILWAUKEE won seven business journalism awards in the Alliance of Area Business Publishers’ 2019 Editorial Excellence Awards competition.

The annual AABP Editorial Excellence competition recognizes excellence in journalism, photography and design achieved by regional business publications.

The competition was judged by 24 members of the University of Missouri School of Journalism faculty. There were 511 entries in the competition submitted by 41 business publications in the U.S., Canada and Australia.

The awards were presented at the AABP’s annual summer conference, held in late June in Atlanta.

BizTimes Milwaukee received the following awards: »» A Gold (first place) award in the Best Newspaper – Medium Tabloids category. The award recognizes overall excellence for a printed publication. The judges’ comments on BizTimes Milwaukee were: “The photography is solid. The design is clean and places attention on the content itself. Illustra-

tions are used throughout very effectively. The overall architecture makes it easy to navigate through the entire publication. Front of the book sections include little nuggets for everyone. The cover stories are well reported and very people-focused.” »» BizTimes Milwaukee art director Shelly Tabor and graphic designer Alex Schneider won a Gold Award in the Best Overall Design – Medium Tabloids category. Judges’ comments: “The overall design is neat and controlled. There’s a well-regulated and consistently good design style throughout. Well-placed, metered elements of creativity like the creative headlines used in the ‘Ransomware’ story add to the reader experience without taking away, and demonstrate the close attention that is given to the layout of each article in the publication. Covers like ‘Guac is Good’ grab attention and add a nice element of newsstand appeal.” »» BizTimes Milwaukee won a Silver Award in the Best Website

category. This category is not broken down by size. The Gold Award for Best Website went to Crain’s Chicago Business.

Judges’ comments about BizTimes.com: “Clean design helps the audience to take in a lot of solid content about the local and regional economy.

Dropdown navigation – including a prominent place for Foxconn News – effectively enables readers to find stories of specific interest to them and their industry.” »» BizTimes Milwaukee managing editor Molly Dill won a Silver award in the Best Recurring Feature – Medium Tabloids category for Rev Up, which regularly profiles an area second-stage startup company. Judges’ comments: “What makes a second-stage startup different from a first? Less of a reliance on hope. That’s what makes ‘Rev Up’ so compelling: It’s not about a new company that has a great idea. It’s about a company that had a great idea and is making it work. The feature replaces the starry-eyed dream talk of first-stage startups with practical, interesting information from those who did, in fact, start up and get going.” »» BizTimes Milwaukee reporter Lauren Anderson won a Silver

award in the Best Feature – Medium Tabloids category for her April 30, 2018 cover story: “Survivorship is the goal.” The story is about a promising new cancer treatment practiced at Froedtert & the Medical College of Wisconsin and the incredible success experienced by one cancer patient. Judges’ comments: “Following the journey of one cancer patient is the thread that holds this story together as it deftly explores life-saving medical technologies and the research investment that makes them possible. Welltold and thoroughly reported, the story never loses its heart.” »» Tabor won a Silver award in the Best Feature Layout – Newspaper category for the design for the Oct. 15, 2018 cover story: “Wisconsin’s Health Care Squeeze.” Judges’ comments: “The illustrations are fun and use the same consistent tone throughout. Unity is created by the color palette and the red strip identifying the package as the cover story. Clever use of condensed type on the headline plays off the idea of a ‘squeeze.’” »» BizTimes Milwaukee won a Silver award in the Best Auxiliary Publication – Medium Tabloids category for “STUFF Made and Built in Southeastern Wisconsin.” Judges’ comments: “An excellent resource for residents of southeastern Wisconsin on the hunt for jobs. It offers sound advice for how to find a career that fits and employment that’s rewarding. There’s a good mix of short stories, longer features, quizzes and graphics that pace the reader.”

In 2018, BizTimes Milwaukee won five awards in the AABP’s annual business journalism competition. In 2017, BizTimes Milwaukee won six awards in the AABP contest. n biztimes.com / 17

Real Estate

COURTESY OF GATEHOUSE CAPITAL

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

Developments could rebuild ‘undervalued’ downtown Racine

ROUGHLY 18 MONTHS after Racine officials scrapped plans for a $55 million hotel and event center, the city is eyeing a new pair of projects that are expected to help revitalize an “undervalued and underappreciated” downtown.

Between the two developments, two underused parcels on Racine’s downtown lakefront would see new apartments, two hotels and an expanded convention center.

The projects were announced one month apart from each other earlier this summer. The first, from Madison-based Hovde Properties, would consist of 190 residential units and a 100-room hotel at 233 Lake Ave. The second project comes from Dallas-based Gatehouse Capital, and would expand Racine’s Festival Hall convention center by more than 10,000 square feet and add a new hotel with at least 173 rooms at the corner of Festival Park Drive and Sam Johnson Parkway.

Racine Mayor Cory Mason said these projects could be a key in efforts to “rebuild” the city in that they would drive more people toward its downtown and lakefront.

“I think Racine’s downtown is one of the most undervalued and underappreciated between Milwaukee and Chicago right on Lake Michigan,” he said.

Together, the projects would essentially replace a proposed

COURTESY OF MSI GENERAL CORP.

FEATURED DEAL: H A R K E N I N C . H Q

18 / BizTimes Milwaukee JULY 22, 2019

Harken Inc. sold its Pewaukee headquarters to HRKN LLC, a real estate investment group that is not affiliated with the company, for $15 million and entered into a long-term leaseback of the property.

The 170,000-square-foot industrial facility, located at N15 W24983 Bluemound Road, was constructed in 2012 for Harken’s use and includes 30,000 square feet of offices on its second floor.

Peter Harken, co-owner and founder of the marine hardware and accessories manufacturer, said the transaction will help accelerate the growth of the company.

For instance, the proceeds of the sale may go toward strategic acquisitions in the marine and industrial markets.

David Buckley and Jim Barry of Milwaukee-based The Barry Co. brokered the transaction. Buckley said the sale-leaseback deal is “indicative of the strength of the industrial and investment markets in southeast Wisconsin.”

SELLER: Harken Inc. BUYER: HRKN LLC PRICE: $15 million

government.

The former industrial site where the Hovde development would go up was sold to the Racine Redevelopment Authority by We Energies in 2015. Since then, the city has spent $500,000 to clean up the site and prepare it for redevelopment, the mayor’s office said. The developer has exclusive rights to the property through April of next year, during which time it plans to conduct due diligence such as geotechnical investigations and engineering studies.

The Gatehouse project would similarly be constructed on a cityowned lakefront site now used as a parking lot. However, it would need a change in state law in order to move forward, the mayor’s office said. This is because the site is governed by a lakebed grant, which restricts what can be built there.

The state legislation, which has bipartisan sponsorship, would allow the development on this site with a number of conditions, such as that the land remain publicly owned and that the city use at least 20% of the property taxes collected from the development to make improvements to the land that increase public lakefront access.

The first floor of the hotel would be owned by the city, and the city would lease the air space rights above that floor to Gatehouse.

Assuming that legislation passes and all local approvals are granted on the project, construction is expected to begin in spring 2020 and take about 18 months, Gatehouse said. n

COURTESY OF MAYER HELMINIAK ARCHITECTS LLC

208,000-square-foot development that included a 3,500-seat arena and a 150-room adjoining hotel.

That project never moved forward.

The Hovde project would be built on the same site as the canceled project, while the proposal from Gatehouse accomplishes Racine’s desire to expand its downtown convention space in order to attract more events.

In 2017, Mason vetoed a city funding proposal on the arena and hotel project. Explaining his veto, Mason noted he had a number of concerns with the proposal, including that it relied too heavily on city incentives.

“It cost too much money, the public really opposed the idea and arenas really have a history of mixed success across the country,” he said.

David-Elias Rachie, principal of Gatehouse in the firm’s Minneapolis office, said Gatehouse pitched an identical proposal when the city had originally sought developers interested in building an arena and hotel.

He said his firm proposed this project instead because it believed it did not make much sense to combine a hotel with an arena.

What’s more, the existing convention space was essentially built backward, Rachie said. Racine’s Festival Hall has its expansive great hall, but does not have much in the way of breakout rooms, ballrooms and nearby hotel rooms.

“Not being used is not a strong enough statement,” Rachie said of the convention space. “It’s such a fantastic facility, but they built phase two of the convention center before they built phase one.”

Mason pointed out that even with the nearly 300 additional hotel rooms between the two developments, the city would need to add even more to meet the demand they’re looking to create. The Gatehouse project would allow as many as 2,000 people at once.

“It’s a great problem to have to overcome,” Mason said.

If both move forward, the projects would have been made possible through significant involvement from various levels of

ADAMS GARDEN PARK Construction commenced in late May on Adams Garden Park, a $1 million redevelopment project in Milwaukee’s Lindsay Heights neighborhood.

The vacant building at 1836 W. Fond du Lac Ave. will be renovated to create office and convening spaces for organizations such as the Milwaukee Environmental Consortium, Milwaukee Water Commons, Wisconsin Conservation Voters and Walnut Way’s Blue Skies Landscaping program. Three neighboring vacant lots will become gardens, water catchers and outdoor classroom space.

The development team includes Sharon and Larry Adams, Mayer Helminiak Architects LLC, Fix Development, Craftsman Restoration Guild and Jordan Construction Services.

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Phone: 414.336.7112 Email: advertise@biztimes.com biztimes.com / 19

STORY COVER YEA MID-

O R EC

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CAST

BY ANDREW WEILAND, staff writer

he sun continues to shine on the American economy.

The U.S. economic expansion, which began 10 years ago at the end of the Great Recession, is now the longest in recorded history. The previous record U.S. economic expansion lasted from 1991 to 2001.

The U.S. unemployment rate is at 3.7%. In April and May it was at 3.6%, the lowest in nearly 50 years. The Dow Jones Industrial Average, Nasdaq and S&P 500 recently hit record highs.

Seeking re-election in 2020, President Donald Trump has been eager to take credit for the performance of the U.S. economy. Trump signed a $1.5 trillion tax cut into law in 2017 and his administration has reduced numerous regulations to help boost the economy.

“We have the greatest economy anywhere in the world,” Trump said in a recent tweet.

U.S. gross domestic product grew 2.9% in 2018, up from 2.2% in 2017 and 1.6% in 2016.

Several economists predicted an economic slowdown this year.

First-quarter U.S. GDP growth was 3.1%, but was projected to grow only 1.6% in the second quarter, according to the Federal Reserve Bank of Atlanta’s GDPNow indicator.

U.S. economic growth has continued despite tariffs implemented by Trump on numerous countries as he seeks to gain improved trade agreements. A new deal with Canada and Mexico is still pending approval by Congress. Trump recently agreed to hold off on new tariffs on Chinese goods as negotiations continue, but tariffs he had already placed on China remain.

There are other signs that U.S. economic growth is slowing. Consumer confidence in June dipped to the lowest level in two years. Nearly twothirds of manufacturers are preparing for a recession, according to a recent survey by Sikich. Milwaukee-area manufacturing activity declined in May, for the first time in 31 months, but improved in June, according to the Marquette-ISM Report on Manufacturing. U.S. auto sales were down 2.4% during the first half of the year. Job growth in the U.S. has slowed from about 223,000 per month in 2018 to 172,000 per month in 2019.

Trump has been a harsh critic of the Federal Reserve, blaming it for holding back U.S. economic growth. In recent tweets he said the Fed “raised rates far too fast.” GDP growth could be at 4 or 5% “if the Fed had gotten it right,” Trump said.

But slowing economic growth may convince the Fed to cut interest rates, according to some economists.

To gain more clarity about the state of the economy and what lies ahead for the second half of 2019, and beyond, BizTimes Milwaukee surveyed three economists: Joseph Daniels, chair of the Economics department at Marquette University; Avik Chakrabarti, associate professor of economics at the University of Wisconsin-Milwaukee; and Michael Knetter, an economist who served as an advisor for presidents George H.W. Bush and Bill Clinton, and is now president and chief executive officer of the University of Wisconsin Foundation.

The following are their responses.

20 / BizTimes Milwaukee JULY 22, 2019

biztimes.com / 21

STORY COVER BIZTIMES: President Trump and his supporters

say the U.S. economy is “booming.” Do you agree? How would you describe the state of the U.S. economy?

DANIELS: “Headline economic indicators, employment rates, GDP are solid but showing signs of softening. Changes in the way people work (think gig economy) make me a skeptic of comparing unemployment rates today to the past.

Currently, we have record post-war fiscal debt and very low nominal interest rates. As so, the government is driving the headline indicators, not the private sector. Private sector growth and wage growth has been uneven across industries and uneven geographically.”

KNETTER: “It is probably peaking…at the end of a long expansion. This expansion has been steady, not really ‘booming’ at any given point as I would use the term, but we are now near full potential output.”

CHAKRABARTI: “By any standard, the American economy is ‘booming,’ with nearly 70% of the industry groups contributing to a steady growth in the nation’s real GDP. President Trump’s handsoff approach to government regulation, as well as the Tax Cuts and Jobs Act, have proven to be instrumental in steering the economy along a path of steady growth.”

BIZTIMES: By several metrics, the economy is in

good shape for now. But are there any clouds on the horizon that concern you? If so, what?

DANIELS: “U.S. debt, corporate debt, tariffs and trade wars, and a conflict with Iran are my primary concerns today.”

KNETTER: “The main clouds to me are geopolitical tensions in many areas of the globe, trade tensions with China primarily, but also some other traditional allies, and the fact that both fiscal and monetary policy seem overextended for an economy that has been growing for nearly a decade. The clouds could become a thunderstorm given the stark political divisions we see.”

CHAKRABARTI: “While the current economic expansion is the longest in U.S. history, a ‘cloud in the horizon’ that can dampen the realization of maximum potential is a deep divide due to persistent political prejudices.”

BIZTIMES: What impact are the tariffs imposed

by President Trump having on the U.S. economy?

DANIELS: “Overall the tariffs have, to date, a very small impact on U.S. GDP as the U.S. is less trade dependent than most economies. It has had, however, a significant impact in some industries.

