Business Intelligence for the New North
more meetings more BU SINESS Attracting bigger meetings drives convention site expansion boom across Northeast Wisconsin When the familyâ€™s legacy ends Family Business Capitol campaigns Elections
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Business Intelligence for the New North
October Features 20
Candidates for the 6th & 8th Congressional districts weigh in on issues important to business
20 COVER STORY
More meetings, more business
Attracting bigger meetings drives convention site expansion boom
Building brands, making customer connections
Commitment to sponsorships yields an array of benefits for area firms
30 FAMILY BUSINESS
Some businesses face a myriad of challenges when thereâ€™s no next generation to carry on
From the Publisher
5, 36 Professionally Speaking 6
Since We Last Met
14 Build Up Pages 38 Whoâ€™s News 42 Business Calendar 44 Advertiser Index 45
From the Editor
46 Key Statistics
NNB2B | October 2014 | 3
From the Publisher
Waiting to hear from Madison Potential change in technical college funding could put Wisconsin businesses at a disadvantage by Sean Fitzgerald, New North B2B publisher
No one likes to pay taxes. But it does matter how much and where we pay our taxes. The U.S. was founded on the premise that paying some taxes to local governing entities – and not all to a central government – helped ensure some measure of local control over local issues. Centralizing tax revenue and the authority associated with distributing those funds often leads to neglect for serious matters requiring emergency solutions in outlying areas. An ill-conceived measure in 2013 to remove all technical colleges in Wisconsin from the property tax levy and have the entire statewide system funded out of Madison seems to be making its way to the legislature in early 2015 with little input from critical stakeholders across the state. An idea hatched by two northeast Wisconsin legislators – Rep. John Nygren (R-Marinette) and retiring Rep. Garey Bies (R-Sister Bay) – the concept is now under discussion through a specially appointed Legislative Council Study Committee on the Review of Wisconsin Technical College Funding and Governance. This group is tasked with making a recommendation to the state legislature by January, when newly elected officials are seated. But there’s been little opportunity for discussion during the three meetings this special committee, chaired by Rep. Nygren, held to this point. Daylong and half-day sessions fill the agenda with various presentations on the perceived advantages of centralizing technical college revenue collections, governance and decision-making authority from Madison. Such a change poses a serious threat to our local economy, as well as that of other regions across the state. Why? Providing quick, effective solutions to a community’s sudden workforce challenges has undoubtedly become a hallmark of Wisconsin’s statewide technical college system. Dividing the state into 16 districts funded through a modest property tax levy on neighboring property owners, these institutions understand the specific dynamics of the communities they serve, and stand ready to assist employers with workforce demands that require immediate training rather than a longer-term, 3- to 5-year plan. A handful of examples from the region are the North Coast Marine & Manufacturing Training Center in Marinette created by Northeast Wisconsin Technical College in order to train hundreds of new employees after Marinette Marine received its multi-billion contract to build littoral combat ships for the U.S. Navy; the Advanced Manufacturing Technology 4 | October 2014 | NNB2B
Center constructed by Fox Valley Technical College in Oshkosh to provide welding training to Oshkosh Corp. employees after earning its eight-figure defense contract; and the welding boot camp program developed by Moraine Park Technical College in Fond du Lac to provide basic welding skills to inexperienced workers for job opportunities with companies like Brenner Tank in Fond du Lac in as little as 13 weeks. Plenty of other examples exist as well. Fox Valley Tech sprung to the occasion last year to help Appleton-based Pierce Manufacturing Inc. re-train electricians at its fire truck and ambulance refurbishing facility in Weyauwega, said Steve Kohler, director of human resources for Pierce and one of 10 citizen appointees to this special legislative committee. With an immediate need for industrial-level electrical training to meet customer demand, Kohler said Fox Valley Tech crafted a course specifically tailored to high-test electrical work on specialty vehicles. The training helped address concerns that otherwise might have compromised the quality of Pierce’s product, not allowed the company to deliver the product to its customer as expected, and placed employees’ safety in potentially life-threatening situations. “Standing in line in Madison with all the other businesses around the state waiting for a handout (for similar workforce training) may have taken a year,” Kohler said, explaining the potential for a slow-moving, bureaucratic paradigm that would eventually put Wisconsin employers at a disadvantage to their competitors. Fox Valley Technical College President Susan May also serves on this special legislative committee, and noted everything her institution does – for its students and for area business – boils down to customer focus. “I don’t want our customer to be state legislators, or a state-run board, in regard to telling me what we can and can not do,” May told B2B in early September. “It doesn’t benefit our local region if these decisions come out of Madison.” One other northeast Wisconsin representative appointed to this special 10-person legislative committee, Fond du Lac County Executive Allen Buechel, said he’s open to listening to arguments for alternative funding and alternative governance for technical colleges, but emphasized any recommendation must include some authority for technical colleges to determine an effective response to local workforce needs. While honored with a strong sense of duty to serve on this special committee, Kohler from Pierce said local businesses and communities gratefully invested in their local technical colleges for the past 103 years. “What’s broken? What are we trying to fix?” Kohler asked.
Unemployment Insurance Benefits – Employer practices
If you have a particular labor/employment law question, forward it to Mr. Renning at firstname.lastname@example.org. If he responds to your email in a future issue, your name and company will be withheld to preserve your privacy. Professionally Speaking is a paid promotional spot in B2B.
by Tony Renning of Davis & Kuelthau, s.c. 920.232.4842 Reader Question: In light of the changes to the eligibility requirements associated with Unemployment Insurance benefits, what should employers be doing?
Tony Renning: 2013 Wisconsin Act 20 made a number of changes with respect to an individual’s eligibility for Unemployment Insurance benefits. Most significantly, the Department of Workforce Development will now consider a two-tier standard for disqualifying claimants who are discharged. First, a claimant may be disqualified if he/ she is discharged for “misconduct” connected with employment (a violation of written policies concerning alcohol; theft; conviction of a crime on or off duty if conviction makes it impossible to perform his/her duties; harassment, assault or physical violence; absenteeism; falsifying business records and violation of state or federal regulations). Accordingly, employers should adopt and disseminate written policies that clearly state the employer retains the authority to
Sean Fitzgerald Publisher & President email@example.com Larry Avila Editor firstname.lastname@example.org
discharge an employee due to, for example, alcohol use and/or possession at work; theft of the employer’s property, absenteeism, falsifying time cards, etc. Second, a claimant may also be disqualified if he/she is discharged for “substantial fault” connected with employment. Substantial fault arises when an employee violates a requirement of the employer but the violation does not rise to the level of “misconduct.” Substantial fault does not include: minor violations of rules unless the employee repeats the violation after warning; unintentional mistakes made by the employee or not performing work because the employee lacks skill, ability or was not supplied the equipment. Accordingly, employers should routinely document all violations of work rules and retain the documentation in order to demonstrate that an employee was discharged for repeated violation of work rules after counseling/warning. Finally, Wisconsin law previously allowed benefits for claimants who quit if their circumstances fell within certain exceptions. A number of those exceptions no longer exist. Accordingly, only if an employee quits his/her
job and the employee’s reason for quitting is covered by a statutory exception will he/she still be eligible for benefits. If an employee quits and the reason is no longer covered by a statutory exception, the employee is ineligible until he/she re-qualifies for benefits. Accordingly, employers should document their conversations with employees who voluntarily quit as well as maintain any documentation submitted by the employee. For advice and counsel concerning labor and employment law issues and, specifically, issues related to Unemployment Insurance benefits, contact Tony Renning at (920) 232-4842 or email@example.com or any other member of the Davis & Kuelthau Labor and Employment Team. Tony Renning is a shareholder with Davis & Kuelthau, s.c. Mr. Renning provides counsel to private and public sector employers on a wide variety of labor and employment law matters. This article is intended to provide information only, not legal advice. For advice regarding a particular employment situation, please contact a member of the Davis & Kuelthau, s.c. Labor and Employment Team.
