JANUARY 2018 January 8th Sales Roundtable
January 19th Monthly Breakfast Meeting!
The Million Dollar Question: Why Do People Do Business With Each Other?
Inside This Issue:
ABRAHAMSON: 10 THINGS TRUCK DRIVERS DO THAT GET THEM PULLED OVER
OLESZCZUK: 2018 CONSTRUCTION INDUSTRY ECONOMIC OUTLOOK
KEATING: 7 PLUSSES FOR SMALL BUSINESS IN THE “TAX CUT AND JOBS ACT”
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.
MEDIA LINK IBAW Makes Front Page of Waukesha Freeman
Executive Director Steve Kohlmann President Dan Hansen Secretary Charles Fry Baird Treasurer Tony Palmen Sikich Directors Jim Leef ITU AbsorbTech Ann Barry Hanneman Von Briesen Law Oﬃce John Weber Hypneumat Jeﬀ Hoﬀman Boerke Co. Lisa Mauer Rickert Industries Tom Boelkow BSI Design, Build, Furnish Robert Gross Gross Automation Scott Seroka Seroka Brand Development Tom Parks Annex Wealth Management Jake Hansen Jacsten Holding
To read the article click here.
Scott Hirschfeld CTaccess
IBAW Mission: To advance business prosperity through insightful programming, executive networking and member-driven public policy and advocacy.
The Million Dollar Question:
Sales Roundtable Monday, December 11th, 2017 | Time: 7:30 a.m. - 9:00 a.m. Location: CTaccess, 740 Pilgrim Parkway, Elm Grove
Why Do We Do Business With Each Other?
Simon Sinek, in “Start with Why”, says that most companies have no clue why their customers are their customers. This month's facilitator, Dave Wallace, Founder and Owner of Bay Ridge Consulting Group, will help us build on our December conversation and explore this topic in greater depth.
The IBAW Sales Roundtable is a FREE event open only to IBAW members.
Register at IBAW.com
Legislative Roundtable Discussion Get A Seat At The Table
Your Opportunity to Give Business Feedback Thursday, January 25th,
3:00 PM - 4:30 PM
FREE EVENT: Register at IBAW.com Featuring... Sen. Lena Taylor Sen. Chris Kapenga Rep. Dale Kooyenga Rep. Rob Hutton
Independent Business Association of Wisconsin
Friday, January 19th
Every one of us negotiates far more than we imagine, whether with our kids to get them to do their homework, with our boss for a raise, or with an adversary in a multi-million dollar transaction. This presentation will help attendees plan for the negotiation process and how to incorporate winning strategies to become a better negotiator. The principal topics covered will include: • An overview of what a good negotiation process looks like • The key components every good negotiation process must have • Creating your own roadmap for your negotiation process • Understanding the concept of subjective value and how it affects objective value oriented negotiations
10 MINUTES WITH...
Register at IBAW.com
Les Davies Regional Director
THE WISCONSIN CLUB 900 W. WISCONSIN AVE. MILWAUKEE
REGISTRATION & NETWORKING
BREAKFAST & PROGRAM
Legislation to Bridge the Skills Gap •
AB 508: Would replace the current confusing and cumbersome apprentice to skilled worker ratios and set it at 1:1. This bill would also provide greater flexibility for the carpenter and plumbing apprentice programs. Iowa, Utah, North Dakota, Colorado, and Nebraska have 1-1 ratios, and Michigan just passed a law that allows three electrical apprentices to serve under one skilled worker. AB 508 has passed both the Assembly and Senate committees and the full Wisconsin Assembly. All that separates this from being signed into law by Governor Walker is passage by the full state Senate.
AB 745: Would allow high school seniors to begin an adult apprenticeship program. Scheduled for a public hearing on January 10, 2018.
AB 734: Would allow an apprentice to deduct the cost of their apprenticeship tuition from their taxes, just like tech college and university students. Scheduled for a public hearing on January 10, 2018.
