BizTimes Milwaukee | October 2, 2017

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OCT 2 - 15, 2017 » $3.25

ukee a w l i M e v i r d ers ons i t a Women lead z i n a g r o t elopmen v e d c i m o n o c e

plus REPORT: FOXCONN JOBS NOT AT HIGH RISK OF AUTOMATION 26 PIECING TOGETHER THE FOXCONN SUPPLY CHAIN 30 GPS EXTENDS ITS REACH 32

PRESENTING THE AWARD FINALISTS: Each year, BizTimes Media honors reader-nominated corporate citizens and nonprofits for their ongoing commitment to making Milwaukee a better place to live, work and play. BizTimes is pleased to announce this year’s finalists:

PRESENTS THE FOURTH ANNUAL:

Corporate Citizenship Awards

2017

Corporate Citizen of the Year • JPMorgan Chase • Kohl's • West Bend Mutual Insurance Corporate Volunteer of the Year • Nick Obrochta, Kohl's Corporation

NOVEMBER 2, 2017 | 7:30AM - 10:30AM ITALIAN COMMUNITY CENTER

• Robert Kennedy, WE Energies, Inc. In-Kind Supporter • Anthologie, Inc. • Bartolotta Restaurants

HELP YOUR BUSINESS, HELP MILWAUKEE Solve your labor shortage and get engaged in social change Business owners who seek to fill the labor shortage and grow their companies should make plans to attend the fourth annual Nonprofit Excellence Awards, where we will discuss solutions to develop entrepreneurs and employees in Milwaukee.

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Companies and nonprofits in southeastern Wisconsin can collaborate to solve the problems facing businesses, while benefitting the community. Milwaukee’s population suffers from a lack of opportunity.

Take action to address your skills gap by finding creative solutions. Create jobs and drive economic growth by providing those job opportunities and training to disadvantaged workers. Become engaged in your community.

On Nov. 2, hear from employers and community leaders involved in the efforts to foster economic stability, fill the skills gap and generate momentum for Milwaukee.

Panelists:

• SafeNet Consulting Next Generation Leadership • Molly Schweiger, PNC Financial Services • Benjamin Juarez, Public Policy Forum Lifetime Achievement • Jim Lindendberg, Lindy Enterprises (JML Holdings, Master Z's) Nonprofit Organizations, Leadership & Support Team Awards Nonprofit Collaboration of the Year • Next Door • SaintA • St. Augustine Preparatory Academy /Walter Schroeder Aquatic Center Nonprofit Executive of the Year

• Bill Krugler, president, Milwaukee JobsWork [1]

• Patti Gorsky, Make-A-Wish Wisconsin

• Cheryl Fritz, business development manager, STEP Industries [2]

• Keith Stanley, Near West Side Partners, Inc.

• JoAnne Johnson-Sabir, The Juice Kitchen, Sherman Phoenix [3]

• Ellen Blathers, Serenity Inns, Inc.

• Austin Ramirez, chief executive officer, HUSCO International [4]

Nonprofit of the Year (Large)

• Joaquin Altoro, vice president, Town Bank [5]

• Beyond Vision

Moderator:

• Milwaukee Rescue Mission

• Kimberly Kane, founder and president, Kane Communications Group [6]

• The Threshold, Incorporated Nonprofit of the Year (Small) • Greater Milwaukee Committee • Hispanic Professionals of Greater Milwaukee

[1]

[2]

[3]

[4]

[5]

[6]

• Summit Educational Association, Inc.

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biztimes.com

» OCT 2 - 15, 2017

4 Leading Edge 4 NOW

BY THE NUMBERS 5 ON THE JOB WITH… 6 IN THE NEIGHBORHOOD 7 FROM CONCEPT TO COMPLETION 8 GETTING THERE 9 BIZ COMPASS 10 MY FAVORITE TECH 11 BIZ TRAVELER

12 News 12 THE INTERVIEW 13 MADE IN MILWAUKEE

14 Real Estate 42 Strategies COVER STORY

16

Women leaders drive Milwaukee economic development organizations

KAT SCHLEICHER PHOTOGRAPHY

BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 23, Number 14, October 2 - 15, 2017. BizTimes Milwaukee is published bi-weekly, except two consecutive weeks in December (the second and third weeks of 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 2017 by BizTimes Media LLC. All rights reserved.

Contents

42 ENTREPRENEURSHIP Cary Silverstein 43 LEADERSHIP Karen Vernal 44 COACHING Susan Marshall

46 Biz Connections 46 NONPROFIT

Special Report

47 PERSONNEL FILE

24 Manufacturing & Logistics

48 COMMENTARY

BizTimes pieces together the Foxconn Technology Group supply chain, reviews a report on the impact of automation on Foxconn jobs, and looks at GPS Education Partners’ new program. The Milwaukee 7 weighs in on attracting next generation manufacturing talent and opportunities for export growth.

49 AROUND TOWN

48 GLANCE AT YESTERYEAR

50 FIVE MINUTES WITH…

C R E AT E D TO B E

W I SCO N S I N ’S BA N K F O R B U S I N E SS™ As a company built for this area, we see things differently. We don’t worry about what other companies are doing in other places, because we know firsthand what our area and businesses need to succeed. This is because we’re a proud local business too. It makes all the difference when a bank understands your community and supports your business goals. That’s why we’re honored to call ourselves Wisconsin’s Bank.

4 1 4 - 2 7 3 - 3 5 0 7 | w w w. t o w n b a n k . u s

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Leading Edge

BIZTIMES MEDIA – Like us

NOW

Walker signs $3 billion Foxconn deal into law

By Molly Dill, staff writer

Gov. Scott Walker recently signed into law the Foxconn Technology Group bill passed by the state Legislature.

The legislation provides up to $3 billion in incentives for Foxconn, which plans to build a $10 billion, 20 million-square-foot LCD panel campus in Wisconsin. It is expected to initially create 3,000, and eventually 13,000 jobs.

A site for the Foxconn complex had not been announced as of press time. The bill signing took place at Gateway Technical College’s iMet Center in Sturtevant and many have speculated that Foxconn will build nearby.

There were no Foxconn representatives at the bill signing

BY THE NUMBERS A consultant’s report says the Wisconsin Center’s exhibit space needs to be expanded to

300,000 SQUARE FEET

to increase business. The downtown Milwaukee convention center currently has 189,000 square feet of exhibit space.

4 / BizTimes Milwaukee OCTOBER 2, 2017

ceremony.

In addition to the massive Foxconn complex, supporters of the deal with the state say the company will attract a huge supply chain to Wisconsin.

“Not only in southeast Wisconsin, we can see this is going to be a benefit all across the state,” Walker said. “This is about ensuring that our children and our children’s children will have really those generational type opportunities.”

At the bill signing ceremony, Stephanie Sklba, vice president of community and government relations at Gateway Technical College, revealed that Gateway president Bryan Albrecht was on his way to meet with Foxconn representatives.

“Southeast Wisconsin truly has the opportunity to lead the world in advanced manufacturing,” she said.

“So in fact today, president Albrecht boarded a plane to Japan to begin that important work.”

Walker thanked Wisconsin Economic Development Corp. chief executive officer Mark Hogan; Department of Administration Secretary Scott Neitzel; former WEC Energy Group CEO Gale Klappa; GE Healthcare; technical and higher education institutions; and economic development organizations across Wisconsin, including the Milwaukee 7, for helping the deal come to fruition. Walker also thanked the Milwaukee Bucks, and Bucks president Peter Feigin was in attendance.

Walker just returned from a trade mission to Japan and South Korea, where he helped Wisconsin companies establish business relationships with companies in Asia.

While on the trip, everyone he met with—even Foxconn competitor Samsung—congratulated him on the Foxconn deal, Walker said.

“I’m proud to say that not only will these LCD panels be made for the first time in America, they’ll be made here in the great state of Wisconsin,” Walker said.

Ecosystems like this one attract not only employers and talent, but also venture capital investors that want to invest in the startup opportunities associated with the development, he said.

Walker expressed confidence Foxconn would live up to its promises for its Wisconsin operations. He challenged those present, including Greater Milwaukee Committee president Julia Taylor, Metropolitan Milwaukee Association of Commerce president Tim Sheehy and Milwaukee County Executive Chris Abele, to assure that Wisconsin is ready for the development.

The governor described the workforce development effort surrounding Foxconn as a “rebranding” of the state to attract talent and shift from a brain drain to a brain gain.

“We cannot have this be a matter of taking jobs from some employers to fill others,” he said, but must be a net gain of new jobs. n

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Installation crew for Coakley Brothers water tower sculpture

LILA ARYAN PHOTOGRAPHY

ON THE JOB WITH…

By Molly Dill, staff writer Coakley Brothers recently hired Brooklyn artist Tom Fruin to install a mosaic water tower sculpture atop its Walker’s Point headquarters. Fruin created the piece using multi-colored plexiglass formed into 60 panels welded together with steel.

The commercial relocation and office interiors company secured Fruin after Coakley president and chief executive officer Peggy Coakley saw one of his water tower sculptures and realized he could provide a solution for the heavy, aging water tower base on the

company’s building.

Coakley employees restored the base in August, said Daniel Stroven, construction project manager at Coakley Brothers.

Fruin assembled his artwork on site with the help of Coakley employees and local contractors over the course of a week, but the planning and panel creation took about eight months.

“It’s a series I’ve been calling icons, where it’s taking infrastructure, commonplace city architecture, and then try to make it new,” Fruin said.

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1 Coakley is in the midst of a $6 million renovation of about 40,000 square feet of its 175,000-square-foot facility at 400 S. Fifth St. in Walker’s Point.

2 Daniel Stroven, Tom Fruin and Matt Canada, studio manager at Tom Fruin Studios, discuss plans for the water tower construction.

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Employees from Hennes Services, Dawes Crane Service, Preferred Electric, Dublin Contractors, Safway Services, CSD Engineering and ADK Design worked on the project.

Matt Magyar, project manager with ADK Design, Canada and Fruin attach a steel ring to the plexiglass panels.

Fruin holds up the top of the water tower while workers attach it.

Peggy Coakley stands in front of the newly installed water tower, which is 62 feet high and will be illuminated at night.

biztimes.com / 5

Leading Edge

@BIZTIMESMEDIA – Real-time news

IN THE NEIGHBORHOOD How did you start Sparrow?

Jessica Franzen: “There was a similar store called Fasten CoOp Collective Gallery that sold all handmade wearables. I was selling my creations there and volunteering. When they were ready to move on, myself and (a business partner) bought the shop. She left in 2015.”

SPARROW COLLECTIVE 2224 S. Kinnickinnic Ave. NEIGHBORHOOD: Bay View FOUNDED: 2009 OWNER: Jessica Franzen EMPLOYEES: 3 SERVICE: Clothing, accessories and housewares sold by about 100 local artists. Sparrow also offers monthly art classes

Are you an artist yourself?

“Yes, I am a metalsmith and I make and sell my jewelry at the store.”

Where do the items come from?

“We have well over

100 items from artists at this point.

They are a mixture of things people submit and ask us to sell, or things we find through online marketplaces or local craft fairs.”

What does it take for you to agree to sell a person’s creations?

“The items have to be handmade or independently produced and they have to be good quality and have the aesthetic look of our store.”

Do you plan on making any changes to the store?

“Right now we have

been trying to offer monthly do-it-yourself art classes including sewing, metal stamping and macramé.

I would like to add more classes to the schedule and want to add a wider variety of classes to our list.”

How difficult is it to have a small, brickand-mortar clothing and gift store?

“We do have to compete with online, but people love getting to support local artists and also having a chance to hold the items in their hands. We are hoping to keep growing the number and variety of art classes we offer.” n

Keep Your Success Moving Forward!

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• Apply year-round no matter your industry • Expand your skilled workforce • Provide your workforce with the skills needed to succeed

The application process is easier than ever – APPLY TODAY! 6 / BizTimes Milwaukee OCTOBER 2, 2017

WisconsinFastForward.com

from

CONCEPT

The NeuroMapper to

COMPLETION FEBRUARY 2016: Sabsevitz holds a focus group at a national conference of neuropsychologists, generating interest in his idea.

Upon returning, Sabsevitz calls Dustin Hahn, project manager with the University of Wisconsin-Milwaukee App Brewery, to discuss the possibility of a brain mapping app.

For all the recent advances in medical technology, neuropsychologists have largely relied on low-tech tools to asses a patient’s brain functions during awake brain surgery.

The neuropsychologist might talk with a patient or show him pictures of objects to identify to test brain functions like speech, vision, problem-solving skills and memory.

“The problem is you’re limited in what you can test in the operating room, based on what you bring in with you – it’s not very feasible to bring filing cabinets of stimuli and tests,” said David Sabsevitz, a neuropsychologist with Froedtert & the Medical College of Wisconsin, who has developed an app for the tests called The NeuroMapper.

1 2

SPRING AND SUMMER 2016: Sabsevitz receives funding from the Medical College of Wisconsin to pursue the project.

Hahn and developers Chris Sampon and Chase Letteney begin building the app, which tests functions in real-time using two iPads.

SUMMER 2017: The University of California San Diego is the first hospital outside of Froedtert Hospital to use the NeuroMapper in the operating room. Cleveland Clinic and MD Anderson Cancer Center also sign on as beta testers. The app is being rolled out across the country in October.

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FEBRUARY 2017: Sabsevitz hosts a presentation at the International Neuropsychological Society to demonstrate the NeuroMapper technology. “The level of interest blew me away,” Sabsevitz said. “We had a number of people already requesting to be early beta testers for NeuroMapper and about 30 different sites expressing interest in getting the final product in their ORs.”

