AUGUST 2018 August 13th
August 17th Monthly Breakfast Meeting
Peggy Troy, President & CEO , Children’s Hospital
Inside This Issue:
NATALIZIO: THE STATE OF SELF DRIVING TRUCKS
MONIZ & FINKEL: WISCONSIN LEGISLATURE ENACTS NEW BUSINESS ORGANIZATION LAW BENEFITING BUSINESS AND COMMUNITIES ALIKE
KEATING: ECONOMIC GROWTH IN STATES: YES, POLICY MATTERS
At AT&T, we know that making connections is critical to success. In Wisconsin and across the nation, we link businesses with their customers and the world through our wireless network with access to the nation’s largest Wi-fi network. It’s just another way we help our customers stay connected. AT&T is proud to support the Independent Business Association of Wisconsin.
© 2014 AT&T Intellectual Property. All rights reserved.
IBAW thanks AT&T for it’s continued sponsorship.
Executive Director Steve Kohlmann President Dan Hansen
Interactive Voter Map by Precinct
Secretary Charles Fry Baird Treasurer Tony Palmen Sikich Directors Jim Leef ITU AbsorbTech
The New York Times has put together and extremely detailed map of the 2016 voting results. You can view it down to each individual voting precinct. Click here to view.
Ann Barry Hanneman Von Briesen Law OďŹƒce John Weber Hypneumat Lisa Mauer Rickert Industries Robert Gross Gross Automation Scott Seroka Seroka Brand Development Tom Parks Annex Wealth Management Jake Hansen Jacsten Holding Scott Hirschfeld CTaccess
IBAW member, Tom Graybill of Tri-Marq Media Communications was recently featured on Jeffrey Gitomerâ€™s sales podcast. Click here to listen.
IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.
Independent Business Association of Wisconsin
Friday, August 17th Healthcare in Wisconsin - Peggy Troy, CEO, Children’s Hospital & Health Care
Children's Hospital and Health System is one of the many growing facilities at the Medical Complex Campus in Milwaukee County. It's not only a respected hospital in the U.S. but it's reputation is known worldwide. In Milwaukee and throughout the state, they provide kids and their families a wide range of care and support - everything from routine care for ear aches or sore throats to life saving advances and treatment options. With their academic partner, The Medical College of Wisconsin, they bring many of the nation's most well-respected doctors to their team. What are the future plans for one of the most respected hospitals in the United States and what innovative medical techniques are in its future to advance healthcare? What are they doing to help control healthcare costs? Find out at this event!
Register at IBAW.com LOCATION
THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE
REGISTRATION & NETWORKING
BREAKFAST & PROGRAM
Save The Date: Friday, September 21st 7:00 am - 9:30 am
Wisconsin: Taking the Lead in Manufacturing
Gov. Scott Walker
Rich Simonson, President of Manufacturing, Carmex
John Mellows, President & CEO, Charter Manufacturing
Amy Maurer Chief Financial Officer TG3 Electronics
Special Panel Discussion â€˘ High Level Networking â€˘ Plated Breakfast
Building the Plane as You Fly It Steve Kohlmann, IBAW Executive Director
A few months back IBAW was fortunate enough to have Dr. Bill Mitchell of Foxconn as our guest speaker at our monthly breakfast meeting. Bill’s topic was daunting; it was to talk about all things Foxconn in a 1 hour time frame. Foxconn’s been in the news quite a bit here in Wisconsin with the groundbreaking of its new plant, the jobs and new technology that is going to come with it. To give you some perspective on Foxconn’s size, at WMC’s Business Day in Madison, Dr. Alan Yeung, Foxconn’s Director of U.S. Strategic Operations, gave a short overview of the company and mentioned that on any given day all of Foxconn’s entities had billion of dollars in transactions. During his presentation to IBAW, Bill Mitchell mentioned while Foxconn was a very innovative company, many of their new ideas and technology comes from “building the plane as we fly it.” In short, come up with an idea and build upon it. I’ve been in the business world a fair amount of time and I had never heard this cliché before. It’s possible that it’s been around for some time but it was new to me. Nonetheless, it struck a chord with me and I connected to it. Jumping into something and figuring it out as I go along is something I’m comfortable with most of the time. As a homeowner this advice works particularly well with DIY projects. A few years back my screen room needed repairs and I decided to tackle it myself (see also: ‘More time than money’ theory.) Never mind I didn’t know anything about carpentry, had a limited amount of power tools and a equally limited knowledge on how to tackle any of it. But I started the project. As with any home project problems arouse and I overcame those obstacles as they came up. Eventually my screen room was
