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Eau Claire – Twin Cities train effort gets reinvigorated with private–sector participation

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COVER STORY

SPRING 2017 New push for rail service focuses on private sector.

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UW-Stout gains global businesswoman.

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Three companies, donors aid park project.

Catie.Carlson@ecpc.com

Editor: Andrew.Dowd@ecpc.com 715-833-9204, @ADowd_LT

I

n the waning days of the local Macy’s I took a look at the scant selection of remaining merchandise and store displays priced to move.

About five days after that visit, the department store closed permanently and its anchor spot in Oakwood Mall awaits a new tenant.

Shortly after Macy’s, the Gander Mountain store less than a decade old on the far southeast reach of Eau Claire will go through the same liquidation.

It’s troubling to see these retailers vanish from the city.

Our local economy relies in part on Eau Claire’s status as a major shopping destination for western Wisconsin residents. And sales tax reports indicated that sales slowed down a bit during 2016 in Eau Claire County after years of solid growth that followed the last recession.

There are glimmers of hope that the recent store closings were exceptions to our retail landscape.

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American Phoenix keeps rubber history going.

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Eau Claire business group’s leader nears retirement.

Our local Sears and JC Penney outlets were spared a similar fate — apparently doing better than other locations those brands will close this year.

Commonweal Development is preparing land for a new retail development expected to bring sales in the neighborhood of $42 million annually.

In Chippewa Falls, construction of a major Mills Fleet Farm distribution center is slated to begin this spring, which I’ll take as a fair indicator that our region plays a significant role in the company’s well-being.

So there are reasons to be positive about the local retail environment.

After scavenging through the sparse racks of clothing at Macy’s for a deal, I left empty-handed.

As I left the store, I thought of the jobs lost and regular customers who won’t have a local Macy’s to shop at anymore.

But I did hope and wonder about what will come next.

April 3, 2017 ♦ 800-236-7077.

BUSINESSleadertelegram.com LEADER | 3 Published four times per year by the Leader-Telegram advertising department. Copyright 2017 Eau Claire Press Co., 701 S. Farwell St., Eau Claire, WI 54701.

All rights reserved.

COVER STORY

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Latest effort to get passenger rail to Twin Cities focuses on private sector

By Andrew Dowd, Leader-Telegram staff

C

onversations about a potential passenger train between Eau Claire and the Twin Cities have taken a more business-like tone in recent months.

In its newest pitch to the public, government and industry, a local rail advocacy group is pushing the concept of creating rail service through a public-private partnership.

Scott Rogers, chairman of the West Central Wisconsin Rail Coalition, noted that approach has worked elsewhere in the U.S. where there is some government funding to start rail service, but then a private company takes over operations and runs it like a business.

“There has been some move toward public-private partnerships and innovation in the way projects are structured,” he said.

Rogers points to the Association of Independent Passenger Rail Operators, a group representing private companies that run trains in New Jersey, California, Texas, Massachusetts, Virginia, Louisiana and Florida.

To see if that kind of arrangement would work in the Chippewa Valley, a group affiliated with the rail coalition will study the capacity of existing Union Pacific tracks this year and continue its research into the feasibility of a private-sector driven train here.

Getting organized

Known as the Organizing Council, the group began meeting last year and its membership includes representatives from credit union RCU and software company Jamf — two Eau Claire-born businesses that have grown to include offices in the Twin Cities area.

Jan Johnson, RCU’s executive vice president of organizational agility, said the credit union is interested in train service for its potential benefits to the business, and what it could do for Eau Claire.

“There’s a lot of things that could be a draw to people, if it’s easier to get here,” she said of the city’s arts, entertainment, cultural and recreation amenities.

For the business, RCU has employees that regularly have to make the 1½-hour drive from its corporate 4 | BUSINESS LEADER ♦ April 3, 2017

headquarters in downtown Eau Claire to one of the four branch offices in the Twin Cities metro area — sometimes during the workday.

“That drive time is totally non-productive time,” Johnson said.

Instead of watching the road, she said employees could be using laptops to work or even participate in meetings via streaming video with the train’s internet Wi-Fi system.

A train connection to the Twin Cities also could help RCU recruit and retain talented employees, including those who get a degree at one of the Chippewa Valley’s universities, but then leave for the big cities.

“Sometimes when people graduate, people think they need to leave this area to get good jobs and an exciting city-exposure kind of life,” Johnson said. “Many people would like to stay here if they could get easier access to the metro area.”

Rogers, who works as the Eau Claire Area Chamber of Commerce’s governmental affairs and workforce director, noted that other area businesses also have found it has taken longer to fill jobs.

“We have a workforce shortage and one of the ways we need to be competitive with others is transportation,” he said. “It can be a selling point in recruiting or keeping people in our region as well.”

There is increasing demand for rail service, Rogers said, as one generation gains prominence in the workforce and another retires from it.

“We have seen the demographic trends accelerate that favor passenger rail,” he said.

Millennials are less interested in driving than their predecessors, he added, and baby boomers want to travel in their retirement, but also want alternatives to long car rides.

The latest pitch for bringing rail service to the Chippewa Valley also mentions potential economic development that can spring up around stops. Rogers said that happened around a newer station at Normal, Ill., and along a route between Boston and Portland, Maine.

Travel plans

About 100,000 vehicles cross the St. Croix River every day on Interstate 94, Rogers noted.

He’s got no illusions that a train would cut deep into that, but some would see it as an alternative to driving.

For those making the 90-mile journey from Eau Claire to the Twin Cities, Rogers points out the upsides of riding in a train versus behind the wheel of a car.

Sure, the trip will take about the same time — about 1½ hours — but instead of spending that time looking at bumpers and tail lights, Rogers said you could be reading, watching a movie on Netflix, taking a nap or even working while en route.

Based on the group’s projections, there would be about 1,000 to 1,200 riders using the train daily.

As it’s currently envisioned, the train would run four round trips daily between Eau Claire and Union Depot in downtown St. Paul. Using existing Union Pacific railroad tracks, stops along the way would include Menomonie, Hudson, River Falls, Baldwin and just south of Stillwater.

Full fare would be $32 from Eau Claire to St. Paul, but discounts would be available for regular, reserved and family trips, according to a fact sheet presented to local politicians.

The Eau Claire and Chippewa county boards gave their support this winter to the idea of a self-sustaining passenger rail service and were not asked to provide financial assistance.

Going to the government

Emphasizing how private industry can run a rail service and be an asset to the regional economy is also a recognition of the political climate when it comes to transportation projects.

Asking the state and federal government for Amtrak money is not the way to go these days, Rogers said.

Expanding passenger rail was one of the initiatives of the federal stimulus package that was intended to help get the U.S. out of the Great Recession, but conservatives who won election after that had less favorable views of new trains funded by government money.

One of Gov. Scott Walker’s first acts after winning election in 2010 was to put the kibosh on a Madison-to-Milwaukee rail line that would’ve been built with $810 million in federal stimulus money. That didn’t give much hope to rail projects elsewhere in the state.

But the political climates in both Washington and Madison have shown interest in projects based on public-private partnerships.