AB 124: According to the University of Wisconsin System, only about 60 percent of new freshman will earn a bachelor's degree within six years. AB 124 would provide state-approved apprenticeship program sponsors, technical colleges, and employers who use the technical colleges with the ability to contact individuals who do not return to complete their degree. Scheduled for a public hearing on January 10, 2018.
Worker's Compensation Premiums Savings for Contractors with Apprentices Effective for new and renewed policies with effective dates of 10/1/18 or later, the State of Wisconsin has approved a 2 percent premium credit (up to $2,500) for employers participating in the ABC Apprenticeship Program. This savings will not apply to minimum premium policies and cannot reduce premiums lower than the applicable minimum premium. The credit will be applied to the employer's policy pro rata as of the date the carrier receives the copy of the executed contacted and cannot be applied retroactively to expired policies. It is applied to total modified premium after the application of any experience rating modification and before the application of any premium discount and the expense constant. The credit will not apply to policies applicable or expired prior to October 1, 2018. Also, if an employer becomes ineligible for the credit at audit, any credit applied at the inception of the current policy will be removed. To receive the credit: • Notify your workers' compensation carrier of your eligibility and request the credit. • Provide carrier with copy of the fully executed apprentice contract for each apprentice. • Meet all provisions required in the apprentice contract and the apprentice program. • Provide documentation of participation in the program for at least 6 months per policy year.
Special thanks to John Schultze of Associated Builders & Contractors of Wisconsin for suppling this information to the IBAW.
The Trickle Down Effect Steve Kohlmann, IBAW Executive Director
In last month’s article to you, I likened the tax reform bill to kicking a field goal in the football game. Essentially, I said the bill wasn’t perfect but we should take the three point field goal and move on. Well, we did take the three points, and that was enough to put a W in the win column for tax reform and business. It wasn’t a pretty win, but as Packer fans have been saying this year; “A win is a win.” Shortly after the vote I got a call from a reporter for the Waukesha Freeman wanting a comment on the passing of the bill. Here’s a link to the article. It’s always risky when talking to reporters. You never know how the article is going to come out or whether you’ll appear in a good light or bad, or if you’ll say something off-the-cuff (or in my case, say something stupid) and it’ll be taken the wrong way. The one thing I’ve learned when talking with reporters is it’s always best to have your talking points on hand and at the ready and stick to them. But during the interview I wandering off script a bit and said words to the effect... “with corporations getting a tax break, that will trickle down to the employees.” As soon as the words “trickle down” came out of my mouth, I regretted it. Some people see that term as meaning business getting it’s thirst quenched while the little guy gets a few meager drops to drink. It is true that big business gets a fairly good tax break but that doesn’t mean small business and average Joes like you and me are left behind. But my choice of words could have been better. Perhaps the word “SHARE” would have sounded better, as in “And with corporations getting a tax break, they will likely share that with their employees.” Nevertheless, the term trickle down was used and I was stuck with it. But just a few short hours after the final vote was taken I felt vindicated in my comment. Companies such as AT&T, Boeing, and ComCast announced they will be giving substantial bonuses to many of their employees. AT&T said it would give $1000 to 200,000 of it’s employees. If that’s a trickle, it’s a damn nice one. But those bonuses are just the tip of the economic iceberg that’s coming. Just a few short weeks after the passing of this bill, I’m already hearing the optimism from small business. On the way for small business is more investment in equipment, research and development and general capital improvements. But more importantly, I’m hearing of businesses already talking about paying their workers more in order to reward them and retain them. Additionally, business is going to be financially able to hire more workers. And what will those workers do with a extra money in their pocket? Well, they’ll spend some of it. Yes, they’ll go out to dinner more often or take their family for a weekend at Wisconsin Dells, or maybe make a home improvement or have that car repair done which they’ve been putting off. The point is that some of that extra money will be spent and put back into our economy which will drive more growth. Yes, even those monies ‘trickle down’. And that’s a good thing. If you suddenly received an extra $1000, what would you do with it?