finished. Some of it isn’t perfect but overall it turned out well. After that project I moved on to remodeling my family room which turned out to be a bigger, more intense project. Ah, ignorance is bliss. More often than not business people, and especially entrepreneurs, live in the “build the plane as you fly it” type of environment. Individuals like this think, “Don’t bother me with details such as a business plan, financials, payroll and taxes. I’ve got an idea I have to act on - damn the torpedoes, full speed ahead! ” Don’t get me wrong, this isn’t the preferred method of running a business or enter a profession, it’s always better to have a well thought out business plan, advisors or a board of directors to keep you from - to use another aircraft analogy - “crashing and burning”. One very important caveat; You certainly wouldn’t want a doctor who is about to perform a double heart bypass to have a ‘build a plane as you fly it’ mentality. It doesn’t work in all cases. When I was in the print business my best client asked for online inventory control and warehousing of all their print materials. At that time we didn’t offer it - nor did anyone else in the business. The internet was a still fairly new tool. But my boss wanted to meet with them to find out exactly what they were looking for. It was during the discovery phase of our conversation my boss calmly stated, “Sure, we can handle that for you.” I was horrified. This was my best client. Not only didn’t we have a system in place to do what they wanted, we didn’t have the foggiest idea on where to start. I saw years of client relationship building on a great account go down the drain. On the way back to the office my boss was calm, cool and collected. “Don’t worry,” he said, “we’ll figure it out.” And he was right, we did figure it out...and we were good at it. Sure there was a learning curve and mistakes were made but we learned from those mistakes and in the end the system worked. Business is a balance of innovation, bravado, finances and planning. But risky ideas play a big part of it as well. There’s a segment of the business population who thrive on starting something and figuring out as they go along. While writing this story I was searching for a graphic that would go with the theme of ‘building the plane as we fly it’ and came across the Wright brothers launching their first flight of their new flying machine back in 1903 at Kitty Hawk. Wilber and Orville were bicycle builders that thought “what if”. That photo is stark reminder of where we were...and where we are now in flight technology. Today, thousands of airline flights take place all over the world shuttling hundreds of thousands of passengers a day. We’ll get on today’s airplane and fly in comfort at 500 miles per hour at 36,000 feet without even giving it a second thought. I doubt if the Wright brothers could have ever dreamt it could come to this.
The State of Self-Driving Trucks Michael Natalizio, HNI Risk Services Self-driving vehicles may feel like something that will only be available in the distant future, but autonomous technology is already having an impact on the transportation industry. Many motor carriers are promoting new equipment to attract tech-savvy drivers, and advanced safety sensors are helping decrease accidents on the road. Over 30 automakers and technology companies are working to make trucks fully autonomous, and many states have already passed self-driving legislation that allows for testing on public roads. But, even though this technology offers motor carriers a way to increase efficiency and improve safety, there are a number of topics your business needs to consider before adopting self-driving trucks. The Different Levels of Automation Most of the technology used in autonomous vehicles is an evolution of common safety features that use vehicle-mounted cameras and sensors, such as automatic brakes, lane departure systems and blind spot alerts. However, self-driving technology takes this concept a step further by having these systems work together to perform some or all driving functions. Because there are multiple self-driving systems in development that offer different levels of autonomy, most companies use a system developed by SAE International to classify levels of autonomous vehicles. Levels 0-2 mainly define limited control systems that are commonly available in consumer and commercial vehicles: • Level 0: No automation—The driver performs all driving tasks, but automated system issue warnings may be present. • Level 1: Driver assistance—The vehicle and driver may share control in limited circumstances, such as adaptive cruise control and parking assistance. However, the driver must be ready to retake control at all times. • Level 2: Partial automation—The vehicle has combined automatic functions (such as controlling acceleration and steering simultaneously), but the driver must be constantly engaged and aware of the surrounding environment. Levels 3-5 define vehicles that are commonly referred to as autonomous or self-driving: • Level 3: Conditional automation—A driver must still be present, but doesn’t have to monitor the environment. However, they must be ready to take control at all times and with no notice. • Level 4: High automation—The vehicle can perform all driving functions under certain conditions, and switching control back to the driver may be optional. • Level 5: Full automation—The vehicle can perform all driving functions at all times.