As a local example, Rogers cited the Confluence Arts Center, which is under construction this year in downtown Eau Claire with the help of $15 million in state money to go with corporate and private donations, and local government contributions.

And in addition to the research being done by the coalition’s Organizing Council, some of the track has already been laid in state documents showing the potential for passenger rail in the Chippewa Valley.

Plans drawn up by state transportation officials in Wisconsin and Minnesota still include a route with Eau Claire, but Rogers said it will take more than that to actually make it happen.

“You can be in a plan, but then it’s something else to bring a train to fruition,” he said.

Contact: 715-833-9204, andrew.dowd@ecpc.com, @ADowd_LT on Twitter

•

The West Central Wisconsin Rail Coalition got its start in 1999 by three men with business backgrounds: architectural firm founder Owen Ayres, brewery operator Bill Leinenkugel and Ray Willoughby of Alliance Bank.

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April 3, 2017 ♦ BUSINESS LEADER | 5

COMMUNITY PROFILE Staff photo by Pamela Powers UW-Stout’s new assistant professor of international business and entrepreneurship Mary Spaeth founded a trio of companies before arriving to teach at the university in Menomonie. Among her goals for the university is additional work with local startups.

The long road to UW-Stout

Well-traveled businesswoman brings experiences founding companies to teach entrepreneurism

By Pamela Powers, Leader-Telegram staff MENOMONIE

S

mall businesses make a community. Entrepreneurs run the gamut from the owner of a small corner café to someone honing a craft to create a product.

“Small businesses are the bread and butter of communities,” said UW-Stout assistant professor of international business and entrepreneurship Mary Spaeth. “I think people are beginning to realize that’s an important concept after the dot-com bubble burst.”

Entrepreneurs aren’t always seeking to make large amounts of money, Spaeth said, but to make a living.

“I like mom-and-pop shops, and that’s the fabric of the community,” she noted.

Spaeth, who has started three companies, began teaching at UW-Stout in January after being a lecturer at Texas State University in San Marcos for 2½ years.

One of the things that attracted her to the campus in Menomonie was how it dealt with budget cuts in the last couple years. When facing less state money, UWStout combined the traditional science, technology, engineering and mathematics with management programs to create its STEMM College.

6 | BUSINESS LEADER ♦ April 3, 2017

“That caught my attention, as did the polytechnic distinction and the applied learning,” Spaeth said, noting she wanted to be at a university with that strategy.

She also sees the campus Discovery Center and fabrication lab along with the Stout Technology and Business Park as assets that can help entrepreneurs in the area. Spaeth previously brought the public and private sectors together while working in the late 1990s as director of business development and marketing at the Northwestern University/Evanston Research Park.

Speaking from experience

UW-Stout professor of business management Anne Kelly Hoel said Spaeth is a talented addition to UWStout.

“She’s got such a global perspective and connections around the world,” Hoel said. “I am so glad we have her here.”

Prior to working in Texas, Spaeth spent 13 years living in Sweden, where she now has dual citizenship.

UW-Stout also interested Spaeth because she hopes to

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continue to do research in Sweden during the summer when she is not teaching classes.

Having a woman teaching entrepreneurship is also a benefit for female students, who make up about half of the business majors at UW-Stout, Hoel noted. Spaeth's resume shows that women can start businesses and grow them.

Spaeth created a Swedish translation company, Wetterhall's Ord, which is now run by her husband, Peter Wetterhall.

She co-founded a Chicago advertising agency named Communication Resource Group, which did some work for McDonald's and the Federal Reserve Bank.

Spaeth remains president of Transmera International, a firm she founded to provide market analysis, business intelligence and international strategy to small and medium enterprises.

Since she started at UW-Stout earlier this year, Spaeth already is making her mark on the university's business offerings.

Spaeth was instrumental in bringing a 3 Day Startup program that encourages students to start their own businesses by attending a long weekend seminar on campus, Hoel said. The first one was in March.

3 Day Startup is a national program. More than 300 such programs have been held in the U.S. and internationally, resulting in more than 90 startup companies.

The program is open to students regardless of major field of study. Participants develop business ideas and models and receive feedback from professionals and potential investors.

Paul Lokken, UW-Stout associate professor of business and chairman of the Department of Business, said Spaeth is a terrific addition to the university staff.

“She brings so much to UW-Stout,” he said. “She has tremendous wealth of experience and the different countries she has visited and the cultures she has experienced.”

Growing up in an Air Force family, Spaeth traveled as a child.

She appeared in her first school play — William Shakespeare’s “A Midsummer Night’s Dream” — while living in Libya.

Her education became even more diverse and globe-spanning as an adult.

She originally set her sights on becoming a physician, but then decided to study creative writing at Southern Methodist University in Dallas. She also earned her master’s degree in literature from there.

She has a master’s degree in international child studies from Linköping University in Sweden. Spaeth got her Master in Philosophy in Business from the University of the West of Scotland, as was her Ph.D. in socioeconomics. She also is fluent in Swedish and has the ability for conversational French.

“I think the real thread is communication and persuasion and any areas that helped me to understand people and society,” Spaeth said of her educational background. “I was the kind of person who wanted to know how the world worked. It is kind of a philosophical journey that is connected. I’m still writing and enjoy writing and poetry and theater and art.”

Contact: 715-556-9018, pamela.powers@ecpc.com, @MenomonieBureau on Twitter

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COMMUNITY PROFILE

Leading the way Staff photos by Steve Kinderman An amphitheater, a large canopy, electrical work and other improvements funded through donations will be added this year at the park.

Riverfront park work gets a boost from three businesses, other donors

By Chris Vetter, Leader-Telegram staff CHIPPEWA FALLS

W

hen Chippewa Falls city leaders announced plans for a capital campaign to raise $2 million to pay for the next phase of Chippewa Riverfront park, three area companies — Northwestern Bank, Gordy’s Market and Mason Companies Inc. — pooled their resources and created a “challenge grant.”

The idea was that the three companies were willing to match — dollar-for-dollar — what the public gave, up to $350,000.

Dave Schafer, Gordy’s Market chief financial officer, said he was approached by several area business owners who were trying to raise money toward the project. Schafer said he didn’t hesitate to pitch in.

His father, Gordy Schafer, grew up playing on the rocks by the dam on the Chippewa River, and the company has its corporate headquarters in Chippewa Falls.

“We see a ton of value in Chippewa Falls, and the whole Chippewa Valley,” Schafer said. “And we’ve seen what Phoenix Park has done for Eau Claire. It was a great opportunity for us to be part of a phenomenal project.”

The Chippewa Riverfront park is located on the north shore of the Chippewa River by downtown Chippewa Falls.

The next phase of the park includes finishing the 3,000seat amphitheater — erecting the canopy and putting in the electrical infrastructure. Also, a bathroom building will be

8 | BUSINESS LEADER ♦ April 3, 2017

constructed. About $1.9 million of the $2 million goal has been collected in cash-on-hand or pledges, which includes a $500,000 anonymous gift given to the city in October.

The city doesn’t have the capacity to borrow more money at this time, so that is why city leaders turned to the public to request assistance.

Schafer said he understands the reasons for wanting to finish the park immediately and not wait for a couple years when the city will have money.