Downstream industries that are heavy users of steel and aluminum are examples. Agriculture has been a target of retaliation and so the impact there is important. More tariffs on China will work their way into the retail sector. Eventually, the impact will be felt by lower-income house22 / BizTimes Milwaukee JULY 22, 2019

holds as tariffs are known to be a very regressive tax.”

KNETTER: “They are putting upward pressure on prices across a variety of goods but the impact is muted by some margin compression as suppliers try to hang on to customers, hoping the impact is temporary.”

CHAKRABARTI: “The tariffs have been welltimed and the subsequent trade war, instigat-

DANIELS

has dipped to 3.7%. Is the unemployment rate so low that employers can’t find workers, resulting in slower job growth?

KNETTER: “Employment is constrained by the size of the workforce…since we are near full employment, employment growth will require labor force growth, which is going to be very slow. Full employment is good, but it means we will grow more slowly.”

CHAKRABARTI: “Consistent with the most recent estimates published by the Bureau of

KNETTER

ed by the Chinese government, has already been won fair and square by President Trump.

China’s temptation to protect the interest of its middle class through currency sterilization has and will continue to offset any self-fulfilling expectations that could, otherwise, have led to an unintended inflationary pressure in the U.S. economy. Much of the recent rise in prices are transient and can be attributed to the inability of U.S. importers to hedge against risks, allowing room for the Chinese exporters to pass on the burden of tariffs. Any remnant (i.e., post-‘sterilization’) rise in prices would be due to short-run ‘misperceptions’ that will inevitably wither in the long-run.”

BIZTIMES: What do you expect from GDP for

the rest of the year? Will U.S. economic growth increase or slow during the rest of the year and into 2020?

DANIELS: “My sense is that growth will slow to 2% heading into 2020. I believe any sustained positive growth rate in 2020 will be problematic.”

KNETTER: “I expect a continued slowdown throughout the year because I do not see the labor force growing much for the reminder of the year and I do not think productivity can surge enough to offset that.”

CHAKRABARTI: “Applications of cutting-edge techniques analyzing credible forecasts based on big data signal at least 2 to 3% growth of the U.S. GDP in any foreseeable future.”

BIZTIMES: The pace of job growth in the U.S.

has slowed compared to 2018. Unemployment

CHAKRABARTI

Labor Statistics, the U.S. unemployment rate has dropped to its lowest since December 1969. Job growth has been phenomenal, with employment gains exceeding 100,000 jobs in almost every month following the 2016 election. As the most recent Employment Situation Report reflects, nonfarm payroll employment has exceeded market expectations by a significant margin: the American economy has added nearly 6 million jobs since President Trump was elected.”

BIZTIMES: Where is the U.S. economy going to

find the workers it needs to keep growing?

KNETTER: “It will need to find more productivity to keep growing and that is possible with technology and workers finding the best match.”

CHAKRABARTI: “There is no dearth of immigrants waiting in line to populate the U.S. labor market: it is high time to remove any false perception of excess demand and, instead, enforce strict screening at the point of entry.

Moreover, rapid growth of the U.S. economy can be complemented by recent advances in emerging technologies, automating physical as well as intellectual tasks.”

BIZTIMES: What impact is the tight labor market

having on wages for U.S. workers?

KNETTER: “Wage growth has been slower than I would have expected in a market this tight.”

CHAKRABARTI: “Real wages are rising. The most recent Employment Situation Report records that the average hourly earnings have been rising by at least 3.2% over a 12-month

period. According to the most recent Consumer Price Indices, inflation has been contained well within the range of 1.5% to 1.9%.”

BIZTIMES: The stock market grew steadily in 2016

and 2017, but has been volatile the last year-anda-half. Why is that, and what do you expect for the rest of the year from the stock market?

DANIELS: “Uncertainty is the root cause of market volatility. Tariffs, trade war talk, conflict with Iran, the uncertainty of (the United States-Mexico-Canada Agreement) passing in Canada and the U.S., and corporate debt overhang have clouded the picture of U.S. economic growth.”

KNETTER: “At a fundamental level, people are worried that the expansion is slowing down and that earnings may slow down with that. I expect that the combination of Fed policy and trade regime will be the main drivers of markets for the balance of the year. The president needs the expansion to continue into 2020 to make a strong case for re-election and I expect he will use whatever influence he has on these levers to keep things moving ahead.”

CHAKRABARTI: “The Dow Jones Industrial Average is expected to sustain its impressive height, while any volatility in the stock market will keep coupon clippers busy.”

are going out of business at a rapid pace. Why is this? What can be done to help Wisconsin’s agriculture industry?

DANIELS: “Over-capacity relative to declining demand is the major driver of current agricultural woes. In the dairy industry, economies of scale have led dairy farms to grow larger and larger.

This capacity level and decreasing demand for many dairy products combined to push prices down such that farmers are operating at a loss. I am also concerned that the very low level of planting that we see in the Midwest (due to heavy rains) will drive crop prices up and hence drive up costs to dairy farms, as well. Reduced foreign demand (due to the trade war), may mitigate this impact.”

CHAKRABARTI: “The U.S. Department of Agriculture has confirmed that up to $14.5 billion, of the $16 billion fund President Trump approved for financial aid to farmers, will be available in three rounds of direct payments through the Market Facilitation Program. While Wisconsin’s agriculture had a rough year in 2018, farming remains a profitable investment in Wisconsin, as is reflected in the land value. Agriculture yields nearly $90 billion annually for the Wisconsin economy and provides more than 10% of the state’s total employment.”

BIZTIMES: What do you expect the Fed to do with

BIZTIMES: Agriculture remains a very important

industry in Wisconsin. Dairy farms in the state

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interest rates the rest of this year?

DANIELS: “I would expect that later this sum-

mer, the Fed will cut the target rate by 25 basis points. By year end, it could be a 50 basis points reduction.”

KNETTER: “Cut by 50 basis points.”

CHAKRABARTI: “A ‘make-no-move’ policy posture is likely to prevail in view of the recent decision of the Federal Open Market Committee to leave interest rates unchanged for the third time this year.”

BIZTIMES: The U.S. economy has been in expan-

sion mode since 2009. How much longer will it continue? Is a recession near?

DANIELS: “Of course a recession is near. It just depends on how you get someone to define ‘near!’ What I am more comfortably predicting is a period of increased volatility that flattens growth prospects. Oil prices are certain to add to this in the U.S. Look for recessions in the economies of important trade partners to reverberate back to the U.S.” KNETTER: “A slowdown is upon us. It will need to be managed well with fiscal, trade and monetary policy to avoid a recession. With an election looming, I am still betting a recession is at least a year off.”

CHAKRABARTI: “As of today, only a pessimist would predict ‘nine of five’ recessions with the hope of being picked as a prescient while the American economy shows no sign of any risk of a recession.” n

al R Spe ci MID-

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Local stocks join broader market rise

BY ANDREW WEILAND, staff writer AFTER A DISMAL ENDING TO 2018, the U.S. stock market made a strong rebound during the first half of 2019. The Dow Jones Industrial Average, Nasdaq and S&P 500 indexes all reached new highs recently.

The market suffered a big pull-back in November and December as investors were concerned about potential interest rate hikes, said Katherine Schoen, manager of private wealth management equity and fixed income research for Milwaukee-based Robert W. Baird & Co. Inc. The market only recently has eclipsed levels it was at in September, she said.

Stock prices have been on the rise as investors have become more optimistic because the Fed now appears more likely to cut interest rates than to raise them, Schoen said.

Local stocks joined the broader market rise during the first half of 2019. Of the 35 publicly-held companies tracked by BizTimes Milwaukee that are based or have significant operations in southeastern Wisconsin, 28 saw their stock prices rise during the first half of the year, while only seven suffered stock price declines.

Milwaukee-based specialty vehicle manufacturer REV Group Inc. was the biggest local gainer, with its stock price rising 92% to $14.41 during the first half of the year. REV Group has regained some ground after it was the area’s biggest stock price loser in 2018, suffering a 24 / BizTimes Milwaukee JULY 22, 2019

77% decline last year, which included a company restructuring, a supplier fire and class action lawsuits related to its 2017 IPO. The second biggest local gainer during the first half of the year was Milwaukee-based manufacturer Gardner Denver Holdings Inc., with a 69% stock price increase to $34.60 a share. In June, Gardner Denver announced that it would be combined with the industrial segment of Ingersoll Rand. The headquarters for the combined company will be in Davidson, North Carolina.

Milwaukee-based Jason Inc., the parent company of several manufacturers in the finishing, components, seating and automotive acoustics sectors, had the biggest local stock decline during the first half of 2019. Its stock price fell 53% to just 65 cents a share. The Nasdaq exchange recently notified the company that its market value of less than $35 million does not meet the requirement for continued listing. The company has until the end of the year to regain compliance, or will face delisting.

For the first quarter of the year, Jason Inc. reported a net loss of $5.3 million, and an adjusted net loss of $3.1 million. Its net sales were down 15.1% for the quarter, year-over-year.

The second biggest local stock price loser for the first half of the year was Sussex-based Quad/Graphics Inc. Its stock price fell 36% to $7.91 during the first half of 2019.

In late October, Quad announced that it planned to acquire Chicago-based LSC Communications for $1.4 billion.

The planned combination of Quad and LSC would create a company with around $8 billion in annual revenue, but if the two printers continued on their own, they both face sales declines of 17 to 21% by 2022, according to Quad estimates. The estimates included a more than $1.5 billion drop in the combined annual revenue of the two companies, but the projections are also based on current industry trends continuing and the companies not taking additional actions to stem the declines.

The U.S. Department of Justice recently filed a lawsuit to block Quad’s acquisition of LSC, arguing the deal would end aggressive competition between the two and harm customers in the magazine, catalog and book markets.

Schoen said she anticipates continued slow growth of the stock market, with additional volatility. Trade conflicts between the U.S. and China, and other countries, remain a headwind, she said. The Fed’s interest rate policy remains a wild card.

“We are now in the longest bull market in U.S. history,” Schoen said. “We don’t think that’s necessarily going to end, but we are realistic that we could see a turn.”

Another possible concern is that many investors appear to be overallocated in stocks with their portfolio mix, because the market has done so well for the past 10 years, Schoen said. If the stock market turns downward, those investors could be overexposed, she said. n

BizTimes Stock Index 2019 MID-YEAR PERFORMANCE TICKER

COMPANY NAME

REVG

REV Group Inc.

GDI

12/31/2018

6/28/2019

%

PRICE

PRICE

CHANGE

7.51

14.41

92%

Gardner Denver Holdings Inc.

20.45

34.60

69%

MAN

ManpowerGroup Inc.

64.80

96.60

49%

GNRC

Generac Holdings Inc.

49.70

69.41

40%

JCI

Johnson Controls International plc

29.65

41.31

39%

MOD

Modine Manufacturing Co.

10.81

14.31

32%

RXN

Rexnord Corp.

22.95

30.22

32%

SXT

Sensient Technologies Corp.

55.85

73.48

32%

JOUT

Johnson Outdoors Inc.

58.74

74.57

27%

MTG

MGIC Investment Corp.

10.46

13.14

26%

APAM

Artisan Partners Asset Management Inc.

22.11

27.52

24%

FISV

Fiserv Inc.

73.49

91.16

24%

262.560.7320

WBB

Westbury Bancorp Inc.

20.40

25.10

23%

IxoniaBank.com

BMI

Badger Meter Inc.

49.21

59.69

21%

MTW

Manitowoc Co. Inc.

14.77

17.80

21%

WEC

WEC Energy Group Inc.

69.26

83.37

20%

ATU

Actuant Corp.

20.99

24.81

18%

SNA

Snap-on Inc.

145.29

165.64

14%

BRC

Brady Corp.

43.46

49.32

13%

PLOW

Douglas Dynamics Inc.

35.89

39.79

11%

AOS

A. O. Smith Corp.

42.70

47.16

10%

ROK

Rockwell Automation Inc.

150.48

163.83

9%

DOC

Physicians Realty Trust

16.03

17.44

9%

ASB

Associated Banc-Corp

19.79

21.14

7%

HOG

Harley-Davidson Inc.

34.12

35.83

5%

KOSS

Koss Corp.

1.91

2.00

5%

TWIN

Twin Disc Inc.

14.75

15.10

2%

WSBF

Waterstone Financial Inc.

16.76

17.06

2%

WEYS

Weyco Group Inc.

29.17

26.71

-8%

STRT

Strattec Security Corp.

28.80

24.10

-16%

MCS

Marcus Corp.

39.50

32.96

-17%

BGG

Briggs & Stratton Corp.

13.08

10.24

-22%

KSS

Kohl’s Corp.

66.34

47.55

-28%

QUAD

Quad/Graphics Inc.

12.32

7.91

-36%

JASN

Jason Industries Inc.

1.37

0.65

-53%

All data taken from Factset Research Systems. This information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.

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Research compiled by Robert W. Baird & Co. Inc.

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Wisconsin wage growth, labor force participation slowing in 2019

BY ARTHUR THOMAS, staff writer WISCONSIN’S economic data demonstrates plenty of reasons to be optimistic. The state last year posted its best year of GDP growth since 2010, unemployment has regularly been at or below 3%, and the number of people working has been at or near record levels.

Wisconsin’s economy, however, tends to follow the trend of the national economy, which is now in its longest expansion on record. So is the state exceeding its growth expectations given the national environment, or are the record numbers the result of riding the country’s coattails?

The answer depends on the metric in question.

Take gross domestic product. Last year’s

2.5% increase in real GDP for Wisconsin was the 17th strongest growth rate in the country, but the U.S. grew 2.9%. The 0.4% gap was the smallest between the state and country since Wisconsin outpaced the U.S. in 2010 and 2011.

Since 2009, the year the Great Recession officially ended, Wisconsin’s real GDP has had a compound annual growth rate of 1.7%, ranking 27th in the country, compared to 2.2% for the U.S. as a whole, according to data from the U.S. Bureau of Economic Analysis.