OCTOBER 2016: The initial version of the app is used in an operating room for the first time. Over the next few months, Sampon and Letteney continue to refine it based on feedback from Sabsevitz following surgeries.

biztimes.com / 7

Leading Edge

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THERE

Responsibilities in new role?

“I’m going to provide personalized wealth management and banking advisory services to individuals, families, the organizations they support.”

What has set you apart in your career?

“Being personal and honest and building trust are essential to grow in any profession.”

What do you like to do in your free time?

“I love to spend time with my wife and one-and-a-half-year-old son. I volunteer on the Associate (Zoological Society of Milwaukee) Board and I’m the treasurer of Ex Fabula. I appreciate the zoo and what it does for families. Ex Fabula strengthens community bonds through the art of storytelling. Community is very important to me.”

Favorite thing to do in Milwaukee in the fall?

“Walks with the family on the Oak Leaf Trail and the occasional beer garden and just spending as much time outside before winter comes.”

Feelings about Milwaukee?

“It’s been amazing to watch and be a part of all the development downtown since I moved here in 2008 and I’m particularly interested in the growing momentum of the startup scene and would like to see continued growth in this area. There’s a lot of energy; there’s a lot of chatter. I just think we need to leverage our resources to start creating.”

GRAHAM BAXTER AGE: 35 HOMETOWN: Brodhead, Wisconsin EDUCATION: MBA, finance, University of Wisconsin-Whitewater; bachelor’s, finance and marketing, University of Wisconsin-Oshkosh PREVIOUS POSITION: Associate banking advisor, Northern Trust Corp.

CURRENT POSITION: Vice president of wealth services, Wintrust Wealth Management

8 / BizTimes Milwaukee OCTOBER 2, 2017

BIZ COMPASS

How do you keep

1

PERSPECTIVE WHEN WORK GETS

STRESSFUL, INTENSE OR COMPLICATED?

REARDON 1 LISA

president, chief executive officer and chairman, OwnersEdge Inc.

“OwnersEdge is a fast-growing company, so our culture is naturally intense and complicated. As a leader, it’s my job to sense when stress is escalating, impart a sense of calm, plane people out and manage them through the situation. I’ve also found that humor helps everyone keep their perspective and reduces tension.”

2 FRANK CARROLL

CEO, Broan-NuTone Inc.

3

“The most obvious is a disciplined workout schedule which gives me confidence and physiological benefits. I surround myself with confident, competent, data-driven team members who help ‘size’ the issues. Staying grounded by asking ‘How bad is it – really?’ helps me to be a better leader, manager and even family member.”

3 KATIE WYSOCKI

general manager and managing partner, Devon’s Seafood + Steak

“I remind myself daily to embrace pressure and intensity, understanding the positive results they can produce when properly applied. The most beautiful things are often the result of the refinement of difficult circumstances.”

2

COSTANTINI

4 CATHY

co-founder, La Lune Collection

4

“Anyone who owns a business knows that every single day will present a variety of problems that need solving – it simply comes with the territory. The fact that my business partner is also my spouse helps me keep perspective in tough times. Being able to discuss difficulties with someone who understands both me AND the business completely is an incredible gift.”

5 PASTOR KENNETH FISHER

president, Wisconsin Lutheran High School

5

“I refocus my attention on my faith and the mission and vision of Wisconsin Lutheran High School. When I do that, my perspective returns. Oftentimes, I’ll stand in the hallway, watching the kids go by. Doing that reenergizes me and reminds me it’s about educating a future generation of Christian young men and women.” n biztimes.com / 9

Leading Edge

Presented By:

Nomination Deadline: October 31, 2017

Recognize the people and organizations that are making a difference every day by providing superior health care in our region.

Categories Include: Advancements in Health Care: Honors a company or individual primarily responsible for a scientific or discovery or for the development of a new medical product or procedure.

Behavioral Health:

MY FAVORITE TECH MITCHELL HENKE Software architect, RokkinCat

As a software architect at downtown Milwaukee-based software contracting company RokkinCat, Henke works in a tech-saturated environment.

To manage his projects at work and his life outside of it, Henke relies on a few tools that help keep him organized. Here are a few of his favorites:

Honors an individual or an organization for their leadership, commitment and care on behavioral health issues.

Community Service: Honors an individual or an organization for leadership in focusing on solving a particular health care issue.

Corporate Achievement in Health Care: Honors a company or organization that has successfully implemented an innovative health care product, process or service.

Executive Leadership: Honors a senior-level individual who demonstrates strong skills in leading their organization in quality care, collaboration and financial management.

First Responder: Honors a person who arrived on the scene of a healthcare emergency utilizing their training to treat and comfort the patient in need.

Health Care Staff: Honors an individual who has made a significant difference in the wellbeing of others.

Nurse: Honors an individual from the nursing field whose performance on the job is considered exemplary by patients, peers and physicians.

Physician: Honors a physician whose performance on the job is considered exemplary by patients and peers.

Volunteer: Honors an individual who has done volunteer work for the good of one or more people or the entire community.

Winners will be featured in the December 18, 2017 issue of BizTimes Milwaukee

To nominate a hero, visit biztimes.com/hero 10 / BizTimes Milwaukee OCTOBER 2, 2017

POCKET “I use it to save articles or academic papers or technical posts – if I can’t read it right away, I’ll download and save it so I can read it offline later. It’s also helpful when I need to refer back to an article later if something related to it comes up.”

SPREADSHEETS “Spreadsheets in general – I love spreadsheets. Pretty much all of my projects are in spreadsheets, whether it’s data analysis or a budget or an estimate. It lets me play around with numbers. Everything starts in a spreadsheet and some turn into more complex projects.”

iOS REMINDERS “I use iOS reminders for everything. I have daily reminders to read or study or exercise so I can make progress on a goal every day, even if it’s just 15 minutes. I have monthly reminders for budgets or one-off reminders to do something in the morning or follow up on something. I have dozens at any given time. It’s easy because I don’t have to think about it anymore or hold it in my head. I just know it’s in reminders and I’ll be reminded when I need to be.”

GITHUB “This is what we use for tracking our code for software – to see all the changes and how it’s changed over time, so you can collaborate. I publish a lot of my own code that I do, so anybody can come and see it and work with it themselves and I’ll do the same for other people.” n

B I Z T R AV E L E R : DÜSSELDORF DAV ID SA JDAK Buyer, Stan’s Fit For Your Feet and New Balance Milwaukee

As a buyer for Stan’s Fit For Your Feet and New Balance Milwaukee, David Sajdak regularly travels to Düsseldorf, Germany to attend Global Destination for Shoes & Accessories international shoe fairs.

T R A N S P O R TAT I O N :

GG-FOTO / SHUTTERSTOCK.COM

“I typically travel out of Chicago O’Hare (International Airport) via Lufthansa through Frankfurt, Germany. Once I make it to Düsseldorf, I take the train in to the city center to my hotel.”

E XC U R S I O N S: “In my downtime, I like to explore the modern art museum, local stores, and walk along the Rhine River. I also like to visit the shoe factories of some of our European brands in Germany, Italy and Spain.”

KAESLER MEDIA / SHUTTERSTOCK.COM

ACCO M M O DAT I O N S: “The Steigenberger Düsseldorf hotel, which is located in the Königsallee, the main shopping district of Düsseldorf. Being so close to the shopping district allows us to see the latest European fashions. It is a really beautiful old hotel with very classic rooms and amazing architecture. It is also close to the ‘Old Town,’ Altstadt section of Düsseldorf, which contains great restaurants and small local shops.”

FOOD:

T R AV E L T I P : “Bring good, fashionable and comfortable shoes for exploring! Enjoy your time taking in the beautiful German scenery and amazing culture.”

“Every time I’m in Düsseldorf I have to go to the Fischhaus in the Old Town. I consider myself a bit of a foodie and I love their fresh seafood, especially the pike and perch with chanterelle mushrooms. It’s simple but absolutely outstanding. If you feel adventurous, try the pickled herring appetizer. Another one of my favorite spots is Uerige brewery, near the Fischhaus. Uerige was established in 1862, and it doesn’t feel like it’s changed a bit! Great local beer and good pub food.” biztimes.com / 11

BizNews

the

Interview

IN DECEMBER 2010, Marnie Noël moved to Milwaukee to become a real estate

broker for Compass Properties LLC, overseeing the largest property in the portfolio, The City Center at 735, a 300,000-square-foot office building in downtown Milwaukee. The building was 52 percent occupied when Noël arrived and launched a rebranding and marketing campaign. At its peak, the occupancy rate was 92 percent. Noël spent the past year as vice president at JLL, focusing her efforts on leasing the newly-renovated Two-Fifty office tower. She was able to secure several leases, including Associated Bank’s new downtown branch. BizTimes reporter Corrinne Hess recently spoke with Noël about her new company, Noël Real Estate Advisors LLC. What is Noël Real Estate Advisors?

“I like to deal with a client from start to finish, which is what I did at City Center – from marketing to negotiating leases to making sure everyone was happy with the terms, to helping them through the buildout and then having them call me when a light burned out. I did a ton of networking with brokers and people in the industry and at Two-Fifty, I was able to harness the power of my network to host an open house attended by 250 people. We were able to showcase this amazing building and all of the work the owners put in by marketing it in a way that had never been done. That was the part I really enjoyed. But as a broker, you don’t get paid for event planning. I saw there is a need in the market for someone to fill that middle ground.”

In your new role, will you be marketing office buildings?

“Every building has its own identity. Two-Fifty will have the streetcar right in front of it. And if a building doesn’t immediately have something, I can work with the landlord or owner to figure out what is new, what is trending and what is attracting millennials so they can differentiate themselves in the market. Owners are going to be competing with a lot of square footage with the upcoming Hammes and BMO tower developments. Class A towers vacant now have about an 18-month period to really give it and lease spaces; otherwise, they will be sitting for longer than they would want. I’ve seen the top executives pitch a building and then have a younger broker come in who doesn’t know the market and is spread very thin and months later, the owner is saying they didn’t deliver. I think there is a gap there.”

LILA ARYAN PHOTOGRAPHY

Should more building owners be hosting events?

Marnie Noël President Noël Real Estate Advisors LLC Employees: 1 www.noelrea.com 12 / BizTimes Milwaukee OCTOBER 2, 2017

“Yes! But there are so many other things to do. If you have an office tower in downtown Milwaukee that has been vacant for years, there has to be a way to figure out why it is not leasing and get people interested.

Maybe the price point is off, maybe it is something else. Even with new construction, there are so many unique marketing tools out there. Things being done with drones, virtual reality tools to give people a feel for what the space could look like. If owners and investors are willing to spend a little money upfront with me, I would like to meet with them, tour the building and hear their greatest frustration and come up with a plan.”

Do you think you will be perceived as competition to the brokerage community?

“I’m not competing; I want to fill a gap. A broker can negotiate leases, do the prospecting, put the listing on the website, put the sign on the building, but that is really the extent. What I love is the continuity, the finished product. Success stories feel great to me. I would ask to be involved as a deal comes through.”

When will your company launch?

“I’ve been building a personal brand in Milwaukee for the last seven years and people can see the results with the City Center and Two-Fifty. I’ve been developing my new logo and website and plan to launch in early October. I’m overjoyed I’ve decided to go for it. There’s no turning back now.” n

Galland Henning Nopak eyes new products and capacity expansion CONSIDERING Galland Henning Nopak Inc. was in the business of making malting equipment for the major breweries of Milwaukee when Prohibition hit, it’s a bit remarkable the company is still around to celebrate its 130th anniversary.

Add in the fact the Franklin-based company is now on its fourth generation of family ownership when some estimates suggest only 3 percent of firms make it that far, and the milestone is even more substantial.

Heath Nunnemacher, Galland Henning Nopak co-owner and director, credits the company’s focus on new product development and taking advantage of engineering expertise.

“That’s always been a pretty consistent theme,” he said.

Today, Galland Henning Nopak makes hydraulic and pneumatic cylinders and valves found in applications from cereal production to mining to locks on waterways. The company’s equipment even helped operate the gates in the original “Jurassic Park” movie. One recent application required the equipment to run 24/7 in an environment that could fluctuate between -55 and 400 degrees.

“We focus on quality, we focus on delivery and our engineering abilities that really make the separation,” said Brian Sternberg, president, pointing out there is some standardization of cylinders, but there are also hundreds of thousands of combinations and permutations. “Every application for linear movement is different, so that’s where our engineers come in.”

Beyond valves and cylinders, GHN also builds scrap baler equip-

ment used to compress metal.

On the surface, the balers and cylinders appear to be markedly different. The front-end sale is different, with balers requiring three to five years in development as the equipment is considered for new buildings or the installation of a new canning line.

“Once it’s sold, once it’s in there in operation, then the fluid power market, they come in and they service it, so there is some overlap between those two,” Sternberg said.

The market for balers isn’t as competitive as GHN’s cylinder and valve business, but in both markets the company aims to provide a premium product.

“They are a heavy-duty, robust, engineered product,” said Sternberg of the balers. “We haven’t thinned out the metal; we’ve kept it for a heavy-duty, performance-type product.”

On average the balers run for 30 years, but with what Nunnemacher described as a “healthy parts and repair business,” some come in for service after 75 or 80 years.

GHN also continues to focus on innovation, which for balers means emphasizing reliability and energy efficiency.

Nunnemacher said the company is also looking to continue its new product development in cylinders.

He was hesitant to discuss specifics of new products but said they would be fluid power-related and complement existing products, while also taking advantage of similar sales channels and existing manufacturing processes.

“We’re not going to start making children’s toys,” Sternberg joked.

Eddie Wilturner working at Galland Henning Nopak’s Franklin facility.