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Fond du Lac
NNB2B | October 2014 | 5
Since We Last Met
Since We Last Met
Since We Last Met is a digest of business related news occurring in the Greater Green Bay, Fox Cities, Oshkosh and Fond du Lac areas in the one month since the previous issue of New North B2B.
August 20 Oshkosh medical packaging manufacturer Perfecseal is moving forward with plans to build a $14 million, 110,000sq. ft. addition later this year after receiving a $2 million tax incremental finance package from the Oshkosh City Council. Perfecseal, a division of Neenah-based Bemis Co., indicated it plans to create 160 jobs as part of the expansion, nearly doubling the 161 positions already employed by the manufacturer of custom medical packaging. Those jobs include 130 in production and 30 management positions.
August 21 Neenah-based Plexus Corp. opened a new manufacturing facility in Guadalajara, Mexico. The company invested nearly $40 million to develop the 265,000-sq. ft. facility, which could employ as many as 740 people when at full capacity.
August 26 The state Department of Transportation approved a $3.3 million project to improve the Mason Street Bridge crossing the Fox River in downtown Green Bay. Work includes installation of a new barrier gate system, updating existing lift bridge controls, electrical system components, and installing cameras to assist in lift bridge operations. Work began in early September and will be completed by April 2015.
August 27 Lawrence University in Appleton, Ripon College and the University of Wisconsin-Green Bay were among 40 colleges and universities selected across Wisconsin, Iowa, Minnesota and Ohio to share in $5.2 million in grants from the Great Lakes Higher Education Guaranty Corp. Lawrence, Ripon and UWGB each received $150,000 to create new paid internships and convert existing unpaid internships into paid opportunities. The latest grant round will fund more than 2,000 paid internships. The program was piloted during the
2009 October 20 - The Winnebago County Board of Supervisors approved a $3.9 million proposal to purchase the nearly vacant downtown Oshkosh Bâ€™Gosh buildings and remodel the three-building complex for county administrative offices. Overcrowded offices at existing county buildings lead to the search for additional space. 2002 October 17 - University of Wisconsin Board of Regents approved a $990,000 project to upgrade and remodel the University of WisconsinOshkosh Kolf Sports Center. 2005 October 14 - Alliance Laundry Systems of Ripon announced 250 new jobs will be created following the closing of its Marianna, Fla. plant and the loss of 400 jobs there. The 200 hourly and 50 salaried jobs are expected to be filled by the third quarter of 2006. 2007 October 3 - Kimberly-Clark Corp. determined it will cease production at its Lakeview Diaper Plant on Dec. 7 after announcing in early 2006 that it would close the Neenah plant by the end of 2007. The plant currently employs just more than 200 employees, almost all of who will be laid off when the plant shuts down.
6 | October 2014 | NNB2B
2011 October 15 - United Auto Workers Local 578 ratified a five-year labor agreement with Oshkosh Corp. after several weeks of negotiations and two previously failed votes. The new agreement provides an 8.5 percent wage increase during the next five years and eliminates the companyâ€™s options to hire temporary workers, which had been a critical component of the negotiations. 2012 October 10 - Officials from Ministry Health Care announced plans for a $108 million improvement project at St. Elizabeth Hospital in Appleton, which includes construction of a five-story, 90-bed tower; renovations to the cancer center; renovations to the adolescent behavioral health unit; demolition of the west part of the hospital built in 1924; new entrances to the women and family center and surgical procedure area; upgrades to the central utility plant; and new diagnostic and operative equipment. The projects are expected to be completed by January 2015. www.newnorthb2b.com
2013-14 academic year, allowing juniors and seniors from 19 colleges and universities in Wisconsin to gain real-world experience in their field of study.
August 28 The state Department of Revenue reported Wisconsin tax collections were $281 million, or nearly 2 percent, short of estimates projected by the Legislative Fiscal Bureau this past January. The bureau estimated the state would collect about $14.2 billion, but the unaudited total for the fiscal year ending June 30, 2014 came in at $13.9 billion. The state will release its final audit report on Oct. 15.
September 2 The state Department of Commerce reported exports from Wisconsin supported 126,147 jobs in the state during 2013. The top exporting categories for Wisconsin included machinery, computer and electronic products, transportation equipment, food and kindred products, and chemicals.
September 3 Alta Resources indicated it had more than 400 partand fulltime positions to fill at its Neenah headquarters.
The company held a job fair in August but still had open positions in customer care; inside sales, including licensed health insurance sales; technology and back office support; fulfillment; and leadership roles.
September 3 National Exchange Bank & Trust in Fond du Lac launched a loan program to encourage investment in downtown Fond du Lac. The program will provide funds for qualified business and property owners within the downtown business improvement district at a below-market interest rate, ranging between $10,000 and $50,000, with special consideration for larger projects. Loan terms will range between three and five years, with a 20-year amortization to be determined by project purpose, use of funds and collateral.
September 3 Community Memorial Hospital in Oconto Falls joined Illinois-based Hospital Sisters Health System, which also operates St. Vincent Hospital and St. Maryâ€™s Hospital Medical Center, both in Green Bay. In making the announcement, hospital officials also announced the Oconto Falls facility would be renamed HSHS St. Clare Memorial Hospital. The hospitals work in partnership with Prevea Health, the Green Bay-based physicians and medical services group.
NNB2B | October 2014 | 7
Since We Last Met
September 3 The Appleton Common Council approved a $20 wheel tax, which will be charged to vehicles registered and kept in the city beginning in 2015 to help pay for street reconstruction projects. The city has discussed the issue since mid-summer after residents were critical of its special assessments policy, which charged property owners for part of the cost if a road adjacent to their property needed replacing. The state reports 85,657 cars are registered in Appleton, which means the tax could generate about $1.7 million annually. Other Wisconsin municipalities charging a wheel tax include: Beloit, $10; Janesville, $10; Milwaukee, $20; and St. Croix, $10.
September 4 Exel Inc., a logistics services provider, reported to the state Department of Workforce Development plans to close its Green Bay facility at 3388 E. Mason St. by Oct. 31, eliminating 52 jobs. Those jobs include seven managerial positions and 45 support roles.
September 6 One worker suffered minor burns after an explosion blew out the exterior panels of a boiler building and its interior cinder block walls causing up to $100,000 in damage at Expera Thilmany Mill in Kaukauna. Expera said the mill was conducting a planned annual boiler shutdown when a malfunction occurred. Company officials said the rest of the facility suffered no major structural damage and normal operations resumed Sept. 7.
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September 8 Innogistics LLC, a provider of logistics support services, will close its operations at 3388 E. Mason St. in Green Bay by Oct. 31, effectively laying off 40 employees. In a letter to the state Department of Workforce Development, the company said the move was prompted by Exel Inc.â€™s decision to close its operations at the same location, which was its primary customer. Innogisticsâ€™ closure will affect 40 jobs, including four on-call positions, three salaried and 33 hourly workers.