IBAW Meets with Small Business Administration Regional Advocate
On the morning of December 13, 2017, IBAW Executive Director Steve Kohlmann met with Les Davies, the new Regional Advocate for the Midwest Region from the Small Business Administration. Topics covered were the new tax reform bill, excessive business regulations and the ever increasing workforce shortage. The rising cost of healthcare was also a cause of concern. Mr. Davies will attend the January 19th IBAW Monthly Breakfast meeting. Look for future information supplied by the SBA in the IBAW magazine and on the IBAW website.
To read, click here.
7 Plusses for Small Business in the “Tax Cuts and Jobs Act” Ray Keating, SBE Council, Washington D.C. Congress is poised to finally vote on major tax relief. While no major piece of legislation is ever perfect, the “Tax Cuts and Jobs Act” conference report ranks as a solid bill that will help the economy and be a clear net positive for small businesses. Consider seven clear plusses for small businesses and the economy in this major piece of legislation. First, the corporate income tax rate will be slashed from 35 percent to 21 percent. Such a dramatic reduction in the marginal tax rate would enhance incentives for corporations to invest and expand. It also would make the U.S. a far more friendly place to do business considering that the current combined federal and average state corporate tax rate ranks second highest on the planet, as noted in an SBE Council report. Finally, it must be noted that a dramatically lower corporate income tax rate is an obvious positive for the small businesses, in particular, given that most C-Corps are small firms, with 86 percent of C-Corp employer firms having less than 20 employees; 96.7 percent less than 100 workers; and 99.1 percent fewer than 500 workers. Second, for non-C-Corps, a 20-percent deduction is adopted on pass-through income, bringing the effective top federal income tax rate on such pass-throughs (that is, S-Corps, LLCs, partnership and sole proprietorships) down from 39.6 percent to 29.6 percent. For certain service businesses, this deduction is phased out if their business income exceeds $315,000 for married joint filers and $157,500 for individual filers, with the phase-out occurring over a range of $50,000 for individual filers and $100,000 for joint filers. (As noted in the conference report, these service businesses are defined as: “any trade or business involving the performance of services in the fields of health, law, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners, or which involves the performance of services that consist of investing and investment management trading, or dealing in securities, partnership interests, or commodities.”) Also, there is a capital and/or a wage test to broaden the scope of businesses eligible for pass-through deduction, and there are measures to distinguish between individual wage income and business income. Unfortunately, this measure (along with reductions in individual tax rates) is temporary, expiring after 2025. While in effect, this will be a major plus for small businesses – incentivizing entrepreneurship, investment and expansion – especially given that most small businesses are non-C-Corps. Making this permanent is vital going forward. Third, expensing of capital investment is expanded. For all businesses, expensing of certain investments, such as machinery and equipment, is allowed for five years and then phased down over the following five years. In addition, small business Section 179 expensing is expanded, raising the cap from $500,000 to $1 million, and increasing the level where this is phased out from $2 million to $2.5 million. Expensing serves as a significant incentive for capital investment, with such investment proving beneficial in terms of enhancing efficiency, innovation, productivity, profitability and worker compensation. Fourth, the corporate alternative minimum tax is eliminated, while the exemption level for the individual AMT is increased. The AMT serves to increase tax complexity and costs, while limiting the effectiveness of various tax deductions and credits that can have beneficial effects for individuals, businesses and the economy. (See a recent SBE Council analysis on the ills of the AMT.) Eliminating the corporate AMT makes sense. Fifth, the ability to use cash accounting is expanded. Currently, cash accounting is an option only for businesses with less than $5 million in income. Under this legislation, that would be expanded to $25 million. Many small business owners prefer cash accounting due to it being easier and simpler. (See this piece on cash vs. accrual accounting.) Sixth, the exemption on the death tax is increased. Currently, the exemption level for the death tax is $5.6 million. That would be doubled under this legislation. While eliminating the death tax would be the ideal, increasing the exemption level so fewer individuals, investors and family businesses are subject to this unfair tax on total assets is a major step forward. Seventh, the ObamaCare individual mandate penalty, or tax, is repealed in 2019. The mandate that individual either purchase health insurance or pay a penalty was a punitive tax. This is a good start in getting serious about repealing and replacing ObamaCare. These measures, along with others in the “Tax Cuts and Jobs Act,” aid small businesses and the economy by reducing the overall tax burden, and by boosting incentives for entrepreneurship and investment.