GALLAND HENNING NOPAK INC. 10179 S. 57th St., Franklin

INDUSTRY: Fluid power EMPLOYEES: Around 75 nopak.com

Nunnemacher brings a unique background to his work as a co-owner and director. He worked for Charter Automotive LLC for several years, leading a distribution center in China and then managing new product launches. After working as a product quality manager for Apple, he joined Brookfield-based Milwaukee Electric Tool Corp. as a program manager, developing strategies at a company that’s generated hundreds of patents in recent years.

That background gave him exposure to robust new product development operations and Nunnemacher said as part of the board, he tries to bring “some of that focus on innovation and structure to the business.”

But he does not work full-time for GHN and none of the family members currently do.

“If somebody were to choose to do that, we have very set policies that would have to be fulfilled before that could occur,” Nunnemacher said. “We have a very, very high degree of emphasis on good corporate governance.”

Sternberg, who joined GHN as a vice president in 2014, said he has been impressed with the family’s commitment not just to the shareholders of the business, but to all of the company’s stakeholders.

“I’ve really focused on having a very good environment where people want to come to work, making sure they’re compensated above average in the marketplace, (offering) flexibility,” Sternberg said. “I want people banging on the door to work here.”

With the company growing about 22 percent annually while the fluid power market increased by 4 percent, GHN has put about $3 million into capital investments over the past 30 months. But like many manufacturers, adding people with the right skillsets remains an issue.

“Right now, our biggest challenge is really skilled labor,” Nunnemacher said. n

ARTHUR THOMAS Reporter

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

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Real Estate

@BIZTIMESMEDIA – Real-time news

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JON ELLIOTT OF MKE DRONES LLC

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WHO OWNS THE BLOCK? 1 625 E. St. Paul Ave. Property owner: Alpha Realty LLC, registered to James Treiterer of Oconomowoc Tenant: Fred Astaire Dance Studio of Milwaukee

2 324 N. Jackson St. Property owner: The Salvation Army Tenant: The Salvation Army Distribution and Donation Center

14 / BizTimes Milwaukee OCTOBER 2, 2017

3 302 N. Jackson St. Property owner: Planned Parenthood of Wisconsin Inc. c/o Tim Hosch Tenant: Planned Parenthood of Wisconsin

4 202 N. Jackson St. Property owner: W. W. Grainger Inc. c/o Marvin F. Poer & Co. Tenant: Grainger Industrial Supply

5 300 N. Jefferson St. Property owner: Jefferson 300 LLC, registered to Anthony N. Gagliano of Milwaukee Tenant: A. Gagliano Co. Inc.

CORRINNE HESS

NORTH JACKSON STREET FROM EAST ST. PAUL AVENUE TO EAST CHICAGO STREET

FEATURED DEAL: F I L M S C H O O L I N C U B AT O R ADDRESS: 1037 W. McKinley Ave., Milwaukee BUYER: CSA Partners LLC SELLER: Joshua Jeffers CLOSING DATE: Early September SALE PRICE: $3.2 million AN INVESTMENT FIRM co-founded by Milwaukee County Executive Chris Abele purchased the City Center buildings at The Brewery complex in downtown Milwaukee for $3.2 million with plans to create a film school business incubator in the space.

Abele and John Ridley, an Academy Award-winning filmmaker and Milwaukee native, have been working together on a project they hope will have a positive impact on the community they both love.

Both are on the board of Milwaukee Film Inc., which Abele founded.

“This project is neither the beginning nor the end of our shared commitment to the community,” Abele said. “We look forward to sharing more news in the coming months as the details of this project come together.”

The seller, Milwaukee developer Joshua Jeffers, president of J. Jeffers & Co. LLC, only owned the property for seven months. He bought the buildings for $2.6 million in February from Cardinal Stritch University and had initially planned to convert them into market rate apartments.

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The health care real estate investment firm purchased the property at 100 W. River Woods Parkway in September for $1.7 million.

The facility will include 71 assisted living units and 34 memory care units. The 96,770-square-foot complex will also include a wellness suite, a library and a media room.

Construction is scheduled to be completed in the first quarter of 2019. The city of Glendale approved the plan in spring.

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262-513-3750 biztimes.com / 15

STORY COVER

Wendy Baumann, Kristi Luzar, May yer Thao and Julia Taylor.

16 / BizTimes Milwaukee OCTOBER 2, 2017

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ee k u a w l i M e v i dr s r e d a e l n e s n o i t a Wom z i n a g r to n e m p o l e v e d economic

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BY MOLLY DILL, staff writer

s the southeastern Wisconsin development renaissance continues, office towers, apartments, condos, commercial developments and arenas are being constructed. The projects have created hundreds of construction jobs and some will create jobs once they open.

A momentum has overtaken the city, and Milwaukee’s eco-

nomic development leaders had a significant part to play in those efforts. At the same time, those leaders are advocating for residents of disadvantaged and disinvested communities to be included in the projects and for investment in those neighborhoods.

A unique group of women is pushing in the same direction to accomplish these goals throughout the area. Six powerful leaders are shaping Milwaukee’s job creation, business development and community revitalization aspirations at the helm of their organizations— often by working together.

JULIA TAYLOR President, Greater Milwaukee Committee Julia Taylor is a titan of Milwaukee economic development. But it wasn’t always that way.

She got her start in an economically depressed Bay City, Michigan when she was appointed to a vacant common council seat and ended up chairing the economic development committee. In that role, Taylor says she learned about the municipal “Hail Marys” that are required when times are tough, and about the power of collaboration to accomplish goals.

Taylor was recruited to Milwaukee to lead the YWCA of Greater Milwaukee, which she ran for 16 years. There, she managed a $40 million budget and focused on economic development for women in the central city.

“It’s really about how do we grow the prosperity that’s happening downtown to create prosperity in these surrounding neighborhoods,” she said.

“And how do we grow commercial corridors? How do we grow the business opportunity?” biztimes.com / 17

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described the Menomonee Valley as a “25-year overnight success story.”

The women involved in economic development in Milwaukee demonstrate the necessary patience and an ability to look at the broader strategy and interrelated system, she said. Taylor, 62, has mentored and collaborated with most all of them.

Her next collaborative project: MKE United, an initiative to form a shared, inclusive vision for greater downtown Milwaukee using one of her favorite tools, a strategic action agenda. Among the goals are creating neighborhood development and commercial corridors; improving transportation and mobility; and developing the economy and the workforce.

“There is not a single entity in the community that can do all this. That’s why it’s important to have strong partnerships,” Taylor said. “When you get everybody on board and you get fired up about the same vision, you can get so much done.”

EVE HALL President and chief executive officer, The Milwaukee Urban League

Julia Taylor

She has continued her economic development work at the helm of the Greater Milwaukee Committee since 2002. Taylor has been instrumental in the formation of the Milwaukee 7 regional economic development partnership, BizStarts, Scale Up Milwaukee, Milwaukee’s water cluster and other initiatives to help businesses locate and grow in southeastern Wisconsin.

The Water Council has been a big win for the M7 region, even though the Reed Steet Yards business park next to the Global Water Center has not yet been filled, Taylor said, because it has spurred businesses like Rexnord Corp. to shift their attention to water technology. Ultimately, she hopes it will become a federal center of excellence and wa18 / BizTimes Milwaukee OCTOBER 2, 2017

ter technology research hub for the entire country.

Taylor also has been involved with the efforts to prepare the workforce for Foxconn Technology Group’s planned $10 billion factory in southeastern Wisconsin. The project could be transformational for the local economy, she said.

“The number of jobs that they’re talking about, if it is in the 10,000 range, that’s more than M7’s created in its 10 years of existence,” Taylor said.

“We’ve been playing the game for a long time, and so I think we’re able to respond well to this opportunity compared to a region that has not collaborated, that doesn’t have something like M7.”

It takes time and patience to grow a local economy or create a new business hub, Taylor said. She

Eve Hall has a wealth of experience in education, government and nonprofit organizations.

She was tapped to lead the Milwaukee Urban League in February. Prior to the role, Hall had been the president and chief executive officer of the African American Chamber of Commerce of Wisconsin. She also was previously vice president of public affairs at Family Service of Milwaukee, director of Milwaukee Public Schools’ School to Work program and director of former Gov. Tommy Thompson’s Milwaukee office.

Hall’s passion has become employment, particularly for underserved groups. The Urban League advocates for African-Americans and other people of color to obtain economic self-reliance and social justice through a combination of education, economic development and employment.

“I think you have to have a passion about the quality of life for people,” Hall said. “If people don’t have a way to support themselves, then we will not have a viable, healthy and safe community.”

As she leads the next chapter for the Urban League, Hall wants to increase the organization’s capacity to help. Hall is working to build bridges to other organizations on jobs and the economy, while increasing the Urban League’s support to entrepreneurs.

The development renaissance in downtown Milwaukee is an opportunity to bring in a diverse workforce and provide opportunities for employment, she said. And Foxconn Technology Group’s facility would mean a big employment boom.

“I am interested in making sure that we’re part of the conversation, given that we have over 50 percent unemployment of African-American males,” she said. “We have got to take advantage of major initiatives or developments like this. With the statistics that we’re looking at in the Milwau-

CONTRIBUTED

kee area, this is an opportunity to see if this is another way we can address the unemployment gap.”

Hall places an emphasis on making sure everyone in a community wins. The more businesses are formed, the more jobs are created, and the more homes and products are purchased.

“We need to constantly find ways that all groups are able to participate in economic development opportunities and projects. (That) is going to be most critical in truly moving the needle,” Hall said.

Hall, who is African-American, is passionate about helping her own community access economic development opportunities. She yearns to see successful African-American professionals owning homes and being successful in education.

The chambers of color have an Ethnic Business Coalition to share resources and work together to increase their economic development presence and success. Hall said improved race relations are key to helping Milwaukee move forward.

“If every community wins or has access, we all win,” she said. “As wonderful as our country is, we’ve had some real challenges for underrepresented communities or communities of color to always have access and opportunity at the same level as non-minorities.”

The women leading Milwaukee’s economic development organizations may have the key to get things done, she said.

“As women, we tend to collaborate a little bit more,” Hall said. “Just by the nature of women being natural at nurturing and uniting and bringing families together, I believe that those natural traits as women spill over into our executive roles. In all due respect to men.”

KRISTI LUZAR Executive director, Urban Economic Development Association of Wisconsin Inc. Of her career accomplishments, Kristi Luzar is most proud of the Take Root Milwaukee initiative, a program established in 2009 to make housing more affordable and accessible for Milwaukee families.

More than 40 housing counseling agencies, community organizations, neighborhood groups, realtors and lenders are involved in Take Root.

“It’s a great example of collaboration, it’s a good model, it’s hard work, and people are committed and engaged still,” Luzar said.

The program grew to include three other locations, in Denver, Chicago and south Florida.

It aims to strengthen neighborhoods that have been impacted by foreclosures and abandoned homes, while helping residents become sustainable homeowners by providing access to renovation and purchase financing. In Milwaukee, Take Root is offered in Burnham Park, Layton Park and Silver City; Clarke Square; Harambee; Havenwoods; and Pulaski Park.

Eve Hall

Helping residents avoid foreclosure and become homeowners is one part of UEDA’s mission.

It also works to connect workers to jobs via transportation and boost entrepreneurship in urban areas. The membership organization specializes in collaboration: it helps bring economic and community development organizations together and train them to better serve their clients.

Milwaukee tends to be risk averse, but Luzar submits it could be more open to taking calculated risks, particularly when it comes to catalyzing economic development projects.

“There’s a real dynamic culture that’s happening in neighborhoods and everyday businesses that you just don’t see in the data that

comes out,” she said. “You’ll only see that by having working relationships and being connected and engaged. Collaboration is absolutely critical and it’s hard work.”

Luzar, 41, completed a master’s in urban studies and nonprofit management at the University of Wisconsin-Milwaukee and went to work for UEDA 11 years ago. Bill Johnson, the previous director, served as a mentor and soon pushed her in the direction of leadership.

Since 2006, Luzar has been running the statewide organization, which has a small staff and a $225,000 operating budget. She plans to grow the staff, membership and budget moving forward to increase UEDA’s impact outside Milwaukee. biztimes.com / 19

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Kristi Luzar

To Luzar, there are two things that could help move economic development forward in Milwaukee: A regional transportation system and more support for entrepreneurship, particularly among people of color.

“One thing that really holds this region back when you look comparatively across the country is a lack of regional funding and the lack of a regional transit authority,” Luzar said. “For us, job growth right now is outside of the county.”

Luzar’s next project is addressing the challenges people with disabilities face in finding and keeping work and housing, and escaping the cycle of poverty.

“When you think about economic develop20 / BizTimes Milwaukee OCTOBER 2, 2017

ment…the percent of people that live in poverty who have disabilities is really high,” she said, emphasizing the need for economic inclusion of those with disabilities.

WENDY BAUMANN President and chief visionary officer, Wisconsin Women’s Business Initiative Corp.

When a young Wendy Baumann joined the Hispanic Chamber of Commerce of Wisconsin, the organization had 13 members and focused most of

its energy on planning the Mexican Independence Day parade.

She lobbied for the chamber to do more commerce, and the members made her executive director. When Baumann left about two years later, the chamber had grown to 218 members, had more funding and sponsorships, provided resources to help businesses grow and had a higher profile in the community. And she loved that the work had meaning to her.

“That was my first taste of ‘I think there’s something here,’” Baumann said. “I still feel that that economic development piece is not the panacea, but a major solution for social ills, for hardship, for inequality, for many things. If you have the money, you are empowered. You can provide for yourself and your family, you can provide for infrastructure in a community, you can provide for good schools…you can plan for the future.”