September 11 The Port of Green Bay reported cargo handled by the port in August totaled 185,215 tons, down 5 percent from August 2013. Year-to-date, the port has handled 1.3 million tons of cargo, up 10 percent over the same period a year ago. Port officials said 19 ships used the port in August, the same number as in August 2013.
September 16 A collaborative effort between ThedaCare of Appleton and Bellin Health in Green Bay to deliver more efficient care along with improved patient outcomes ranked first in www.newnorthb2b.com
the nation among 23 participants involved in the Pioneer Accountable Care Organization Model in 2011, an initiative created through the Patient Protection and Affordable Care Act. During the past year of the initiative, Bellin-ThedaCare HealthCare Partners’ efforts resulted in $3.2 million in savings, according to the federal Centers for Medicare & Medicaid Services. From the savings generated, CMS awarded $2.2 million to be shared between Bellin Health, ThedaCare and a network of 700 physicians who make up the partnership, which will reinvest the funds to find more efficiencies in care delivery.
September 17 Lawrence University in Appleton received a $25 million anonymous donation to support student scholarships, marking the largest gift in school history. The college said it is a dollar-for-dollar matching gift, which will provide $50 million in additional endowment to support scholarships. Based on the average financial aid package, college officials indicated the gift will support tuition assistance for at least 50 students annually.
September 19 AxleTech International in Oshkosh reported to the state Department of Workforce Development plans to lay off 29
hourly workers beginning Nov. 15. The company, which is a primary supplier of heavy-duty truck axles to Oshkosh Corp., indicated the decision was based on a sharp decline in business.
September 18 Wisconsin’s Department of Workforce Development reported a return to a positive balance of the Unemployment Trust Fund, marking the first time the state fund has been in the black since widespread layoffs at the beginning of last decade’s recession sent unemployment rates up to once-in-a-generation levels and sent the fund into the red in 2009. As a result of the newly positive balance, state workforce officials said employers may experience decrease unemployment insurance rates, which in total they expect will decrease by an estimated $143 million in employer costs during the coming year. n
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The following represents positions on key business issues from candidates in Wisconsin’s Sixth Congressional District race.
Glenn Grothman – Republican Economy H Supports income tax cuts for all Americans as well as for employers H Authored the Manufacturing and Agricultural Production Tax Credit in Wisconsin H Supports reforming welfare programs to encourage greater workforce participation H Supports cutting government regulations that hamper job creation H Supports a balanced federal budget H Supports securing the border and an orderly system for immigrants to come to work in America Health care H Opposes the Affordable Care Act and supports its repeal H Supports eliminating the employer insurance mandate of the ACA H Supports redefining “fulltime” employment back to 40 hours per week H Supports health care reforms driven by the free market alone H Supports giving states more control over federal health care programs for the poor Agriculture H Supports reining in the EPA from burdensome regulations on farmers Energy H Supports expanding energy development on federal land H Supports speeding up private energy development permits H Opposes EPA mandates on coal energy production H Opposes government subsidies for alternative energy glenngrothman.com 10 | October 2014 | NNB2B
Mark Harris – Democrat Economy H Supports raising and indexing the minimum wage H Supports an expanded guest worker program as part of immigration reform, along with the availability of visas for highly skilled immigrant H Supports a responsible budget that brings spending and revenue in line with one another H Supports preserving Social Security in its current and present form H Supports establishing an adequate and dedicated source of funding for the Highway Trust Fund H Supports providing more capital for start-up companies to create jobs Health care H Supports considering improvements to the Affordable Care Act, but is opposed to its total repeal Agriculture H Supports policy to ensure prices remain above production costs for family farms H Supports reform returning farm policy to its original purpose Energy H Supports government advancement of clean-energy alternatives H Supports safe use of nuclear energy
It doesn’t have to be a foreign language. Gus Fahrendorf – Libertarian Economy H Supports a national sales tax H Supports simplifying the tax code to fit on a postcard H Supports abolishing the Internal Revenue Service and the Federal Reserve Health care H Supports repealing the Affordable Care Act H Supports allowing private health insurers to market across state lines H Supports transparency for all health care pricing and services Agriculture H Supports property rights of farmers to use land as they choose, including to grow and sell hemp for industrial purposes H Supports protecting farmers against accidental cross polarization of patented seed DNA by seed company litigation Energy H Supports approval of the proposed Keystone XL Pipeline H Supports protection of personal property from pollution and citizens’ rights to accept any potential risk of having a pipeline on their property
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NNB2B | October 2014 | 11
The following represents positions on key business issues from candidates in Wisconsin’s Eighth Congressional District race.
Reid Ribble – Republican (incumbent –2 terms)
Economy H Supports a moratorium on new regulations for small businesses until the economy begins to recover further H Supported the repeal of the 1099 paperwork mandate in the Affordable Care Act H Supports lowering the corporate tax rate from 35 to 25 percent H Supports the Freedom to Invest Act to lower tax rates for companies with earnings overseas H Supports the Death Tax Repeal Permanency Act to repeal the estate tax Health Care H Supports repealing and replacing the Affordable Care Act H Introduced the Health Equity Act to incent individuals to shop for and purchase their own health coverage H Supports maintaining Medicare payment rates to doctors who care for senior citizens H Supports the Rural Hospital Access Act Agriculture H Supported the 2012 Farm Bill H Supported extending the Milk Income Loss Contract (MILC) program H Supported trade pacts to open foreign markets to U.S. agricultural exports H Opposed a Department of Labor proposal to restrict youth work on family farms Energy H Opposes EPA’s proposed Boiler MACT regulations H Supported the EPA Regulatory Relief Act H Supports approval of the proposed Keystone XL Pipeline ribbleforcongress.com 12 | October 2014 | NNB2B
Ron Gruett – Democrat Economy H Supports lowering student loan rates to the bank discount rate H Supports allowing refinancing old student loans at the bank discount rate H Supports constitutional amendment to guarantee collective bargaining H Supports tariffs on any state-subsidized imports H Supports increasing the earned income tax credit H Supports trade agreements for agricultural exports Health Care H Supports increasing income taxed for Social Security to $250,000 H Supports requiring Medicare to negotiate prescription drug prices H Supports importing prescription drugs to lower prices H Supports the Affordable Care Act Energy H Supports tax credit for solar energy projects H Supports tax credit to insulate homes and commercial properties H Supports building pipelines around shallow aquifers H Supports locally grown food to cut down on shipping
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Build Up Fond du Lac
1 2 3&4
Fond du Lac 1 - 1210 W. Scott St., Fond du Lac Ultratech Tool & Design Inc., an addition to the existing industrial facility. 2 - 390 N. Rolling Meadows Dr., Fond du Lac Holiday Ford, an addition to the showroom at the existing automotive dealership.
5 - 235 N. National Ave., Fond du Lac Moraine Park Technical College, a 5,212-sq. ft. addition to the existing educational institution to improve the main entrance and student services. Project completion expected in November.
3 - 859 W. Johnson St., Fond du Lac Panda Express, a new restaurant building.
6 - 625 W. Rolling Meadows Dr., Fond du Lac Holiday Inn, a nearly 5,000-sq. ft. addition to the existing conference and banquet facility. Project completion expected in spring 2015.
4 - 775 W. Johnson St., Fond du Lac Panera Bread, a new restaurant building.
7 - 55 Holiday Lane, Fond du Lac Holiday Inn Express, an 86-room hotel facility.