Work on Chippewa Riverfront park began last year with landscaping, trails, benches and an area for fishing and gathering along the waterfront.

“We’re a city that doesn’t like to wait around; we want to keep Because the campaign is nearly complete, Smith is already it moving,” Schafer said. “And it’s going to be here for years and moving forward with plans for construction. years to come.”

“We already have the plans out on the street,” Smith said. “We’ll Northwestern Bank president Jerry Jacobson echoed Schafer’s be opening bids in early April. It’s going to be a construction zone comments, saying the park is a again, most of the summer.” benefit to the city.

Most of the park is in “I think the bank feels the flood plain, where that having a good look construction of new buildings coming into downtown is is banned. The bathroom very important,” Jacobson building will be close to Bay said. “And it brings all sorts Street, by the old lift station, of walks of life into the park, Smith said. where it’s a free thing. We felt “It will be high enough it we wanted to be part of that. won’t be an issue,” Smith said.

Our board members were Over the past decade, the This conceptual rendering from architectural and engineering firm SEH shows the river extremely enthused by it and city has bought buildings in access area in the park. Contributed image wanted it done by fall. And that corridor and razed them, it’s nice with so many new making way for the park. Last businesses downtown.” year, the city had the site landscaped, removing older trees and Jacobson said it made sense to pool the money that the three improving the view down to the river. Bike paths and benches have companies were offering and turn it into a matching grant. been installed.

Future phases of the park include adding fountains and picnic areas.

“They thought it might be the final boost of the campaign,” Jacobson said. “It’s always a nice incentive, to make that a challenge Contact: 715-723-0303, chris.vetter@ecpc.com grant. It gets people who were procrastinating into getting them off the chair and writing a check.”

Contributions to the park project can be made by signing a pledge Chippewa Falls city planner Jayson Smith said the entire $350,000 form at the Chippewa Falls city planner’s office or downloading a challenge grant was met and exceeded. form from the city’s website.

“People are more willing to give if they know their money To learn more, visit chippewafalls-wi.gov/riverfront or is being multiplied,” Smith said. “It’s unbelievable, with the call 715-726-2729. generosity of the community.”

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April 3, 2017 ♦ BUSINESS LEADER | 9

- Guest Article -

Eight “Take It to the Bank” Reasons a Document Management System Can Boost Your ROI For one manufacturing business, document growth doubled almost every year, creating what they referred to as, “folder sprawl” — resulting in huge amounts of paper crowded into floor space and in digital files stored on desktops not easily accessible to most employees. The inefficiency took a toll on workers, customers and their bottom line until they took steps to streamline their document management.

If this sounds familiar, it may be time to get out the magnifying glass to spot the ROI content drag inside your organization. Running efficiently in this technology driven time requires a robust document management system (DMS). Besides the easy usability, content properly stored can be mined for many reasons including prospecting for new business and providing background for future decision making.

While pain points in business can seem never ending — folder sprawl is one stressor that has headache relief. As the manufacturing business learned, the benefits were worth the investment.

Here are a few of the most important “stress relievers” you’ll discover by employing a strong document management system.

1. Reduction of labor costs associated with document retrieval.

Lost or hard to find documents can add up to big losses in productivity. A Harris Interactive survey shows 83% of knowledge workers say they are losing or wasting time daily on document collaboration issues that include: not being able to find files, working on the correct version of the document, or having to manually merge changes. Seamless digital teamwork saves business costs by connecting every department and simplifying how employees edit, share, review, sign or track documents.

2. Easier external collaboration.

Many businesses outsource. Collaboration can often get complicated or even stall because of a file snag.

DMS improves external collaborations by using web

based environments and workflows. Authoring, review and approval processes offer huge improvements, too.

3. Ending use of emails.

Emails waste time, are hard to manage, complicate version control and open business to potential security breaches — all big issues that impact the bottom line.

DMS allows you to break free of sending content by email, eliminating both security and storage issues.

4. Enhanced security and control.

IT security experts will tell you, relying on simple cloud storage to safeguard sensitive documents is as useful as a screen door on a submarine. Converting to a DMS with encryption, audit trails, and retention settings help plug the security holes and offer greater assurance that you’re meeting HIPAA, FINRA, and SEC standards.

5. More reliable backups.

If content isn’t properly backed up, do you really know what’s missing? Knowing “what’s missing” often turns up when there’s a regulatory request and the document can’t be found. A DMS trades exhausting paper chases for quicker access audit trails and the reliability of traceable and granular security controls.

6. Reduction of floor storage space costs.

Most businesses could use more room to grow.

PricewaterhouseCoopers, the second largest professional services firm in the world, research shows that one three drawer file cabinet can cost about $300, hold 9,000 pages of documents and require 20 sq. ft. of office space. Even a small storage area can cost $150 a month, plus utilities. Besides floor space savings,

document management can prevent loss from natural disasters and save deterioration from improper storage issues caused by humidity or other room environment problems. Document management can also reduce paper purchase and disposal expense.

7. Saving audit costs.

Internal audit fees can cost small businesses between $5,000 - $20,000 — and up to $75,000 for mid-market size companies. Capturing documents transformed into searchable PDFs allows for faster audit preparation, saving both employee time and auditor expenses.

8. Allowing more cost-effective tracking of your business indicators.

According to the Federal Reserve Board’s National Survey of Small Business Finances, there are fewer than “one quarter of businesses with up to 500 employees who keep financial statements of any kind.” Document management systems offer robust search options and storage in one central location — giving a clearer picture of where to save expenses and adjust for future growth.

While paper documents still fill an important role for business, use of paper documents alone is no longer sufficient in today’s business environment where immediate collaboration, quick retrieval and security are critical to helping stay competitive. Document management technology is more intuitive and user friendly than ever, offering real opportunities to pick up your ROI. Now may be your time to consider making the switch. by: Dan Rickert, Director of Solution Sales at EO Johnson Business Technologies 827177 4-3-17

10 | BUSINESS LEADER ♦ April 3, 2017

CEO SPEAK

Are you easy?

Improving simplicity for customers leads to a positive impression “Being good is making it look easy, but getting good is never easy.”

Jeff West is the Owner of Bear Down (beardowninc.com), an executive and executive team coaching company based in Eau Claire. He was a founder and CEO of Silicon Logic Engineering. He also currently chairs the local chapter of The Executive Committee and Business Partners, a forum for small business leaders.

West can be reached at 715-559-2195 or jeffatbeardown@gmail.com.

JEFFREY FRY, entrepreneur

By Jeff West

When I begin working with a company for the first time, I ask them if they’re looking for a competitive advantage over their competition.

Of course the answer is always, “Yes!” Who isn’t?

Then I ask them to name for me companies they LOVE doing business with, companies where they’re treated like royalty, companies where they don’t even pay attention to how much they’re paying, companies they tell all their family and friends about.

While I will sometimes get a name or two, the typical response unfortunately is often silence.

I then flip the question around and ask them to name companies they hate doing business with, companies where they’d never go back even if their product or service was free, or companies they only do business with because their competition isn’t any better.

What do you think the response is to that question?