After a one-year stint in the private sector—she hated it—Baumann was director of small business development at Milwaukee Area Technical College for five years before she became executive director of Wisconsin Women’s Business Initiative Corp.

She’s been in the role 24 years.

WWBIC is a nonprofit that lends to entrepreneurs in Wisconsin who want to start or expand a business but face barriers in accessing traditional financing or resources. Under Baumann’s leadership, WWBIC has grown from a $200,000 budget with a staff of two, to a $5.7 million organization with a staff of 50, four regional offices, and three rural satellite offices. It has a $16 million loan portfolio and has lent about $60 million since its inception 30 years ago.

“You’ve got to celebrate the wins. It’s doorfront by doorfront, job by job and keep celebrating those pieces,” Baumann said.

She also helped launch Milwaukee as a Kiva city, providing area entrepreneurs access to microloans, and assisted with the creation of the Milwaukee Public Market.

Milwaukee has evolved over the years to put more support behind entrepreneurs, but more could still be done, Baumann said.

“We need more perceived risky capital in the heart of Milwaukee,” she said. “If you have the jobs more within a community, it’s better.”

WWBIC recently collaborated with the Greater Milwaukee Committee, the Hmong Wisconsin Chamber of Commerce and LISC to go after a national grant, Baumann said. The women leaders of the organizations matched their schedules while traveling and found time for a 6 a.m. phone call to finish the application.

“I think that stick-to-it-ness, I’m not saying men are not that way but I think women, when they have that right passion and that right piece, will stick to it and persevere,” she said.

Moving Milwaukee’s economy forward will require collaboration like that, as well as transparency, Baumann said.

“You’ve got to eat the dinosaur one bite at a time,” she said. “I go back to having a vision and having a plan or an outline around that vision.”

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MAY YER THAO Executive director, Hmong Wisconsin Chamber of Commerce May yer Thao was recruited to the Hmong Wisconsin Chamber of Commerce in May 2014 to work in grants administration.

By the end of 2014, the executive director of the chamber had resigned and Thao was tapped to keep the organization afloat. In May 2015, she was officially named executive director.

“It was quite the journey. It was obviously very challenging not having anyone else there outside of board members to provide that kind of guidance and assistance,” Thao said. “When you’re in that position, you just do what it takes.”

Thao, 40, took it in stride, and was able to grow the chamber’s profile and community outreach throughout the state while distributing the most loans in its history during the 18 months she was running it on her own. Now, she has added three other employees and a satellite office in Wausau, a booming community for Hmong entrepreneurs.

“I always had an interest in community development in general,” Thao said. “All of my personal volunteer time was always doing community development work. From community development, really the core of that is economic development in order to elevate underserved communities such as Hmong and southeast Asian groups.”

At the end of 2016, HWCC had created more

Wendy Baumann

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some for minority groups such as the Hmong ethnic community. But having fewer chambers is not going to work at this stage, Thao said.

“At this point in time in Milwaukee, we still need all these organizations but we need us to work more closely together,” she said. “We’ve been so segregated, and so the community that each of us serves have not received the resources to move these specific communities forward. Until I can really help build a bridge to access more mainstream resources, the Hmong Chamber is still needed and still relevant.”

DONSIA STRONG HILL Executive director, LISC Milwaukee

May yer Thao

than 250 jobs through its loans. It has given about 45 loans totaling $925,000 since it was formed in 2003, and has leveraged another $9 million in financing from other lenders for its businesses.

HWCC got into economic development when it formed its revolving loan fund program in 2006, and has about $500,000 in the fund pool, as well as a microloan program.

The organization this fall is launching a partnership with the Wisconsin Economic Development Corp. and Kiva for a $50,000 matching loan fund.

But Thao wants to do more. As a Hmong-American herself, she strives to be as impactful as possible in her community.

22 / BizTimes Milwaukee OCTOBER 2, 2017

HWCC has worked closely with Wendy Baumannn and the WWBIC on participatory loans, cross referrals and best practices.

“It’s very empowering, especially for individuals such as myself, who are still very new to economic development,” Thao said. “It’s great to have that role model and mentorship from those who have been in this playing field much longer.

“As women leaders, I think we are very community oriented and we are very open to collaboration and we’ve been able to participate in different grant applications together, understanding full well where … our strengths are and where our weaknesses are.”

Milwaukee has many chambers of commerce,

Donsia Strong Hill moved away from Wisconsin for a few years, but decided to move back last year to be closer to family and have an impact in the community she knew so well.

A finance lawyer, Strong Hill was familiar with LISC and its financing resources for neighborhood improvement. The organization has traditionally focused on housing, but now is adding small business lending and entrepreneurship support.

“We have pivoted somewhat from the historic work we’ve done to become more involved in economic development and workforce training,” she said.

Strong Hill has had a storied career, serving as a senior policy analyst for The White House, a senior advisor to the U.S. Department of Energy and a Wisconsin cabinet secretary. When she set her sights on community development, she went back to school to learn how to run a nonprofit, completing a master’s in public administration at Harvard University.

“I think it’s the work I’ve been training my whole life to do, frankly,” Strong Hill said. “Community development is simply providing the community the opportunity to decide, by engaging them, what they want to be able to happen in their community.”

She believes many of the ills afflicting Milwaukee and the disinvestment in some of its neighborhoods can be seen in the lack of jobs and small businesses.

“In the absence of real attention and funding and investment in those areas, I don’t think you will find a single neighborhood that has been revitalized without strong entrepreneurship and strong workforce development,” Strong Hill said.

Collaboration and initiative among economic development organizations are key, she said.

Milwaukee’s economic development leaders work well together.

“Everybody’s very collaborative, we really want to see the work done, we want it to be successful and it doesn’t matter to us who gets credit,” she said. “Understanding where those strengths are keeps us from having to reinvent the wheel and means that we’re able to move forward more

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quickly and effectively in our endeavors.”

Together, LISC, the Greater Milwaukee Committee, the Wisconsin Women’s Business Initiative Corp. and the Milwaukee Urban League last year received a $30,000 planning grant from The Kresge Foundation to complete commercial corridor work. They’re using it as an opportunity to break down silos in the sector.

And LISC in August invested $5 million into the new $11.1 million Wisconsin Business Opportunity Fund to leverage the Wisconsin Housing and Economic Development Association’s new market tax credits. The funds will go toward small business loans for construction, equipment purchases and other hard assets.

Strong Hill expressed her desire for LISC to be helpful in any way possible on the Foxconn Technology Group project.

“We would be very supportive of working with the state and the Wisconsin Housing and Economic Development Authority to ensure that there is appropriate, safe, affordable housing for the workforce,” she said. “Additionally, to the extent that we can support the efforts, the needs around workforce development, we’re prepared to assist there as well.”

Of all the work she has done in her career, Strong Hill said LISC has been the most rewarding.

“It’s difficult, but it’s not without satisfaction,” she said. “That satisfaction is what drives me to get up every day and get back at it.” n

Donsia Strong Hill

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SHAPING THE FUTURE Manufacturing Matters! 2017 will take place at the Hyatt Regency in Milwaukee on February 23rd, 2017. The theme of this year’s conference is Shaping the Future, and the conference features 18 breakout session in six tracks including: Growth • Operational Excellence • Human Capital Management C-Suite Essentials • Technology & innovation Wisconsin Manufacturing P L AT I N U M S P O N S O R

and trends are P L A T I N As U Mworkforce S P O Nchallenges SOR

on the minds of most manufacturers, we are pleased to announce this year’s keynote presenter is Kip Wright, Senior Vice President of Manpower, North America. Kip will discuss G O key L D workforce SPONSORS trends and what manufacturers can do to secure and develop their current and future workforces.

Preparing For What’s Next Kip Wright

Senior Vice President of Manpower, North America

Are you letting the disruptors control you, or are you building a “Proactively Adaptable Organization”?

REGISTER TODAY! www.manufacturingmatters.org

Wednesday, October 4, 2017 • 7:00 - 11:00 AM

WI Manufacturing & Technology Show Wisconsin Exposition Center at State Fair Park Join us for the annual Next Generation Manufacturing Summit, featuring a lively interactive discussion with chief executive officers and leaders of southeastern Wisconsin manufacturing companies. These CEOs will share their company’s ideas and best practices for competing in a global marketplace and how they strive to be “proactively adaptable” world-class manufacturers in the 21st century.

SHAPING THE FUTURE

Manufacturing Matters! 2017 will take place at the Hyatt Regency adaptable organizations look beyond their own four walls and next purchase inProactively Milwaukee on February 23rd, 2017.

The theme of this year’s conference is Shaping the Future, and the conference features 18 order and are preparing for the inevitable disruptors in today’s business environment. breakout in six tracksleaders including: who are creating processes and a culture of innovation, as well as Hear session from industry Growth • Operational Excellence • Humanthat Capital methods of talent attraction, will drive Management C-Suite Essentials • Technology & innovation Wisconsin Manufacturing As workforce challenges and trends are on the minds of most manufacturers, we are pleased to announce this year’s keynote presenter is Kip Wright, Senior Vice President of Manpower, North America. Kip will discuss key workforce GOLD SPONSORS trends and what manufacturers can do to secure and develop their current and future workforces.

innovation in their business.

Kip Wright

REGISTER TODAY! www.manufacturingmatters.org

24 / BizTimes Milwaukee OCTOBER 2, 2017

FEATURED MAIN STAGE EVENT AT

Senior Vice President of Manpower, North America

OCTOBER 3-5, 2017 • SHOW REGISTRATION: WIMTS.COM

Messages from the sponsors of the 2017 Next Generation Manufacturing Summit

3M is pleased to support the Next Generation Manufacturing Summit in a shared vision of innovation.

As a global innovation company that never stops inventing, 3M innovations have improved daily life for millions of people all over the world since 1902.

We have made driving at night easier, made buildings safer, and made consumer electronics lighter, less energy-intensive and less harmful to the environment. We even helped put a man on the moon.

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BMO Harris Bank strongly supports the Wisconsin manufacturing community and we’re proud to be a gold sponsor of the 2017 Next Generation Manufacturing Summit.

At BMO Harris, we understand the industry complexities that manufacturers face whether it’s managing a supply chain, procuring raw materials or planning for growth. Our teams of experienced, local relationship managers will work closely with you to understand the unique issues and opportunities unique to your business and will offer strategic advice and solutions to help keep your business moving forward.

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Manufacturing Matters! 2017 will take place at the Hyatt Regency in Milwaukee on February 23rd, 2017. The theme of this year’s conference is Shaping the Future, and the conference features 18 breakout session in six tracks including: As one of the nation’s top 50 full-service CPA andExcellence advisory firms, Schenck is Capital GSC is proud to sponsor this year’s BizTimes Manufacturing Summit.

Growth • Operational • Human pleased to sponsor the Next Generation Manufacturing Summit.

Management C-Suite Essentials • Technology & innovation For 28 years GSC has worked with local manufacturers to improve their Manufacturers, longWisconsin known for their ability to adapt in an evolving industry, product development process. GSC’s goal is to partner with your company to Manufacturing continue to innovate effectively. From their approach to recruitment, product learn about your issues and how they can solve them by providing you with development, technology, business modeling and more, manufacturers have the latest 3D engineering technology, training, and consulting.

As workforce challenges and trends are proven their long-term sustainability. In today’s competitive global market, GSC offers solutions that cover all aspects of your product development on cost, theimprove mindsproductivity of most finding ways to reduce andmanufacturers, drive revenue is critical. process with a seamless, integrated workflow for 3D design, simulation, we are pleased to announce this year’s We are privileged to have gathered some notable industry leaders to share communication, and data management. presenter is Kip Wright, Senior their best practiceskeynote that have contributed to their success.

I encourage you to GSC has also been at the forefront of 3D printing technology for close consider how their insight lead you to step and take a fresh strategic Vice can President of back Manpower, North to 20 years. Our experienced team of experts can help you find the right look at your organization. We look forward to being inspired to innovate amid applications, materials and printers that will change the way you do business.

America.

Kip will discuss key workforce an ever-changing manufacturing landscape! trends and what manufacturers can do Visit us at booth #1438 to learn more about the latest 3D engineering Karin Gale, CPA, CM&AA technologies! to secure andIndustry develop their current and Shareholder, Manufacturing & Distribution Team Co-Leader, Schenck SC Senior Vice President of future workforces.

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Kip Wright

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The Wisconsin Manufacturing Extension Partnership (WMEP) is proud to sponsor the 2017 Next Generation Manufacturing Summit, an event that recognizes the importance of Manufacturing in Wisconsin and the vital role it plays to the State Economy.

Every day for more than 22 years the WMEP has striven to make the Wisconsin manufacturing environment the best in the world. Our talented people, world-class approaches, diverse partnerships, and unique engagements created more than $3 billion in impact for manufacturers across the state. The WMEP enhances the success of Wisconsin’s small to midsize manufacturers by providing expert and accessible services in the areas of growth and innovation, cost reduction and efficiency improvement, workforce culture, and securing needed certifications.

We would be honored to assist with your organization’s achievement of its goals whether they are top or bottom line, people or certification focused.

Tim Wiora Executive Director/CEO, Wisconsin Manufacturing Extension Partnership

At Davis & Kuelthau, we are passionate about partnering with our clients to achieve their legal and business objectives. Since our firm’s origin, our attorneys have helped hundreds of manufacturers throughout Wisconsin, and nationally, grow and thrive in even the most challenging times.