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8 - 191 W. Rolling Meadows Dr., Fond du Lac Love’s Travel Stop & Country Store, a travel center with a convenience store, two restaurants and a truck tire service center. Project completion expected in early 2015. 9 - 305 & 321 Camelot Dr., Fond du Lac Fond du Lac Regional Clinic South, a 50,000-sq. ft. addition to the existing medical clinic, as well as a separate 50,000sq. ft. building for an Agnesian Healthcare dialysis center. Completion of both projects expected in late 2014.
10 - 639 Witzel Ave., Oshkosh City of Oshkosh Public Works Building, a municipal operations facility and yard. 11 - 3325 S. Washburn St., Oshkosh Bergstrom Kia, a 10,574-sq. ft. addition to the dealership.
Projects completed since our September issue: • Kwik Trip, 158 N. Main St., Fond du Lac. • Kwik Trip, 980 S. Hickory St., Fond du Lac.
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NNB2B | October 2014 | 15
Build Up Fox Cities Build Up
Indicates a new listing 1 - W6400 County Road BB, town of Greenville Fox Valley Technical College Public Safety Training Center, a 93,000-sq. ft. training facility for police and fire protection personnel. Project completion expected in December. 2 - N850 County Road CB, town of Greenville Jansport/VF Outdoor Inc., a 19,432-sq. ft. addition to the existing industrial facility and offices. Project completion expected in late fall. General contractor is Keller Inc. of Kaukauna. 3 - 2925 Victory Lane, town of Grand Chute Bergstrom Automotive Used Car Supercenter, a 42,474-sq. ft. body shop and car dealership office. 4 - 2150 Holly Road, town of Menasha Azco Inc., a 9,456-sq. ft. addition to the existing industrial facility. Project completion expected in late fall. General contractor is Keller Inc. of Kaukauna. 5 - 2445 W. College Ave., Appleton Kolosso Automotive, a 49,000-sq. ft. dealership facility. Project completion expected in October. General contractor is Keller Inc. of Kaukauna. 6 - 835 W. Northland Ave., Appleton First National Bank - Fox Valley, a 4,200-sq. ft. financial institution branch office. Project completion expected in November. General contractor is Keller Inc. 7 - 324 E. Florida Ave., Appleton Einstein Middle School/Appleton Area School District, interior renovations and an addition to the existing school building to include a new cafeteria and commons and an expanded library. Project completion expected in November. 8 - 2224 N. Ullman St., Appleton Huntley Elementary School/Appleton Area School District, interior renovations and an addition to the existing school building to include administrative offices and a multi-purpose room. Project completion expected in November. 9 - 311 Oak Grove Road, Kaukauna PolyFlex Inc., a 60,000-sq. ft. manufacturing facility. Project completion expected in October. 10 - 222 Lawe St., Kaukauna Kwik Trip, an 8,777-sq. ft. convenience store and fuel canopy. 11 - W811 State Road 96, Kaukauna Fox Valley Wood Products, a 16,000-sq. ft. manufacturing facility. Project completion expected in October. General contractor is Bayland Buildings of Green Bay. 12 - 1506 S. Oneida St., Appleton St. Elizabeth Hospital, a five-story, 90-bed patient tower, as well as renovations to the cancer center and behavioral health. Project completion expected in December. 13 - N8770 County Road LP, Harrison Lake Park Sportzone, a 32,000-sq. ft. indoor athletic facility to include basketball and volleyball courts. Project completion expected in early 2015.
16 | October 2014 | NNB2B
9 thru 11
7 3 6
2 5 1
13 14 15 16
14 - 420 7th St., Menasha Menasha High School, two separate additions totaling 46,603 square feet of educational space, as well as interior renovations to the gym, locker rooms and swimming pool. Project completion expected in summer 2015. 15 - 600 Racine St., Menasha Boys & Girls Club of Menasha, a 33,000-sq. ft. community center for children. Project completion expected in May 2015. 16 - 403 Third St., Menasha Third Street Market, a complete refurbishment of the former retail facility for a new grocery store. General contractor is Keller Inc. of Kaukauna. Project completion expected in early 2015.
17 - 601 S. Commercial St., Neenah Galloway Company, a 5,488-sq. ft. railcar unloading facility. 18 - 417 N. Tullar Road, Neenah Country View Animal Hospital, a 11,000-sq. ft. animal care facility and offices. Project completion expected in November. Contractor is Bayland Buildings of Green Bay. Projects completed since our September issue: • Simon’s Cheese/Agropur, 2701 Freedom Road, Little Chute. • US Cellular & Chipotle Mexican Grill, W3197 County Road KK, town of Buchanan. • Trinity Evangelical Lutheran School, 410 Oak St., Neenah. • Qdoba Mexican Grill, 1125 W. Winneconne Ave., Neenah.
NNB2B | October 2014 | 17
Build Up Greater Green Bay area 1
12 & 13 17
Indicates a new listing
Greater Green Bay area 1 - 11820 Velp Ave., Suamico Culverâ€™s Restaurant, a 4,000-sq. ft. new restaurant building. Project completion expected in January 2015. General contractor is Bayland Buildings of Green Bay.
4 - 301 E. Main St., Green Bay KI Convention Center, a 30,000-sq. ft. addition to the existing convention center facility. Project completion expected in spring 2015
2 - 1010 S. Military Ave., Green Bay Broadway Pre-Owned, Broadway Hyundai and Broadway Ford, three separate dealership facilities.
5 - 100 E. Main St., Green Bay CityDeck Landing, a six-story, mixed-use development to include 76 residential units and 7,000 square feet of retail space on the first floor.
3 - 520 North Broadway, Green Bay Titletown Brewing Co., a complete refurbishment of the former canning factory for a brewery and bottling facility. Project completion expected in fall. 18 | October 2014 | NNB2B
6 - 839 Lombardi Ave., Green Bay Bank of Luxemburg, an 11,444-sq. ft. bank branch and office.
7 - 2580 S. Broadway, Ashwaubenon Bay Towel, an addition to the existing industrial facility. 8 - 2609 S. Oneida St., Ashwaubenon Gordon Food Service (GFS) Marketplace, a new grocery retail building. Project completion expected in October. 9 - 2626 S. Oneida St., Ashwaubenon CMT Ashwaubenon, a 7,767-sq. ft. multi-tenant commercial retail building.
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10 - 2160 Packerland Dr., Green Bay Beautiful Savior Evangelical Lutheran Church, an addition to the worship space and an interior remodel to accommodate classroom space. 11 - Label Drive, Ashwaubenon Green Bay Packaging Inc., a 240,000-sq. ft. coated products manufacturing facility. Project completion expected in late fall. 12 - 855 Glory Road, Ashwaubenon Truck Equipment Inc., a 73,033-sq. ft. truck service facility and offices. Project completion expected in late fall. 13 - 810 Parkview Road, Ashwaubenon Astro Industries, a 19,000-sq. ft. addition to the existing manufacturing facility. Project completion expected in early 2015. General contractor is Keller Inc. of Kaukauna.
Sales x Commercial x Warehousing 3 year warranty on workmanship and subcontractors Family owned business over 50 years
14 - 900 Main Ave., De Pere Unison Credit Union, a 3,984-sq. ft. financial institution office. Project completion expected in December. General contractor is Keller Inc. of Kaukauna. 15 - 100 Grant St., De Pere St. Norbert College Gehl-Mulva Science Center, a 150,000sq. ft. education and research facility to house the Medical College of Wisconsin’s Green Bay campus. Project completion expected in spring 2015. 16 - 750 Millennium Ct., De Pere Gandrud Detail Shop, a new automotive maintenance facility. Project completion expected in October. General contractor is Bayland Buildings of Green Bay. 17 - 2601 Development Dr., Bellevue Lakeland College, a 15,032-sq. ft. satellite educational campus. Project completion expected in early 2015. 18 - 2064 Allouez Ave., Bellevue Jack Schroeder & Associates, a 3,786-sq. ft. addition to the existing commercial office building. Project completion expected in October. Projects completed since our September issue: • None.