How Can Self-driving Trucks Help Carriers? Self-driving trucks could help motor carriers address a number of common issues: • Safety—Properly functioning self-driving systems operate without the chance of human error and can react to changing traffic patterns faster than a regular driver. • Driver shortage—Regulations likely won’t allow vehicles to operate without a driver in the near future. However, the technology will attract applicants who don’t want to spend long stretches of time in full control of a commercial truck. • Increased efficiency—Autonomous technology can give carriers real-time information on location, maintenance status and traffic patterns in order to increase efficiency and better manage fleets. • Cost reductions—Motor carriers can reduce costs by sending autonomous trucks on more fuel-efficient routes or by platooning the vehicles together to reduce air drag. What Risks Does This Technology Present? Although autonomous technology is advancing rapidly, there are still a number of risks and obstacles to overcome before the vehicles can be widely adopted: • Public perception—Advanced sensors generally make self-driving trucks safe, but recent high-profile collisions and fatalities during tests have lowered the public’s opinion of the technology. • Long-term employment—Autonomous technology will help to attract new drivers in the near future, but some experts believe that fully independent vehicles may someday eliminate millions of jobs. • Liability—The liability of an accident involving human-driven vehicles is fairly easy to judge. However, self-driving trucks bring a nonhuman factor into the equation that makes it difficult to determine if an operator, technology developer, manufacturer or other party is at fault for an accident. • Compliance—Individual states, cities and jurisdictions currently manage laws regarding the testing and use of selfdriving trucks, making interstate commerce more complicated. However, the FMCSA recently requested feedback on the regulations that would have to be updated, modified or eliminated to safely allow for the use of autonomous vehicles. Key questions discussed by the agency include the following: • How will motor carriers ensure automatic systems are functioning properly? • What changes, if any, should be made to distracted driving regulations? • How will enforcement officials determine a vehicle’s SAE classification level, and would easily identifiable classification signage negatively affect other drivers? • How should a driver’s hours of service be recorded when using an automated driving system?
Wisconsin Legislature Enacts New Business Organization Law Benefiting Business and Communities Alike Thomas Moniz & Adam Finkel, von Briesen & Roper Law Firm
Wisconsin counties are currently experiencing very low rates of unemployment. In fact, as of April 2018, 64 of Wisconsin's counties had unemployment rates of less than 5%, and 36 of those Counties had rates under 2.9%. While there are certainly benefits to low unemployment, it also increases the challenge for businesses to attract and hire the best talent. This is particularly so for Wisconsin manufacturing, industrial and consumer discretionary businesses that are already facing looming wage inflation and having great difficulty in attracting and retaining talent. To solve this talent acquisition challenge, companies must find ways to distinguish themselves in an already crowded marketplace. Recently, an innovative concept was turned into a legitimate tool to help Wisconsin businesses not only solve the talent acquisition challenge, but also protect shareholders and improve the communities in which the business operates. On November 27, 2017, Governor Walker signed into law 2017 Senate Bill 298, an act that created Chapter 204 of the Wisconsin Statutes titled, "BENEFIT CORPORATIONS." Thirty-four states have now passed similar legislation and six more states are in the process of working legislation through their state governments. The passing of this legislation in Wisconsin created a new category of business corporations, Benefit Corporations. While Chapter 180 (Wisconsin's business corporations statute) continues to generally apply to Benefit Corporations, the specific provisions of Chapter 204 control where there is any conflict between the two chapters. To qualify as a Benefit Corporation, the corporation must have a "purpose of creating general public benefit." This "general public benefit" is considered to be in the best interest of the corporation. This aspect of the legislation forms the basis for many of the protections afforded directors and officers of a Benefit Corporation. The statute defines "general public benefit" as "a material positive impact on society and the environment by the operations of a benefit corporation taken as a whole, through activities that promote some combination of specific public benefits." (Wis. Stat. § 204.102(5)). "Specific public benefits" include the following: • Providing low-income or underserved individuals or communities with beneficial products or services. • Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business. • Preserving the environment. • Improving human health. • Promoting the arts, sciences, or advancement of knowledge. • Increasing the flow of capital to entities with a public benefit purpose. • The accomplishment of any other particular benefit for society or the environment. (Wis. Stat. § 204.102(7)(a-g)).