As one of Wisconsin’s leading business law firms, and proudly headquartered here in Milwaukee, we have had the honor of advising a wide array of manufacturers producing the latest products in areas such as adhesives, electronics, food and beverage, furniture, lighting, machinery, plastics, steel and transportation. Our team of business, employment and litigation attorneys is uniquely positioned to help local businesses and their owners navigate their legal challenges every day. We bring real-world experience, understanding, and a results oriented mindset to help clients achieve their objectives.

When the time is right, we would be delighted to talk with you about your needs. To learn more about our services, please visit www.dkattorneys.com. In the interim, we hope you enjoy the summit.

biztimes.com / 25

Special Report MANUFACTURING & LOGISTICS ARTHUR THOMAS

Piecing together the Foxconn supply chain

By Arthur Thomas, staff writer FOXCONN TECHNOLOGY GROUP plans to make approximately $1.4 billion in supply purchases in Wisconsin annually once its LCD panel campus is fully operational, a figure more than three times the combined in-state supply purchases made by Marinette Marine Corp., Quad/Graphics Inc. and Oshkosh Corp.

With company estimates putting more than $1 billion in revenue up for grabs, it is no wonder roughly 200 companies have listed their information on the Foxconn supplier directory, an online tool offered by northeastern Wisconsin economic development organization The New North with support from the Wisconsin Economic Development Corp.

Foxconn’s planned $10 billion campus is projected to create more than 11,400 jobs at suppliers, according to a company-commissioned report. Those jobs would generate roughly $41 million in tax revenue for the state annually and would be a key part of Wisconsin getting a return on its $3 billion investment.

The companies that have posted their information on The New North website come from a range of industries, from manufacturing to logistics, construction to business services, real estate to research and development.

Beyond the Wisconsin companies, Foxconn will likely draw new suppliers to the state. Metropolitan Milwaukee Association of Commerce president Tim Sheehy has talked about Corning Inc. building a $1 billion glass plant adjacent to the LCD plant. During his recent trade mission to Japan and South Korea, Gov. Scott Walker met with Foxconn officials and suppliers and said companies were “excited to try to figure out ways they can establish businesses in the state.”

Walker didn’t explicitly rule out offering incentives to those companies to lure them to Wisconsin, but said “it’s pretty clear” the suppliers need to be in close proximity to the Foxconn campus.

“This whole series of suppliers that we met with will be overall a net gain to the state of Wisconsin because they’ll be coming in and investing and employing people,” Walker said.

“We presume the biggest incentive we’ll be providing is the fact that Foxconn will be there.”

When Foxconn chairman Terry Gou announced the new facility in July, he pointed out the U.S. didn’t have any LCD factories to produce the 8K screens Foxconn plans to make.

For supporters of the project, the opportunity 26 / BizTimes Milwaukee OCTOBER 2, 2017

Rockwell Automation president and CEO Blake Moret (second from left) signing a memorandum of understanding with Foxconn officials and Gov. Scott Walker.

to bring a new industry to “the Western hemisphere,” as state Rep. Dale Kooyenga (R-Brookfield) put it, was a major draw.

Since Foxconn is bringing a product that has primarily been manufactured in Asia to Wisconsin, it shouldn’t be a surprise some of the suppliers the company needs don’t have operations here, especially given the planned size and scale.

“It sounds like a totally vertically integrated facility,” said Bob O’Brien, president of Display Supply Chain Consultants.

Whether Corning or another manufacturer provides glass for the facility, locating essentially on the same site as the main plant is an expectation. “(The glass is) basically too big to ship, or too big to ship economically,” said O’Brien, who spent 11 years at Corning, primarily as director of marketing intelligence and strategy for display technologies.

Beyond glass, the Foxconn supply chain will also include liquid crystals. German company Merck KGaA, which is not affiliated with pharmaceutical giant Merck & Co., has more than half of the market for liquid crystals, although the company noted in a recent investor presentation it faces increasing competition in China and customers are using multiple supplier strategies.

Merck KGaA already has a presence in Wisconsin through MilliporeSigma, its U.S. and Canada life sciences brand, which just announced a $64 million expansion of its flavors and fragrances business in Sheboygan County. At an event announcing the expansion in August, Walker said company officials encouraged him to get

the Foxconn legislation done because they were eager to be a Foxconn supplier.

O’Brien said liquid crystal production is highly specialized and Merck does most of its production in Germany, with some mixing operations closer to localized display facilities.

“I would expect that they would do the same thing for Foxconn,” he said.

The main mechanism for lighting up the liquid crystals is LEDs, which O’Brien said he expects to be an imported element of production.

“You could pack a lot of LEDs in a shipping container,” he said.

North Carolina-based Cree Inc. does make LED chips that can be used to create the white LEDs needed for LCD backlighting. Those products are currently made in China. The company’s Racine plant makes products for Cree’s lighting products segment, which includes lighting systems used in commercial, industrial and consumer settings.

The backlighting also includes optical films for polarizing, diffusion and enhancement.

O’Brien said manufacturing the films is not capital intensive, but the finished product comes on rolls that can be fairly bulky.

“Those are things I would expect companies would set up a U.S. operation to do,” he said.

O’Brien said he expects the same to be true for many of the mechanical and other electrical components for TVs, like the frame, base, stand, circuit boards and power supply.

Wisconsin companies could be well-positioned

. . . . . . . . . . . . . . . . . . FOXCONN continued on page 28

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for some of those products, especially plastics.

The equipment inside Foxconn’s factory also provides an opportunity. Milwaukee-based Rockwell Automation Inc. already signed a memorandum of understanding to implement its Connected Enterprise at the campus, and the parent company of Yaskawa America Inc., which has operations in Oak Creek, has equipment in a similar LCD factory in Japan.

Establishing a supply chain that can fulfill Foxconn’s projected $4.26 billion in total annual purchases will likely be an important part of the company’s success. Other efforts to bring primarily Asian manufactured electronics products to the U.S. struggled in part because of a hollowed-out supply chain, Harvard Business School professor Willy Shih wrote in a 2014 MIT Sloan Management Review article.

Building the ecosystem Walker and others envision will require going even farther.

Marquette University president Michael Lovell noted at a recent Wisconsin Technology Council event that Foxconn’s presence is drawing interest from venture capitalists and could draw other companies both large and small in

Foxconn products on display at Waukesha County Technical College.

the future.

“Foxconn could be our opportunity to transform ourselves and create an infrastructure and an ecosystem that will allow this region to transform in ways we may not even really imagine today,” Lovell said.

He said realizing that transformation will take collaboration and new thinking at a scale

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and speed “which we’ve never done before.”

“We need to think about what the next generation of LCD technology is going to look like,” Lovell said. “We better create a research center of excellence … that creates an ecosystem that allows the universities, the industry (and) the state to work together to really ultimately attract suppliers to the state.” n

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Special Report MANUFACTURING & LOGISTICS

UW-Extension report: Foxconn jobs not at high risk of automation STATE SEN. DAVE HANSEN painted a bleak picture as he discussed the potential automation of manufacturing jobs in Wisconsin.

He pointed to news reports about Foxconn Technology Group eliminating 60,000 jobs at its Chinese factories by using robots and described a progression toward dark factories as robots took over all the jobs.

“That is the future of manufacturing in Wisconsin and the United States and it’s going to be the future of Foxconn right here in Wisconsin,” said Hansen (D-Green Bay) during debate on legislation setting up $3 billion in incentives for Foxconn to build its LCD plant in Wisconsin.

Sen. Leah Vukmir (R-Wauwatosa) spoke after Hansen, making the case Foxconn would be transformational for the state and having an entirely robotic workforce was “pure hyperbole.”

“While it is true that automation is new technology, it is the state-of-the-art,” Vukmir said. “We are progressing to automation.”

She went on to say automation would require people to control it and the state’s universities could participate in building the required skilled workforce.

“Does it just happen like that … we’ve got automation?” Vukmir asked, snapping her fingers. “Come on guys, you don’t get it.”

The potential automation of the 13,000 jobs Foxconn plans to create in Wisconsin came up multiple times as lawmakers considered the bill.

At a public hearing in Sturtevant, Department of Administration secretary Scott Neitzel said the plant would be built as automated as it could be and as a result, wouldn’t be as susceptible to automation.

That explanation would protect the Foxconn jobs in the short-term, but what about beyond the term of the contract the company signs with the Wisconsin Economic Development Corp.?

Automation and computer technology continues to race ahead year after year. In a paper published earlier this year, Oxford University researchers Carl Frey and Michael Osborne estimated 47 percent of U.S. jobs are at high risk for automation.

Matt Kures, a community development specialist at the University of Wisconsin-Extension Center for Community and Economic Development, tried to estimate the chances of Foxconn’s jobs being automated using Frey and 30 / BizTimes Milwaukee OCTOBER 2, 2017

Risk of automation

By Arthur Thomas, staff writer

Low (Less than 30%)

Semiconductor and other components

Medium (30% to 70%)

Manufacturing Total U.S. Employment

High (More than 70%) 0

10

20

30

40

50

60

70

Percent of employment SOURCE: TECHNOLOGICAL FORECASTING & SOCIAL CHANGE JOURNAL; UW-EXTENSION

Osborne’s methods and data for the semiconductor and other electronic component manufacturing industry, which includes making LCD panels.

Compared to manufacturing as a whole, Kures found the industry has a “disproportionately high share” of engineering occupations and a larger share of the jobs require at least an associate’s degree. Those factors are generally tied to jobs being less susceptible to automation.

Kures’ research, published in a UW-Extension report, found the semiconductor and component industry generally had a lower proportion of jobs at high risk for automation.

More than 48 percent of jobs in the industry had what Frey and Osborne termed a high risk of automation, but the manufacturing sector was even higher, at 57 percent.

Kures pointed out it is difficult to forecast which jobs are more susceptible to automation because it depends on a number of factors including “labor availability, capital and labor costs, technological advances, regulatory issues and the desires of ownership.”

While the Foxconn jobs may be less susceptible to automation compared to manufacturing overall, they also face about the same risk as the rest of U.S. employment.

Their research concluded most workers in transportation and logistics, office and administrative support, and production were at risk for automation as human advantages in mobility and dexterity diminished. They predicted low-skill, low-wage workers would need to move to jobs requiring more creative and social intelligence.

“For workers to win the race, however, they

will have to acquire creative and social skills,” Frey and Osborne wrote.

Researchers at Ball State University sought to build on Frey and Osborne’s work by using the data to determine which U.S. counties faced the greatest risk of jobs being automated. In some counties, they found two-thirds of jobs faced a relatively high risk of automation.

Wisconsin was slightly above the national average, with 58.1 percent of jobs at high risk.

The most at-risk counties were concentrated in the central and northern parts of the state. The southeastern region was generally below the average, with the exception of Sheboygan and Walworth counties.

Of course, the potential for jobs being automated has long been a discussion and the rise of big data and the Internet of Things has only increased the discussion.

“The vision has been there for a while and here we are 30 years later and we still have a long way to go,” said Tom O’Reilly, vice president of global business development at Rockwell Automation Inc., during a discussion on big data at gener8tor’s recent OnRamp Manufacturing Conference in Milwaukee.

There have been signs, however, that the level of automation is ramping up. North American orders for robots set a record last year, increasing 10 percent to more than 34,600, according to the Robotic Industries Association.

“For me, I think the big window is going to be 2020 to 2025,” said Craig Dickman, chief executive officer of Green Bay-based Breakthrough Fuel LLC, during the OnRamp discussion. “I think when it accelerates, it’s going to come really fast.” n

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Special Report MANUFACTURING & LOGISTICS

GPS helping high schools launch apprenticeship programs

Zack Bass, a Milwaukee Lutheran High School senior, assembles a Briggs & Stratton lawn mower in the school’s manufacturing lab.

By Lauren Anderson, staff writer

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GPS EDUCATION PARTNERS has relied on a tried-and-true model for years. Since its launch in 2000, the Brookfield-based nonprofit has partnered with local manufacturers to provide high school juniors and seniors with workbased education programs, in which students take courses on-site at the businesses, called “education centers,” and apply those lessons on the manufacturing floor.

It’s worked for the organization, which has grown from just five students at Waukesha-based Generac Power Systems Inc. in its initial year to now having served 500 students, in partnership with 100 businesses.

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growing number of schools look to bolster their career and technical education offerings, GPS is expanding its reach with a new service model.

The organization is beginning to provide consulting services to schools as they launch their own apprenticeship education programs – a hybrid of the traditional GPS education center model.

“It’s a change in how we are looking to provide more opportunities,” said Andy Hepburn, chief innovation officer. “We field a lot of questions from entities around the state of Wisconsin and outside of the state, saying, ‘That’s really innovative. How can we do that?’ So we’re working on creating partnerships where we’re more running alongside, providing expertise, training and resources and providing a service to folks who want to do some type of workbased learning or apprenticeships or career/ technical education experience but don’t have the pieces to do it right away.”

Milwaukee Lutheran High School is that kind of school. Recognizing the need to expand its career and technical education offerings for students – about 25 percent of whom are on track to pursue a two-year degree or enter the workforce directly after graduation – the private school launched its Red Knight Institute Career Academy in 2015.

Through a partnership with Briggs & Stratton Corp., the school began offering an internship program, through which students clocked in four four-hour shifts per week at the company’s Burleigh plant for a semester. It provided a basic, entry-level training experience for the students.

But back at school, leaders saw the need for a more robust manufacturing curriculum, said assistant principal Mike Waugh. Waugh met a GPS representative in 2016 and realized the organization had already developed the kind of curriculum he was seeking.

A new kind of partnership was forged – one that allows MLHS students to stay on campus in their recently renovated Career Academy wing and rely on GPS as a resource to navigate the school-business partnership.