NNB2B | October 2014 | 19
more meetings more B U SINESS
This is a rendering of the proposed Fox Cities Exhibition Center, which would be built on property south of the Radisson Paper Valley Hotel in downtown Appleton.
Attracting bigger meetings drives convention site expansion boom TRIGGER WARNING: If youâ€™re of a certain vintage and you dislike business conferences, conventions or multi-day meetings, the following paragraph might evoke unpleasant flashbacks. We apologize for any suffering it may cause. But remember the days of bad hotels, cigarette smoke-infused banquet rooms and tepid coffee in Styrofoam cups? What about broken A/V equipment, dusty fake plants and Bridezilla shooing your group out of the ballroom you rented, too? These days, city leaders realize that business meetings, conventions and conferences bring money into their communities, and theyâ€™re investing in that niche market, instead of stuffing it into a dank back room.
Story by Lee Marie Reinsch
20 | October 2014 | NNB2B
Last year, the state drew $17.5 billion in total tourism dollars, and up to 30 percent of that came from people traveling here on business or attending a multi-day gathering, according to Lisa Marshall, director of communication for the state Department of Tourism. www.newnorthb2b.com
“Meeting and conference tourism is an economic generator, and is very important to our tourism industry,” Marshall said. Individuals traveling on business – and not for a particular conference or convention – make up about 12 percent of the $17.5 billion, according to Marshall. Conference and convention tourism drives development and can help a community beef up revenue during those times when it’s not sunny-andbalmy tourist season. “What the convention business brings us is midweek business and off-season business,” said Wendy Hielsberg, executive director of the Oshkosh Convention & Visitors Bureau. “It’s important to us because it fills a void. It keeps business flowing all year.” It also draws a different kind of traveler than the one traveling for fun, leisure or youth sporting events. “The conventioneer spends significantly more on a daily basis than any other people who may be visiting our community,” said Jim Schmitt, mayor of Green Bay. “God love them, the youth soccer tournaments, but you get four kids sharing a room and eating out of a trunk – it just doesn’t bring as much economic impact as the business traveler.”
“What the convention business brings us is midweek business and off-season business. It’s important to us because it fills a void. It keeps business flowing all year.” Wendy Hielsberg, executive director of the Oshkosh Convention & Visitors Bureau Hampton Inn & Suites to the west – the convention center district will offer 400 rooms. Its ballroom can accommodate groups of 2,000, according to Schmitt.
“With this expansion, their group can bring more students,” Ropson said. “They’ve been sort of shoehorned and have had to limit attendance.”
Ropson said it’s making some groups take another look at Titletown.
The KI Center expansion hasn’t come about without a lot of forethought, though.
“We have been hearing from convention groups that have outgrown us, or (whose) attendance or exhibitors have outgrown us, as well as some groups we never even pursued before because we didn’t have space for them,” Ropson said. Groups like the National Ground Water Protection Council and the International Roundabout Conference and the Midwest Food Processors Association. A “very happy” group of 3,000 students comes every January for the Forest Lakes District Youth Conference of the Evangelical Free Church of America.
“We spent a lot of time studying this, going to places like Milwaukee and Madison and visiting with people who held their conventions here in Green Bay in the past,” said Schmitt. “We got some letters of commitment that if we do X, they would support us.” Even seemingly small details, like the areas between exhibition space and meeting-room spaces, have been taken into consideration, Schmitt said. Convention goers often stay in touch with headquarters or clients, and they need somewhere to make phone calls. “The space can be a distance, but they want to do business between those
Northeast Wisconsin’s conference and convention scene has seen a bit of a building boom in the last five years, with major projects in at least three New North cities now in various stages of planning, construction or use.
KI Center: Attracting gold to Green Bay
The $25 million expansion of the KI Center in downtown Green Bay is still a year away from being finished, but it’s close enough that the space is already booking for next year, according to Beth Ropson, director of sales for the Green Bay Convention & Visitors Bureau. The expansion morphs the facility from 45,000 square feet to 80,000. Between the two hotels flanking it – the upmarket Hyatt Regency on the east side and the more moderately priced www.newnorthb2b.com
The Best Western Premier Waterfront Hotel & Conference Center in Oshkosh, which opened last spring, has meeting space which can accommodate assorted functions.
NNB2B | October 2014 | 21
Cover Story “A lot of thought has gone into this, and we’re confident that we’re going to be on people’s shortlists for holding a midsize convention in the state of Wisconsin,” Schmitt said.
Oshkosh: Batting 2 for 2 but still down Two projects on Oshkosh’s riverfront preoccupied the city for more than two years, and both projects are finished and in use now. But there’s still a wee problem. The city still needs several hundred hotel rooms, some say. The Best Western Premier Waterfront Hotel opened in spring 2013, and downriver the University of Wisconsin-Oshkosh Alumni Welcome & Conference Center opened this past spring. Submitted photo
The University of Wisconsin-Oshkosh Alumni Welcome & Conference Center opened earlier this year and can host groups of up to 500 people.
walks,” said Schmitt. “Is it wide enough, is there enough pre-function space where you can do a little business before you go into the next event?
How is it in terms of lighting and views of the river for some of the breakout sections and the reception area?”
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The newbie, 7-month-old UW-Oshkosh Alumni Welcome and Conference Center, is still in its infancy. The 16,000-sq. ft. brick and Lannon stone building on the banks of the Fox River can host groups of up to 500 people and offers several breakout and meeting room options.
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It’s by no means a mega amphitheater and probably won’t be the site of the National Association of Truck Stop Owners anytime soon. Its users have mostly been local groups, alumni weddings and reunions, and meetings for Oshkosh-based corporations.
PublicMuseum Di s c o v e r
In s p i re
Facility director Laura Rommelfanger said it’s open to more uses by other groups. “The vision for this center was a place for campus and community to come together and connect, and for our alums to come back to (and) a forum for public debate and discussion,” she said. Its state-of-the-art technology includes WiFi; screens and projectors that come down from the ceiling with the touch of a button; touch-panel controlled lights, blinds and mikes; and hearing loop technology which broadcasts directly to a person’s hearing aid. Its executive boardroom can accommodate 44, its four breakout rooms each can hold 40, and weather allowing, there’s the patio and fire pit outdoors for more al fresco gatherings. But, it doesn’t have on-site lodging. Just five minutes down the river is the new 176-room Best Western Premier Waterfront Hotel & Conference Center.
No room at the inn?
One of the benefits of a convention center is having an anchor hotel connected with it, said Dan Schetter, general manager of the Best Western Premier Waterfront Hotel & Conference Center in Oshkosh. The property at 1 N. Main St. has had several incarnations under other names, including Hilton, Radisson, Park Plaza and City Center. Previous management turned many visitors off, to the point that the Oshkosh Convention & Visitors Bureau stopped recommending it, even though it’s connected to the renovated 18,500-sq. ft. Oshkosh Convention Center via skywalk. But last year, after a $13 million overhaul, it officially became the Best Western Premier Waterfront Hotel & Convention Center. Its 176 rooms include five whirlpool/fireplace suites and a handful of “corner king” rooms with expansive windows and views down the Fox River. Sales director Dave Helgeson climbed aboard in 2012 in the midst of the upgrade so he could start pre-selling.