Unfortunately this time the room becomes very animated with any number of companies names being shouted out. It often gets to the point where I have to quell the response as everyone wants to tell you about their latest terrible experience.

Did you notice a competitive advantage there anywhere?

••• It’s rare to find a company that doesn’t use some form of, “Our Customer is King!” or “Putting Our Customers First in Everything We Do” mantra. Many even have a plastic banner hanging in their lobby or lunchroom and print that creed across their stationary to prove it.

Yet the treatment you often receive is not only deprived of that kind of sentiment, but many times seems to be intentionally the exact opposite.

How many times have you been told by a company representative, “I’m sorry but that’s not company policy.” How many times have you been treated rudely as if you should be the one happy to have the good fortune to be doing business with them?

Many years ago when my partners and I had just started Silicon Logic Engineering, a wise man asked me how we were going to innovate in our business. My heavily pompous response was that we were a tech company, so we would need to be innovating all the time.

When he told me he wasn’t asking about the technology aspect but instead the business as a whole, it was my turn to respond with silence. When I finally asked him what that meant to him, he had a wonderful one word answer: Simplicity.

He asked me how was I going to make it simpler (easier) for our employees to work there. How were we going to make it simpler for our vendors to work with us? And how we were going to continually make it simpler for our customers to do business with us?

Turns out there’s never an end to that question. By the time you

implement some new idea to make it easier for your customers to do business with you, you should have the next two or three ideas ready to go.

••• Look at companies such as Amazon. Their entire focus is the constant push to make it easier and easier to do business with them.

Do I buy from Amazon even though I know I could probably find the same product cheaper elsewhere online? Yep. Why? Because with limited typing for the product I’m looking for and about three clicks of my mouse I’m done and the product arrives two days later. Or now with Alexa I can just speak it.

Simple! I’m willing to pay a little more for the convenience they provide. They make it so easy for me to buy from them. They build on that by making it so easy to send something back if you don’t like it.

One estimate says that out of every dollar spent on the internet, 51 cents now goes to Amazon and that percentage is growing. Think about that for a moment. Impressive growth for a website that started out being just another online bookstore 20 years ago.

Think about the champion sport teams you watch. The best make it look so easy, don’t they? Yet I think we all know how much time, effort and hard work went into making it look so simple.

••• Great businesses understand their success depends upon truly caring about and serving their customers.

Being respectful of customers’ time is a great place to start. We all lead busy lives today. Anyone who shows us they understand and then does everything possible to not add to our frenzied frustration gets our attention, our appreciation and most often our hard-earned dollars.

One company I personally use is so good at it that I actually get an, “ahhhhh” feeling whenever I need to call them for something. Why the good feeling? Because I know no matter how bizarre my request might be, the answer is always going to be, “No problem Mr. West.

We’ll take care of it by the end of the day.” And they do it with a sincere, friendly tone.

Does their competition try to get my business from time-to-time?

Of course. Am I interested in listening to them? Not a chance.

Does your company deliver that kind of feeling for your customer?

Do you make them feel so welcome, make it so easy to do business with you they would never dream of going somewhere else?

If you do, good for you!

Now what’s the next thing you should be doing for them?

If you’re not thinking this way, what happens when one of your competitors figures it out?

April 3, 2017 ♦ BUSINESS LEADER | 11

FEATURE STORY

Rubber history rolls on

Staff photos by Dan Reiland Eugene Webster loads raw rubber onto a conveyor. American Phoenix mixes natural or synthetic rubber with chemicals, carbon black and some oil to meet customers’ specifications.

American Phoenix continues Eau Claire’s place in industry for 25 years and counting

By Andrew Dowd, Leader-Telegram staff

A quarter-century after Eau Claire’s tire factory closed, the unmistakable smell of rubber still wafts out of a few windows in the gargantuan brick complex along Galloway Street.

Although Uniroyal passenger tires no longer roll out of the buildings, they’ve been home to another company that has kept the city’s long tradition of producing rubber products alive for the past 25 years.

And there still is a chance that the tires on your car contain rubber mixed in Eau Claire.

“That Eau Claire facility is the largest custom mixing facility in North America,” said Greg Lewis, American Phoenix’s chief operating officer.

When tire companies need more rubber because of rising demand or a breakdown along their manufacturing line, they call up the Eau Claire factory and order up batches of rubber made to their specifications.

Beyond regular vehicle tires, the company also has become a regular supplier to companies that make conveyor belts, treads for semitrailer and agricultural tires, doormats and other rubber products.

long made Uniroyal tires.

Alex Nazarenko, an entrepreneurial founder of a Twin Cities brokerage firm, had been mulling over a business pitch for recycling old tires into new rubber products when he heard about the Uniroyal Goodrich Tire Co. plant closing on the radio.

“It kind of piqued my interest,” he recalled, “and I started wondering if the equipment in the plant would be useful for what this other fella wanted to do.”

Nazarenko and fellow businessman Clem Nelson founded American Phoenix Tirecycle and settled into the former factory, which was being revamped into a multitenant building now known as Banbury Place.

But finding manufacturers interested in the recycled tire material proved challenging. Some of the material did go to China to be made into shoe soles, but the outlook for the shredded rubber was not promising.

After struggling for a couple years in tire recycling, American Phoenix dropped Tirecycle from its name and decided to use its facility for what it was originally intended for — custom mixing rubber.

The beginning

Change and growth

American Phoenix rose out of the machinery and buildings left behind by Michelin’s 1992 exodus from Eau Claire, which shuttered the productive factory that had

12 | BUSINESS LEADER ♦ April 3, 2017

American Phoenix began doing business with an Ohio tire company, selling the mixed rubber at a low price, buying time for the business to build its cash flow and

need more rubber than their own factories can supply. But grow. And it came at the right time as the vehicle tire industry the Eau Claire factory also gets business from companies that saw a swell in business. depend on American Phoenix rubber as part of their regular “As it typically happens in these stories, we became lucky supply chain. and fortunate there was a lot “Today I think we’re a of demand for custom rubber pretty balanced company mixing and we were one of between what we do for the the few guys doing that,” tire companies and the other Nazarenko recalls. industrials,” Lewis said.

In its early years as a American Phoenix custom rubber mixer, added its pre-measured American Phoenix depended chemical division in 2004, on tire companies and were providing packages of the subject to their ups and dry chemical recipes used in downs. the rubber-making process “You had some really great to other manufacturers. The years and some really tough company’s pre-weighed years,” said Lewis, who chemical packages division is joined American Phoenix 19 spread across five buildings years ago. in Kansas, Alabama, When the economy slowed Jerry Caroll, a former Uniroyal employee, guides rubber that’s been mixed once as it Oklahoma, North Carolina in 2001, Nazarenko sought to comes out of a wig-wag machine as it stacks up on a pallet. Rubber gets mixed multiple times at the factory before it is done. expand American Phoenix’s and Virginia. customer base beyond tiremakers by seeking out large industrial companies that also use rubber.

When asked about how the company reached its silver “Alex put the pressure on us to find other uses for our anniversary, American Phoenix leaders give credit to a local equipment,” Lewis said. workforce experienced in the rubber-making industry.