Students enrolled in the program spend their school days on the MLHS campus, where school staff teach the manufacturing and safety training curriculum. Students then visit Briggs & Stratton to gain hands-on experience.

GPS has helped the school launch its introduction to manufacturing and advanced manufacturing courses and the school plans to launch a math for trades class next year.

Interest in the Career Academy has grown

substantially, with the program seeing an increase from 10 students in 2015 to 86 students this year.

Waugh said the school is looking to meet the needs of students who aren’t headed to a four-year college program, while also helping fill a talent shortage in the region.

“The largest sector in our economy is manufacturing,” Waugh said. “And we know that there are viable careers and competitive wages in the industry. Milwaukee in particular has a diverse manufacturing sector and all manufacturers need skilled students. So we feel we are meeting a worker gap that already exists.”

More of these types of partnerships are likely on the horizon for GPS, Hepburn said, as the organization looks to expand its services to more rural areas and communities outside of Wisconsin.

“We’re excited about the opportunity,” he said.

“The more we can collaborate and work with folks, the more successful we’re going to be in solving the skills gap and addressing student interests for those who desire to pursue technical careers.”

Meanwhile, the organization – which serves largely the southeastern Wisconsin area – continues to extend its footprint through its traditional model. GPS this year added Menasha Corp. to its list of partners, expanding its program to more students in the Fox Valley area. n

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Special Report MANUFACTURING & LOGISTICS

Growth, disruption and talent all on tap for Next Generation Manufacturing Summit

By Arthur Thomas, staff writer WHETHER IT IS DECIDING WHERE to make investments around the world, expanding a plant to produce new products, adjusting to changing technology or finding the staff needed to maintain customer relationships, manufacturers are facing decisions today that will determine their success tomorrow.

Those challenges – and many more – are among those faced by the panelists at the 2017 Next Generation Manufacturing Summit.

Mike Shiels (1), dean of the School of Applied Technologies at Waukesha County Technical College, will lead a discussion featuring David Werner (2), manufacturing and supply chain director for 3M’s Industrial Adhesives

and Tapes Division; John Mellowes (3), chief executive officer of Charter Manufacturing Co. Inc.; Jim Hawkins (4), CEO of Kenall Manufacturing; and Jim Leef (5), president of ITU AbsorbTech.

The panel discussion kicks off the summit, to be held from 7 a.m. to 11 a.m. on Wednesday, Oct. 4, as part of the Wisconsin Manufacturing & Technology Show at State Fair Park in West Allis. BizTimes Media and Milwaukee 7 are again joining forces to present the event.

Werner said 3M has seen growth over the past six to nine months that’s been improving and ahead of internal expectations.

“I think we’re seeing an inflection point,” he said, adding he’s expecting to need a 50 percent increase is his capital budget for next year to make investments that can pay off two years down the line.

Deciding where to invest, especially with operations all around the world, is a complicated process. Werner said 3M looks to its customers to see where they are investing, where the company already does business, and at the availability of labor, raw materials and

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other components.

At the same time, 3M is also working to implement advanced manufacturing technologies that range from automation and robotics to augmented intelligence and the Internet of Things.

“We’re trying to make our value streams faster and more efficient,” Werner said. “We’d like to take some of these smaller factories and roll them into larger factories.”

Charter Manufacturing’s Mellowes is in the midst of making his company’s Cleveland facilities even larger with a $150 million investment, adding steel bar production to its traditional steel coil business and doubling the accessible market.

“It’s an idea that we’ve had for literally 10-plus years. We’ve attacked it from a couple different ways from a planning standpoint,” Mellowes said.

The company’s original assumption was that growth would be strong enough to fully utilize the Cleveland facility’s capacity, but slower growth meant it made sense to invest to open up new markets.

Beyond the big investments, Charter also spends a lot of time making ongoing investments on its culture, employee engagement

and continuous improvement. Charter is also exploring ways to incorporate new technologies in its production, while also paying attention to how its customers are adapting their businesses. In the automotive industry, for example, regulatory pressure to improve fuel mileage and the shift toward electric vehicles will impact Charter’s business.

Kenall’s Hawkins knows all too well what it means for new technology to disrupt the industry. The shift to LEDs has created a paradigm shift in which nearly all lighting fixtures are being replaced. It has driven a land grab by companies making rapid improvements and innovations.

Foreign competitors have also been improving their quality and consistency, so Kenall has to emphasize its customer relationships while also moving from providing products to systems. Creating networked lighting systems offers new ways to gather data and save customers money. It is also harder for foreign competitors to replicate.

But adding those capabilities requires bringing on new disciplines Kenall hasn’t had in the past and an evaluation of which positions are relevant as technology continues to evolve.

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“You have to have the talent in your organization to understand these new technologies,” Hawkins said.

ITU AbsorbTech doesn’t face the same technological pressures Kenall does, but as a service provider for manufacturers, solving customer problems and helping them save money is a big part of the business.

With roughly half of the company’s 400 employees interacting with customers on a regular basis, it is important for ITU AbsorbTech to find employees who like the idea of building a relationship with someone.

“We know that we have to be really active and good at finding people who fit the culture of the company,” Leef said.

But the best way to avoid having to fill positions is to keep people as part of the staff in the first place. Leef said the company talks with employees a lot about their potential career path and then invests to help them get there.

“We talk a lot about team play,” he added.

“If you like the people that you work with, you know who they are and there are a lot of positive interactions, it makes it harder for someone to decide they want to go someplace else.” n

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Special Report MANUFACTURING & LOGISTICS

Attracting next generation manufacturing talent in southeastern Wisconsin

the talent necessary for growth. Successful employers will deploy multiple strategies across different planning horizons:

By Susan Koehn, for BizTimes AS WE WATCHED the July 26 White House announcement of Foxconn Technology Group’s historic investment in southeastern Wisconsin, I overheard a colleague whisper, “Who is going to fill all those jobs?” Local manufacturing employers have probably asked the same question and considered the impact of a huge new competitor in the war for skilled talent.

Wisconsin’s 3.4 percent August unemployment rate was well below what economists consider to be full employment — the level at which everyone who is willing and able to work is employed. Employers report multiple unfilled openings and initiatives to close the “skills gap” are now grappling with the larger challenge of a “people gap.”

Workers are in short supply to replace retiring baby boomers and fill new jobs created,

even using modest economic forecasts. Due to demographic headwinds, economists project 65-year-olds to outnumber 18-year-olds in Wisconsin by 2023. Resident Wisconsinites do tend to stay put – at higher rates than most states. However, we perform poorly on the more critical “brain gain” challenge – attracting in-migration from other states or countries.

The good news is we have many assets in southeastern Wisconsin that support and grow our manufacturing legacy – including worldclass technical colleges and universities and innovative workforce development programs that prepare a new generation of manufacturing talent. A network of economic development groups, education and training providers, and civic placemaking organizations are dedicated to helping employers build, attract and retain

Zero to six months: Become a talent magnet to attract and retain • Focus on marketing your company as an “employer of choice” in a crowded marketplace. Does your website engage young and diverse audiences? Is the careers page on your website easy to find? Are job postings written to attract candidates?

• Market your company and careers where work-ready talent is congregating – in young professional groups, alumni groups and profession-focused “meet-up” groups.

• Consider seeking organizations that train and place non-traditional sources of manufacturing talent: veterans, women, underemployed workers or previously incarcerated individuals.

• Increase first-year retention rates by rebooting your onboarding strategies and on-the-job training programs, and consider providing career mentors to new hires.

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Six months to two years: Partner with colleges, universities and fellow employers to build pipeline • Work with college and university career services departments to attract new graduates or soon-to-graduate prospects. Participate in on-campus recruiting events.

• Explore new corporate partnership models like student innovation incubators, or projects involving a business challenge.

• Hire an intern. According to the 2016 National Association of Colleges and Employers survey, a whopping 73 percent of college interns received a job offer at the end of their internship, the highest offer rate since the peak of the pre-recession market. With acceptance rate factored in, 62 percent of 2016 college interns ended up as permanent hires. As companies look at increasing costs of hire, resources dedicated to developing internship programs would appear to pay off in a big way.

• Join a collaborative of employers with similar skills needs and apply the U.S. Chamber of Commerce’s Talent Pipeline Management approach to proactively manage talent-sourcing partnerships, with measures and incentives tied to performance.

A senior tester at Bevco Engineering in Sussex describes the quality assurance testing process for an electrical control panel to Ms. Monique Bates’ seventh grade class from Cass Street School.

Two to six years: Start earlier; reach students (and their influencers) in K-12 • Partner with high schools to offer a range of career-based learning experiences.

Wisconsin’s Academic and Career Planning mandate relies on the engagement of local employers to provide students with real-world information about careers in the region and how to best prepare – and the number of ways industry can engage with

students in K-12 has exploded: plant tours, guest speakers, Fab Lab partnerships, industry project mentorships and more.

• Communicate company opportunities and provide online career coaching using the state’s career exploration software, Inspire Southeast Wisconsin.

• Advise local districts in the development . . . . . . . . . . . . . . . . . . . . TALENT continued on page 40

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Export Development Grant Program can lead to international success

By Chad Hoffman, for BizTimes IN NOVEMBER 2015, the Milwaukee 7 regional economic development partnership launched the Export Development Grant Program presented by JPMorgan Chase. The program provides financial assistance to small and medium enterprises – both those new to exporting and experienced exporters – to enter new markets by accessing resources, overcoming obstacles and seizing on opportunities internationally.

The program provides matching funds of up to $5,000 per company. The funding can be used for a multitude of export-related purposes and may also be combined with grants offered by the Wisconsin Economic Development Corp.

Companies are asked to provide a narrative

explaining how the funding will help grow their exports. Any and all uses of the funds are considered, including: attending foreign tradeshows, attaining foreign approvals, translating marketing material and websites, utilizing the U.S. Commercial Service and attending ExporTech, to name a few.

To date, the M7 Export Development Grant Program has provided just more than $276,000 to 69 companies to assist them in growing their export business. A total of 28 companies have completed their various projects and have submitted economic impacts and milestones.

Half of the companies reported having entered new international markets for the first time, and export sales growth resulting from these efforts totals $14.6 million.

Two companies that traveled to new markets in 2016 are American Exchanger Services Inc., with locations in West Allis and Hartford, and TLX Technologies LLC of Pewaukee.

TLX Technologies was founded in 1996 to bring to market several patented, high-speed digital valves for controlling the force of a vehicle air bag inflation during a crash. In the

years that followed, TLX went on to strategically cultivate other opportunities utilizing these patented solenoid features. Currently, TLX is producing custom solenoid and valve components for a variety of markets that include automotive, transportation, industrial and fire protection.

TLX used its M7 Chase Grant to exhibit at an international tradeshow for fire protection in Dubai, United Arab Emirates. Having a presence at this show gave the company greater visibility to potential customers from both the Middle East and Asia. As a small, Wisconsin-based manufacturer, TLX has used the M7 grant to become a strategic global leader in the fire protection market.

American Exchanger Services specializes in innovative engineering, quality manufacturing, aftermarket and turnkey field services for the power generation, pulp and paper, and process industries. As an active Heat Exchange Institute member company and American Society of Mechanical Engineers certified code shop, AMEX is uniquely capable of providing the most reliable and efficient heat transfer equipment, such as feedwater heaters, main steam surface

biztimes.com / 39

condensers, and balance-of-plant heat exchangers to meet the most stringent specifications. AM-EX’s dedicated field service division and experience in condenser retubing allow the company to offer diverse solutions to any heat transfer requirements.

AM-EX utilized the grant funds from the M7 Export Development Grant Program to travel to several Asian countries for the purpose of business development. In addition, the M7 grant subsidized the cost of ExporTech, a Wisconsin Manufacturing Extension Partnership program. Particular focus was given to locating various channel partners in strategic locations, generating leads for both aftermarket service and new fabrication projects.

With excess capacity and volatility in the domestic power generation market, exporting has provided an opportunity to minimize local fluctuations by accessing a larger total market, with expanding trends in emerging markets.

For this year, AM-EX export sales account for more than 50 percent of total bookings, and if trends continue as expected, are forecasted to increase further in the coming years. Along with the various projects, the M7 grant helped AMEX solidify a multimillion-dollar contract within the focused power generation markets.

. . . . . . . . . . . . . . . . . . TALENT continued from page 38 of career academies and dual enrollment programs that embed industry certifications, and sometimes college credit, with classroom learning. Serve on a curriculum committee and provide industry feedback that drives continuous improvement of these programs.

• Take on a youth apprentice or a high school intern. Convert high school trainees to employees by offering summer employment after graduation. Offer tuition assistance and scholarships for those pursuing higher education.

For more information or to apply for the M7 Export Development Grant Program presented by JPMorgan Chase, visit mke7.com/ exporting. n

Six to 10 years: Grow the future talent pool • Support early STEM programs and entrepreneurial programs that build skills critical to success in the future of work. Expose young students to career opportunities in the region and the ways they can apply classroom learning to the real world.

• Contribute to quality-of-life initiatives that make the Milwaukee region an attractive place to live, work, play and learn. n

Chad Hoffman is vice president of global trade and investment at Milwaukee 7.

Susan Koehn is director of the Milwaukee 7 Talent Partnership.

A heat exchanger being shipped out from American Exchanger Services.

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Strategies ENTREPRENEURSHIP

Meals on wheels Food trucks follow hungry customers

“This phenomenon is part of our expanding mobile economy.”

— name

It is a sunny fall day in downtown Milwaukee and you see a legion of brightly colored food trucks cruising the streets in search of potential customers.

These wheeled kitchens are the latest reincarnation of the hot dog, chestnut and pretzel wagons which populated the streets of New York in the 1950s. You can now dine on gourmet food prepared by the latest up-and-coming chef while window shopping on Wisconsin Avenue, Water Street or in the Third Ward.