The state’s job growth has lagged behind over that period too, averaging 0.5% behind the country in the last decade. Last year, private sector employment nationally increased 1.7%, compared to 1% for Wisconsin, according to

Pieper Properties Commercial Real Estate

data from the U.S. Bureau of Labor Statistics.

Thomas Walstrum, a business economist at the Federal Reserve Bank of Chicago, said there is generally a negative correlation between job growth and a state’s dependence on manufacturing for employment. Wisconsin is the second most manufacturing heavy state behind Indiana.

“The fact that Wisconsin, like the rest of the Midwest, has been growing more slowly than the U.S. as a whole, to me doesn’t necessarily mean that the Wisconsin economy is not doing well, because we’re still seeing growth in real per-capita income,” Walstrum said.

From 2013 to 2017, Wisconsin has averaged 1.8% annual growth in real per-capita personal income, nearly the same as the United States over the same period, according to BEA data.

In the five quarters since the end of 2017, the state’s per-capita personal income averaged 4% growth, higher than the country’s 3.5% growth.

“It’s not like Seattle or San Francisco where things are going crazy and rents are going up like mad because there’s all this demand for lots of tech workers; that’s not Wisconsin’s case,” Walstrum said. “It’s also not the case that because Wisconsin is not Silicon Valley, that the people living in Wisconsin are really lagging that much behind anywhere else.”

The Chicago Fed publishes two indexes

that try to capture how the Midwest is performing. The Midwest Economy Index looks at the region compared to historical growth trends.

Wisconsin has made positive contributions to the MEI in 65% of months since the start of 2013, including 79% since the start of 2017.

The second index, the relative MEI, looks at the Midwest in comparison to the national economy. A positive reading suggests the region is performing better than expected given a certain level of national growth.

As with the regular MEI, Wisconsin has made a positive contribution to the region in 65% of months since the start of 2013, but since the start of 2017, the state’s contribution has been positive in just 34% of months.

One area where Wisconsin has diverged from national trends is in labor force participation. Employers point to the state’s low unemployment rate as a reason for slower job growth, but Kurt Rankin, an economist and vice president with the PNC Financial Services Group, said the low rate is being sustained by labor force declines.

Since reaching its most recent peak of 68.5% in mid-2017, Wisconsin’s seasonally adjusted labor force participation rate has fallen 1.2 percentage points to 67.3% in May. The shift equates to more than 24,000 people leaving the state’s workforce.

An aging workforce and retiring baby boomers would seem to explain the decline, but Rankin said that is not the case nationally.

“Unless Wisconsin is bucking the national trend, which I doubt … older workers, by and large, are choosing to remain in the workforce,” he said.

In May 2017, Wisconsin’s labor force participation ranked seventh in the country at 68.5%, but by May of this year, the state had fallen to 12th. Only four other states – North Dakota, Alaska, Hawaii and Utah – saw larger percentage point drops in their rate during that period.

“The fact that we’ve got the workforce nationally seeing steady gains (and) Wisconsin seems to be missing out on that reinforces that labor force decline,” Rankin said.

Despite the low unemployment rate, Wisconsin has not seen strong wage growth in recent months. During the first five months of the year, average weekly wages have declined an average of 1.1% compared to the prior year, the second lowest wage growth of any state in the country.

Rankin said businesses might be too picky in hiring workers, but regardless, wages should rise in a tight labor environment. Since the start of 2017, Wisconsin’s weekly wages have averaged a 3.1% increase, ranking 30th in the country.

“You’re going to have to offer higher wages if your business is looking to hire and can’t find workers in such a very tight labor market such as Wisconsin’s,” he said. n biztimes.com / 27

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Joe Scanlin, co-founder of Milwaukee IoT startup Scanalytics, recently decided to move the company’s headquarters to Chicago.

Wisconsin startup ecosystem growing, with room for improvement

BY MOLLY DILL, staff writer A LOT HAS HAPPENED in Wisconsin’s early-stage space in the first half of the year.

There were wins, and there were losses. So all things considered, has it taken a step forward or backward?

Two Milwaukee startups – Scanalytics Inc. and Lumanu Inc. – moved their headquarters out of Milwaukee earlier this year.

Scanalytics, which uses floor sensors and Internet of Things technology to analyze consumer behavior, in May landed a major contract with massive Chicago convention center McCormick Place – and moved its base to the Windy City as a result.

While it is moving its headquarters, Scanalytics is continuing to grow in Milwaukee, moving from a 3,500-square-foot office to a 10,000-square-foot facility. Most of its Milwaukee employees will remain, and chief executive officer Joe Scanlin plans to hire another eight to 10 employees in both Milwaukee and Chicago over the next few months as the company gears up for several major contracts.

“Adding jobs to the local economy is why I think startups are important and if they continue to do that, that’s great,” said Matt Cordio, founder and president of Startup Milwaukee, about Scanalytics’ move. “It’s pretty exciting, too, to see them close such a big deal and hopefully it leads to more big deals like that, because that’s going to mean more jobs for the region.”

Influencer marketing company Lumanu was founded in San Francisco in June 2016, but founders Tony Tran and Paul Johnson chose to stay in Milwaukee upon completion of the gener8tor program in fall 2016. Their decision 28 / BizTimes Milwaukee JULY 22, 2019

to base the company in Milwaukee was a big win for the city’s burgeoning tech community at the time. But in March, Lumanu changed its headquarters back to California.

Cordio downplayed the impact of the Lumanu move on the Milwaukee startup community, pointing out that there were only one or two employees working here for most of the time it was based in the city, and the founders never fully relocated here.

As of July 1, $120.8 million of venture capital had been invested in 31 deals this year in Wisconsin, according to the Pitchbook-National Venture Capital Association Venture Monitor report. That’s a bit off the pace of Wisconsin’s $287.5 million of VC invested in 83 deals for all of 2019.

But several startups have raised or are raising large investor funding rounds so far this year, a positive indicator for the ecosystem.

Madison health data exchange startup Redox in April raised a $33 million Series C round led by Boston’s Battery Ventures.

“Many of (the Redox employees) were some of the founding members of 100state, which is a coworking space, and all essentially met at a coworking space and now have raised, I believe, over $40 million,” said Scott Resnick, entrepreneur-in-residence at StartingBlock Madison Inc. Janesville-based SHINE Medical Technologies Inc. and Monona-based sister company Phoenix LLC have continued to accelerate their growth. SHINE is ramping up to manufacture radioisotopes for nuclear medicine, and has raised more than half of a $30 million Series C round. Phoenix, which designs and manufac-

tures neutron generators, is working to raise $15 million from investors.

Wauwatosa-based TAI Diagnostics, is also working to raise a large investor round – a $15 million to $20 million Series B. TAI provides non-invasive diagnostic tests to monitor the health of transplanted organs.

But Resnick said most of the first financing rounds in the Milwaukee region are still very low given the area’s population size.

And several major exits took place in the first half of the year.

In January, San Diego-based ResMed completed its $225 million acquisition of Madison-based Propeller Health (Reciprocal Labs Corp.), which makes sensors that attach to inhalers to track usage among those with asthma and COPD. “That one’s having a positive impact on the ecosystem,” Resnick said. “They not only exited for a notable amount … they kept the company in Madison, the company’s growing in Madison.”

Highly, a Madison and San Francisco tech startup that offers an online text highlighting tool, was “acquihired” by social media giant Twitter for an undisclosed price in April.

Also in April, Milwaukee-based insurance agency automation software developer TechCanary, which had reached No. 393 on the 2018 Inc. 5000 list, was acquired by University Park, Illinois-based Applied Systems for an undisclosed amount.

“Anytime a founder is able to have a liquidity event and have capital to be able to reinvest in the ecosystem, it’s great,” Cordio said.

In May, Delafield-based hiring software developer Montage Talent Inc. merged with Cleveland, Ohio-based Shaker International in a deal of undisclosed size that allowed Montage to pay back $24 million of investor funding. The combined company will maintain dual headquarters in Delafield and Cleveland.

“I think it’s great that they’re going to still be here,” Cordio said. “Obviously anyone that’s building and growing a company in the region is good, especially when they’re able to deliver a return to their investors.”

In June, Irish global medical technology leader Medtronic plc completed its acquisition of Mequon-based Titan Spine LLC, which develops titanium implants that have disrupted the spinal fusion industry.

“So far I think there’s momentum,” Cordio said. “I think it’d be great to see some additional Badger Fund of Funds funds get closed in the second half of this year. But it’s been great to see the ones that are live investing.”

Resnick said the Milwaukee startup ecosystem has taken a step forward over the past year.

“It was not going to overnight turn into Austin or overnight be the next Silicon Valley, but there are community players that are passionate and involved, and I’m seeing the activity increase versus decrease,” Resnick said. n

ALEX ZANK

Marty Brooks, CEO of the Wisconsin Center District

DNC, state budget provide rosy outlook for Wisconsin Center District

BY ALEX ZANK, staff writer THE FIRST HALF of the year was largely good news for the Wisconsin Center, says the group that runs the downtown Milwaukee convention facility.

Wisconsin Center District officials said their outlook is positive for the coming months and years, largely due to two separate events: The announcement this spring that Milwaukee would host the 2020 Democratic National Convention, and the recent passage of a state budget that includes a provision making an expansion of the convention center more feasible.

“We’re very encouraged by how things are going this year,” said Marty Brooks, WCD chief executive officer.

Milwaukee found out in March that it had beat out the other finalists, Houston and Miami, to host the DNC. The main DNC events will occur at Fiserv Forum, but convention organizers plan to use WCD facilities as well.

Brooks said now that Milwaukee is under the national spotlight, the convention center has also seen an uptick in interest. For instance, over the course of a week this spring the district hosted nine different site visits from convention planners.

“That kind of activity doesn’t happen very often, so that’s the direct result of the renewed interest in Milwaukee, if not the new interest,” Brooks said.

Another sign of optimism comes from the state’s two-year budget, which was signed into law by Gov. Tony Evers earlier this month. That budget includes an amendment that increases by $100 million the state’s existing moral-obligation pledge for new debt issued by WCD. This backing is a guarantee by the state to appropriate money toward debt-service payments if the district were ever unable to do so for its bonding. This backing makes it easier for WCD to put a financing deal together on the proposed expansion project by making it cheaper to borrow money.

A consulting firm hired by WCD in 2017 recommended the convention center’s exhibit hall space be expanded to 300,000 square feet, its meeting space be doubled and ballroom space be expanded by 15,000 to 20,000 feet.

The expected cost of this expansion is around $250 million to $290 million.

Brooks said he expects WCD to have a financing plan in place for the expansion project

by January, pending WCD board approval.

Following the selection of an architect and construction contractor, the project could break ground in the fourth quarter of 2020 and be finished in the first quarter of 2023.

An expansion would allow for larger conventions or even multiple events to occur at the same time at the Wisconsin Center.

“Right now, we’re turning down as many conventions as we’re booking,” said Omar Shaikh, co-owner and president of SURG Restaurant Group LLC and a member of WCD’s board of directors.

Beyond the direct benefits to the convention center itself, an expanded space also provides more clarity for other potential developments in the immediate area, Shaikh said.

For example, the Milwaukee Bucks have been waiting to see what happens with the Wisconsin Center, as it might influence what is built on the former Bradley Center site, he said.

The city is also seeking proposals for the redevelopment of a surface parking lot at the corner of Vel R. Phillips and West Wisconsin avenues, across the street from the Wisconsin Center. Rocky Marcoux, commissioner of Milwaukee’s Department of City Development, said an expanded convention center “definitely” adds confidence for developers eyeing the city-owned site across the street. At the same time, the city has plans to extend the Hop streetcar and construct a $5 million public plaza there, although those plans are still awaiting Common Council approval.

“I think it’s a real renaissance on West Wisconsin Avenue right now,” Marcoux said. “I think obviously having the convention center expanded adds to that renaissance.”

Marcoux said the fact that Milwaukee is hosting the DNC also lends credibility to the idea the convention center should be expanded. He said some have questioned whether an expansion would actually result in more convention activity.

“It just demonstrates to folks that if we can handle the DNC, think of what else we could handle with the expanded capacity in the convention center,” he said.

Shaikh said an expanded convention center would drive more people and organizations to visit Milwaukee, which means more money is being spent in the area. It also would ideally lead to more people choosing to live in the city.

The Wisconsin Center District won’t start promising the expanded square footage to convention organizers until detailed plans are in place and district officials have a more solidified expected completion date, Brooks said.

Conventions are typically booked at least 18 months in advance.

“We could start booking business in the entire (expanded) building for the first quarter of 2023 as soon as we have shovels in the ground and have an estimated completion date,” he said. n biztimes.com / 29

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The Foxconn complex site in Mount Pleasant.

Foxconn making progress, but controversy remains

BY ARTHUR THOMAS, staff writer FOXCONN TECHNOLOGY GROUP’S PLANS for a massive LCD manufacturing campus in Mount Pleasant have been dynamic and often controversial. Perhaps it should be no surprise a project championed by President Donald Trump and supported by billions in public money would become political fodder.

When analysts asked Gale Klappa, executive chairman of Milwaukee-based WEC Energy Group Inc., to make sense of all the headlines surrounding the project in April, he had a simple message for them: “Ignore the rhetoric and look precisely at what’s happening on the ground.”

The challenge for project observers is that looking at what is happening on the ground provides ammunition for both Foxconn’s supporters and its detractors.

Supporters will point out Foxconn and its construction contractors have moved millions of cubic yards of dirt since spring 2018 to prepare the site. Crews began pouring foundations for the first manufacturing facility in June and bid packages for the building’s enclosure, landscaping and support operations should be awarded in the coming months.

The first manufacturing facility is a nearly 1 million-square-foot building that will also require several support facilities. Even in the quickly developing I-94 corridor between Milwaukee and Chicago, a project of this size is a significant development.

30 / BizTimes Milwaukee JULY 22, 2019

But given the project was originally announced as a 20 million-square-foot campus, critics say Foxconn has a long way to go to live up to the initial hype of the 2017 announcement.

The project also got off to an inauspicious start in 2019.