Tire manufacturers still go to American Phoenix when they See page 14

Uniroyal alums

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April 3, 2017 ♦ BUSINESS LEADER | 13

from Page 13 She found other work after that, but a friend then mentioned American Phoenix was hiring and Candell saw “When Uniroyal closed down we were able to hire some an opportunity to put her rubber experience to use again. key people from there,” Lewis said.

“I’m in the biz; I know what I’m looking for,” she said.

American Phoenix still has 11 workers that had been employed by Uniroyal in Eau Claire, including Jerry Carroll.

“I’ve been doing this for 47 years,” he said of making After Candell signs off on them, rows of pallets with rubber products. finished rubber piled on them sit in the loading dock, He spent 32 years of that career making Uniroyal tires — awaiting semi trucks to haul them away. in Eau Claire until the plant closed under Michelin and then They won’t have to wait long. following the job down to Tuscaloosa, Ala. The turnaround time on the loading dock is about a day, But about 15 years ago, he decided to return to Wisconsin, Eau Claire plant manager Mike Richards said, which is his birthplace, to work for American Phoenix. intentional because processed rubber does have a shelf life “I work with a lot of good people,” Carroll said during a and it starts to chemically change if it sits too long. shift in winter, adding that the pay is good too.

Shipping quickly is imperative for the Eau Claire factory He now works at a wig-wag machine, which dispenses mixed rubber in a wide strip and piles it onto a pallet. Using as it competes with others located closer to American Phoenix customers in the gloved hands, Carroll south and eastern U.S. makes sure the rubber “The fact that we have a evenly stacks up, then cuts reputation for delivering it off when the right amount on time, that’s a huge part is piled onto the pallet. to how we’re in business Then he whisks it away on today,” Nazarenko said. a forklift so it can be mixed The company’s ability to one final time before it’s produce in large volumes prepped for shipping. also keeps contracts coming For the past 18 years, from tire manufacturers.

Pat Candell, the factory’s “When they have a lead-wig wagger, has been problem with a mixer, inspecting rubber before it’s they’re not looking for 5,000 ready to be picked up and pounds, they’re looking for shipped out. She, too, is a truckloads,” Lewis said.

Uniroyal alum.

By midday, the loading dock at American Phoenix starts to fill up with rubber mixed In a slow month, about Candell proudly multiple times and prepared for shipping. Pat Candell, a former Uniroyal employee, 200 semi trucks will remembers the day she first inspects pallets of the finished rubber before it’s sent out. leave Banbury Place with walked into the Eau Claire their trailers loaded with tire factory — Feb. 11, 1970.

She’d been at Uniroyal for 19 years — bearing the occasional American Phoenix rubber products, Nazarenko said. Busy layoffs that happen in factory work — until the plant closed. months have 350 departing.

Shipping quick

The Banbury name

Why American Phoenix?

In addition to American Phoenix turning 25 in spring, Banbury Place itself will have its silver anniversary this summer.

Whereas many saw a massive, sprawling complex of empty brick buildings, businessmen Bill Cigan and Jack Kaiser saw potential in the old tire plant.

“Well, we always envisioned it would turn out the way it is — a multi-use, multi-tenant facility,” Kaiser said. “That’s what we envisioned and fortunately that’s what it turned out to be.”

Banbury Place has 155 business tenants including shops, artist studios, professional offices, food companies, woodworkers and a child care center. The biggest tenant has consistently been American Phoenix, which also keeps a link to the building’s past.

“Our name, Banbury, is part of the rubber-making industry, so we like to keep the history active,” Kaiser said. Rubber-mixing machines bearing the name “Banbury” have long been used in the factory.

When asked about the origin of the American Phoenix name, co-founder Alex Nazarenko has a few nostalgic laughs before launching into that story.

The Eau Claire factory was originally supposed to be tied in with a group of businesses centered in Phoenix, Ariz., and it was supposed to be called Phoenix American.

“It got converted in the translation and became American Phoenix,” Nazarenko said from the company’s Golden Valley, Minn., corporate offices.

While the company doesn’t have ties now to the Southwest U.S., chief operating officer Greg Lewis said the phoenix — a legendary bird with the power to rise from its own ashes — reminds him of the company’s history. Not only did it start in a shuttered factory, American Phoenix also had to remake its own business numerous times.

“It was very apropos in a lot of ways,” Lewis said of the name.

14 | BUSINESS LEADER ♦ April 3, 2017

CENTURY OF RUBBER

• This year marks the 100th anniversary of production starting at Eau Claire’s tire factory. On May 23, 1917, the first tire rolled off the production line at Gillette Safety Tire Co. Bill Pratt watches an automated line that precisely measures dry chemicals used in rubber mixing for the Eau Claire plant. American Phoenix has several other facilities that sell bags of chemical mixes to other rubber manufacturers in the U.S.

Early in its first incarnation as a tire recycling startup, the company employed 20 with hopes to grow to 40 workers, according to a November 1993 Leader-Telegram article.

American Phoenix now employs 180 workers at the Eau Claire factory – about half the company’s workforce with the rest spread across the five pre-packaged chemical facilities.

Contact: 715-833-9204, andrew.dowd@ecpc.com, @ADowd_LT on Twitter

BIG AT BANBURY

• American Phoenix is the largest tenant of Banbury Place, occupying 630,000 square feet in buildings 3, 3X, 5 and 7.

“We have half of the usable space,” plant manager Mike Richards said.

The entire Banbury Place complex has about 1.9 million total square feet, but some areas are only used for storage and one building is luxury apartments.

HISTORIC DAY

• When Michelin announced in January 1991 that it would close the Uniroyal tire factory in Eau Claire, there were 1,358 employed there at the time. The final day of operation was June 26, 1992.

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April 3, 2017 ♦ BUSINESS LEADER | 15

FEATURE STORY

Filling his shoes Staff photo by Marisa Wojcik After 23 years on the job, Bob McCoy will soon step down as president and CEO of the Eau Claire Area Chamber of Commerce. McCoy stands in front of the Haymarket Landing building, one of the downtown revitalization projects that happened during his tenure as leader of the local business organization..

Eau Claire Area Chamber of Commerce looks back on Bob McCoy’s tenure

By Eric Lindquist, Leader-Telegram staff

F

or 23 years, Bob McCoy has been sporting size 8 dress shoes as he pounded the pavement on behalf of the Eau Claire business community.

While that may not seem particularly large, local business leaders insist his successor as president and CEO of the Eau Claire Area Chamber of Commerce will indeed have very big shoes to fill.

McCoy, 69, announced last August his intention to retire June 2.

“Bob’s going to be a tough act to follow,” said Tim Benedict, owner of Benedict Refrigeration Service, who took over as chairman of the chamber’s board of directors on April 1. “After 23 years of running our organization, he’s turned it into a well-oiled machine.”

That attitude seems to be widespread among those who have worked with McCoy. A measurable sign of the success of his leadership is that chamber membership grew from about 600 businesses and organizations to almost 1,250 on his watch, said Dave Johnson of E.O. Johnson Business Technologies, who just finished his term as chamber chairman.

“Bob has just done a tremendous job,” Johnson said.