A Benefit Corporation can exist in multiple corporate categories (i.e. an S-Corp and Benefit Corporation). A Benefit Corporation may be formed as a new entity, or an existing corporation may become a Benefit Corporation by amending its articles. But, for Wisconsin businesses, the opportunities perhaps extend beyond the surface-level general public benefits. One of the biggest opportunities of Benefit Corporation status may lie in a Benefit Corporation's ability to appeal to a millennial workforce which increasingly holds the leverage over businesses competing for their employment services. According to Jennifer Deal of the Center for Creative Leadership, millennials are determined to "Do Good AND Do Well." Deal notes that millennials want work that not only compensates them appropriately, but allows them to contribute to society in positive ways. An effective Benefit Corporation organization will not only serve as a good corporate citizen, but it will appeal to a competitive millennial workforce by demonstrating to them that the business, and their work for the business, is having a positive impact on society. Benefit Corporation status may provide a number of other incentives for Wisconsin businesses looking for a competitive edge, such as: 1
Reduced Director Liability: Unlike the traditional corporate model, which requires directors to maximize profits for the benefit of the shareholders, a director of a Benefit Corporation must consider a wider variety of issues when making decisions for the company. Instead of focusing solely on maximizing profits, a Benefit Corporation needs to consider shareholders, employees, customers, local communities, the environment, and other social causes. While this may seem to increase complexity given the wider range of considerations when making a business decision, this actually creates a safe harbor for directors. In fact, the Benefit Corporation law includes express exonerations from personal liability for actions taken if performed in compliance with the Benefit Corporation law, and the provisions of chapter 180 of the Wisconsin Statutes.
Attract Investors: Becoming a Benefit Corporation is a way to attract socially aware investors. Benefit Corporations may gain access to certain rating agencies and analytics platforms which serve as incentives for companies because some investors are using such analytics as part of their due diligence and portfolio management.
Multiple Corporate Categories: Companies do not need to choose between a Benefit Corporation and another entity structure. Aside from registering as a Benefit Corporation, a company may still elect to be taxed as a C or S Corp.
Consumer Trends: Consumers are becoming more socially aware, and buying patterns are reflecting their social concerns. In fact, recent studies suggest that two-thirds of global consumers would choose a sustainable product over an irresponsible competitor, and 52% of global consumers actively check the packaging to see if their products are sustainable. The trend of the socially-aware-consumer is likely to gain traction in the coming years. In fact, surveys demonstrate that a majority of millennials and younger consumers would be willing to pay more for a product knowing it was sustainable. Further, media outlets are showcasing Benefit Corporations more frequently in media features.
Increased Savings: Benefit Corporations may be eligible for increased savings and access to services. Registering as a Benefit Corporation may provide access to partner discounts on various service and marketing platforms.
At von Briesen & Roper, s.c. our attorneys are available to counsel you through the advantages and disadvantages of starting, or converting your business into, a Benefit Corporation.Â
Coach’s Corner: Employee Motivation During The Summer Months Steve Bobowski, Dale Carnegie Training Coach
Dear Carnegie Coach Bobowski: As the Summer winds down, vacations, and the school year quickly approaching, it becomes harder to keep my employees motivated and focused. What can I do to keep my employees focused without being a scrooge? Mark from Muskego Dear Mark: Unfortunately for managers, this time of year is filled with many things that can divert employee attention. There are numerous things that you can do as a manager to keep your employees engaged and motivated. Here are some “Actions I Want You to Take”: • Walk the talk- Be enthusiastic and fully engaged with your job and your employees. Learn what motivates them, what they want to achieve and why this is important to them. Remember, “Show them how much you care before you tell them how smart you are.” • Earn trust, respect and credibility – Fulfill promises, keep confidences and commitments, and act consistently, fairly and rationally. Be authentic and • Play to strengths– Match the right person to the right job. By learning your employees’ strengths and work styles, you can make the best use of their individual and unique talents and skills. • Instill a purpose - Instill sense of purpose in your employees. Involve them in projects as fully as possible by communicating the big picture goal. Everyone needs to know that his or her efforts make a difference. • Be clear - Set clear and realistic expectations and define expected outcomes. Maintain open lines of communication and “check in” with employees on a regular basis. • Listen - Learn to listen empathically, with your eyes, ears and heart. Listen without judgment and listen to understand and connect with your employees. “The Benefits to You” : " • You keep your employees engaged, not only during this time of year, but throughout the year.