To start with, the company informed state officials in January that its 2018 hiring fell short of the minimum required under its $3 billion incentive contract. With 178 of the required 260 jobs, Foxconn said it would not seek any state incentives for last year.

Supporters saw the announcement as proof the contract protects state taxpayers, since Foxconn had fallen short of its targets and would not receive around $9.25 million in tax credits available for 2018. Critics pointed out the company was already coming up short of its lofty job creation promises and questioned if it would ever deliver.

Then a few weeks later, questions about the project emerged again after top Foxconn executive Louis Woo told Reuters, “In Wisconsin, we’re not building a factory.”

The company responded to the report by detailing a series of projects it planned to build in Mount Pleasant over the next 18 months. Some of the projects could be considered a factory, but none were an LCD fabrication facility – the centerpiece of the original announcement.

A few days later – after talks with the White

House and a personal conversation between Trump and Foxconn founder Terry Gou – Foxconn said it would move forward with an LCD factory in Mount Pleasant after all.

By March, Foxconn officials said construction on the LCD fabrication facility would begin this summer. At an April contractor information session, a top executive with the project’s general contractor promised a busy year with the release of bid packages and site work ramping up.

Work has continued to progress on the Mount Pleasant site, but the project also continues to make news, including the possibility of renegotiating parts of the state’s contract with Foxconn. Gov. Tony Evers first mentioned the possibility during a news conference in mid-April, saying the deal struck in 2017 by then-Gov. Scott Walker clearly was “no longer in play.”

Republican leaders criticized Evers, arguing he was undermining the project, but Foxconn said it was open to new ideas while remaining committed to creating 13,000 jobs in Wisconsin.

The next week, Evers released a letter suggesting Foxconn’s Woo was the first to bring up the idea of a changing the deal.

Foxconn’s contract includes $1.5 billion in tax credits for job creation and another $1.35 billion for capital investment. The company has to hit aggressive hiring timelines to be eligible for the jobs credits, and the investment credits can be prorated if the company falls short on jobs.

When Foxconn originally announced its plans for Wisconsin, the company planned to build a Gen 10.5 LCD fabrication facility intended to make 65- and 75-inch LCD screens. The company has instead opted for a smaller Gen 6 plant that provides more product flexibility.

Foxconn plans to begin production at the new facility – which will support 1,500 jobs – by the end of 2020.

Evers pointed to the changing plans in a July 8 letter to Wisconsin Economic Development Corp. secretary Mark Hogan as a reason the deal should be reevaluated.

“Foxconn’s present plans offer details through the end of 2020 and reflect a substantially smaller footprint, less capital investment and fewer manufacturing workers than its original plans,” Evers wrote.

“Because the project has evolved substantially from what was originally proposed, evaluated and contracted for, it is necessary to review the revised aspects of the project and evaluate how changes can most fairly benefit both the company and our state,” Evers said.

Asked for an update on any contract talks, WEDC spokesman David Callender said the state and company have ongoing discussions, but declined to outline a timeline for any potential changes. n

ARTHUR THOMAS

Keith Coursin, president of Desert Aire, and Peter Davidson, general counsel of the U.S Department of Commerce, discuss the company’s operations.

Manufacturers optimistic, but keeping an eye on trade and economy

BY ARTHUR THOMAS, staff writer BUSINESSES – PARTICULARLY MANUFACTURERS – like certainty. The tariffs and trade actions of the past year, however, have provided anything but certainty.

“As a manufacturer, we need to have that long-term horizon pretty well defined if we’re going to make the right decisions on products, vendors (and) markets that we’re going to go to,” said Keith Coursin, president of Germantown-based Desert Aire LLC. Coursin’s company makes large dehumidifiers used for pools and indoor growing operations. Increasing prices for steel and aluminum have hit the company particularly hard.

“It becomes a major problem, and the decisions that you make are do you raise the price to cover the cost or do you lower your profit?”

Coursin said. “I’ll be honest, neither one’s a good decision.”

Desert Aire has found a niche in areas with legalized marijuana production, making Canada an important market. The company is hoping the pending United States-Mexico-Canada Agreement will bring stability and recently hosted Peter Davidson, general counsel for the U.S. Department of Commerce, for a discussion on the deal.

Davidson highlighted the agreement’s sections on agriculture, intellectual property protections and digital economy issues as improvements on the North American Free Trade Agreement.

“Getting this into effect quickly, I’ve been hearing from a lot of businesses is really important for them,” he said. “They need the certainty to know that these provisions are going to be in place in the near future.”

“I always look at these trade agreements, because we’re such a small player, you kind of take the whole thing as its entirety that this is a good thing, this is a stabilization item. I’m supporting it. We need that,” Coursin said.

He added that it’s also important for there to be a clear goal in all the trade negotiations the administration has taken on.

“Some of the problem we see here is, yeah, I know I support it but what am I actually supporting in the end game when I look five years out, 10 years out? No one’s defining that,” Coursin said.

The Trump administration has introduced or threatened a number of tariffs, including on China, foreign steel and aluminum, and Mexico over immigration. Many of the actions have also prompted retaliation.

The escalating tariff environment is now showing signs of creeping into the manufacturing sector. Exports from Wisconsin decreased 3.9% in the first five months of the year, a $371 million decline led by lower sales to China and Canada.

The Milwaukee-area PMI, part of the Marquette-ISM Report on Manufacturing that measures manufacturing activity in the region,

trended down for the past year and dipped into negative territory in May for the first time in 31 months. The index, however, rebounded in June and respondents have maintained a positive outlook for the next six months.

Wisconsin and metro Milwaukee have both averaged year-over-year job growth of less than 1% for the first five months of the year. The number of hours worked by production workers is down 3.3% statewide to start the year. The Milwaukee area has averaged a slight increase, but May saw a 1.6 hour-per-week drop.

Statewide production wages are up an average of 3.7% for the year, but in metro Milwaukee, production wages have averaged a 1.4% decrease.

George Bureau, vice president of consulting services for the Wisconsin Manufacturing Extension Partnership, said most manufacturers remain busy despite some softening early in the year.

“Most manufacturers view that as something temporary,” Bureau said, noting that many companies see the tariffs and trade conflict as positioning to reach a larger deal.

“We saw with Mexico, for example, that was done to create a certain outcome which at least currently looks like it may be successful, so I think there’s a belief that some of this stuff will blow over in time,” Bureau said.

He added that now is a good time for companies to optimize their operations.

“Make those difficult decisions now versus just kind of ride the wave, because it will cycle, somewhere we’ll see lower activity, maybe a contraction down the road, who knows when, but this is the time to make yourself stronger so you’re ready for when that comes,” Bureau said.

A recent national survey by the Chicago-based accounting and advisory firm Sikich LLP found nearly two-thirds of manufacturers are preparing for a recession. The survey also found just 27% expect a recession to occur in the next 12 months.

Around 49% of larger firms – those with more than $500 million in revenue – expect a recession, compared to just 21% of smaller firms, the survey found. Sikich said 12% of the survey’s respondents were Wisconsin companies.

Among companies preparing for a downturn, the most common actions included increasing production efficiency, increasing the ability to quickly scale operations up or down, and exploring new geographic markets.

“The pain of 2008 and the Great Recession is still pretty vivid in the minds of most business owners and management teams, and they learned a great deal from that experience,” said Jerry Murphy, partner-in-charge for Sikich’s manufacturing and distribution services. “Preparation for an eventual slowdown, they know how to do (that) effectively and they’re taking steps so they don’t get caught off guard.” n biztimes.com / 31

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Kinnickinnic River. The project includes 170,000 square feet of offices, 410,000 square feet of manufacturing space and a 20,000-square-foot museum and training facility.

The company has submitted for city approval of the site plan and building elevations for its new headquarters, and is also requesting a deviation from certain design standards. Those requests were approved by the city plan commission in mid-July, and would need Common Council approval.

CAST

KAHLER SLATER

Downtown office projects

A rendering of the 770 North project next to the BMO Tower in downtown Milwaukee.

BMO Tower completion to highlight area development projects for second half of 2019

BY ALEX ZANK, staff writer THE LATEST ADDITION to Milwaukee’s skyline is still on track to finish at the end of this year.

Construction of the 25-story BMO Tower reached a significant milestone mid-year with the placement of the final structural steel beam in June. Milwaukee-based developer Irgens Partners LLC said work has been accelerated to ensure the project finishes up in December, at which time BMO Harris Bank is expected to begin moving in its employees from the building next door, at 770 N. Water St., and from 111 E. Kilbourn Ave. Mark Irgens, chief executive officer and manager of Irgens, said construction of the concrete parking structure for BMO Tower took about 2 1/2 months longer than anticipated.

“There is a lot of accelerated construction work being done and the men and women actually building the project are doing a great job,” Irgens said.

Irgens is also laying plans to soon begin redeveloping the 770 N. Water St. building, where BMO currently has its offices and its downtown branch. He said that work will be a “total redevelopment,” with potential new uses for the building including a hotel or apartments. It could also continue to be used as offices.

That building’s exterior will be cleaned this summer, Irgens said. The development team unveiled a new website for the project 32 / BizTimes Milwaukee JULY 22, 2019

in June, 770north.com.

Harbor District transformation Two major projects in Milwaukee’s Harbor District are also making progress. Brownsville-based Michels Corp. started work this year on R1VER, a $100 million project at the northwest corner of South First Street and West Becher Street that includes a 210,000-squarefoot office building, 19,000 square feet of retail, 119 apartments and a 110-room hotel. Michels will have a regional office that occupies about half of the office building.

David Stegeman, chief legal officer and senior vice president of Michels, said crews have started work on footings and foundations as part of the project’s first phase.

Weather permitting, “we hope to be significantly out of the ground late summer,” he said.

Stegeman noted Michels is also contemplating whether to construct a second six-story office building on the site. He said there has been interest from a single tenant for that space, though he declined to name the prospective tenant.

Komatsu Mining Corp., meanwhile, has submitted to the city its plans to develop its new $285 million headquarters and manufacturing plant on a site located south of West Greenfield Avenue and east of South First Street, along the

Beyond Irgens’ BMO Tower and 770 North, other major office developments in the downtown area are underway.

Developer J. Jeffers & Co. kicked off construction of the Huron Building at 511 N. Broadway in early May. The 11-story building, which includes offices and retail space, is slated to finish in 2020.

And in June, New York-based Time Equities Inc. unveiled some of the newly remodeled space in the 14-story former Henry S. Reuss Federal Plaza, now known as 310W, at 310 W. Wisconsin Ave. Time Equities is making $30 million in renovations in order to attract new tenants to the building, which is now about 36% leased. Renovations will finish up over the next 12 to 18 months.

New hotels rising A number of hotels in the Milwaukee area are either opening to guests or will reach significant construction milestones during the second half of the year.

Both the 227-room Drury Plaza Hotel at 700 N. Water St. and the 132-room Cambria Hotel at 503 N. Plankinton Ave. are slated to open in August. The four-story Cambria was built on the site of a parking lot, while the Drury hotel is located in the redeveloped 91-year-old former First Financial Centre building.

In late May, the developers of a two-building, three-hotel project on North Jefferson Street between East Michigan and East Clybourn streets said they had broken ground on construction work. This development milestone came after crews finished up related demolition work. One of these new buildings will contain a 115-room Home2 Suites and a 100-room Tru hotel, both Hilton brands, while the other will be a 116-room Holiday Inn Express, an Intercontinental Hotels Group brand.

The developers expect work to finish sometime in the second half of 2020.

Developers on a number of other hotel projects in the Milwaukee area are aiming to open them prior to the Democratic National Convention in July 2020. Those include the 80-room Ikon Hotel at 2100 W. North Ave. in Milwaukee, a 50-room boutique hotel at 419 W. Vliet St. in Milwaukee, and a 107-room Holiday Inn Express & Suites at 10201 W. Lincoln Ave. in West Allis. n

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Medicaid expansion still on the table

BY LAUREN ANDERSON, staff writer GOV. TONY EVERS was unable to push Medicaid expansion through in his first state budget, a centerpiece of his 2018 campaign against former Republican Gov. Scott Walker, who rejected the federal funding provided under the Affordable Care Act. However, now that Evers has signed the 2019-’21 budget into law, the question of Medicaid expansion isn’t likely to disappear from view, with the governor pledging to continue fighting for the program’s expansion.

“Just because it didn’t happen in this biennium doesn’t mean it’s going away,” said Eric Borgerding, president and chief executive officer of the Wisconsin Hospital Association. “The governor has made that clear. Even (Republican Senate Majority Leader Scott Fitzgerald) has noted that expansion will be back in future bienniums. The question that’s out there right now about expansion is what happens between now and the next state budget?”

The issue has proven divisive for years, with Republican state lawmakers refusing to draw down about $1.6 billion available in federal funding under the ACA, arguing the state would ultimately be on the hook to sustain the expanded program over the long-term. Evers and Democratic lawmakers have touted that those dollars would make Medicaid available to about 82,000 more parents and childless adults and free up funding to pay for other health care needs.

Those on both sides of the issue have bolstered their arguments by invoking competing studies. A report released in February by the conservative Wisconsin Institute for Law and Liberty and the Center for Research on the Wisconsin Economy, based at the University of Wisconsin-Madison – argued Medicaid expansion would cost the state’s economy $600 million annually, costs that would be shifted onto private payers.

It was followed by a different report from two UW-Madison economists claiming Medicaid expansion could instead save health care providers in the state up to $100 million annually, with the savings being realized from the reduction in uncompensated care costs for health care providers.

Throughout the budget process, the Wisconsin Hospital Association has advocated for a bipartisan solution on the issue of Medicaid funding. Yet health systems and hospitals would benefit from the program’s expansion, as it would allow them to be compensated for services that are currently written off as a community benefit.

Wisconsin hospitals provided $1.1 billion of uncompensated services, either as charity care or as bad debt, to patients in 2017, according to the most recently available WHA report.

“In general, providers would like to see an expansion,” said Lisa Grabert, visiting profes-

sor and health policy researcher at Marquette University. “I think the loudest voice at the state level and typically at the federal level are hospitals. Hospitals, from a pure revenue perspective, stand to benefit quite a bit from expansion.”