“You can’t replace a guy like Bob.” And yet that’s exactly what a chamber search 16 | BUSINESS LEADER ♦ April 3, 2017

committee, headed by former chamber chairman Mark Faanes of Wipfli, is tasked with doing.

“The committee looks at it like we have one of the best chambers in the country, so it’s a good situation for whoever comes in,” Faanes said. “We’re hoping to find someone who can keep the momentum going.”

The quality of the 40 candidates from across the country who applied for the chamber president position suggests the chances of that happening are pretty good, Faanes said.

“It’s kind of unbelievable the people who applied for this job,” Faanes said, noting that the committee and a Twin Cities consultant are in the process of winnowing down the slate of candidates to a few finalists.

The goal is to select a new leader by early April and have that person start June 1.

Growth agenda

Benedict, also a member of the search committee, said the chamber attracted some “awesome candidates” and expressed confidence the 103-year-old organization’s new leader, with the help of its excellent staff, will be able to continue the momentum generated under McCoy. “We don’t expect them to be Bob McCoy,” Benedict said. “We hope they have their own new visions. We’re

looking for someone to step in and take us to the next level.”

One new point of emphasis may be expanding the chamber’s social media presence, in part to help the group further connect with millennials, Benedict said, noting that McCoy had his own success luring young business people into the chamber’s fold through starting a Young Professionals group.

The chamber subgroup, launched in the early 2000s, has grown to about 420 people and offers an outlet for young business people to work on professional development, community service and networking.

The chamber also took ownership of the Chippewa Valley Rally during McCoy’s tenure. The annual event brings nearly 100 people from the Chippewa Valley to Madison to generate awareness of the region and bring its concerns among state legislators.

“Our intent was to go to Madison and get the Chippewa Valley as well known as the Fox Valley, and we obviously did that,” McCoy said. “We’re not there to beg for money, but we want them to know our priorities.”

McCoy also steered the local chamber through three fivestar accreditations — an accomplishment designated by the U.S. Chamber of Commerce for meeting specific quality measures. Only about 100 of the roughly 7,000 chambers in the country have achieved that status.

Staff photo Among those cutting the ribbon for the U.S. 53 bypass in June 2005 was McCoy and then-Gov. James Doyle.

Man of a mission

McCoy had been leading the chamber in Albert Lea, Minn. – his third such post in 14 years – when a board member from the Eau Claire business group approached him about a job.

Prior to applying for the job to lead Eau Claire’s chamber, he didn’t even know where the city was.

He’s gotten to know it much better in the more than two decades since, but one thing that didn’t change was his mission for the chamber.

“Our whole objective is to have a community where businesses have the opportunity to be successful,” he said.

That has meant everything from successfully fighting a proposed city ordinance banning electronic signs to promoting quality of life amenities such as the Confluence Project that he believes will make the community a more desirable place to live.

In pursuit of that simple goal, McCoy hasn’t been above making sacrifices or getting a little silly on behalf of local businesses.

“Bob has always been a team player in every aspect,” said Cheri Weinke, the organization’s communications and operations director. “He Suits in all price ranges asks for input from staff, listens to wild and crazy Hart Schaffner Marx Suits from $695 ideas for new projects Made in USA and even shovels the sidewalk and makes Hardwick Suits from $495 Made in USA coffee at Breakfast in the Valley at 3 a.m.”

S. Cohen Suits from $595 Made in Canada Weinke also appreciates the sense Other brands from $225 Imported of humor with which McCoy approaches his Muldoon’s Men’s Wear role.

1506 S. Hastings Way Eau Claire, WI 54701 “He has been www.muldoons.com known to dress up as 715-832-3502 a cheerleader, have his face on posters as a leprechaun or 007, and shaved off his mustache — all for the sake of promoting the chamber,” Weinke said.

Respected voice

Beyond his ability to lighten the mood, McCoy has earned a serious reputation as the voice of business in the Eau Claire area, Weinke said.

“When Bob speaks about an issue involving a local business issue, people listen,” she said. “His knowledge about local issues and the impact on business is extremely respected.”

Faanes agreed, adding that the strides made by the chamber and the community on McCoy’s watch See page 18 April 3, 2017 ♦ BUSINESS LEADER | 17

from Page 17

undoubtedly played a role in helping the chamber attract such a strong slate of candidates seeking to lead the group.

The candidates viewed Eau Claire as a city on the rise.

Perhaps nothing symbolizes the community’s recent progress better than the venue where he will hold his retirement party on June 1.

It’s the same downtown hotel where he stayed the night he was hired more than two decades ago, but “about $20 million later,” he said.

Formerly the dilapidated Ramada Convention Center, the eight-story building has recently been completely renovated and turned into The Lismore, a sparkling centerpiece of downtown’s revitalization.

Other prominent examples of downtown’s renaissance that McCoy mentioned were the creation of Phoenix Park on an old industrial site, the building of a new chamber headquarters and the development of Haymarket Landing and the adjacent Confluence Arts Center on a spot at the confluence of the Eau Claire and Chippewa Rivers previously occupied by a few ramshackle old buildings and a run-down parking lot.

Downtown’s revitalization is a legacy in which he’s proud to have played a role.

“It’s kind of exciting to step back and watch that all happen and know that you have been a part of it,” McCoy said. “But it’s certainly not just me; it takes thousands of people to make that kind of thing happen.”

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As for McCoy personally, although he knows he will miss his day-to-day involvement with local businesses, he plans to stay involved in the community.

And he is looking forward to more opportunities to slip on his golf spikes instead of those dress shoes.

Contact: 715-833-9209, eric.lindquist@ecpc.com, @ealscoop on Twitter

Eau Claire chamber leaders 1994-present: Bob McCoy, president and CEO.

1987-93: Brenda Blanchard, executive vice president/​president.

1981-87: Stephan Vegoe, executive vice president.

1973-80: Wayne Gossman, executive vice president.

1967-73: Vern Enwald, executive vice president.

1950s-1967: Kenneth Eslinger, executive secretary.

1940s: Paul Jensen, executive secretary.

Before the 1940s, the chamber had no paid staff and was led only by its board of directors.

— Source: Eau Claire Area Chamber of Commerce

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April 3, 2017 â&#x2122;¦ BUSINESS LEADER | 19

BOOK REVIEW

Bailing out clutter Organization advice emphasizes attainable, sustainable order, not an immaculate ship-shape undertaking

Title: “Organized Enough.”

Author: Amanda Sullivan.

Pages: 229.

Publisher: DaCapo Lifelong (c.2017)

By Terri Schlichenmeyer The Bookworm

run out? Will it go up in price?) and your paper pile, it’s time to set good habits – starting with inventory. What’s in your supply room? You’ll never overbuy, if you know.

Make time to organize, even if it’s just a minute; and always make “a last sweep” before lights-out so you don’t start the day with a mess.

Limit new purchases, “buy less but better,” and remember that nobody’s ever perfect.

“What we want,” Sullivan said, “is joy… and to know where we put the car keys – and those things, my friends, are within your grasp.”

So you say you don’t remember what color the top of your desk is. The corners of your workspace are piled with boxes. Get a pen – there’s one somewhere in that mess – and write down “Organized Enough.”