Many of these mobile gourmets have their regular locations in the community and their customers know where to find them. Others cruise the streets and boulevards or locate adjacent to a street festival or other community event to attract customers. Many food truck owners use social media and post on Facebook or 42 / BizTimes Milwaukee OCTOBER 2, 2017

Twitter to announce their location. This strategy works in areas where there are high-rise office buildings. You can dine on Mexican street tacos, Korean barbecue, hamburgers, Southern comfort food or the latest fusion offerings.

An example of this phenomenon in Milwaukee is Falafel Guys. These restaurateurs started out selling their specialties from their yellow and blue food truck in 2012. Their specialty is Middle Eastern food, as indicated by their name, but you can enjoy other dishes such as fried eggplant, shawarma, Israeli cucumber salad and hummus. Their truck was so successful, owners Chrissy and Ron Stroli opened a restaurant by the same name in Thiensville that features a full dinner menu. They are regular purveyors at events such as Gathering on the Green and Taste of Mequon, and at the Milwaukee County Zoo. Food truck entrepreneurs initially invest more than $100,000 for their mobile restaurants. They can ply their craft and sharpen their culinary skills while navigating the busy streets of America’s major cities, including New York, Los Angeles, Portland and Seattle. These wheeled restaurants have unlimited seating and their target market is anyone who is hungry. They move where the customers are, park their truck and start taking orders. The average monthly gross income for these entrepreneurs is $9,000. Some owners average $14,000 a month in cash and credit card income. Their net income is dependent on their fuel, food and other operating expenses.

In recent episodes of “Diners, Drive-Ins and Dives,” Guy Fieri visited with food truck entrepreneurs in Toronto, Canada; California; and other locales. One food truck in Key West, Florida positioned itself on a small parcel of land.

Its local customers and tourists arrive daily for freshly prepared seafood dishes. No reservations are required. There’s no valet parking, no linen napkins and tablecloths, and no impatient serv-

ers. Just get in line and wait for your food to be prepared and served through the counter window on a disposable plate.

This phenomenon is part of our expanding mobile economy. These entrepreneurs don’t advertise in the local paper or magazines, but they offer Groupons, and they mostly thrive on word-of-mouth, the Internet and satisfied palettes. Their customers are attracted by their unique offerings, prepared with farm fresh ingredients each day. It is not unusual to see 10 or more trucks lined up along the road across from a construction site awaiting the hungry herd of tradespeople at noon.

Numerous wheeled crafters of unique cuisine will continue to travel the streets of our major cities providing their offerings. These chefs have a mobile laboratory from which to market and test their recipes on the general public.

So park your car, place your order at the window and be ready to treat your taste buds to some tasty cuisine. n

CARY SILVERSTEIN Cary Silverstein, MBA, is a writer, speaker and community volunteer who splits his time between Scottsdale, Arizona and Fox Point. He is the co-author of the book “Overcoming Your NegotiaPhobia,” and can be reached at (414) 403-2942.

Strategies LEADERSHIP

Rise to the occasion Will we become the leaders we have been waiting for?

We are living in a time like no other. We struggle to understand the behavior of leaders who have forfeited integrity for self-interest and courage for conformity.

We look for hope. We find confusion and despair.

Meg Wheatley, author of “Who Do We Choose to Be?: Facing Reality, Claiming Leadership, Restoring Sanity” presents a troubling scenario for our consideration. She suggests that we may be a nation in decline. Referencing the work of Sir John Glubb, who studied the rise and fall of 13 civilizations, she summarizes the stages of development and decline reflected in the behaviors of the culture. In all 13 civilizations, the stage preceding the final stage is the “The Age of Intellect.” Wheatley writes, “The belief takes hold that problems can be solved by mental cleverness rather than selfless service and courage…

Civil conflict increases even as the empire is under dire threat. Instead of banding together to preserve the nation, internal political factions seek to destroy one another.”

Do these words reflect the experience we have today?

In client organizations, we have heard repeated stories of CEOs willing to entertain conversations with leaders who meet with the CEO

in order to criticize their peers. That behavior cascades into the organization. We know of leaders undermining the efforts of another in order to elevate themselves. That behavior cascades into the organization. We have heard stories of decisions that have been made to eliminate jobs as a way of “right-sizing” without consideration to the disruption and loss in people’s lives.

As long as people are considered human capital rather than human beings, those decisions and behaviors become easier for leaders to make.

That behavior cascades into the organization.

Trust and cooperation are eroding. The volume of noise is rising as more and more people in communities and organizations live in fear and mistrust.

We must name our reality. We cannot be lulled into believing that what we are experiencing is an acceptable new normal.

Howard Zinn, historian, says, “We don’t have to wait for some grand utopian future. The future is an infinite succession of presents, and to live now as we think human beings should live, in defiance of all that is bad around us, is itself a victory.”

Each of us is faced with the enormity of the challenge. Each of us must have the courage to live in defiance of all that is bad around us. We must listen to what that means for us. We must ask: “What difference can I make where I am?

Whom do I choose to be?”

There are times when it (the world as it is) seems all too big. The temptation is to shut down, to walk away, to keep silent.

Wheatley invites us to create “islands of sanity in the midst of wildly disruptive seas.” She is convinced that “whatever the problem, community is the answer. Humans can get through anything, as long as we’re in it together.” We are invited to become warriors of the human spirit, warriors of courage and compassion. It will require a willingness to move out of our comfort zones, to go to the

edge to welcome an unknown future.

We may be moving toward the last stage of our existence as we know it.

Even so, we can decide what our “islands of sanity” will be like. We can live with integrity, compassion and courage. We can build community to welcome a new civilization. We can believe in one another. We can listen to one another. We can find common ground.

Thomas Merton, Catholic monk, author and activist, says, “Humans have a responsibility to find themselves where they are, in their own proper time and place, in the history to which they belong and to which they must inevitably contribute either their response or their evasions, either truth and act, or mere slogan and gesture.”

What will it be for us? Will we respond with courage? Will we break the silence? Will we expect more humanity from ourselves and our leaders?

Will we become the leaders we have been waiting for? n

KAREN VERNAL Karen Vernal is the president of Vernal Management Consultants LLC, a Milwaukee-based leadership and organizational firm. For more information, visit www.vernalmgmt.com. biztimes.com / 43

Strategies COACHING

Get out of your comfort zone Lifelong learning means lifelong discomfort

You’ve heard it a million times. Maybe you’ve said it yourself: It’s important to be a lifelong learner! But what does this mean?

At Backbone Institute, we often start our sessions with a picture of life. It is a simple picture, just three concentric circles. The innermost circle is the comfort zone. We all know what that is. We love the comfort zone! It is filled with our routines and favorite things. It is where we are most confident.

Just outside the comfort zone is the learning zone. It is, by definition, uncomfortable!

The outermost circle is the panic zone. Nobody wants to go there.

Because we never know how quick a trip it is through the learning zone into the panic zone, we don’t often venture beyond the comfort zone.

And why would we? Life is stressful enough maintaining our place of peace.

And yet the concept of lifelong learning is attractive. We feel virtuous just saying the words.

Do we take the steps to make it happen?

It is true that as we learn and grow, our comfort zone grows, too. Think of all the new experiences you’ve had since you were a kid. From 44 / BizTimes Milwaukee OCTOBER 2, 2017

meeting new people to learning new subjects, and from trying different foods to exploring new roads, you have encountered a virtual encyclopedia of new things. Some you liked and wanted to do more of; others you didn’t like and decided to avoid.

Each of those new experiences created some discomfort. Depending on your interest, determination or the expectations placed on you, you powered through your uneasiness to learn.

Maybe you fantasized about the day when you had finally learned enough to never feel uncertain or uncomfortable again.

Fat chance. Life doesn’t stand still. Knowledge isn’t finite. And things that were once sure as cement become fluid as water. Is that comfortable? No. Is it reality? Yes. Thus the need to be a lifelong learner.

Over the years, I have met and talked with many self-professed lifelong learners, and I have noticed a pattern. Many of these individuals like to learn more about things they are already good at or enjoy. Whether it is a particular field of study like architecture or electronics or biology, or a talent like singing or cooking or teaching, most of their self-directed learning is focused on things that make up their comfort zones.

Perhaps the social climate has something to do with this. People generally want to be right more than they want to understand what is foreign to them. You know what you know, after all. You see what you see. When someone tries to tell you reality is different, you resist. Additionally, when you develop true expertise, people come to you for advice or answers. This feels good, so you continue building experience in what you already know.

And before you know it, you are someone who has deep knowledge in a particular area, with little knowledge or curiosity about anything beyond. Your comfort zone is secure.

You, however, are a bore.

If you are serious about lifelong learning, prepare to be uncomfortable. In fact, make discomfort part of your comfort zone! How? Start with a mindset of curiosity and attentiveness. Become a sponge rather than an expert. Set out each day with a determination to see what is, not what you wish. Silence the voice that says, “This is not real! These people don’t understand! I have never (fill-in-the-blank)!”

Record your thoughts and experiences. Lifelong learning systematically captures the new for the purpose of reflecting on it in light of other things you have observed or experienced. Appreciate instead of judging, welcome instead of dismissing, and humbly recognize that as much as you know, there is a vast world of knowledge still to be explored. The old expression captures this idea well: The more you know, the more you realize what you don’t know.

Lifelong learning gives you enormous power.

Are you willing to experience – and learn to appreciate – lifelong discomfort? n

SUSAN MARSHALL Susan A. Marshall is an author, speaker and the founder of Backbone Institute LLC. For more information visit www. backboneinstitute.com.

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BizConnections NONPROFIT

news COLUMBIA ST. MARY’S FOUNDATION OPENS MOBILE DENTAL CLINIC Columbia St. Mary’s Foundation officials recently celebrated the unveiling of a new mobile dental clinic designed to meet the urgent dental care needs of Milwaukee children.

The new Ascension Seton Mobile Dental Clinic, a coach bus outfitted with two patient areas, a sterilization area and a waiting room, will expand the health system’s school-based oral health program, Smart Smiles, by addressing more serious oral health issues.

The foundation has raised about $1.1 million from philanthropic donations to purchase

and outfit the bus, and to cover initial operating costs.

The Smart Smiles program has provided basic preventive dental services with makeshift clinics in Milwaukee schools since 2001. Hygienists employed by Ascension Columbia St. Mary’s provide students with screenings, teeth cleaning and application of fluoride and sealants.

The goal is to treat up to 1,000 children who need urgent dental care or have severe untreated cavities on the mobile dental clinic, said Bill Solberg, community services director of Ascension Columbia St. Mary’s.

-Lauren Anderson

c alendar The Betty Brinn Children’s Museum will host its 22nd annual gala at 6 p.m. on Oct. 7 at the museum, 929 E. Wisconsin Ave. The black tie optional fundraiser will include a dinner provided by Shully’s Cuisine & Events, live music by the Michael Walters Orchestra and a silent auction. Tickets cost $200 per person, sponsored tables are $3,500 and all event underwriters and table sponsors receive program recognition.

SHARP Literacy will hold its 16th annual A Novel Event from 4 to 7 p.m. on Oct. 16 at The Pfister Hotel, 424 E. Wisconsin Ave. Green Bay Packers wide receiver Randall Cobb will deliver the keynote address. Omar Shaikh, president and co-owner of SURG Restaurant Group, will present Jim Mueller, president of Mueller QAAS, with a Literacy Champion Award. Cecelia Gore, executive director of Brewers Community Foundation, will receive SHARP Literacy’s EDGE Award. Tickets cost $150 and can be purchased online at www.sharpliteracy.org or by calling (414) 410-3203.

D O N AT I O N R O U N D U P The Boys & Girls Club of Kenosha received a $10,000 donation from Amazon to start a robotics team | Menomonee Falls-based Alto-Shaam raised $135,000 to benefit the Leukemia & Lymphoma Society’s Wisconsin chapter at its ninth annual Jerry Maahs Memorial Golf Outing | Sendik’s Food Market gave $162,000 to Stars and Stripes Honor Flight, an organization that flies local veterans to Washington, D.C. to see the memorials | Fredonia-based Guy & O’Neill donated disinfecting wipes and personal hygiene products, with a total retail value of about $200,000, to aid Hurricane Harvey relief efforts | The Cousins Subs Make It Better Foundation gave $7,000 in donations to four Wisconsin nonprofits: Milwaukee’s Hawthorne Elementary School; Milwaukee-based Victory Garden Initiative; Franklin Police Citizens Academy Alumni; and Volunteer Center of Brown County

46 / BizTimes Milwaukee OCTOBER 2, 2017

nonprofit

SPOTLIGHT

Z ACH A R IA H’S ACR E S INC .

N74 W35911 Servants’ Way, Oconomowoc 16575 Patricia Lane, Brookfield (262) 825-3737 | zachariahsacres.org

Year founded: 2011 Mission statement: To connect children with special needs and their families to the miracles of nature so they may know their Creator.

Primary focus: Facilitating accessible planting of fruit and vegetables, hay wagon rides, organic egg and honey production, Christmas tree planting and harvesting, fishing and other nature-based activities that are not readily available elsewhere.

Number of employees: 2 Key donors: Hundreds of individuals; dozens of businesses, foundations, churches and service organizations.

Executive leadership: Terry Bartowitz, president; Jeff Kerlin, vice president; Jackie Voss, secretary; Gregg Bartowitz, treasurer; Thomas Price, mission emphasis committee; Alan Petelinsek, mission emphasis committee; Bob Schowalter, mission emphasis committee.