Industrial and Construction Services News - 2018 Construction Industry Economic Outlook Timothy Oleszczuk, TKO Miller
Ken Simonson from the Associated General Contractors of America (AGC) forecasts an increase of 3.0% to 5.0% for construction spending at year end 2017. The American Institute of Architects (AIA) forecasts construction spending on nonresidential buildings to rise by 3.8% over the same time period. Construction spending through the first three quarters of 2017 has totaled $917.0 billion, increasing 4.3% YoY during the same time period in 2016. Commercial construction starts are expected to grow 12.4% in 2018.
The State of the Construction Industry What the Latest Rental Forecast Means to Your Business: 3 takeaways to help guide rental decisions in your sector The American Rental Association recently released their updated five-year forecast calling for solid industry gains through 2021. Rental revenue is expected to grow 4.7% in 2017, 5.0% in 2018, 5.8% in 2019, 4.4% in 2020, and 3.9% in 2021. National U.S. construction growth is projected at 5.9% for year end 2017. Current political factors could impact the rental industry significantly, with tax cuts and even modest increases in infrastructure spending projected to drive up to 10.5% increased growth in highway and street investment.
Key Rental Forecast Takeaways Global Mining Equipment Market Overview 2016-2017 & Forecasts to 2022 The 2017 U.S. mining equipment market is projected to be $107.3 billion, growing approximately 7.3% YoY and is expected to grow robustly through 2022, at a CAGR of 7.9%, crossing the $150.0 billion line in 2022. The largest share is expected to be surface mining and is slated to account for $42.0 billion in 2017, with parts and attachments following behind as the second largest segment. Increased metal production, spurred by new projects and heavy demand from Asia, South America, the Middle East, and Africa, seems to be driving this firm growth within the mining equipment market. Overall mining activity, strongly correlated with mining equipment demand, has recently increased worldwide.
Worldwide Market for Mining Equipment Industrial and Construction Services Transactions October 2017 – PSC completes acquisition of HydroChem Houston-based PSC has acquired Deer Park, TX-based HyrdoChem, giving it one of the top positions in the North American industrial cleaning and environmental services industry. The Company will be called “HydroChem PSC” after the merger and is a portfolio company of Connecticut-based private equity firm Littlejohn & Co. Littlejohn focuses primarily on the middle market and has a niche within distressed assets, carve outs, and turnarounds. October 2017 – American Industrial Partners acquires The Brock Group American Industrial Partners (AIP), a New York City-based operationally focused private equity firm, has acquired The Brock Group, a Houston-based scaffolding and industrial service provider to the refining, petrochemical, and power generation industries. Brock had recently been struggling financially but with injected capital from AIP is now in its strongest financial position in recent memory. Brock is one of the only substantial competitors to BrandSafway at this time. November 2017 – PE-backed AXIOS Industrial Group buys Sky Industrial Services AXIOS Industrial Group, backed by White Deer Energy, an oil and gas exploration, production, oilfield service, and equipment manufacturing focused PE firm, has acquired Sky Industrial Services (SIS). SIS is an Augusta, Georgia-based insulation and scaffolding company that is noted as “the first of a series of upcoming acquisitions for AXIOS.” The terms of the deal were not disclosed.
TKO Miller Market Analysis The robust middle-market M&A environment within the industrial service and construction sectors is expected to continue, as demand from private equity and strategic buyers continues.
TKO Miller has continued to see frothy M&A conditions within the industrial services market, featuring increased demand among both financial and strategic buyers for quality middle and lower middle market companies.