Area health systems did not respond to requests for comment on this report.

Wisconsin is among 14 states to not accept Medicaid expansion. It has taken a different approach from other non-expansion states, however. It hasn’t expanded Medicaid, but individuals with incomes up to 100% of the federal poverty line are already eligible for BadgerCare. If Wisconsin were to expand Medicaid under the ACA, eligibility would be extended to individuals with incomes up to 138% of the poverty line.

The debate over Medicaid expansion continues the decade-long political fight regarding the ACA. With the power split resulting from the election of a Democratic governor and Republican Legislature, the issue is symptomatic of an underlying fissure in state government, said Barbara Zabawa, clinical assistant professor for the University of Wisconsin-Milwaukee College of Health Sciences.

“Underneath all of this discussion about Medicaid expansion is still the foundational question of whether we as a society and as a state think everyone should have health insurance,” Zabawa said. “I’m not sure that we have consensus on that, which is the reason we have this fight over whether to expand Medicaid or not. It’s a display of the culture war that’s at play in so many areas of policy.”

Still, Borgerding said the final state budget included “a lot of progress” for the health care industry, including “substantial” Medicaid reimbursement increases for hospitals and physicians, more funding for safety net hospitals and behavioral health providers, and the expansion of telehealth.

“It’s not as much as we would have liked to have seen, or as the Legislature would have liked to have seen, but that’s how the process works,” Borgerding said. “So when we step back, it’s still very positive for health care.”

The upcoming biennium will provide an opportunity to explore other approaches to the Medicaid program, with the possibility of finding a bipartisan solution, Borgerding said.

“Medicaid expansion is clearly on the table,” he said. “Evers will most certainly include it in his next state budget bill. That conversation is going to continue. So it might behoove a state like Wisconsin, if we’re trying to build a bridge between the two sides on this issue, to look to what some other states are doing …

The next year-and-a-half is going to be interesting because it’s not going away and there could be some models that we could take bits and pieces from in other states to put together a pathway forward for Wisconsin.” n biztimes.com / 33

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A dairy farm in northern Wisconsin.

Wisconsin farmers remain optimistic amidst uncertainty

BY MAREDITHE MEYER, staff writer FOR THE FIRST TIME in 43 years, a portion of Jim Holte’s 460-acre Dunn County farmland has been left unplanted.

The family farm has existed for three generations, producing crops from soil that usually weathers a wet year because of its light and sandy consistency. However, this winter and spring were plagued by cold temperatures and heavy snow and rain, which led to severe flooding in the southwestern part of Wisconsin and along the Mississippi River.

Those conditions have created a massive challenge for farmers like Holte. He also has served for almost seven years as the president of the Wisconsin Farm Bureau Federation, a Madison-based organization that works to represent the business, economic, leadership and educational interests of Wisconsin farmers and its 46,000 member families.

“Farmers are optimists,” Holte said. “They will plant under most circumstance that they think will grow a crop, but Mother Nature sometimes supersedes that.”

According to a July 8 Wisconsin Crop Progress & Condition Report from the National Agricultural Statistics Service, 94% of the state’s corn acres had reportedly emerged, which is 22 days behind last year’s average. Additionally, 96 percent of soybeans had been planted, which is 20 days behind last year and 22 days behind the five-year average.

Holte said farmers are accustomed to adapting to weather-related challenges, but due to the extent of this season’s delays, planting crops late would risk a run-in with the first frost of fall.

So, like many of the state’s farmers this year, Holte qualified for a Prevented Planting Payment, which is coverage for insured crops 34 / BizTimes Milwaukee JULY 22, 2019

unable to be planted due to extreme weather.

It was the first time in 43 years he had ever collected such a payment.

“It’s a last resort for farmers,” he said.

Farmers will more likely adjust their crops to accommodate a shortened growing season, but that’s been particularly challenging this year, said Brad Pfaff, secretary-designee of the Wisconsin Department of Agriculture, Trade and Consumer Protection.

“If a farmer planned to grow corn or grain, it needs 100 to 110 days of maturity to grow and we don’t have that kind of time, a farmer will readjust and plant a different crop like soybeans, which takes less time to mature, but yet the price is so low for that,” Pfaff said. “That is the negative effect of what is happening in regard to international trade policy.”

Ongoing trade disputes with China over the past year have led to increased tariffs on a number of U.S. goods, including some of Wisconsin’s major agricultural exports, like soybeans, ginseng, pork and dairy products.

China is one of the state’s top agricultural export markets, along with Canada and Mexico, Pfaff said.

Wisconsin exported more than $800 million in agricultural and food products to 147 countries in the first quarter of 2019, which is a 4.8% decrease from the same period last year, according to a recent report from the International Agribusiness Center.

As trade uncertainty drives down the overall market price, farmers receive less for their commodity and in turn, contribute less to the state’s economy. It’s a ripple effect that is starting to impact all areas of the state, including southeastern Wisconsin, Pfaff said.

The agriculture industry makes up a major

portion of Wisconsin’s economy, contributing $88.3 billion per year, according to DATCP. “We need to make sure we have open markets,” Pfaff said. “That’s been one of the largest challenges our family farmers have faced in the first six months of this year – the uncertainty they have with the markets that they have worked hard to develop over the past 40 years.”

Pfaff said continued negotiations are necessary to reach fair international trade agreements and to develop trade policies that benefit all parties involved.

In the meantime, farmers, industry officials and Gov. Tony Evers’ administration are working to find new markets for products such as cranberries and dairy. Both industry sectors have struggled in recent years to find enough demand, but Pfaff said there are opportunities to sell those products in different local and international markets.

As the top cranberry producer in the U.S., Wisconsin produces 62% of the nation’s crop, according to DATCP. But last year, a portion of the state’s cranberry crop had to be destroyed due to oversupply.

Dairy farmers have suffered at the hands of changes in consumer tastes, which has caused a decrease in milk prices over the past few years.

In April, the Wisconsin Economic Development Corp. awarded a $750,000 grant to the University of Wisconsin-Madison’s Center for Dairy Research to launch the Beverage Innovation Center. It provides resources such as equipment and technical assistance to dairy producers and small businesses to test and develop new liquid beverage products.

“Agriculture, like every other business, is always doing consumer surveys and consumer research. They’re always seeking to know what the consumer desires and at the end of the day, as we all know, the consumer is right because whatever the consumer decides to spend their money on is the decision that’s been made by the marketplace,” Pfaff said. n

CEO Q&A

SPONSORED CONTENT

GENE GUSZKOWSKI, AIA CEO, AG Architecture BIZTIMES: What sets your firm apart from others?

GENE GUSZKOWSKI: In today’s market, it is difficult for an architectural engineering firm to be a generalist. In fact, many firms are narrowing their focus and assembling teams with specialized expertise. Dating back to 1961, with previous generations of our firm, AG chose to stick with what we know best—housing—innovative senior living, trendsetting multifamily and modern mixed-use projects. We have experience in the full spectrum of housing, from affordable apartments to high-end condos.

Our projects serve several generations, from young professionals to empty nesters as well as seniors, from active boomers to those with supportive care or hospice needs. Each project has offered an opportunity to infuse the energy of walkable urban environments, spaces that are incredible urban destinations and create deeper community connections. Our passion and commitment to housing has led us around the country to work in 39 different states—that is what sets us apart. Our tagline is “a sense of community.” We truly live and breathe this mantra every day creating places where people want to live.

BT: What is your personal history, and how has it affected your leadership?

GG: I was fortunate to start my career at AG, or rather, an earlier generation of the firm. I started as print boy and 52 years, more than 725 projects and 403 coworkers later, I have grown with the firm from draftsman to principal.

I have watched, learned and gone through my own trial and error process. I have sought advice and been counseled by leadership and business experts along the way.

The firm has achieved success over the years with a partnership model.

Within the last few years, we have focused on restructuring leadership roles to be better positioned for continued success. As we have been nurturing team members and transitioning to a new generation of leadership, my position in the firm has evolved to CEO-level responsibilities. In our work as designers, we ask people to change where and how they live on a regular basis.

I apply that mentality to leadership as well. There is always room for change and improvement—and market challenges, technology advancements and multiple generations in the workplace require a willingness to adapt. As a leader, I have to institute changes and lead by example to maintain the success of this legacy firm and properly position it for the future.

BT: What’s next for your company?

GG: Like other firms in the AEC industry, we are transitioning from a partnership model to an Employee Stock Ownership Plan (ESOP). This gives each team member a greater sense of ownership and definitive stake in the success of the firm. This business decision paves the way for the future of AG. It is exciting to be a part of this evolution. Our industry and our way

Gene Guszkowski, AIA

of doing business was so different over 50 years ago. The new era of the architectural engineering firm is about empowering every team member.

BT: What is your philosophy on innovation within your firm?

GG: Innovation is essential because our market demands it. The next generation of residents has high expectations, so we need to keep pushing to come up with forward-thinking, desirable solutions. From initiating a survey series to working with clients to explore alternatives, we are looking to other industries for inspiration and challenging our team to disrupt our thought process in order to uncover what’s next in senior living, multifamily and mixed-use design.

1414 Underwood Avenue, #301 • Wauwatosa, WI 53213 (414) 431-3131 • www.agarch.com/insights/

biztimes.com / 35

CEO Q&A

SPONSORED CONTENT

TERRY ROWINSKI President & CEO, Health Payment Systems, Inc. BIZTIMES: What are the challenges facing the health care industry today?

TERRY ROWINSKI: The problem is exasperatingly familiar: Wisconsin businesses are struggling with rising health costs that continue to outpace inflation. Employees and their families must often choose between going into debt from out-of-pocket medical costs or forgoing needed care. Overall health suffers, costs go up, no one is happy. The vicious cycle continues.

BT: The health care system in the U.S. is broken—but whose job is it to fix it?

TR: Ideally, our elected officials would, but so far that hasn’t happened. Back in the summer of 2016, our strategic leadership team sat down to consider potential scenarios for what might happen in health care over the next three to five years. We had plenty of grand ideas—a dual-payer system, cross-state monopolies, retailization—but none of us predicted the actual outcome: that not much has truly changed. Year-on-year health care costs keep rising (albeit at a more tepid pace), cost-shifting from employer to employee continues, consumer out-of-pocket medical debt keeps rising and the circle continues.

BT: What are the points of interest surrounding the future of health care?

TR: As we sit with our customers (Wisconsin-based employers), a recurring set of themes are becoming apparent: • Concern for 2020+ downturn on the economic front and what it means to their profitability achieved under the now great expansion, • How to attract and retain great people even in a pullback; and • How to make a meaningful impact on their top line costs of running the company with health care eating so much of the budget.

BT: And so we ask the question again: who is responsible for fixing health care?

TR: If not the government, then surely the insurance companies, the health care providers, or the health care technology startups, right? While I feel strongly that everyone has a part to play, I’m going to suggest that it’s time for employers (and employees) to take the wheel in order to reduce health care costs within their organization. The time has passed for handing off full responsibility to your broker or relying on a software product that promises to work magic.

BT: What tips do you have for employers?

TR: In that vein, our advice to our clients is multifold: 1. Start (or continue) to treat health care and the expense associated with it as a fiduciary duty of your firm to its employees and their families, your ownership, and your community. Your job isn’t over after open enrollment; this is something to manage all year long.

2. Take ownership for working within the community that serves your company to create and implement innovative practices that focus on keeping healthy people well and getting the sick in a much better place. Design a benefits package that supports your employees’ needs, then encourage them to use it, especially for wellness and preventive 36 / BizTimes Milwaukee JULY 22, 2019

Terry Rowinski

maintenance care.

3. Don’t ever settle for a provider or network cost summary that states that their discounts are the best. Do your due diligence, focusing on the endcost to you as an employer and to your employees and their families.

4. Keep Wisconsin money in Wisconsin. While it may be easy to purchase a national solution claiming to fix all of your company’s health care issues in one sitting, it truly doesn’t work that way. The state is full of brilliant and cost-effective solutions that when coupled together can bring the cost of health care down, access to high-quality providers up, and improve the long-term health and wellness of the community.

I’d love to continue this conversation with you—please reach out anytime on my LinkedIn page: www.linkedin.com/in/terryrowinski/

735 North Water Street, Suite 333 • Milwaukee, WI 53202 (414) 299-5015 • trowinski@hps.md • www.hps.md

CEO Q&A

SPONSORED CONTENT

JERRY JANZER CEO, Reinhart Boerner Van Deuren s.c.

BIZTIMES: What were the highlights for your firm over the past year?

JERRY JANZER: Reinhart is celebrating its 125th anniversary, and we are proud to have played an important role in the success of so many companies that today define Milwaukee’s business landscape. In addition to our service to our clients, we are very excited about the total renovation of our offices at 1000 N. Water Street into a much brighter, more open environment. It has many collaborative areas, topped off by a dramatic, two-story penthouse with a catered cafeteria, conference center and casual space for hosting after-work activities and entertaining guests while looking out over the city.

BT: What are the biggest opportunities and challenges for Milwaukee’s business community in the next 18 months?

JJ: Led by the Fiserv Forum and Northwestern Mutual tower, downtown Milwaukee has experienced tremendous new development in recent years.

Milwaukee is increasingly recognized across the country as a great place to live and locate your business, and will soon find itself at the center of attention while hosting the 2020 Democratic National Convention. It is incumbent on the business community to use this momentum and national exposure as a catalyst for future growth. The biggest challenge is to make sure we build and maintain a diverse and skilled talent pool to fuel the positive things that are happening in our city.

BT: How will those factors affect your clients?

JJ: It is an excellent opportunity for our clients. Many of them have reinvested in, or relocated to, downtown Milwaukee. As people and businesses move back downtown, it breathes new life into the city, making it much easier for our clients to attract the talent they need.

BT: What new trends are emerging in the delivery of legal services?

JJ: Over the past decade, there has been a steady progression in the volume and speed of information available to attorneys, and the next frontier in our profession is the utilization of artificial intelligence and other technological tools to better and more efficiently serve our clients. While these tools will lead to some automation of legal services, in the end they will not supplant the valuable critical thinking and strategic counsel that a skilled attorney brings to each matter at hand.