Bryant & Stratton College Opens New Campus in Racine New IBAW member Bryant & Stratton College celebrated the opening of their new Racine campus with a grand ribbon cutting ceremony July 26th. The College’s Racine campus is located 4.5 miles east of I-94, just off Hy 20 (Washington Avenue). Students attending the Bryant & Stratton College Racine campus have over 20 academic programs to pursue. From Practical Nursing to Criminal Justice & Security Services or a bachelor’s degree in Health Services Administration or General Management, Bryant & Stratton College offers students a variety of paths to reach the career goals they have set. This includes popular programs such as RN to BSN and the associate degree in Medical Assisting.
IBAW Board Endorses Sheriff Richard Schmidt for Milwaukee County Sheriff The IBAW Board of Directors endorsed Sheriff Richard Schmidt for Milwaukee County Sheriff at the July 25th IBAW board meeting. Sheriff Schmidt’s experience, law and order approach, outreach to the community, as well as his demonstrated fiscal responsibility to the office were key factors in the endorsement. The primary election is August 14th. The primary winner, barring a successful write-in campaign, would be expected to cruise through the Nov. 6 general election. There is no Republican candidate opponent.
July’s “10 Minutes With...” Speaker Teaches Free Enterprise Principals to Students Shannon Whitworth from Milwaukee Lutheran High School was our featured “10 Minutes With...” speaker in July informing breakfast attendees of the newest academy module located inside the Milwaukee Lutheran High School. The Free Enterprise Academy at Milwaukee Lutheran High School provides students with the resources and education to think freely about the principles of economics, personal finance, and entrepreneurship while at the same time using a historical lens to understand free markets through the constructs of capitalism versus other economic models. All students at Milwaukee Lutheran participate in coursework provided by the Free Enterprise Academy, and students with a passion for this field of study can pursue additional coursework in Economics, Accounting, Business, Entrepreneurship, and Digital Media. It is the mission of the Free Enterprise Academy to challenge students to think critically about free markets, business as an enterprise, the role of the government in an economy, and to be financially literate. The goal of the Free Enterprise Academy is to produce graduates who can use their God-given skills to be leaders in producing wealth, prosperity, enterprise, and a legacy of improving their financial standing for themselves and their communities. Courses to choose from: " • Civics " • US History " • Personal Finance " • Economics " • Government " • Entrepreneurship " • Accounting " • Marketing If you are interested in more information, contact Mr. Whitworth at the email link below. He would be happy to speak with you and offer you a tour as well.
Shannon Whitworth, Program Director, Milwaukee Lutheran High School Free Market Academy. Email: email@example.com
How to Build a Sales-Driven Culture Scott Seroka, Seroka Branding
When CEOs hear the word “culture,” most think about internal metrics such as productivity, morale, communication, teamwork and performance. As important as these metrics are, none on their own can go toe-to-toe with the metric of improving sales. For the growth-minded manufacturer, building a salesdriven culture is, was, and always will be the priority of the day. After all, without sales, a company wouldn’t exist. In one of my earlier blogs, Culture has nothing to do with touchy-feely stuff, I stressed that culture must be strategic and deliberate, and that it has nothing to do with the ping-pong table in the break room. Sure, building a culture of continuous improvement, operational excellence and leadership is critical, however, the undercurrent of a successful culture must be one that keeps sales at the forefront as a reminder to everyone their jobs wouldn’t exist without sales. There are a number of tactics you could deploy to integrate a sales-driven culture within your organization: 1
Keep everyone informed when sales are made, and also when customers leave. When a sales is made, though a town hall meeting, a newsletter or through company meetings, tell the story of how the sale was made - how long the sales cycle was, what work went into making the sale, what other companies were being considered and what led the customer to the decision to buy. Everyone, including those in production need to understand how challenging sales are to make, and how each sale benefits the company. (For most manufacturers, if a salesperson doesn’t make a sale, s/he doesn’t get a paycheck.) You’ll also need to let everyone know when customers leave, and why. No, this has nothing to do with finger-pointing - it has everything to do with using the loss as a learning experience. As one CEO said to me, Losing a customer is an expensive education, so it’s important that we learn as much as we can!