Chances are, you’ve been down this very unkempt road before and might ask what makes this book different from several thousand others on the subject. Unlike many others, author Amanda Sullivan isn’t proposing that you keep everything 100 percent ship-shape. She only aims to help the ship stay afloat with fewer items in the cargo hold and an unobstructed captain’s chair.

That means no guilt, no pressure, use the advice that’s applicable, discard what’s not, no problems. And if that’s what it takes, then this book is what you need. “Organized Enough” might just work for you.

The Bookworm is Terri Schlichenmeyer. Terri has been reading since she was 3 years old and never goes anywhere without a book. She lives on a hill in Wisconsin with two dogs and 15,000 books.

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You know exactly where Monday’s report is.

That, of course, doesn’t mean anybody else could find it.

You put that report in a safe place in your office, which is organized to work for you. But is it really organized, or is it just a mess?

Admit it: It’s probably the latter, and nobody’s perfect. But with “Organized Enough” by Amanda Sullivan, you might find a perfect solution.

You promised yourself on Jan. 1 that you’d keep your office clean and your desk clear. Same with your home: Who needs ten blue sweaters or eight pairs of black shoes, anyhow? First of the year, you were going to become a neatnik.

But of course, that’s “not sustainable,” Sullivan said. You set yourself up for perfection (and therefore, failure) when you should strive instead for “organized enough.”

The first step, she said, is to “Go with the FLOW.” Forgive yourself for the things you impulsively bought or wasted money on. Understand that you can “Let stuff go,” starting with one small corner and 10 minutes’ time. Throw things into the trash, donate other items, pay attention to unnecessary duplicates within a given category and keep working; it might actually feel good! Then Organize what’s left and set up a time to keep Weeding on a regular basis.

Working on FLOW may inspire you, but don’t “move too fast.”

You want to make good decisions, not hasty ones, which could backfire. Remember that storage containers are not your friends but someone with fresh eyes is, so invite a trusted pal over to help you see things anew.

Once you’ve let go of your fears (Will I have enough? Will I

20 | BUSINESS LEADER ♦ April 3, 2017

April - June April 12: “Do you need a board of directors?” presentation sponsored by Musky Tank, 6:30-8 p.m., K Point Brewery, 4212 Southtowne Drive. Cost: Free. Info/register: muskytank.com.

April 13: “Lead true, live your values, build your people, inspire your community” presentation by retired Gundersen Health System CEO Dr. Jeff Thompson, 11:45 a.m.-1 p.m., Eagles Club, 2588 Business 53, Lake Hallie.

Cost: Free. Info/register: leadingwithpower.org/lake-hallie.

April 19: “Microsoft Outlook: Integrated Time Management” course, 8 a.m.-noon, Room 103, CVTC Chippewa Falls Campus, 770 Scheidler Road, Chippewa Falls. Cost: $89. Info/register: tinyurl.com/j56vcoa.

April 19: “Business Words at Work” course on writing in the workplace, 8:30 a.m.-3:30 p.m., Room 144B, CVTC Business Education Center, 620 W. Clairemont Ave. Cost: $99. Info/register: tinyurl.com/j56vcoa.

April 20: Chippewa Valley Technical College’s Energy Open House, 4-7 p.m., Energy Education Center, 4000 Campus Road. Info/register: cvtc.edu/ events/energy-open-house.

April 20: “Small Business Budgeting Basics,” 6-8 p.m., Western Dairyland Community Action Agency, 418 Wisconsin St. Cost: $29 regular, $10 with scholarship. Info/register: SuccessfulBusiness.org.

April 25: “Connecting to Customers through Social Media” seminar, 11:30 a.m.-1 p.m., Room 54, Community Service Building, 3001 U.S. 12 East, Menomoine. Cost: Free. Info/register: Call Cathy VanDong at 715-386-9050 or email cvandong@csbnet.net.

April 25: “Lunch & Learn: Mobile Apps for Productivity,” noon, Eau Claire Area Chamber of Commerce, 101 N. Farwell St. Cost: $20 for chamber members, $40 nonmembers. Info/register: eauclairechamber.org or call 715-834-1204.

April 25: “Start a Small Business in Eight Steps” class, 9 a.m.-noon, Western Dairyland Community Action Agency, 418 Wisconsin St. Cost: $29 regular, $10 with scholarship. Info/register: SuccessfulBusiness.org.

April 26: “Office Personnel Seminar,” 8 a.m.-4 p.m., CVTC Business Education Center, 620 W. Clairemont Ave. Cost: $80 public, $25 CVTC students, $40 CVTC faculty/staff. Cost includes meals.

Info/register: tinyurl.com/j56vcoa.

Chris Becker April 27: “Microsoft Word Intermediate (Productivity Features)” class, 8 a.m.-noon, Room 222, CVTC Business Education Center, 620 W. Clairemont Ave. Cost: $89. Info/ register: tinyurl.com/j56vcoa.

April 27: Government contracting for women-owned businesses class, noon-3 p.m., Western Dairyland Community Action Agency, 418 Wisconsin St. Cost: Free. Info/register: Call Kim Garber at 608-444-0047 or email kimg@wispro.org.

May 3: “ISO 9001 — 2015 Transition Strategies for Your Welcome home to historic Organization” seminar, 8 a.m.-4:30 Chippewa Falls. Enjoy miles of p.m., UW-Stout, Menomoine. Cost: walking and biking trails, $219-$269, depending on number ponds, fountains, acres of of attendees from an organization. parks, sport court and more, Register/info: uwstout.edu/ with the advantage of choice profed/iso/Transition.cfm. convenience and preferred serenity.

May 4-5: “HR Management for Non-HR Mangers” course taught Call Chris Becker at through UW-Eau Claire, 8:30 a.m.715.308.4722 to learn more.

4 p.m., Holiday Inn South, 4751 Owen Ayres Court. Cost: $600. www.CandMRealEstate.com 827290 4-3-17 Info/register: ce.uwec.edu.

CALENDAR May 10: Annual Working Mothers Luncheon, noon, Eau Claire Golf & Country Club, 828 Club View Lane, Altoona. Cost: $25 for chamber members, $45 nonmembers. Register at eauclairechamber.org or call 715834-1204.

May 11: “Lessons in Leadership” presentation by John McHugh of Kwik Trip, 11:45 a.m.-1 p.m., Eagles Club, 2588 Business 53, Lake Hallie. Cost: Free. Info/register: leadingwithpower.org/lake-hallie.

May 11: “LinkedIn 101” class, 8 a.m.-noon, Room 222, CVTC Business Education Center, 620 W. Clairemont Ave. Cost: $89. Info/register: tinyurl. com/j56vcoa.

May 11: “Strengths Based Leadership” hands-on class and assessment, 8 a.m.-noon, Room 103A, CVTC Business Education Center, 620 W. Clairemont Ave. Cost: $189. Info/register: tinyurl.com/j56vcoa.

May 18: “Speaking the Language: Preparing to Talk to a Commercial Lender” presentation, 6-8 p.m., Western Dairyland Community Action Agency, 418 Wisconsin St. Cost: $29 regular, $10 with scholarship. Info/ register: SuccessfulBusiness.org.