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“At first it was hard for some conferences to see the big picture because the hotel wasn’t open, and we had a number of conferences who stayed here in past and who’d had bad experiences with this particular property,” Helgeson said, referring to the previous ownership. “Once we opened the doors, we started getting conferences in here. People are enjoying being on the property, on the water and the overall renovated facilities.”
In September it hosted a group of 100 professional meeting
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Cover Story planners and ended up with four new client leads, he said. Its total 25,000 square feet of meeting space can accommodate groups of up to 900 people, like one gathering that’s on the books for this winter. Luckily, that group requires just 140 rooms. But the hotel doesn’t have enough sleeping rooms for other large groups, Schetter said. “We’ve found that we’ve got a little bit of an imbalance where we can service large quantities of people in the convention center, but we don’t have enough to host a multiday conference for a group of that size or even of 500 people,” Schetter said. “Not having a nearby hotel for overflow purposes creates a little bit of a challenge for us.” As it stands now, convention groups have to disperse their members into overflow hotels, which can mean driving up to five miles, according to Hielsberg with the Oshkosh Convention & Visitors Bureau.
"There’s business we’re missing out on and (groups) that are outgrowing us and moving to other facilities where they do have the expo space because we don’t ... That was the whole impetus behind the expo center. ” Pam Seidl, executive director Fox Cities Convention & Visitors Bureau “Now that we have this beautiful conference center and this hotel, now that we are attracting that type of business, we see the void,” Hielsberg said. “We need another hotel, one that’s either adjacent to that property or closer than 5 miles.” For one group, the hotel worked out a transportation plan, whereby it would pay for shuttle service to other hotels. But many groups don’t want to be split up.
“It’s a problem for some groups (unless they) are willing to be flexible,” Helgeson said. “We’re finding out that more and more hotels around Wisconsin don’t necessarily want to give up all of their rooms for a particular group, because they have such a loyal transient base that they want to hold rooms for.”
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Appleton expo center
For the last five years, adding exhibition space to Appleton’s Radisson Paper Valley Hotel has been the topic of conversation. The not-for-profit corporation, Fox Cities Exhibition Center Inc., came up with a plan in 2010: Build a 62,000-sq. ft. expo center south of the Radisson on a county-owned parking lot, and increase room tax to help pay for it. The project would add 100-plus jobs, generate revenue, and add to the city’s property-tax base. After years of remaining in the talking and planning stages, the project may move ahead an inch or so: In late September, upon the advice of consultants, Appleton’s Community and Economic Development Department proposed the city’s redevelopment authority step in to lead the project instead of it being managed by a private entity. “We’re not interested in control of the project, we’re just interested in getting it built,” said Walt Rugland of Fox Cities Exhibition Center Inc. “The municipalities that have to enact the room tax are much more comfortable with the city being the lead player versus a separate not-for-profit.” So, in “weeks rather than months,” the matter will be placed in the hands of the city common council, Rugland said. They’ll be asked to buy the land from the county, enact a room tax and do whatever’s necessary to allow the city redevelopment authority to proceed with the project. That includes working with other municipalities in the district to increase the hotel room tax throughout the area, according to Rugland.
Meeting information in Wisconsin Meet in Wisconsin - meeting planner website to learn more about Wisconsin as a meeting destination, search facilities, submit a RFP www.meetinwisconsin.com Wisconsin Department of Tourism’s Meetings Mean Business grant program industry.travelwisconsin.com/grants/ meetings-mean-business-grants-program State Tourism Economic Impact research industry.travelwisconsin.com/research/economic-impact
Management and lease contracts hadn’t been firmed up as of New North B2B press time for this issue.
Business and conference spending in the Fox Cities makes up as much as 40 percent of its annual tourism revenue, according to Pam Seidl, executive director of the Fox Cities Convention & Visitors Bureau. Leisure travelers comprise the smallest of its niches, with youth sports tournaments and meetings/conventions as its largest. “What’s lacking in Appleton is exhibition space, not hotel rooms,” Seidl said. A healthy meeting-and-conventions revenue stream requires both, she says, because it’s convenient for conference-goers to have both in one spot, and selling booth-space is a money maker. She said groups are making do with the Radisson Paper Valley for their conferences as best they can. “But frankly we’re not getting that business because we don’t have the expo space,” she said. “That was the whole impetus behind the expo center. There’s business we’re missing out on and (groups) that are outgrowing us and moving to other facilities where they do have the expo space because we don’t.” n Lee Marie Reinsch of Green Bay worked 18 years at daily newspapers before launching her freelance business, edgewise, in 2007. www.newnorthb2b.com
NNB2B | October 2014 | 25
Building brands, making customer connections
Commitment to sponsorships yields an array of benefits for businesses in New North
Story by Larry Avila, New North B2B Editor Experts say the popular NASCAR racing circuit is viewed as one of most successful sponsorship venues.
Sponsorship as part of a marketing strategy may be among the recommendations Appleton-based Willems Marketing makes to a client. In most instances, being a sponsor for a major community event or festival can get a company’s logo, name, brand or product in front of a lot of people, which can make a lasting impression on attendees and potential customers. When agency owner and president Dave Willems decided to muster the resources of his marketing firm to aid national recording artist and Appleton native Cory Chisel in launching Mile of Music across downtown Appleton, he never imagined the overwhelming success of the event would reshape his business. “Though it wasn’t our motivation for launching Mile of Music in such a big way, the success of the event and the attention it has received as being the catalyst for the creative economy movement in the Fox Cities has certainly helped re-energize our team and our company at Willems Marketing,” Willems said. He renamed his firm Willems Marketing & Events, which will continue to provide marketing services but now will also 26 | October 2014 | NNB2B
produce unique or distinctive artisan events for corporations and groups. “I truly wanted to do something big, something unique, and something that changed our thinking in the Fox Cities from a more passive or gradual approach to creating big splashes to one of ‘this is a pretty special place,’ and ‘we can do this,’” Willems said. The success Willems found through making Mile of Music a reality is similar to what other businesses have achieved through sponsorships.
A robust sector
IEG International, an authority on sponsorships, projected sponsorship spending in North America could reach $20.6 billion this year, up 4 percent from $19.8 billion in 2013. A majority of the spending, about 70 percent, will go toward sports, with the next largest share, 10 percent, going to entertainment and the remainder split between causes; the arts; festivals, fairs and annual events; and associations and membership organizations.
Why businesses decide to sponsor everything from a Little League baseball team to Independence Day fireworks displays varies from simply showing they want to be seen as being community minded to raising awareness of a name, service or product. Ultimately the motivation behind sponsorships is to drive sales through developing connections with a target market, said Don McCartney, a senior lecturer of marketing at the Austin E. Cofrin School of Business at the University of Wisconsin-Green Bay. NASCAR is viewed as one of most successful sponsorship venues, McCartney said. “Research shows 79 percent of the people who consider themselves NASCAR fans buy the brands they see advertised on the cars,” he said. “That’s huge (because) the sponsors are reaching people who watch the races on TV and who are at the tracks.” Corporations pay millions for the naming rights to stadiums, which house professional sports teams. California-based Lucas Oil in 2006 committed $120 million over 20 years for the naming rights to the Indianapolis Colts home field, named Lucas Oil Stadium. McCartney said research showed over two years, Lucas Oil’s naming rights fee was estimated at $12 million but the exposure it brought to the company was valued at $73 million, just over six times a return on investment.