If your environment allows for it, schedule times for non-salespeople (even those on the production floor) to be a fly on the wall and listen in on salespeople talking to customers and prospects on the phone. After each call, have the salesperson explain how the prospect was found, what stage of the sales process s/he is in, how long the courting process is taking, and how important the sale would be to the company.
Keep in mind that the root of motivation for many people lies in knowing how their contribution to the company and its products benefits end-users. Make it a point to communicate this to everyone at your company, no matter what their title or position as it’s also a great way to strengthen relationships and reinforce the relevance and meaning of their work.
Introduce the concept and significance of the post-sales phase of the sales cycle. Once a sale is made, the product must deliver as expected, be worry-free outside of typical maintenance, and customer issues or problems must be handled quickly and professionally. Nothing will impede sales faster than earning a negative reputation. And, if problems become too frequent, service and warranty costs erode profitability as well as the ability to make future sales to existing customers.
Once your culture is driven by a sales point of view, people at all levels will ideally develop a deeper understanding of how critical sales is to the success of your organization.
Removing obstacles is the key to any sale - but it's also the biggest roadblock to every sale. Bring your top 3 objections and we'll brainstorm as a group different ways to overcome those hurdles to sales. This meeting will require a short role-play (request for volunteering as a prospect will be made.)
Monday, August 13th, 2018 | Time: 7:30 a.m. - 9:00 a.m. Location: CTaccess, 740 Pilgrim Parkway, Elm Grove
Sales Roundtable is a free event open to IBAW members only.
Register at IBAW.com
Economic Growth in the States: Yes, Policy Matters Ray Keating, Chief Economist, SBE Council, Washington D.C. First quarter real GDP growth in the U.S. was lackluster, with growth registering a meager 2.0 percent. However, that, of course, does not mean that growth was the same across the nation. Indeed, as we see in the state GDP report from the U.S. Bureau of Economic Analysis, growth can and does vary widely from state to state. The BEA released its report on first quarter state GDP on July 24th, and real growth again varied considerably across the nation. Indeed, while the state of Washington topped the states with an annualized real growth rate of 3.6 percent (double to national estimate of state GDP growth of 1.8 percent), North Dakota’s economy shrank by 0.6 percent (mining and construction were hit hard). By the way, North Dakota was the only state to experience a decline in real state GDP. The BEA reported that some key sectors contributed to growth across much of the nation, such as real estate, information services, and manufacturing. And as SBE Council makes clear in its “Small Business Policy Index” and “Small Business Tax Index,” policy differences impact incentives for starting up, investing in, and operating businesses, as well as living and seeking opportunity in each state. We do see real effects. For example, as reported in the latest “Small Business Policy Index”: “Real average annual economic growth from 2010 to 2016 among the top 25 states ranked on the 2018 “Small Business Policy Index” averaged 1.77 percent, which was 23 percent faster than the 1.44 percent average rate for the bottom 25 states. So, on average, economic growth performed markedly better during this poor recovery among the top 25 states on the Index compared to the 50-state average (1.60 percent) and compared to the bottom 25 states.” And while growth can vary considerably from quarter to quarter, it’s interesting to note a point that jumps off the pages of this latest state GDP report. That is, during the first quarter of this year, each of the half-dozen fastest growing states ranked in the top 13 states in the “Small Business Policy Index.” Table 1: Fastest Growing States and Small Business Policy Index Ranking
State Washington Utah South Dakota Colorado Wyoming Texas
First Quarter Real Growth Rate and Ranking 3.6% (1st) 3.2% (2nd) 3.1% (3rd) 3.0% (4th) 2.9% (5th) 2.9% (6th)
Rank on the 2018 “Small Business Policy Index 7th 10th 3rd 13th 4th 2nd
In the end, a wide range of factors come into play when it comes to economic growth, but make no mistake, policy – such as taxes and regulations – matter as they impact the incentives and costs of growth-generating undertakings like entrepreneurship and investment. ------Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. Keating’s latest book published by SBE Council is titled Unleashing Small Business Through IP: The Role of Intellectual Property in Driving Entrepreneurship, Innovation and Investment and it is available free on SBE Council’s website here.