June 1-2: “Employee Evaluation and Performance Management” course taught through UW-Eau Claire, 8:30 a.m.-4 p.m., Holiday Inn South, 4751 Owen Ayres Court. Cost: $600. Info/register: ce.uwec.edu.

June 15: “Understanding Fundamental Business Financial Statements” class, 6-8 p.m., Western Dairyland Community Action Agency, 418 Wisconsin St. Cost: $29 regular, $10 with scholarship. Info/register: SuccessfulBusiness.org.

June 20: “Business Plan Basics” class, 6-9 p.m., Western Dairyland Community Action Agency, 418 Wisconsin St. Cost: $29 regular, $10 with scholarship. Info/register: SuccessfulBusiness.org.

June 22-23: “Recruiting and Retaining Top Performers” course taught through UW-Eau Claire, 8:30 a.m.-4 p.m., Holiday Inn South, 4751 Owen Ayres Court. Cost: $600. Info/register: ce.uwec.edu.

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827183 04-03-17

April 3, 2017 ♦ BUSINESS LEADER | 21

- Guest Article -

“WBE” Why is it important to you?

By Emilu Starck – Ruder Ware, LLSC Are you a woman entrepreneur looking to launch a new business or maybe an established women business owner eager to grow your business? If so, you may want to consider obtaining certification as a Wisconsin Woman-Owned Business Enterprise (“WBE”). Unlike some certifications where the return may not be worth the investment of taking the time to fill out the application, obtaining WBE certification may create exciting new business opportunities that can really boost your company’s bottom line and give your company an advantage in the marketplace.

WHAT IS IT?

The state of Wisconsin has created a program that provides woman-owned businesses with a credible certification process that validates their business ownership. In 2006, the Wisconsin Legislature enacted a bill that required the Wisconsin Department of Administration “to develop, maintain, and keep a computer database of businesses in the state that are owned by women, containing demographic statistics and information on the types of industries represented, sales volume and growth rates, generation of jobs by both new and existing businesses, and any other relevant characteristics.” Businesses that wish to participate in the program must be certified by the Wisconsin Department of Administration through an application process. Wisconsin Administrative Code Chapter 83 sets forth the criteria and procedures for certification, certification renewal, recertification, and decertification of woman-owned businesses.

HOW DO I OBTAIN CERTIFICATION?

In order to obtain WBE certification, a business must meet the following minimum core requirements: • Be at least 51% owned, controlled, and actively managed by women group members (this could be just one woman).

• Currently performing a “useful business function” in the state of Wisconsin.

• The woman owner(s) must have owned the business as a 51% owner for at least one year.

• Pay a $150.00 application fee made payable to the Department of Administration.

However, the process is not this simple. In addition to these four absolutes, a successful applicant must also register and complete a lengthy application, including providing detailed business information and submitting various supporting documents. All businesses must submit the following documents, as applicable: 22 | BUSINESS LEADER ♦ April 3, 2017

• Proof of ethnicity and citizenship for each owner, such as birth certificates, green cards, passports, tribal memberships, etc.

incomplete when submitted or if there are questions or requests for additional information, this timeframe can be delayed. Sometimes, an on-site visit is even required.

• Current bank signature cards for business account(s) including depository and borrowing resolutions.

WHY SHOULD I OBTAIN CERTIFICATION?

• Business tax returns for the past three years.

• List of major capital assets, such as property, office/facilities, equipment, vehicles, etc.

• Current business financial statements (profit and loss statement and balance sheet).

• Leases and other third-party agreement(s), such as working arrangements with other firms, supplier/distributorship agreements, rental leases, etc.

• Three samples of evidence of revenue for firm, such as completed-signed contracts, receipts, invoices, etc.

• Evidence of certification with a MBE, WBE, or DVB certifying entity.

Although compiling the necessary documentation and submitting the application may be lengthy and frustrating, obtaining WBE certification can be worth the challenging process. Many public corporations as well as local, state, and federal government purchasing or procurement agencies are incentivized or have programs for allotting a certain percentage of business to womenowned companies. Therefore, getting certified as a WBE may present opportunities to land a project that were not previously available or make the difference between landing a project or not. Certification on its own does not guarantee additional business, but when combined with strategic marketing it can help grow your business.

In addition to Wisconsin certification, there are also processes to obtain women-owned certification in other states and some certifications are more nationally recognized. If you believe that obtaining WBE certification could give your business the advantage that you are looking for, please contact us for additional information.

• Relevant license and permits.

• Resumes/biographies of owners and potentially key employees outlining business experiences.

• Assumed name documents (d/b/a or a/k/a).

Depending on what type of business entity you are (e.g., a corporation or a limited liability company), there are additional documents that must be submitted.

Fortunately, the Department of Administration has a secure application website that makes submitting applications and uploading supporting documentation a smoother process. Certification generally takes between four to six weeks. However, if an application is

Emilu Starck, Ruder Ware, L.L.S.C.

827180 04-03-17

BY THE NUMBERS

$76.1 billion

in spending proposed by Gov. Scott Walker’s budget proposal for 2017-19.

32

$203.5 million

Gander Mountain stores, including one on Eau Claire’s south side, are closing as the outdoor goods retailer files for bankruptcy and plans to put the privately owned company up for sale.

state income tax cuts in the next biennium under Walker’s budget proposal.

1.12 million

square–foot building planned in Chippewa Falls for new Mills Fleet Farm distribution center in Lake Wissota Business Park.

3.7%

unemployment rate reached in Wisconsin in February based on U.S. Bureau of Labor Statistics figures — the lowest it’s been since November 2000.

FIERCELY FOCUSED >

I NEED MY CPA FIRM TO UNDERSTAND AND FOCUS ON MY BUSINESS. Talk to Wipfli. We can offer you the industry expertise and breadth and depth of resources of a national firm, but the focus you expect from a local firm. From audit and tax services to a wide range of information technology and business consulting services, Wipfli will provide customized solutions that align with your goals and needs. As a firm that has served businesses in the Chippewa Valley since 1921, we are committed to your success and the success of our business community. Contact Wipfli today to see how we can put the power of our focus to work for you.

Eau Claire Office: 715.832.3407

wipfli.com 827457 4-3-17

April 3, 2017 ♦ BUSINESS LEADER | 23

Your Business. Better.

At EO Johnson we’re powered by relationships. Partnerships with customers, vendors, and each other that drive business solutions to help you achieve your vision.

844.365.4968 | eojohnson.com

Kevin Nolan Human Resources Manager Cardinal FG

“ We had too much paper, and it was time to take a serious look at Document Management.

EO Johnson made this easy. We added a high volume scanner to our lease and purchased the document management software. Everything is on one invoice including all supplies. One vendor, one invoice — that saves time on our part.

”

— Kevin Nolan, Human Resources Manager – Cardinal FG Cardinal Glass develops residential glass for windows and doors. They have 32 manufacturing locations throughout the U.S. and over 5,000 employees. Locally, they have a glass manufacturing facility in Menomonie, WI. 827174 4-2-17