Financial buyer interest in middle market companies across all sectors remains high, due to a strong demand for returns and historically high levels of private equity dry powder causing a continued trend of increased pressure to place capital. TKO Miller expects current market conditions (robust demand and elevated valuations) to persist for the next three to five quarters with the potential for increased activity in the middle market if the proposed federal tax cuts take effect.
U.S. oil markets are at near historic output levels of 9.71 million barrels per day, up 11.6% YoY. OPEC’s cuts have helped to buoy oil prices, sending WTI and Brent to their highest points in 2017, before recent reversals in the market, and are still above previous annual highs through Q3 2017. Due to a larger than normal WTI-Brent spread, U.S. oil markets have experienced consistent demand coupled with growth in production, due at least in part to the lifted ban on oil exports. Oil exports have tripled since the ban was lifted, sending almost 1.5 million barrels per day across the border during the last monthly reading (September). With OPEC’s cuts extended through 2018 and oil demand expected to grow worldwide, U.S. producers should see strong growth with all related services experiencing parallel growth.
Construction and rebuilding efforts from various disasters in the U.S. (California wildfires, Hurricanes Irma and Harvey, etc.) are likely to have a positive effect on the national construction market after the immediate effects from the disasters subside. The increased demand should arise from the reconstruction and repair of multifamily, commercial, and industrial structures in the effected areas and their respective construction markets (Texas and California).
Middle Market Valuation Multiples
Industrial and Construction Services Valuation Index
Industrial and Construction Services Valuation Index
President’s Circle IBAW / DALE CARNEGIE PRESIDENTS CIRCLE A LEADERSHIP PROGRAM FOR CEOs, PRESIDENTS, AND BUSINESS OWNERS
As the CEO, President, or Owner you are asked to produce more results with fewer resources, meet and exceed competition, innovate and motivate. This creates very difficult teams and leadership challenges. Leaders must encourage teamwork, bottom-up idea generation, alignment, loyalty and above all commitment. Rather than direct and dictate, leaders must inspire and motivate!
The Presidents Circle: The IBAW and Dale Carnegie Training have developed an exclusive Leadership program for IBAW members only. The Presidents Circle combines peer group engagement and highly targeted executive Dale Carnegie Training among peers to help you achieve significant results. These results will be achieved by providing insights, peer challenges, and developing leadership skills which are aligned with your organization and which will help drive agendas. By combining corporate mission, vision and values with our unique methodology employees will begin supporting a world they helped create.Ultimately, the only sustainable competitive advantage is the innovation, motivation, and creativity of the employees of an organization. Establishing a strong leadership culture provides the environment where innovation and creativity can flourish.
Program Specifics: • • • •
Meetings with other IBAW CEOs/Presidents/Business Owners 10 monthly meetings Dale Carnegie Executive Leadership Training workshop each session. Round Table Issues Discussed and Resolved
• • •
Guided Yearly planning Accountability among peers. Business Results
The President’s Circle will help you achieve results by: • • •
Providing training among peers Creating and sustaining change initiatives Ensure continuous improvement and bottom-line impact
• • • • •
Align the organization behind a common vision Develop a habit of fact-based decision making at every level. Strengthen and implement strategic planning Create a value based culture to ensure loyalty Build energy and trust up and down the organization to insure customer loyalty.
Program Leader: Steve Bobowski
“Knowledge isn’t power until it is applied.” -Dale Carnegie
Commitments: • Attend meetings • No cost for meetings, a benefit of IBAW membership •
Referrals or 3 enrollments
This program is now forming and is limited in the number which can attend. For more information, contact Program Leader Steve Bobowski by clicking here.