BT: What sets your firm apart from others?

JJ: While declaring yourself to be client focused is not uncommon in professional services, I truly believe that the degree to which we hold to that promise sets us apart. At Reinhart, our focus on clients’ interests is the defining characteristic of our firm. We measure our success by the value we add and the contributions we make to each client’s success. Above all else, it is that level of sustained, personal commitment that distinguishes our attorneys and our firm.

Jerry Janzer

BT: What are your main priorities Reinhart, moving forward?

JJ: We will continue to place our clients first in all that we do – in our practice of law, in our strategic decisions, and in every task we undertake. To do that, we need to be vigilant in identifying emerging needs and developing opportunities for our clients, such as cybersecurity and data privacy, and continue to expand our services to stay at the forefront of issues our clients face. By doing so we reinforce our commitment to adding value to every client relationship.

1000 North Water Street • Milwaukee, Wisconsin 53202 (414) 298-1000 • www.reinhartlaw.com

biztimes.com / 37

Special Report THE BUSINESS OF NONPROFITS

Nonprofit leaders draw from corporate career experience

BY LAUREN ANDERSON, staff writer BILL KRUGLER SPENT 31 years in the business world, including many as managing director at Milwaukee-based private equity firm Mason Wells Inc. In 2011, he closed out his for-profit career. Driven by his faith and a desire to make a bigger impact on the community, Krugler in 2013 launched nonprofit Milwaukee JobsWork to help the city’s chronically unemployed find work.

“It was right after the 2010 census came out, saying that Milwaukee was the fourth most impoverished city in the U.S. That really hit me,” Krugler said. “ … I got to thinking, is there anything I could do to bring to bear on the problem of poverty? That led me to stepping away from Mason Wells and starting this new life.”

As he considered how he wanted to take on the issue of poverty, Krugler attempted to use a different model than what he had seen in the city’s robust existing nonprofit landscape. Plenty of organizations were working to get people jobs, but Krugler couldn’t find many that were simultaneously addressing the underlying challenges that prevent people from keeping them.

He wanted to see people not only land a job, but also succeed and advance professionally.

“It was this cycle that people were never getting out of poverty. They were working, then not working,” he said. “That’s where we needed to take a more business approach to this problem of poverty, a longer solution that was about using employment as a way to get people economically self-sufficient and out of poverty.”

Krugler is among several Milwaukee-area nonprofit leaders who credit their corporate career with helping them bring a fresh perspective

and business savvy to an altruistic sector that can struggle to balance mission with margin.

Applying business principles Brenda Skelton made the switch from the for-profit to nonprofit sector after a long career in marketing and public relations, which included 13 years at Midwest Express Airlines.

As a business executive, Skelton was recruited to serve on several boards of directors, including the Milwaukee-based Siebert Lutheran Foundation.

“One of the things I brought to the board, partly because it was so much of a focus at Midwest, was a focus on continuous improvement, inherently not being satisfied with the status quo,” Skelton said.

After serving on the board for eight years, she was appointed in 2013 as president and chief executive officer of the foundation, which supports ministries and projects based in Lutheran churches and organizations. The position provided a new professional opportunity that aligned with Skelton’s personal values.

“It integrated my professional skills and faith commitment,” said Skelton, who recently transitioned into a newly-created executive counsel role with the foundation. “It was the combination that was unique to find in a role. For me personally, I wouldn’t say I was drawn to the nonprofit sector as much as I was drawn to this organization.”

Skelton said maintaining fiscal discipline and a narrow focus on funding priorities are two qualities she’s carried over from her for-profit experience. Siebert has clearly-defined criteria and geographical limitations to determine where it lends

LUTHER MANOR PHONE: (414) 464-3880 WEB: luthermanor.org

To share God’s love by enriching the lives of older adults.

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money. An undisciplined approach to spending could put the foundation at risk of sunsetting, Skelton said.

“It’s very easy to want to meet every need because the needs in the world are infinite,” she said.

“But it’s important to define your lane and then stay in it. Because no organization can do well if they are not really focused …We have to have the discipline to say, ‘They’re doing great work but we’ve decided with our finite resources, these are the areas where we can have the greatest impact.’”

Milwaukee JobsWork, which is a beneficiary of Siebert’s funding, intentionally partners with existing agencies to provide its clients with services that are outside of its purview. Based in the Harambee neighborhood, the organization offers career readiness workshops and individualized plans to address barriers to employment, such as a lack of a high school diploma or drug and alcohol addiction.

When he entered the nonprofit community, Krugler noticed the duplication of services among the region’s nonprofits. Rather than reinvent the wheel, he decided his organization would partner with existing organizations that provide the services his clients need, such as literacy or addiction services. It allows the organization to better focus on its mission of connecting unemployed individuals with jobs, Krugler said.

“Our first question we ask is, ‘Who is out there doing the work that we can partner with?’” he said.

Bridging the two sectors While there are certain complexities to measuring outcomes of social services and philanthropy, Skelton said it’s necessary to have evaluation measures in place, as is expected in the for-profit sector.

“Often what nonprofits report as impact or outcomes aren’t that; they’re outputs – the number of people trained or meals served or people touched,”

M ACC F U N D, M I DW E S T AT H L E T E S AG A I N S T C H I L D H O O D C A N C E R, I N C. PHONE: (414) 955-5830 WEB: maccfund.org

The MACC Fund raises funds for research in Wisconsin for childhood cancer and related blood disorders like sickle cell disease and aplastic anemia providing a Gift of Hope Through Research.

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she said. “A question we often ask our funded partners to think about is: What is the change you’re trying to create in the world? And then come up with a measurement plan and work back from the answer to that question.”

Krugler said establishing measurable goals along with a long-term plan are things he learned from his time at Mason Wells.

“A lot of times, not-for-profit entities are reactive,” he said. “But you have to start with getting out of the moment, looking at the bigger picture and putting together a plan of how to best use what you’re good at and then making goals for that plan and what are the things you need to measure … If you don’t have a plan and you’re working on something different all the time, because you’re not moving in any one direction, you’re moving in too many … I’ve seen a lot of nonprofits that really lead with their heart and are very passionate about what they do, but don’t have that overall discipline.”

Kathy Thornton-Bias spent most of her career

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in the corporate retail world, at Saks Fifth Avenue, the retail division of New York’s Museum of Modern Art, Bang & Olufsen, and most recently Milwaukee-based Verlo Mattress.

In March, she crossed into the nonprofit sector when she was named president and CEO of Boys & Girls Clubs of Greater Milwaukee. For her, it didn’t feel like a big leap.

The organization is an 800-employee operation that serves 43,000 children and teens across 44 locations, making it one of the largest Boys & Girls Clubs in the country.

“It’s like running a medium-sized retail company,” Thornton-Bias said. “My customers are just 18 and under … We market our services; we have strategic partnerships. We do all the things businesses do to grow and sustain themselves, it’s just the profits go back to support the mission, not to a shareholder.”

While there are certainly differences, the overlap between running a business and running a nonprofit is strong, Skelton said. Both require

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sustainable business models to survive.

“Not-for-profit is a legal structure, not a business goal,” she said.

Having straddled the two sectors, Krugler said he’s intent on bridging them. JobsWork partners with area companies to provide its clients with stability employment, allowing them to establish a track record of good attendance and performance, with the organization serving as a liaison between the employee and employer.

“Coming from the business world, I always say, ‘You don’t reduce poverty without getting people jobs, and you don’t get people jobs without the business community being involved,’” Krugler said.

For Thornton-Bias, nonprofit leadership has had a way of crystalizing her priorities and what she finds meaningful in her work.

“For anyone considering making a change like this, you will be humbled beyond belief and you will quickly learn it has nothing to do with you and everything to do with the mission work you’re there to deliver,” she said. n

Imagine everything that comes next.

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Get out of their way Allow employees to accelerate the growth of your business

“When employees are empowered and they know how important they are to the business, they will go above and beyond their original call to action.”

DURING A MAGICAL 18-YEAR PERIOD, I had the fortune of co-founding and leading an aerospace company, called EMTEQ, from its start in my basement to its expansion into an international organization with locations in four countries. I made a lot of mistakes and learned a lot of lessons during this time.

One of the biggest lessons I learned was to stop feeling like I had to make every business decision. I was an owner who was consumed by the day-to-day operations. I was forming a habit in which I only worked in the business when I really needed to work on it. At this time, the company hired some very good leaders who were capable of leading if they had the chance.

During the early years, so many people, including customers, key employees and suppli40 / BizTimes Milwaukee JULY 22, 2019

ers, relied on my decisions. I was living with an adrenaline rush of being the person that figured things out and made things happen. A firefighting mode would set in.

Something unplanned always happened.

Whether it was a major challenge with a delivery, a product failure, or a key account or employee leaving, something drew my attention away from accelerating our growth.

Owners and leaders can be dragged into these situations by necessity. Staff looks at them to step in and the leader naturally wants to help.

The employees at times may even consider the owner or leader as the messiah and look to them to save the day. This can lead to becoming stuck in a current business state. The only way the business can grow is by working harder and longer and with brute force.

The reality is that it’s easier to work in the business instead of on it. The work is in front of the owner and they truly want to feel valued. Even if they try to bring in a new leader to run the daily operations, the owner still may parachute in to save the day when things aren’t going right.

Running a business doesn’t have to be like this. Employees should become the driving force of the business’ growth. It is not uncommon for the owner or founder to become the limiting factor to the growth of the organization.

It’s the owner’s responsibility to get out of the way and let this kind of growth happen.

Great things can happen when there is a shared vision and mission, an understandable business plan, organizational rigor and, most importantly, a sense of ownership. Staff can be supported and encouraged through this process while being allowed to do their own thing.

This starts with trusting employees. Business trust refers to the trust of letting people do their jobs and make decisions on behalf of the customer. I made all the decisions for EMTEQ before I realized how inefficient and disruptive it was. When employees are empowered and they know how important they are to the business, they will go above and beyond their original call to action.

A major part of trusting your employees is allowing and celebrating mistakes. Yes, they will make mistakes, and those are great to learn from. If owners did all the work because they believed they could do the job well, they are missing the chance to develop the people that could possibly do it better. EMTEQ had a culture that encouraged mistakes. Imagine what would happen if our staff was fearful of admitting them and something like a defective part was on its way to be put into an aircraft?

The culture of your business should include transparency. Let staff know the financials of the business and let them take action to help meet the forecasted numbers. The owner will feel less alone when they have the employees’ buy-in and support that is needed to achieve growth.

When your employees are empowered and involved in the growth of your business, you will be able to watch the business grow. Areas including customers, innovation, productivity and culture will all naturally increase the financial health of the business. The delegated workload will give you more time to work on the business, instead of spending time firefighting. n

JERRY JENDUSA Jerry Jendusa is the co-founder of Stuck Coaching and was the founder of EMTEQ. He is a business advisor and investor, and the author of “Get Unstuck.”

Strategies MANAGEMENT

Common mistakes of firsttime managers FAILURE sounds like a harsh word.

To create some context around this idea, let’s define failure as anything short of the desired or imagined or hoped-for response. Managing and leading humans is a difficult undertaking, so it is very reasonable to expect the experience of firsttime managers to fall below their own expectations.

Failure for the new manager is typically accompanied by feelings of disappointment and stress. Perhaps even the thought, “What have I gotten myself into?”

Even more important, the actions of the firsttime manager almost always fall below the employees’ expectations. Employees wait with trepidation to learn what their new manager will bring to the table. “Will this be good for me? Not good for me?” More often than not, employees experience at least some disappointment in the transition.

Fewer than half of all new leaders are intentionally groomed, developed and prepared for this important new role. An assumption is often made that because this new manager has always been a high-performing individual contributor, they’ll do just fine.

It is fair to say most new managers don’t know what they don’t know.

Mistakes new managers often make: 1. They believe they need to prove their credibility.

New managers believe their credibility comes from what they know. As a result, they talk at their employees, tell employees what they should be doing, and find comfort in ensuring their credentials, experience and knowledge.

Correction: Recognize your credibility will not come from what you know but from how much you care, how many questions you ask and how willing you are to learn from your team. They want the assurance that you are interested in their knowledge and contribution, more than in your own.

2. They get to work too quickly.

Many leaders want to jump right in to the work at hand. They begin making to-do lists, strategizing and prioritizing. Some of this is driven by their desire to impress their own leader.

Correction: Take time to get to know your new team over the first couple of weeks. Schedule a team meeting, followed by one-on-one conversations. “Tell me about yourself and your role on the team. What do you enjoy about your role? What do you not enjoy? What do you do well? What do you not do as well as you’d like?

What are your goals?”

5. They try to have all of the answers for their team’s issues.

Jumping up and sharing the solution is tied to the need to prove credibility. “Let me show you how smart I am.”

Correction: Ask your team, “What do you think we should do?” “How would you handle this?”

6. They take credit.

It is not unusual for a new manager to sit in team meetings with his or her peer group, sharing things like, “I did this,” or “I have a new initiative I’m going to put in place.”

Correction: In as many situations as you can, you want to give your team credit. They are intended to be the power behind any progress you make. “We did this,” or “My team and I have talked about a new initiative we’re going to put into place.”

What mistakes have you made? How can you correct these? n

3. They stay entrenched in “doing” mode.

The new manager will often be more comfortable working on their own to-do list than in the nebulous world of providing leadership to their employees.

Correction: Schedule time for proactive and intentional leadership. Work with your team to know what they need from you. Have time allotted for team meetings, one-on-one conversations, “office hours,” visibility, etc. When we talk about scheduling leadership, many leaders, in fairness, do not know what that even means. It is all about being available to your team.

4. They misunderstand and mismanage power.

Too many leaders bring ego to the role. Employees are not impressed by power, by your degrees and by your past roles.

Correction: View yourself as the fortunate individual who has the opportunity to work with people and provide guidance for the work being done. Send a message to your team of, “Hey, I’m no better than you, and, by the way, I happen to be more interested in you than in myself.”