: S E L A S
2nd Monday of the Month SALES ROUNDTABLE 7:30 am - 9:00 am Free & open to IBAW members only Register at IBAW.com
Sales can be a tough road of ups, downs, potholes and a few bumps. But it can also be fast paced, exhilarating and rewarding. If you’re in sales, you know there are things only other sales people understand; the thrill of scoring the big account, the uncertainty of “let me think about that.”, the frustration of phone calls or emails that don’t get returned. IBAW’s Sales Roundtable is a support and knowledge resource for sales professionals, business owners, marketing and branding experts who are charged with driving sales. Join us to discuss the strategy, tactics, inspiration, and motivation to increase sales. It’s a FREE benefit of your membership! Who should attend: • Sales professionals of any level. • Business owners • Sales Managers • Marketing & P.R. Professionals
“For many years I ran sales meetings for as few as 3 and as many as 22 sales rep’s now I can go as a participant once a month to IBAW’s Sales Roundtable.
BONUS! Join the IBAW Sales Roundtable and get a compact disc with the BEST in Sales Survival Music. Play it to pump you up before that big meeting or to console you if you hit a sales slump. Guaranteed to make life better.
It’s a focused meeting and everyone wants the same thing – to be more effective at selling.” - Jerry Wick, CEO, Custom Data Too Mail
IBAW Public Policy Committee Hosts Legislative Roundtable in Brookfield
On the afternoon of Thursday, January 25th, the IBAW Public Policy Committee hosted a Legislative Roundtable featuring Senator Lena Taylor, Senator Chris Kapenga, Representative Rob Hutton and Representative Dale Kooyenga, held at the offices of Sikich in Brookfield. Welfare reform, excessive business regulations and the ever increasing shortage of a competent workforce were the main concerns of business owners. Additionally, the topic of the present state of the city of Milwaukee - crime, unemployment and the state of Milwaukee Public Schools, became quite heated at times. Look for more Roundtables discussions by the Public Policy Committee in the future.
IBAW is on an upward trend of growth and we are actively recruiting businesses just like yours to join! When you join IBAW your entire company is a member - anyone from your team can attend our fine educational and networking events. Help yourself, your business AND your Team Members. Come on in...weâ€™re open for business!
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2018 Membership Committee
Jake Hansen Jacsten Holdings
Charles Fry Robert W. Baird
Mike Poludniak Merrill Lynch
Tom Parks Annex Wealth Mgt.
Legislative Fix Moving Ahead for Wisconsin’s New Manufacturing & Agricultural Credit Jim Brandenburg, CPA, MST - Sikich LLP
In IBAW meetings and publications in recent years we have introduced you to Wisconsin’s new tax incentive - the Wisconsin Manufacturing and Agriculture Credit (referred to as the “MAC”). The MAC came about in 2011 to provide an incentive for Wisconsin manufacturers and agricultural companies to remain and grow here, and also perhaps to have out-of-state companies move here. It was scheduled to begin in 2013, and when fully phased-in by 2016 it would essentially exempt any Wisconsin manufacturing and agricultural income from Wisconsin income tax. The MAC was championed by Representative Dale Kooyenga and Senator Glenn Grothman in the legislature.
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The MAC, however, had some problems for individual taxpayers when it was drafted and this glitch was recently identified. Here is the issue in a nutshell: the MAC would reduce a taxpayer’s Wisconsin individual income tax, but then would trigger a Wisconsin minimum tax for nearly the same amount. Thus, there may be little, if any, net savings for the MAC in 2013 (a “MAC Attack?”). The legislature is trying to remedy this situation now so that taxpayers can realize the proper tax savings with the MAC on their 2013 Wisconsin individual tax returns.
The IBAW magazine is in need of content, we rely on our members and sponsors to supply us informative articles. The digital magazine is sent out to over 650 contacts statewide and the magazine is parked on the web where, on average, it gets over 1100 views.
Legislative Update: It seems that all key legislative leaders are now on board to correct this issue. It was approved by the legislature’s Joint Finance Committee last week. The Senate and Assembly will be in session in March and voting on final passage for several bills, one of which is this tax bill with the MAC correction. It looks like the legislative timetable will have the bill passed near the middle of the March, before going to the Governor. Thus, a best guess now is that the bill would be enacted into law somewhere in the latter half of March, 2014. MAC Attack Options: For any of our individual taxpayers taking advantage of the MAC, this may present some filings logistics. Here are the possibilities:
1. Best case scenario - in some cases the taxpayer’s share of the MAC for 2013 will be used and not result in a Wisconsin Minimum Tax. A taxpayer in this situation could go ahead and claim the MAC and file their 2013 Wisconsin individual return. There would be no need to wait for the legislation to pass.