Coach’s Corner: The Key to Networking Steve Bobowski, Dale Carnegie Decide what area of marketing you would like to focus on to find the job that is right for you. Networking is not as difficult as you think. There are always networking events, such as career fairs, to make it easier for business professionals to find how others can help them. You will be surprised at how many experienced business professionals are willing to help you. Many are thrilled to pass along their knowledge and guidance. Find the next networking event in your area and follow these tactics to make a good impression: 1. Know who will be attending the event. By knowing who will attend, you can do a little research on the company or individuals attending the event. 2. Arrive early. This is a must. Individuals will pay attention to you since the room is not crowded and they are not exhausted from the event. 3. Dress appropriately. Wear a nice suit like you going to in an interview. 4. Bring business cards or resumes. There are many business people that attend these events. I would suggest having at least 100 of them on you. This might sound like a lot, but often times people take several copies to distribute to their coworkers. 5. Develop a personal 30-second “commercial.” This will be your way to communicate your knowledge and expertise to others. Keep it short and to the point. In this case less is more. 6. Remember people’s names and use them. The one thing that every person loves to hear the most is his/her own name. It is such a simple act and can score you many points. 7. Learn about other people before you start talking about yourself. Remember you are there to learn about them. By listening, you get a general idea about how the business works and an idea about your future career. Come up with a few questions and listen carefully to their responses. 8. Be friendly and smile. This will help you even if you are nervous. Just relax and try to be as comfortable as possible. It will make you look more confident. 9. Write personal thank-you notes to people you met. This is a very easy and important step that you cannot miss. It will help the person remember you and a leave a lasting impression.
President's Circle Leadership Group Thursday, January 11th, 2017 | Time: 6:00 pm - 9:30 pm Location: Dale Carnegie Offices, 6737 W. Washington, Suite 3105, West Allis As the CEO, President, or Owner you are asked to produce more results with fewer resources, meet and exceed competition, innovate and motivate. This creates very difficult teams and leadership challenges. Leaders must encourage teamwork, bottom-up idea generation, alignment, loyalty and above all commitment.
10 Things TrucGket Drivers Do That Them Pulled Over
Mark Abrahamson, HNI Risk Advisors In my experience as a state patrol sergeant, the following are driving behaviors or situations that “stood out” from the norm. Not every violation mentioned below necessarily results in a citation but it will, at a minimum, result in a warning and a reason for a traffic stop. As we are aware, many of the violation warnings will be evaluated in FMCSA’s safety measurement systems. 1
Following too close – When considering the perception and reaction time of 1.5 seconds, less than 2 seconds exists for the driver to see, acknowledge, and act by steering or braking to avoid a crash. When trucks are following less than a truck length behind another, it’s obviously too close and an easy traffic stop. Of course, we know much more distance is needed to just fulfill the perception and reaction time and to fulfill most states' following distance laws.
Speeding – Most CMV officers would prefer to have a reason for a CMV stop, rather than random inspections if that is allowed in their jurisdiction. Speed is rather easy to find and typically coupled with the above “following too close”. Again, many stops may just be a warning but the driver “gave reason” for the traffic stop and now it’s an opportunity to review the driver’s credentials and the vehicle's equipment.
Lane deviations – Not all lane deviations are unsafe or prohibited by state traffic laws, but for those that are in violation it’s an easy stop. For the others significant deviations raise reasonable concerns relating to the driver’s possible illness, fatigue, or impairment. Typically, once it's observed that it was not simply a “push of the wind” officers will initiate a traffic stop for deviations from the traffic lanes which are not typical or stand out from the norm for the conditions and roadway surface. These stops frequently result in the observance of driver distraction with onboard electronics and a high frequency of record of duty status concerns as it’s a stop that was not anticipated by the driver.
Inattentiveness – Most officers have observed “that truck” which was approaching a lane closure or traffic stop at a high speed. At the last moment the driver finally takes the aggressive crash avoidance actions. I have had to “drive out of the way” to prevent a collision even with red/blue lights activated and the siren blaring to garner attention. These drivers are of high concern to be stopped for illness or fatigue. They demonstrated a threat to themselves or others.