Where sponsorship dollars are spent 1. Sports 2. Entertainment 3. Causes 4. Arts 5. Festivals, Fairs & Annual Events
6. Associations, Membership Organizations
2014 spending (projected) $14.4 billion
Source: IEG International/Sponsorship.com
“Theoretically (sponsorship) is advertising and it isn’t free, but it is an opportunity to be seen in a lot of places in a lot of different ways,” he said.
When a company’s logo is seen alongside other business logos, it may be presumed lost in the crowd and doesn’t create the effect hoped. Sara Steffes Hansen, assistant professor of strategic communication at the University of Wisconsin-Oshkosh, said even when a logo is seen for a few seconds it can make a lasting impression. “If a company logo is on the shirt of a kid’s soccer team or water bottle, over time, people can make a connection between that business and an event, and if they have a positive connection, people will start to align the brand or logo in a positive way, which will raise awareness of that brand in a positive way,” she said. But building brand awareness via sponsorship, whether it’s through securing a stadium’s naming rights or having a logo on a youth sports team, requires commitment, Hansen said. “It can take years for it to actually make an impact,” she said. “With advertising, you want to have enough impressions or contacts, one exposure may not be the best but you don’t want to be overexposed so that your brand becomes annoying, but you want to be visible.” www.newnorthb2b.com
NNB2B | October 2014 | 27
Marketing The right fit
Linda Hollander, a Los Angeles-based author, speaker and expert on business sponsorships, said the medium provides businesses a more targeted focus than traditional advertising. “If a company is looking to target moms or new moms, because the parent market is huge, businesses know those moms and new parents will be spending a lot of money on kids, so you want to associate with an event that caters to moms, or support mom blogs or a (website) that has information on parenting,” she said. Hollander said by supporting a specific property, it establishes a connection and a company begins to engage the potential target market.
North American sponsorship spending Year 2010 2011 2012 2013 2014* * projected
Spending $17.2 billion $18.1 billion $18.9 billion $19.8 billion $20.6 billion
Source: IEG International/Sponsorship.com Through sponsorships, a business can enhance an experience by having a contest where people are asked to share their experiences and then offering a prize from the sponsoring business. “It makes it more interactive rather than a one way push message,” Hollander said. Sometimes a business wants to align what it does or offer when deciding to become a sponsor. Hollander said in some cases, businesses simply decide to
28 | October 2014 | NNB2B
devote resources to something simply for mass exposure. Candy maker Mars Inc. has found success promoting M&M’s candy through NASCAR. “NASCAR is going after the family market, so M&M’s is a good match there,” Hollander said. “They’re a food vendor at every race, so they do see immediate effect.” Discover Card and Smucker’s also have seen results being longtime sponsors of Scott Hamilton’s Stars on Ice. “Those businesses also wanted to focus on the family market and (Hamilton’s) event hits that market,” Hollander said. Results are often wanted quickly but businesses must realize sponsorships in most instances don’t bring immediate returns, she said. “Sponsorships tend to look bad on quarterly statements because the return on investment does not come quickly,” Hollander said. “Sponsorships are about building relationships with the core (customers) you’re trying to target.”
Making it their own
This is what MBM, an Appleton-based provider of document management services and seller of Xerox and Conica Minolta equipment, hoped to achieve through its 360 My Office contest. The contest offered a pair of technology makeovers – one totaling $15,000, the other $10,000 and three printers – awarded to needy and worthy non-profit organizations in the greater Fox Valley. Michele Yahr, marketing director at MBM, said the company decided to do the contest as a vehicle to raise its profile in the community as well as find potential new customers. “Our company, like many others, often get requests to sponsor something or donate to a cause, we just thought we needed to do something that was ours and the contest was it,” Yahr said. “We specifically wanted to help non-profits because technology always is the last thing they can afford to spend money on.” The contest led to partnerships with area media, which helped promote it and gained exposure for MBM as well as the non-
Welcome and Conference Center
Photo by Graham Washatka
Tundraland Home Improvements in Kaukauna sponsored a "Singing in the Shower" contest during the recent Mile of Music Festival in Appleton.
profits who entered the contest.
In some cases entries were provided by people who served on non-profit boards and entered on behalf of their organization, Yahr said. Some of those individuals represent an assortment of businesses from the region. People then were required to vote for those organizations online. The top 10 would receive additional promotion and ultimately a winner selected at a breakfast event on Oct. 21.
A lot of time has been invested in the contest, Yahr said. But the benefits will be long-lasting. “The (good) PR is a piece of it,” she said. “(Businesses) need to give back to the community and we found a good way to do it … we do hope to get business out of it too, but 90 percent of the reason we did (the contest) was to help non-profits.” Brian Gottlieb, president of Tundraland Home Improvements in Kaukauna, said his company sponsors events where it can make a face-to-face impact.
“We develop activities where we can stand out and not get lost in the mix,” he said. During Mile of Music, Tundraland sponsored a singing in the shower challenge, where the company set up a show display in the lobby of the Radisson Paper Valley Hotel in downtown Appleton and invited patrons and performing artists to sing in the shower. The promotion was deemed successful since it drew 250 people, but it also raised $2,000 to benefit local youth music education, Gottlieb said. “For us, it’s really about supporting grassroots, community activities like Mile of Music where the partnership can help create local, grassroots success stories,” he said. Connecting with youth also gives his business a connection with next generation customers. “It’s not the only reason we utilize event marketing, but finding new customers always is important,” he said. “For us though, it can also be about finding new employees because we tend to do fun activities with our community and event sponsorships … it’s proven to be a great way to recruit new talent.” n www.newnorthb2b.com
625 Pearl Avenue 920.424.3300 email@example.com uwosh.edu/awcc NNB2B | October 2014 | 29
Family matters Some businesses face a myriad of challenges when there’s no next generation to carry on
Story by Rick Berg
Walt Tack, owner of Jet Stream Car Wash in Fond du Lac and Oshkosh, faces an uncertain business future that’s becoming increasingly familiar to second-, third- and even fourth-generation family businesses: There will not be another generation of Tacks to carry on the business. A 2013 PricewaterhouseCoopers survey of U.S. family businesses found that just over half of those business owners plan to pass on their businesses to the next generation to own and operate.
and vision that will propel their companies into the future,” according to PwC’s survey report, Playing their hand: US family businesses make their bid for the future.
“Concerned that junior members might not have the drive and aptitude to steward the business into the future, family businesses are increasingly looking outside the family for the kind of fresh thinking
That might seem to be a stark change from the past, but it’s not. Most family-owned business, historically, have not passed into future generations. According to the Wisconsin Family Business Forum at the
30 | October 2014 | NNB2B
University of Wisconsin Oshkosh, only 30 percent of all family-owned businesses survive to the second generation, only 12 percent make it to the third generation and 3 percent survive to the fourth generation. That includes a lot of businesses that don’t survive at all, but still leaves a lot of instances in which the older generation chooses not to pass the business to the next generation, or the next generation is not interested in taking on the business. Often, the key driver in the decision to look elsewhere for future leadership is a result of the younger generation wanting to chart its own course in life. “I have two daughters and two sons who have worked here at one time, but none have chosen to pursue it,” says Tack, who took over the business from his father in 1990. “All of them became educated and found other things they wanted to do.”