ALETA NORRIS Aleta Norris is a co-founding partner of Brookfield-based Living As A Leader, a leadership training, coaching and consulting firm. You may send questions to her at anorris@livingasaleader.com. biztimes.com / 41

Strategies

Tip Sheet An exercise to spur your team’s innovation

B

usiness leaders know that their companies need to innovate to remain competitive in their industry, but it’s not easy to foster a culture of innovation among their own staff.

A recent Harvard Business Review article by

Dartmouth College professor Sydney Finkelstein offers some tips to create work environments in which everyone on the team is trying to be innovative.

One of the first tools Finkelstein recommends is a group exercise called the “change notebook.”

Here’s how he explains it in the HBR article: “At your next team meeting, pull out a pad of paper, turn to an empty page, and divide it into three columns.

1. “What is the existing practice/the way we’ve always done it at our organization?

Jot your thoughts down in the left-hand column, including the key beliefs or assumptions underlying the practice. Then look critically at each of them and ask yourself if any are on the verge of becoming anachronistic or obsolete.

2. “What market shifts, external forces or technologies might threaten the elements of our operational status quo? List these in

the middle column.

3. “What can we do about these impending disruptions you’ve uncovered? For each one, use the right-hand column to note some preemptive action you could take.

Sometimes you’ll want to tweak an existing practice to render it ‘disruption-proof.’

“As you experiment with the change notebook, you’ll find that your team members become progressively more comfortable exploring new ideas, including those that conflict with the status quo, and taking action to deal with looming change before it catches them unaware.

“Don’t just do the exercise once and forget it; make it a regular part of your team’s workflow. Devote 15 minutes to it at a weekly team meeting, filling in a new page of the notebook each week. Remind yourselves of potential disruptions you’ve identified in the past, and then work on spotting new ones.” n

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42 / BizTimes Milwaukee JULY 22, 2019

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biztimes.com / 43

BizConnections BIZ PEOPLE

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

ARCHITECTURE Skilled business director joins Kahler Slater’s business environments team.

Kahler Slater’s business environments team welcomes Devin Sutherland as business development and marketing manager. Sutherland has over 18 years of experience in downtown redevelopment work, the last 14 of which were in Racine, WI where he concurrently managed Racine’s three business improvement districts. Sutherland has supplemented his education and professional experience by recently earning a master of business design and innovation from Carthage College. He looks forward to utilizing this knowledge and experience to expand the firm’s work in the corporate, hospitality, multi-family and senior living markets.

LEGAL SERVICES Attorney Nicolas D. Castronovo promoted to shareholder at von Briesen & Roper, s.c. Castronovo is a shareholder in the Milwaukee office. His practice focuses on commercial and business litigation. He is recognized as a Rising Star(SM) by Wisconsin Super Lawyers®. He received a J.D., cum laude, from the University of Wisconsin.

LEGAL SERVICES Attorney David A. Frank II promoted to shareholder at von Briesen & Roper, s.c. Frank is a shareholder in the Milwaukee office. His practice focuses on insurance coverage disputes and litigation. He served as a naval flight officer in the United States Navy. Frank received a J.D. from Loyola University Chicago.

LEGAL SERVICES

BANKING

Attorney Brent Nistler joins Hansen Reynolds LLC. Hansen Reynolds is proud to announce that Brent Nistler has joined as a partner at our Milwaukee office. He joined Hansen Reynolds to better serve his clients and to continue to grow his practice. Brent Nistler has tried over 50 jury trials, including several wins against some of the largest law firms in Wisconsin. He focuses his practice on business, real estate and probate litigation as well as complex criminal defense.

His 20-year legal career includes serving as a Milwaukee County assistant district attorney, litigating complex civil cases at Reinhart Boerner Van Deuren, s.c., and running his own litigation firm.

LEGAL SERVICES

Waukesha State Bank launches private banking with the hire of Ron Jahnke. As vice president – private banking officer, Ron will be responsible for managing private banking relationships as part of the wealth management division of Waukesha State Bank. Ron has 25 years of experience and is a certified wealth strategist.

BANKING & FINANCIAL SERVICES Christine Specht joins First Federal Bank of Wisconsin board of directors.

First Federal Bank of Wisconsin is proud to announce Christine Specht, CEO of Cousins Subs, has joined the Bank’s board of directors. Christine will serve on our asset and liability committee (ALCO) and board audit committee.

LEGAL SERVICES

Attorney Andrew J. Christman promoted to shareholder at von Briesen & Roper, s.c. Christman is a shareholder in the Milwaukee office. He focuses his practice on toxic tort, product liability, and commercial litigation matters. Christman received a J.D., from Marquette University.

LEGAL SERVICES

Attorney Jonathan R. Eiden promoted to shareholder at von Briesen & Roper, s.c. Eiden is a shareholder in the Oshkosh office.

His practice focuses on labor and employment matters with public and private employers in a variety of industries. Eiden received a J.D., cum laude, from the University of Wisconsin.

NONPROFIT

Attorney J. Ryan Maloney promoted to sShareholder at von Briesen & Roper, s.c. Maloney is a shareholder in the Milwaukee office. His practice focuses on business and commercial litigation, professional liability, product liability and insurance law. Maloney received a J.D., cum laude, from Marquette University.

St. Coletta of Wisconsin names Robin Baker vice president of development and support. Baker joined St. Coletta in 2011 and has extensive experience in marketing and development. She will specialize in building valuable partnerships with local businesses, community leaders and foundations to sustain the nonprofit’s mission long-term.

BANKING & FINANCIAL SERVICES José Olivieri joins First Federal Bank board of directors.

First Federal Bank of Wisconsin is proud to announce that José Olivieri, managing partner of the Milwaukee office of Michael Best & Friedrich LLP, has joined the Bank’s board of directors. José will serve on our board credit and M&A committees.

EDUCATION Trauma sensitive schools expert promoted to vice president of education at SaintA. SaintA recently promoted Sara Daniel to vice president of educational services. Daniel will be responsible for overseeing the strategic direction of Capitol West Academy, SaintA’s public K4-8th grade school chartered through UWM.

LEGAL SERVICES Attorney Kevin M. Fetherston promoted to shareholder at von Briesen & Roper, s.c. Fetherston is a shareholder in the Milwaukee office. His practice focuses on general tort litigation, business and commercial litigation, and professional liability litigation. He received a J.D. from Marquette University.

NONPROFIT Starlet Hayes joins SaintA as vice president of fund development.

SaintA recently hired Starlet Hayes as vice president of fund development. With 25 years of fundraising experience, Hayes will manage funding opportunities and spread the mission of the organization, which serves 5,000 people daily in Wisconsin.

To place your listing, or for more information, please visit biztimes.com/bizconnect 44 / BizTimes Milwaukee JULY 22, 2019

NONPROFIT

NONPROFIT Urban Ecology Center hires managing director

The Urban Ecology Center will add Ed Krishok to the leadership team as managing director as the organization begins transitions related to growth plans in Milwaukee.

Mark Thomas named chairman of the board of directors for Community Care, Inc. Mark Thomas, CEO and southeast Wisconsin chapter executive, has been named chairman of the board of directors for Community Care, Inc., a Wisconsin managed care nonprofit organization offering adult programs in 14 counties.

New Hire?

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

Visit biztimes.com/bizconnect to submit your news!

2020 EDITION

Reserve your space in the 2020 Giving Guide!

Publication Date: November 11, 2019 Your involvement in this annual publication includes an in-depth profile, plus several advertising elements in BizTimes Milwaukee magazine, BizTimes Nonprofit Weekly enewsletter and BizTimes.com.

Stay Connected!

• Subscribe to the BizTimes Milwaukee Nonprofit Weekly eNewsletter • Submit your organizations listing to the BizTimes Nonprofit Directory For more information, visit biztimes.com

Take advantage of the opportunity for your organization to be seen by the Region’s Business and Philanthropic Leaders all year long.

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A SUPPLEMENT OF

biztimes.com / 45

BizConnections NONPROFIT HUMANE SOCIET Y PUSHES TO RAISE FINAL $2 MILLION FOR NEW SHEBOYGAN SHELTER The Humane Society of Sheboygan County has raised more than half of its $4 million capital campaign goal to fund the construction of its new home.

Now, it’s making a push to close the gap by the end of the summer. The Humane Society plans to build a new 18,000-square-foot facility on a property adjacent to its current shelter at 3107 N. 20th St. in Sheboygan.

The organization said it has outgrown its current facility, which was built in 1964. The new building is designed to provide

more space for the animals and will include a surgical suite, allowing the Humane Society to provide more spay and neuter, trap-neuter-return and daily surgical services. The organization sees about 3,000 animals come through its doors annually.

The new facility will also have a retail store and a community room to host meetings and other gatherings. The campaign publicly launched in March. It’s the organization’s first capital campaign in 55 years.

— Lauren Anderson

c alendar YMCA Camp Minikani is celebrating its 100th birthday with a series of activities on Aug. 24 and Aug. 25 at the camp, located at 875 Amy Belle Road in Hubertus. All daytime activities are free and open to the public on both days. A ticketed 100th anniversary dinner and fundraiser will be held on Aug. 24 from 5:15 to 10 p.m. More information is available at minikani.org/100th-anniversary.

The Milwaukee Bar Association Foundation will host its 31st annual golf outing on Aug. 7 from 11:30 a.m. to 7:30 p.m. at Fire Ridge Golf Club, 2241 County Highway W in Grafton. The event will benefit the MBA Foundation and its signature project, the Milwaukee Justice Center. More information is available at milwbar.org.

The United Way of Greater Milwaukee & Waukesha County will host its annual Philanthropic 5 awards ceremony on Aug. 8 at Venue Forty Two, 1130 N. Ninth St., Milwaukee, from 5:30 to 8 p.m. The awards, created by United Way’s Emerging Leaders Council, recognize five community leaders in their 20s, 30s or 40s and one exceptional youth. More information is available at unitedwaygmwc.org.

nonprofit

SPOTLIGHT

E A S TC A S TLE PL ACE 2505 E. Bradford Ave., Milwaukee (414) 219-1398 | eastcastleplace.com Facebook: facebook.com/eastcastleplace Twitter: @eastcastleplace

Year founded: 1884 Mission statement: We’re a nonprofit senior living community dedicated to serving residents and their families by offering a full continuum of care and fostering active and fulfilling lifestyles while respecting the dignity and independence of our residents.

Primary focus: Senior living.

Other focuses: We are a renowned center of excellence for aging by building partnerships to empower individuals to live life to the fullest: spiritually, socially, physically and intellectually.

Employees at this location: 180

D O N AT I O N R O U N D U P The National Center for Housing Management awarded a $100,000 grant in support of the Save the Soldiers Home project on the grounds of the Clement J. Zablocki VA Medical Center. | The Russ Darrow Group’s dealerships in West Bend donated $7,500 to support the Kettle Moraine YMCA’s Send a Kid to Camp Campaign. | We Energies Foundation has awarded a $1,500 grant for the Amani Ring Project, which will be used to purchase and install video doorbells in the homes of Milwaukee’s Amani neighborhood. | Kohl’s donated $150,000 to the Ronald McDonald House Charities of Eastern Wisconsin Inc. | The Associated General Contractors of Greater Milwaukee’s Education and Research foundation donated $15,000 to the ACE Mentor Program’s Milwaukee chapter.

46 / BizTimes Milwaukee JULY 22, 2019

Board of directors: Nancy O’Donnell, James Flanagan, Tony Besasie, Connor FitzGerald, Havilah Normington, Dr. George Lange, Jay Van Cleave, Daniel M. Adams, Kenneth Kernen, Matthew Radish, Barbara Tice and George Marek.

Executive leadership: Tyler Gudex, executive director; Anna Landes, director of sales and marketing; Michael Brever, philanthropy director; Carlos Matos, hospitality director; Lorie Maetchle, director of assisted living and memory support; Laura Wengler, director

of community life; Eric Peterson, director of facilities; Lindsey Viegut, administrator; Michelle Doblar, director of human resources; Teresa Jenkins, director of resident services; Brad Sitzberger, director of finance; Nicole Claas, director of social services; Ashley Drummond, director of nursing.

Is your organization actively seeking board members for the upcoming term? We are always looking for interested individuals.

What roles are you looking to fill?

The general board is open; no chair positions are available at this point.

Ways the business community can help your nonprofit: Support resident activities (behind the scene tours, taste and see, etc.); provide transportation to and from events around town to involve, enlighten and accommodate the residents; support the Eastcastle Place mission and sponsor various resident events to encourage and maintain their active and engaging lifestyle.

Key fundraising events: An Evening with John McGivern and John Gurda, Eastcastle Place’s 135th Anniversary celebration on Sept. 14.

&

SBA LOANS: MAY 2019

PRESENT:

Save the Date!

Wednesday, October 9th, 2019 7:00-11:00AM | WI Manufacturing & Technology Show at Wisconsin Exposition Center at State Fair Park The U.S. Small Business Administration approved the following loan guarantees in May: JEFFERSON COUNTY

Brian Lox LLC, W2763 E. Gate Drive, Watertown, $30,000, Summit Credit Union;

KENOSHA COUNTY

Abifka Health Care LLC, 2901 35th St., Lower Level, Kenosha, $100,000, Educators Credit Union;

KA Properties LLC, 4705 68th

Ave., Kenosha, $731,000, WBD Inc.;

MILWAUKEE COUNTY

Brew City Bark LLC, 333 N. 25th St., Milwaukee, $300,000, Waukesha State Bank;

OZAUKEE COUNTY

WAUKESHA COUNTY

B&K Investor Partners I LLC, W60 N171 Cardinal

Barre District Lake Country LLC, 161 W. Wisconsin Ave.,

Ave., Cedarburg, $3 million, Central Illinois Bank;

RMC Holdings LLC,

Allenton, $824,000, WBD Inc.;

RACINE COUNTY

Al’s Automotive of Racine LLC, 3333 County Highway H, Franksville, $424,000, CenTrust Bank;

Penrod LLC, 219 N. Milwaukee St., Milwaukee, $500,000, Commerce State Bank;

Pflupez LLC, 7440 W. Holmes

Ave. Unit H, Greenfield, $155,000, The Huntington National Bank;

Shah Jee Foods LLC, 770

N. Jefferson St., Milwaukee, $150,000, Independence Bank;

Standard of Excellence Education & Training, 6914 W. Appleton Ave., Milwaukee, $190,000, Wisconsin Women’s Business Initiative Corp.;

W. Burleigh Road, Brookfield, $150,000, First Bank Financial Centre;

$2 million, Citizens Bank;

SHEBOYGAN COUNTY

Frank’s Pizza Inc., 417 E.