Improper Load Securement – This violation literally stares the officer in the face. When equipment is loaded on a flatbed it’s clearly in plain view and securement methods, number of devices, and general condition can be readily observed. Any observed deficiency will result in a traffic stop. Of greater concern is the securement in enclosed trailers as it’s out of view during transportation but it will be checked during an inspection. It’s not uncommon to find heavy items or containment systems simply lined down the center of the trailer with no side to side securement. We have seen our fair share of roll-overs as a result of non-compliance where cargo has shifted when the drivers felt “it was too heavy to move”.
Use of handheld phone – If the mirrors are properly adjusted this is just too easy to observe particularly in an unmarked cruiser or a patrol vehicle without roof lighting (less conspicuous to driver). Of course the concern relates back to attentiveness and the driver’s ability to respond in an expedient manner if crash avoidance is required.
Lighting Violations – Many of the observed lighting violations could easily be avoided with a proper pre-trip and post-trip inspection. The filaments of standard bulbs may “connect” and re-connect” with vibrations. In winter a person who has an inoperative headlamp could give it a slight tap and it’s now “working” but of course we all know it’s very temporary and certainly not a proper repair. The frequent observation of required lighting devices and perhaps replacement lenses/bulbs carried on the units will reduce on the road observances. LED lamps are also promising for reducing lighting violations by eliminating that filament separation we see in standard lighting.
Improper Registration or Credential Display – Although this is not a safety violation it is a reason to “stand out” and initiate a traffic stop. What a great opportunity to “scratch and sniff” as I would say. In every case a CMV officer will at a minimum conduct a Level 3 inspection in this situation. Rest assured that as the officer is walking back and forth they are taking a close look at the equipment and if a violation is observed it will be upgraded to a Level 2 inspection.
Overweight – With the desire to maximize cargo movement and 53’+ trailers, proper weight distribution can prove a challenge for novice drivers. With the dramatic increase of mainline high speed virtual weigh in motion systems (VWIM) the ease, efficiency, and intrigue of this enforcement strategy has increased carrier contacts for violations. The system is fantastic in screening a large amount of CMVs and highlighting violators yet minimizing the delays to carriers who are taking proactive measures with weight compliance. The chances are very high an inspection will follow this traffic stop.
Failure to obey official traffic signs or signals – Similarly related to overweight violations is overlooking posted signs for weight limitations. Forfeitures where weight violations exist can be staggering, particularly if special weight postings are disregarded. Other sign violations can also command substantial attention such as misreading or misjudging a bridge height sign resulting in a bridge strike. Not only will bridge inspectors, competitors, and customers observe that truck under the bridge in print or person, you can expect a CMV inspector to arrive and complete a post-crash inspection. Lastly, failing to follow a state's lane restriction guidance such as “all truck use right lane” is entirely preventable.
The above violations are certainly not all inclusive of what may be observed during patrol activities, but they unfortunately do exist and are too common. The goal of the CMV enforcement officers and drivers is to prevent crashes and come home safely. I ask that the carriers and drivers I now proudly represent continue to be professional examples of a safe and courteous driving which stands above others as a positive example to all motor vehicle operators as they are watching. Mark is a 27-year veteran of the Wisconsin State Patrol. He joined HNI in May of 2017.