Board of directors: • Terry Bartowitz, Zachariah’s Acres • Thomas Price, Spring Creek Church

• Robert E. Schowalter, Mapleton Lake Nursery • Alan Petelinsek, Power Test Inc. • Jackie Voss, Pewaukee School District • Amy Masek, Wisconsin Early Autism Project • Gregg Bartowitz, Thomson Reuters Corp.

• B.J. Westfahl, Westfahl & Westfahl S.C. • Jeff Kerlin, Tailored Label Products Inc. Is your organization actively seeking board members for the upcoming term? Yes. What roles are you looking to fill? Leadership, advocacy for our special needs community Ways the business community can help: Volunteer teams, sponsorships, monetary and inkind donations, provide items from online wish list, guided tours.

Key fundraising events: Run/ Walk/Roll on Oct. 14; Christmas Tree Sale from Nov. 24 to 26; Bird Hunt in February 2018; Spring Ask in April 2018; Garden Basket/CSA Program in June 2018; golf outing in August 2018.

PERSONNEL FILE BANKING & FINANCE

Partnership Bank, Cedarburg Rahim Keval, who joined Partnership Bank as a credit analyst five years ago, has been promoted to assistant vice president – business banking.

Keval is responsible for developing and building business relationships, providing credit advice, and helping owners take advantage of opportunities they see can help them grow and expand their businesses.

EVENTS

Underwood Events, Wauwatosa Underwood Events has hired experienced hospitality and event business development manager Kelly Roecker to lead the firm’s business development in the Milwaukee and Madison markets.

EDUCATION

Cardinal Stritch University, Fox Point Kathleen A. Rinehart, J.D., has been named interim president at Cardinal Stritch University. Prior to her arrival at Stritch, Rinehart served as general counsel and secretary of the corporation for Saint Xavier University in Chicago. She also served two terms as the law clerk to former Judge Janine P. Geske at the Wisconsin Supreme Court.

HEALTH CARE

Freedom Physical Therapy, Fox Point Rachel Spaeth joined Freedom Physical Therapy.

She graduated in 2017 from Concordia University with her doctorate in physical therapy and will be working from the

company’s Grafton location.

Spaeth comes equipped with a variety of treatment techniques she gathered from her clinical internships.

HOSPITALITY

MOTOR Bar & Restaurant, Milwaukee MOTOR Bar & Restaurant added Brittany Joosten to its communications team as the marketing manager. Joosten has 12 years of food and beverage industry experience, five of which she spent in management. She will lead the management and execution of all restaurant and private event marketing efforts, including overseeing day-to-day marketing tactics.

experience in corporate communications, agency public relations and she was a reporter at a few different regional publications. She has joined ZG in order to support the firm’s growth in its public relations practice and she leads substantial regional PR accounts.

MANUFACTURING

LIFE Corp., Milwaukee LIFE Corp., a medical device manufacturer, has hired Samantha Cowman as office manager in charge of accounting, order completion, marketing and customer correspondence.

INSURANCE

NONPROFIT

HNI Risk Services, New Berlin

IndependenceFirst, Milwaukee

HNI Risk Services hired Dean Sarnowski as an account manager.

He will be responsible for maintaining the big picture view of the client experience.

IndependenceFirst, Milwaukee, has promoted Deb Langham to chief operating officer.

Langham previously served as the vice president of independent living services at IndependenceFirst.

Prior to serving as VP, Langham was the program director for independent living services at IndependenceFirst for 16 years.

LEGAL

Godfrey & Kahn S.C., Milwaukee The law firm of Godfrey & Kahn S.C. recently added Justin Webb to the corporate and data privacy & cybersecurity practice groups. His practice focuses on helping clients navigate legal issues that arise from the implementation, use and abuse of technology, with specific focus on cybersecurity and data privacy matters.

MARKETING

Zizzo Group, Milwaukee Krista Ruehmer has joined Zizzo Group, Milwaukee. She has

PROFESSIONAL ORGANIZATIONS

Wisconsin Industrial Sand Association, Eau Claire Mark Krumenacher, a senior principal and senior vice president with GZA GeoEnvironmental, Waukesha, has been named to the board of directors of the Wisconsin Industrial Sand Association.

business development manager at Haywood Group LLC. He is responsible for generating interest in developments and initiating company growth by networking and partnering with developers and officials on local and state levels. Prior to joining Haywood Group, Harris spent more than a decade working in local, county, state and federal government.

SENIOR LIVING

Luther Manor, Wauwatosa Patrick Hansen has been hired as the chief resident experience officer at Luther Manor, a life plan community with facilities in Wauwatosa, Mequon and Grafton.

TECHNOLOGY

ICF- Fairfax, Virginia ICF, a consulting and technology services provider to commercial and government clients around the world, has elected Randy Mehl, CFA to its board of directors. Mehl is president and chief investment officer of Stewardship Capital Advisors LLC, Milwaukee. He brings more than two decades of experience investing in and growing professional services companies to ICF as the company continues its positive growth momentum.

TECHNOLOGY

Accelerated Analytical Laboratories, Milwaukee Jason Servi has joined Accelerated Analytical Laboratories as a member of its territory sales representative

REAL ESTATE

Haywood Group, Milwaukee

team.

Thomas Harris has been named biztimes.com / 47

BizConnections VOLUME 23, NUMBER 14 | OCT 2, 2017

GLANCE AT YESTERYEAR

126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120 PHONE: 414-277-8181 FAX: 414-277-8191 WEBSITE: www.biztimes.com CIRCULATION: 414-336-7100 | circulation@biztimes.com ADVERTISING: 414-336-7112 | ads@biztimes.com EDITORIAL: 414-336-7120 | andrew.weiland@biztimes.com REPRINTS: 414-336-7128 | reprints@biztimes.com PUBLISHER / OWNER Dan Meyer dan.meyer@biztimes.com

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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 Corrinne Hess corri.hess@biztimes.com REPORTER Arthur Thomas arthur.thomas@biztimes.com

Basilica of St. Josaphat

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

COMMENTARY

Where’s the money for convention center expansion?

In January, I predicted a consulting firm hired by the Wisconsin Center District would recommend the downtown Milwaukee convention center be expanded.

Turns out I’m better at predicting the outcome of consultants’ reports than the winner of the presidential election.

To no one’s surprise, a report from Crossroads Consulting Services LLC says the Wisconsin Center should be expanded to increase its exhibit space, currently 189,000 square feet, to 300,000 square feet.

That would bring Milwaukee’s convention center in line with facilities in similar-sized cities and, according to the consultants, help Milwaukee attract more conventions.

Cost estimates for the potential expansion project vary, but a safe bet is between $150 mil48 / BizTimes Milwaukee OCTOBER 2, 2017

lion and $200 million. The convention center is an important attraction for downtown Milwaukee and needs to be expanded, but how are we going to pay for it?

The Wisconsin Center District is funded by three Milwaukee County taxes – a 2.5 percent tax on hotel rooms, a 3 percent tax on rental cars, and a 0.5 percent tax on food and beverage – plus an additional 7 percent tax on hotel rooms in the city of Milwaukee. The only tax the district board has the authority to raise is the Milwaukee County hotel room tax, which it could bump up to 3 percent, but that would only generate an additional $1 million per year.

The district is also obligated to provide $93 million for the Bucks arena and still owes about $24 million on the project that transformed the Milwaukee Auditorium to the Milwaukee Theatre. That project won’t be paid off until 2032.

With those obligations and its lack of options to increase revenue, the district has no way to finance a convention center expansion.

In order to expand the convention center, the district will need a new funding source. That will take the approval of the Republican-controlled state Legislature and Gov. Scott Walker. Republicans have shown no support for any tax increase.

The key to finding a funding solution likely falls

ACCOUNT EXECUTIVE Molly Lawrence molly.lawrence@biztimes.com ACCOUNT EXECUTIVE David Pinkus david.pinkus@biztimes.com ACCOUNT EXECUTIVE Maggie Pinnt maggie.pinnt@biztimes.com ACCOUNT EXECUTIVE Christie Ubl christie.ubl@biztimes.com SALES INTERN Amanda Bruening amanda.bruening@biztimes.com

ADMINISTRATION

INTERN REPORTER Maredithe Meyer maredithe.meyer@biztimes.com

This photo, taken in 1898 by J. Conklin, shows the construction of The Basilica of St. Josaphat on Milwaukee’s south side. Ground was broken in 1896 and the basilica was completed in 1901. When it was finished, the only building in the country with a larger dome was the United States Capitol.

DIRECTOR OF SALES Linda Crawford linda.crawford@biztimes.com

ADMINISTRATIVE COORDINATOR Sue Herzog sue.herzog@biztimes.com

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

Independent & Locally Owned — Founded 1995 —

on the shoulders of Scott Neitzel, the secretary of Walker’s Department of Administration and chairman of the Wisconsin Center District board.

He might see the need to expand the convention center and come up with a funding idea he can sell to his fellow Republicans.

Officials will have to ask a critical question: is it worth it to spend millions to expand the convention center in Milwaukee, a cold weather city that is not a major visitor destination? However, Milwaukee does have key advantages to attract conventions, including low costs relative to major convention cities and its central location.

But what if we build it and they don’t come?

Wisconsin Center District and VISIT Milwaukee officials will need to demonstrate that if the convention center is expanded, they really will be able to attract more business. Otherwise, the building becomes an even more expensive white elephant. n

ANDREW WEILAND EDITOR

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

AROUND TOWN OnRamp Manufacturing Conference Milwaukee startup accelerator gener8tor recently hosted the OnRamp Manufacturing Conference at Miller Park in Milwaukee.

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JOHN ERNST of Launch Wisconsin, MELISSA BOROWICZ of Utech Consulting Inc., STEPHEN UTECH of Illumyx and KIM MASSEY of Launch Wisconsin.

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TRACE STEFFEN and ANDREW VICK of HowFactory.

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ED JAVIER of Milwaukee Startup Week, MATT CORDIO of Startup Milwaukee and JAMES HISCHKE of Northwestern Mutual.

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TARALINDA WILLIS of Curate Solutions, CLARE DA SILVA of gener8tor and ANDREW BUSS of Curate.

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KATHLEEN GALLAGHER of the Milwaukee Institute and GLENN PRIMACK of COMT Outcomes.

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J.J. OSLUND of TechNexus and GREGORY SMITH of Dassault Systemes.

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MARCOS CRUZ and ANDY TRAN of Millebot Inc.

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Photos by Molly Dill

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Safe & Sound Awards Gala The 2017 Safe & Sound Awards Gala was recently held at the Italian Community Center in downtown Milwaukee.

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GINGER DUIVEN of Literacy Services of Wisconsin and DENISE and HERB MILLER , both of Michels Corp.

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KIMBERLY LOWE and DEVIN HUDSON of the Silver Spring Neighborhood Center.

10. KEN and VICTORIA ROBERTSON, both of the Greater Milwaukee Foundation.

11. ILKE PRAWITZ of La Macchia Enterprises and ROLLAN PARISH of the Glendale Police Department.

12. JEFF BINKERT, CHEVON YOUNG and KRISTIN WACKER , all of House of Harley-Davidson.

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13. JUSTIN ROTARU, JACK SNOW and ALLEX PLANK , all of the Milwaukee Bucks, with DAWN BARNETT of Running Rebels and ALICIA DUPIES of the Milwaukee Bucks.

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14. KATRINA CRAVY of Katrina Cravy Inc. and STEPHANIE SAMARRIPA of the City of Milwaukee’s Department of Neighborhood Services.

Photos by Lauren Anderson

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LILA ARYAN PHOTOGRAPHY

BizConnections

5 MINUTES WITH…

JAY ROTHMAN

Chairman and chief executive officer, Foley & Lardner LLP FOLEY & LARDNER this year is celebrating its 175th anniversary—which makes it older than the state of Wisconsin. Its founders, Asahel Finch and William Pitt Lynde, helped establish Wisconsin as a state in 1848 and Lynde was even an early Milwaukee mayor. The Milwaukee-based general practice law firm, now the largest in Wisconsin, has grown to about 900 attorneys in 19 offices in the U.S., Europe and Asia.

In a recent interview with BizTimes Milwaukee managing editor Molly Dill, Foley chairman, CEO, partner and business lawyer Jay Rothman discussed the company’s efforts to look to the future.

FOXCONN TECHNOLOGY GROUP OPPORTUNIT Y “There will be suppliers that will relocate here if everything goes forward as planned, and I think that creates opportunities for existing Wisconsin companies that can be suppliers. It also creates opportunities for new businesses moving into the state. You look at the education infrastructure of the state, both at the university level and at the technical school level, there is a lot of that infrastructure already here. I think it will be a challenge certainly if those jobs ramp up as quickly as they’re predicted to ramp up and it’s going to put a strain on other employers. I think over time with the 50 / BizTimes Milwaukee OCTOBER 2, 2017

resources and the great investment that the state has made in education, I think will serve it well to prepare people to go into those roles.”

WISCONSIN’S ENTREPRENEURIAL CLIMATE “I think you continually focus on the things that can help entrepreneurs.

One is with the great university systems and the amount of technology being spun off, can we do an even better job than we have right now in terms of commercializing that technology? Are we providing the support to entrepreneurs? I have sensed a substantial change over time in terms of the entrepreneurial climate here and I’m hopeful that it continues to grow. If you go back to some of the history of the state and some of the history of our firm, there are a lot of great entrepreneurs: Harley-Davidson, the Johnson family in Racine, all of these businesses that grew up over time.”

M&A MARKET “The market remains strong. I think valuations continue to hold at a high level. Money is still readily available in the marketplace and there are a lot of deals getting done. Absent some hiccup in the economy, we don’t see that slowing down.” n

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