Mill St., Plymouth, $150,000, Celtic Bank Corp.;

O&W Communications LLC, 2040 North Ave.,

Sheboygan, $2.3 million, The Huntington National Bank;

O&W Communications LLC, 2040 North Ave., Sheboygan, $350,000, The Huntington National Bank;

WASHINGTON COUNTY

Ethoplex LLC, N115 W19150

Within Reach Bar and Grill LLC, 3577 S. 18th St., Milwaukee,

Serafin Group LLC, 1034

$160,000, Wisconsin Women’s Business Initiative Corp.;

GWC Enterprises LLC, 300

Sterling Mechanical Service Corp., 840 Midwood Drive,

Taylor Ave., Racine, $304,000, Newtek Small Business Finance Inc.;

Wisdom Industries Inc., 8464 S. River Terrace Drive, Franklin, $528,500, Waukesha State Bank;

Blvd., $644,000, WBD Inc.;

RWB Enterprises LLC, 3214

Waterford Truck Service Inc., 821 Ela Ave., Waterford,

2079 S. 69th St., West Allis, $344,000, WBD Inc.;

DPMD LLC, 2410 E. Moreland

sha, $893,000, Wells Fargo Bank;

Grove Ave., Racine, $327,000, JPMorgan Chase Bank;

Lean and Clean LLC, 2112 Lutz Butcher Store LLC,

164, Hartland, $40,000, Landmark Credit Union;

Travis Lane, Suite 18, Waukesha, $350,000, Bank of the West;

Burlington, $808,000, First Federal Bank of Wisconsin;

S. 56th St., Milwaukee, $3.5 million, JPMorgan Chase Bank;

Commercial Excavating Inc., W260 N8661 Highway

Karlsen Plumbing Inc., 1951

GDDZ Inc., 8501 W. Capitol Drive, Milwaukee, $20,000, U.S. Bank;

Suite 1D, Pewaukee, $60,000, Cornerstone Community Bank;

Edison Drive, Germantown, $350,000, Byline Bank;

Joshua Haas Enterprises LLC, 2211 Badger Court, WaukeMag-Jentz Inc., 12600

Matheny Investments LLC, 2566 Sun Valley Drive, #1,

Delafield, $629,000, Byline Bank;

Octavian Technology Group LLC, 1140 Greenridge Terrace, Brookfield, $100,000, Park Bank;

Room Three Seven LLC, P.O. Box 306, North Lake, $66,800, Citizens Bank;

The Connections Shaping Your Company’s Future Next generation manufacturing companies are making connections with other businesses to drive innovation. They are also connecting machines to improve productivity, reacting to connections between economies and markets, and striving to connect with their future workforce.

Join us for the 9th Annual Next Generation Manufacturing Summit on Oct. 9. CEOs from the region’s leading manufacturers will discuss how they make these connections and will share best practices that help their businesses succeed. Area manufacturing leaders will also share their ideas at roundtables focused on topics like: » Growth Through International Trade » Women In Manufacturing » Effectively Navigating Tariffs » Best Practices in Recruiting and Retention » Selling the Business and Maintaining a Legacy

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Stein’s Aircraft Services LLC, 2641 Aviation Drive,

SPONSORS:

Waukesha, $824,000, WBD Inc.;

Strategic Developments LLC, 17800 W. Bluemound Road, Brookfield, $50,000, U.S. Bank;

Watermarke Il LLC, 301 E. Capitol Drive, Hartland, $1 million, U.S. Bank;

Wright Properties LLC, 19967 W. Main St., Lannon, $238,000, WBD Inc.

SUPPORTING:

PARTNER:

Summer St., West Bend, $30,000, U.S. Bank;

biztimes.com / 47

BizConnections VOLUME 25, NUMBER 8 | JUL 22, 2019

GLANCE AT YESTERYEAR

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120

Blatz Hotel This photo, taken circa 1934, shows the Blatz Hotel on City Hall Square at the corner of North Water and East Wells Streets in downtown Milwaukee. Running by it is the original streetcar. In the foreground is a fountain topped by a statue of American Society for the Prevention of Cruelty to Animals founder Henry Bergh and a horse and buggy labeled “Bowles Lunch Co.” The building has since been replaced, the statue now stands in front of the Wisconsin Humane Society, and a new downtown streetcar system was recently constructed.

—This photo is from the Milwaukee Public Museum’s Photo Archives collection.

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

EDITORIAL EDITOR Andrew Weiland andrew.weiland@biztimes.com MANAGING EDITOR Molly Dill molly.dill@biztimes.com REPORTER Lauren Anderson lauren.anderson@biztimes.com REPORTER Maredithe Meyer maredithe.meyer@biztimes.com REPORTER Arthur Thomas arthur.thomas@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 SALES INTERN Tess Romans tess.romans@biztimes.com

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

REPORTER Alex Zank alex.zank@biztimes.com

PRODUCTION & DESIGN

INTERN REPORTER Marla Hiller marla.hiller@biztimes.com

GRAPHIC DESIGNER Alex Schneider alex.schneider@biztimes.com ART DIRECTOR Shelly Tabor shelly.tabor@biztimes.com

Independent & Locally Owned — Founded 1995 —

COMMENTARY

How we stack up CNBC RECENTLY UNVEILED its annual America’s Top States for Business list. It ranks the business climate of each of the 50 states from best to worst.

Of course, any ranking like this should be taken with a grain of salt. Still, it’s interesting to see the national perception of Wisconsin’s business climate, how it’s compared to other states and what are perceived to be our strengths and weaknesses.

For 2019, CNBC says Wisconsin is the 15th best state for business. Not great, but not bad.

Virginia ranked No. 1, Texas No. 2, North Carolina No. 3, Utah No. 4 and Washington No. 5.

The bottom five ranked states are: West Virginia (45), Louisiana (46), Alaska (47), Mississippi (48), Hawaii (49) and Rhode Island (50).

In the Midwest, Wisconsin ranks behind Minnesota (7), Ohio (10) and Indiana (11), but ahead of Iowa (16), Michigan (24) and Illinois (30).

CNBC breaks the rankings down into six categories: “workforce,” “economy,” “infra48 / BizTimes Milwaukee JULY 22, 2019

structure,” “cost of doing business,” “quality of life” and “education.”

Wisconsin’s best ranking is in the “education” category, where the state ranked No. 5.

Massachusetts ranked No. 1 for education.

This ranking demonstrates that Wisconsin’s education system is one of its greatest strengths. That’s important because talent is crucial to our state’s economic competitiveness. We need great schools to develop talent and, at the higher education level, to attract talent. We need top talent to work at our businesses and to start their own businesses.

Hopefully the state’s leaders understand this.

Of course, there is an endless debate in Madison about how much to spend on education, both in K-12 and for the UW System, and about different education approaches such as school choice and charter schools. Bottom line: we need great, high-performing schools at every level. And if we want our economy to grow, we must develop and attract the best and the brightest.

Wisconsin’s lowest ranking was in the “quality of life” category, where the state ranked 26th. Hawaii ranked No. 1. Now, that’s just unfair. Arkansas ranked 50th for quality of life. CNBC says the “quality of life” category includes crime rate, health care, inclusiveness,

the environment and local attractions including parks and recreation.

Often plans to invest in quality of life amenities, such as a new arena, are criticized as being frivolous and a waste of money. But those things matter. Again, it goes back to the war for talent.

Talented people can choose to live and work anywhere. To attract them, we have to offer a high quality of life. That means taking care of the important things like health and safety, but also providing the fun amenities like arts, sports, culture and parks. If we don’t offer an attractive quality of life, talent is going elsewhere.

We can’t do anything about the Wisconsin weather, but we can continue to work on making this the best place to live. n

ANDREW WEILAND EDITOR

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

AROUND TOWN Wisconsin’s Small Business Awards Breakfast

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SCORE and the SBA recently held their annual Wisconsin’s Small Business Awards Breakfast in Waukesha to honor entrepreneurs from across the state during Small Business Week.

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The SBA Awards are readied for distribution to the 16 winners.

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Attendees network prior to the start of the breakfast.

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JIM INJESKI, chapter chair for SCORE SE Wisconsin, welcomes guests to the event.

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ERIC MANKE of gold sponsor Byline Bank makes opening remarks.

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STACY TUSCHL, founder of The Academy of Performing Arts in Oak Creek and Franklin, won Wisconsin Small Business Person of the Year.

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MARIE MOODY, founder of Oak Creekbased dog food manufacturer Stella & Chewy’s LLC, gave the keynote speech.

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MIKE HETZEL of Wisconsin Women’s Business Initiative Corp., BILL FREY of Bellwether Funding LLC, JESSIE HAGEN of Byline Small Business Capital and SUMNER WEBSTER of Iron Forge speak on a breakout panel about ways to finance a small business.

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Guests snap photos after the event.

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Photos courtesy SCORE/SBA

Hard Hats with Heart

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The American Heart Association recently held its Hard Hats with Heart networking and fundraiser event at Best Place at the Historic Pabst Brewery.

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DON SCHOENFELD of von Briesen & Roper and WENDY LAPP of CH Coakley.

10. ROGER LAUTZ of Affiliated Engineers Inc. and BRYAN BLANKE of Versiti.

11. MICHELE CARTWRIGHT of Common Links and BRIDGETTE FROMMELL of M3 Insurance.

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12. KELLY NOEL of Advocate Aurora Health and DOUG GEURTS of Foxconn.

13. CARL EHR of Kelso-Burnett; DENISE EHR of KelsoBurnett; and JENNY OLSON of Paul Davis Restoration.

14. JIM JARVIS of J.F. Ahern and PAT FINGER of V&F Roof Consulting & Service.

15. MIKE WILLIAMS of Enterprise Lighting & Control; JEFF MOORE of AON; and JOHN FLEISNER of Gurtz Electric.

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16. KATIE CONNOLLY of American Heart Association; APRIL HANNON of J.M. Brennan; and KATIE SMITH of HGA. Photos by Lauren Anderson biztimes.com / 49

LILA ARYAN PHOTOGRAPHY

BizConnections

5 MINUTES WITH…

PAUL UPCHURCH President and CEO, VISIT Milwaukee

PAUL UPCHURCH has sat at the helm of local convention and visitors bureau VISIT Milwaukee for almost a decade. At the end of the year, he will resign, leaving big shoes to fill for the next president and chief executive officer. During Upchurch’s tenure, tourism spending in the Milwaukee area doubled from $1.6 billion in 2011 to $3.2 billion in 2018, and earlier this year, he celebrated one of VISIT Milwaukee’s greatest accomplishments: helping secure a bid to host the Democratic National Convention in July 2020.

In a recent interview with BizTimes Milwaukee reporter Maredithe Meyer, Upchurch reflected on his tenure.

MILWAUKEE ‘SWAGGER’ “If we looked at our own city as if it had been a city we had never visited before, and talked about it that way, perceptions would change; fewer people would think about leaving and more people would want to come here. I think sometimes we don’t help our own cause because we can be very quiet about our city, we don’t brag about our city and we are very reserved about telling its story. It’s time to have a little swagger. When one of the most important political conventions in the country picks your city because they think it’s pretty cool, that should change our perceptions.”

50 / BizTimes Milwaukee JULY 22, 2019

CONVENTION CENTER PUSH “When I got here (in 2010), we used to approach conventions and say, ‘We’d love to have you come to Milwaukee,’ and they’d say, ‘Well, tell me about Milwaukee.’ Now they say, ‘Wow, we’ve heard great things about Milwaukee.’ So I think perceptually, people are excited about Milwaukee and want to come to Milwaukee. Obviously, things like the DNC really help that, but the one obstacle is we have more demand than we have capacity because of the size of our (convention) center… We’ve seen a tremendous growth in the number of hotels, we just haven’t had the corresponding growth in the space we need to host conventions to fill those hotels, so that has to continue to be a priority if we’re going to see the city change.”

TOURISM AS A SOLUTION “One of the things we’ve tried to do in tourism is make this a tourism city that benefits all neighborhoods. That’s still a struggle and I’d like to see more of that happen in the future, but I’ve seen a city that is trying very hard to be inclusive… Tourism is a huge job creator, provides a lot of opportunities. There are so many jobs available any day in tourism that are unfilled. It’s a great opportunity to help solve some of those problems and it brings so much money into the community. It’s an important part of the solution, and we just have to realize that and continue to make sure we can grow it.” n

PRESENTS:

2019

Nominate Today!

2019 Awards Categories Corporate Citizenship Awards • Corporate Citizen of the Year

CORPORATE CITIZENSHIP

• Next Generation Leadership • In-Kind Supporter • Corporate Volunteer of the Year

Call for Nominations!

BizTimes Media presents the sixth annual awards program to salute southeastern Wisconsin’s best corporate citizens and most effective nonprofit organizations.

The awards will shine a light on excellence in philanthropy and nonprofit leadership. The recipients of the awards will be saluted at a breakfast program on November 1st, 2019.

Nominate the people and for-profit organizations who are making a positive difference in the community by donating their time, talent and treasure. Nominate the nonprofit organizations that are making the region a better place to live, work and play. Self-nominations also are encouraged!

• Lifetime Achievement Nonprofit Organizations, Leadership & Support Team Awards • Nonprofit organization of the year (Small & Large Categories) • Nonprofit Collaboration of the year award • Nonprofit Executive of the Year • Social Enterprise PLATINUM SPONSOR:

Submit your nomination at biztimes.com/npawards Nomination deadline: August 30, 2019 Event date: November 1, 2019

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2019