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MARKETING: When the Rubber Hits the Road Phil Friso, Cultivate Communications The success of a company’s sales department is almost always judged by their effectiveness meeting the company’s revenue objectives. To do that, salespeople need the right tools in their tool box to move a prospect across the goal line to a sale. Those tools come in a variety of shapes, sizes, and formats, but lately, many companies have shifted the entirety of their sales support materials to the web. This may not be the best strategy based on how people learn, remember and act. Consider the following: Drip Theory Many sales efforts utilize the “drip” method — contacting your prospects slowly and over time, in order to stay “top of mind” while also hoping to educate the prospect about the value of your offering. Some organizations refer to these multiple contacts as “touches” because they’re trying to touch the prospect several times over a given period of time. Multiple Voices The key with using the drip method is to use multiple “voices” while communicating. This could mean, telephone calls, emails, in person visits, webinars, PowerPoint presentations, as well as printed collateral material. Each one reaches the prospect with a different “voice.” Your mother used to tell you things and they “went in one ear and out the other” — they didn’t STICK. An outside person (a different voice) could tell you the same thing and it would become a revelation — because the VOICE was different. Fact is, communicating with prospects over time using different voices is an effective way to reach them and make your messages STICK. Tangibles This is where printed collateral material comes into play. For example, let’s say you contact a prospect via email requesting to talk with him/her on the phone. You follow up with a phone call and that’s followed by another email with a PDF attachment detailing your company’s value as discussed. You then take a printed version of the PDF and mail it to him/her. One of the efforts is bound to connect, because you’re using multiple voices. Maybe the next thing is a hand-written thank you card. Printed sales materials are another set of tools in the sales tool box that shouldn’t be overlooked. They’re tangible and create the perception of value. Don’t be chinsey with your printed materials either, because the prospect will judge your company’s value based on how your materials look and feel. How to create powerful sales materials: Think in terms of short, sweet and meaningful. Your materials should include: • A succinct value proposition and what the prospect’s probable outcome will be if he/she uses your product or service. What value does your company bring to the table? • Bullet points — avoid large paragraphs of text. People simply don’t have time to read these days • Photos/diagrams with captions — Think People Magazine, a publication that people browse rather than read like a book. • Limited Content — don’t rely on the brochure to explain all of the details about your offering — that’s what the web, along with knowledgeable salespeople, are for. • CTA (call-to-action) statements — ask the reader to do something (see next bullet point) • Direct everyone to the web — consider directing them to a specific URL /landing page that is relevant to the sales material’s content. That way you can MEASURE the impact of the piece • A PDF version of the printed materials should be created, so the piece will do double duty and give you two voices to communicate with. The “rubber hits the road” at the point in time when a sales support piece connects with the prospect. Use the drip method, message with different voices both digital and printed to make your message STICK, and above all make everything short, sweet and meaningful to the reader. Anywhere a prospects turns, he/she should run into your message and most importantly remember it.
: 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 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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2017 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.
Magazine Content Needed Consider Submitting an Article!
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.
Contact Steve Kohlmann for details.
Articles submitted by our members & sponsors.
Welcome New IBAW Members!
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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THERE’S ROOM AT THE TABLE
As an advocate for small business, the IBAW offers intimate meetings on relevant topics such as Leadership, HR, Sales, and Political Issues. Business Leaders...Leading Business
Join us. “...the sales round table was very informative, Judson will be renewing our membership in the IBAW. Thank you and I look forward to more roundtables!” Dominic Misasi, Judson and Associates s.c.
“ I almost always come away from an IBAW meeting with useable material that helps me with my business. Many times, a speaker will give me something that applies to ITU AbsorbTech. Other times, it is a conversation over breakfast that gives me value.” Jim Leef, President & CEO, ITU AbsorbTech
“Being involved with a business organization like the IBAW is critical for small business owners in Wisconsin for growth and to have a voice with government.” Rich Meeusen, CEO, Badger Meter.
Education • Networking • Political Advocacy BUSINESS LEADERS...LEADING BUSINESS
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IBAW membership is based on the number of full time employees in your company.
Number of employee in your company
1 - 15 Employees ...............$300.00 16 - 25 Employees ...............$400.00 26 - 49 Employees.................$500.00 50 or more Employees...........$600.00 SPECIAL OPTION: Prepay breakfasts meetings. Get 12 for the price of 10!
MEMBERSHIP BENEFITS apply to your entire team. • Monthly Sales Roundtable - free with membership • Monthly 5 Star Breakfast Program • C Level Peer to Peer Networking • Monthly Digital Statewide Magazine - free with membership • Informative workshops • Business Behind the Scenes Tour • Legislative Updates & Representation from Madison & Washington, D.C. ...AND MORE!
Paying By Check? Please make check payable to IBAW. Want to pay credit card? If you would like to pay by Visa, MasterCard or American Express, you can pay online at IBAW.com or by calling the IBAW office at 262-844-0333.
Published on Jan 1, 2018