Consider writing an article on a timely business related topic to your particular field of business. This is an outstanding opportunity for you and your company to gain exposure and increase your brand awareness to a statewide audience. There is no cost to submitting an article.
2. Next, a taxpayer has generated a MAC for 2013, but it will trigger a Wisconsin Minimum Tax. The taxpayer in this case could wait until the law is changed (and then wait a little for the WDR to update its computer processing systems) and then file their Wisconsin tax return and claim the MAC, and not incur the Wisconsin Minimum Tax. This could present a tight timeline for the April 15 deadline, and you may need to file for an extension.
3. Similar case as #2, but this taxpayer could file their Wisconsin individual return with the MAC, but also incur and pay a Wisconsin Minimum Tax for 2013. Then, once the corrective law is enacted go back and file an amended 2013 Wisconsin tax return to obtain the proper tax benefit of the MAC. You would not need extend, but you would need to amend. We’ll keep you posted as this legislation moves forward. If you have any questions, please contact Jim Brandenburg or Brian Kelley at Sikich, LLP in Brookfield (262)754-9400.
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Meeting Recaps 2014 Wisconsin Manufacturing Knowledge Summit
On June 20, 2014 the IBAW partnered with the Tool, Die & Machining Association of Wisconsin (TDMAW) to offer Wisconsin manufacturers and their suppliers a unique look at trends within the industry and to also report on some of the challenges the industry faces in the next 5 years.
Power Test, Inc. is an industry leader in the design, manufacture and implementation of dynamometers and control systems.
Special thanks to the event sponsor, First Business Bank for their efforts in helping organize this event.
For more than 37 years, Power Test has provided specialized test equipment to manufacturers, rebuilding facilities and distributors globally. Our products can be found in use at these facilities in nearly 100 countries on six continents.
Our headquarters and manufacturing operations are located in Sussex, WI with sales representatives worldwide. Our unparalleled customer service is well known throughout the industry. Power Test employs a dedicated staff of talented machinists, fabricators, electronic technicians, assemblers, designers, engineers, software developers, and administrative and customer service personnel. Our exceptional product life and excellent customer service is well known throughout the industry and has made us one of the industryleading dynamometer manufacturers. Our dedication to the customer and to the advances in powertrain component testing keep us there.
Power Test N60 W22700 Silver Spring Drive Sussex, WI 53089 Phone: 262-252-4301
4 Advanced Waste Services Advanced Waste Services is an environmental services company that provides wastewater recycling and other waste and risk elimination services to manufacturers in all industries. Each day, AWS helps hundreds of businesses, both large and small, meet their community and environmental obligations. Annually, we collect, treat and recycle more than 50 million gallons of contaminated wastewater into clean, reusable water and other valuable resources like fuel, steam and electricity. AWS is constantly helping our clients manage, reinvent and improve their sustainability successes. For example, we recently partnered with Forest County Advanced Waste Services Potawatomi Community to help Wisconsin food and beverage manufacturers convert 1126 South 76th Street food waste into clean, green renewable energy. Suite N408B West Allis, WI 53214 Founded in 1993, AWS employs 55 people in the Milwaukee area and a total of 150 people companywide in 5 states. 414-847-7100
Photo Key 1: A full house in the main ballroom of the Wisconsin Club as IBAW & TDMAW members prepare to hear about the state of manufacturing and the challenges the industry faces in the workforce.
2: David Vetta of First Business Bank delivers opening remarks and highlights the importance of a strong relationship between banking and manufacturing working together for success. 3: New IBAW President, John Weber of Hypneumat addresses the change in IBAW Bylaws and calls for voting in new board officers. 4: Kent Lorenz of Acieta gives the main presentation on “Manufacturing Matters” pointing out the trends on manufacturing now and what to expect in the future. 5: Outgoing IBAW President, Steve Van Lieshout receives his award for his efforts as 2013 - 2014.
6 Photos courtesy of Tim Townsend.
6: IBAW Executive Director, Steve Kohlmann (Left) presents David Drumel with an award for his service on the IBAW board.
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