The legacy challenge
Tack is not particularly chagrined by their decisions, but it does leave him with the challenge of finding non-family members who will eventually acquire the business and carry on the legacy created by Tack and his father. “It’s something I think about a lot,” says Tack, who adds that retirement for him is still a few years off. “This has been an important part of my life for so long I would be distressed if I knew that the person or people who follow aren’t producing
Family Business Facts Succession risks: Nearly a third (31 percent) of familyowned businesses have no estate plan beyond a will. (American Family Business Survey, 2007). Emergency planning: In nearly half (48 percent) of all family-owned business collapses, the failure of the business was precipitated by the founder’s death, or in 30 percent of the cases, the owner’s unexpected death. Only in relatively few instances (16 percent), did the business failure follow an orderly transition, and in situations where the owner was forced to retire, the figure drops to 6 percent (University of Connecticut Family Business Program, 2009). Outside leadership: Between 10 and 15 percent of U.S. family firms are now managed by non-family executives (Barclays Wealth and The Economist Intelligence Unit, 2009). Longevity: The average life span of a family-owned business is 24 years (familybusinesscenter.com, 2010). About 40 percent of U.S. family-owned businesses turn into second-generation businesses, approximately 13 percent are passed down successfully to a third generation, and 3 percent to a fourth or beyond (Businessweek.com, 2010).
NNB2B | October 2014 | 31
the quality we did. It would bother me a lot. In fact, if I knew that would happen, I probably wouldn’t sell to those people.”
Family business histories Jet Stream Car Wash was started in Fond du Lac in 1963 with a partnership that included David Tack, father of present owner Walt Tack. The Tack family assumed complete ownership of Jet Stream in 1976. Walt Tack became the sole owner of the Jet Stream Car Wash group in the 1990s. Jet Stream, with operations in Oshkosh and Fond du Lac, employs approximately 35 full and part-time staff members, many of whom have been with the company for a number of years. Tack says he has no immediate plans to sell the business. Fond du Lac Bumper Exchange was founded in 1956 by Rudy Gneiser. In October 2013, his grandson, David Gneiser, sold the business to Keystone Automotive. Zander Press in Brillion was founded in 1899 by Otto Zander. His son, Elliot, took over the business in 1944, and his sons, Noel and Zane also helped run the business over the years. Today, the company is owned and operated by Zane’s daughters, Elizabeth Wenzel, Darcy ZanderFeinauer and Kris Bastian. They have no plans to sell the business any time soon, but don’t expect a next generation to carry on. The Wisconsin Family Business Forum was founded in 1996 at the University of Wisconsin-Oshkosh to help foster healthy family businesses. WFBF is a partnership of family businesses (including owners, family members and non-family employees), professional service organizations, and UW-Oshkosh College of Business. Forum members are family-owned businesses from throughout northeast Wisconsin. Strategic Solutions Consulting was founded in Appleton in 2001. The family-owned business is led by Shipra Seefeldt, her daughter, Anjali, and son, Greg.
Still, he understands his children’s preference to do something else with their lives. “I didn’t try to encourage them to come into the business,” he says. “It’s a hard job and sometimes it pays well and sometimes it doesn’t. I’ve been in this for 38 years. When my Dad asked me what I thought about coming into the business, I said, ‘Sure, how hard can it be?’ I didn’t know any better,” he adds with a chuckle. David Gneiser faced a similar challenge when he decided to sell Fond du Lac Bumper Exchange last year. The third-generation owner’s two children were not interested in carrying on the business started by his grandfather, Rudy Gneiser, in 1956. So, he sold the business as an asset purchase to Chicago-based Keystone Automotive in October 2013.
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“We were looking at fourth-generation ownership and have non-family run it, and we had been working on that for probably five years,” Gneiser says, “but we never got to the point where that was an option. This is a highly competitive business with shaky profits and we had to look at ‘Can we survive as a business?’” Beth Wenzel and her sisters, Darcy Zander-Feinauer and Kris Bastian, will also likely be the last generation of their family owning and operating Zander Press in Brillion. None of their children are interested in continuing in the business. Their biggest concern is finding a new owner or owners who would carry on the tradition of community involvement. “This is a business that really needs to be owned by someone who cares about the community,” Wenzel says. “We have a newspaper that’s been in existence for 120 years. Our greatgrandfather really cared about this community and so did his son and so did our Dad and so do we. That’s really the stress we have for the future – finding someone who is going to care.” Fortunately, the sisters are 10 to 20 years from retirement, so they have some time to work it out.
Facing the challenge
“The thing is we don’t talk about it. In our business, we can hardly plan for next week, let alone 10 years from now,”
Wenzel says. “That’s another part of our problem. If you ignore something long enough it will work itself out, but then you’re not in much control of how it works out.” That’s a common theme in family business succession, says Shipra Seefeldt, owner of Strategic Planning Solutions in Appleton. “Because of the complexities and the uncertainty of transitioning a business, what we see is a huge process of denial and avoidance on the part of the current owners,” Seefeldt says. “They don’t want to touch this whole issue of succession because it’s going to cause all this conflict in the business and the family. The process is fraught with anxiety and conflict and unresolved issues, so no one wants to go there. The other thing that affects people’s willingness to address the issue is that the older generation has to give up power and control and so it’s a process of huge change for them, even though they want to step back.” Seefeldt comes at the issue from a dual perspective as a consultant who specializes in family businesses and as a business owner herself, with her daughter, Anjali, and son, Greg, as part of the business. That helps them identify with the business owners they consult with. “We are living day in and day out with the issues our clients face,” she says.
NNB2B | October 2014 | 33
WHERE IT ALL HAPPENS
Weighing the options
For businesses without a next generation to take over operation, there are multiple options: selling the business to outsiders, selling the business to existing employees, or keeping ownership in the family while bringing in outside leadership. Each has its pitfalls, of course. Seefeldt says non-family leadership is an attractive option in many cases, because it retains family ownership and frees the next generation from day-to-day business responsibilities. However, if family members “play the ‘I’m an owner’ card,” conflict with non-family leadership can doom the business. “Unless there is a true alignment from the beginning which translates to actual behavior, there can be problems,” Seefeldt says. “Ownership and leadership are very different things, and when we work with businesses we separate that. The structure of non-family leadership with family ownership is not in itself set up for failure. Any structure can work as long as people are sincerely willing to work at it.” Selling a family business to an outsider may seem the easiest (and least conflicting) course, but that option comes with its own perils – especially for owners who worry about the impact on their employees and their community. Selling internally to non-family employees might preserve the company culture, but the financial complexities often interfere with that path.
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Wenzel says it might be possible for existing non-family employees at Zander Press to assume ownership someday, but that’s far from a simple solution. “If we were to lean in that direction, we’d have to work in that direction,” she says. “We were able to do it because our dad did the financing for us. If we’re selling it to someone else, there’s not going to be that possibility unless it’s someone from inside the business that we treat as family.” Tack at Jet Stream Car Wash says he would be open to a group of existing employees purchasing the business when he decides to retire – in part because they already share the culture and values of the company. “We have a core group of people here and we know each other very well. A lot of the way the business has evolved has come from them, rather than just from me on high,” Tack says. “I would feel comfortable with the people we have if they decided to get into it.” Whichever path the current ownership chooses, there’s hard work ahead to make the transition successful, Seefeldt says.
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“This is not just about a transfer of wealth and it’s not just about transfer of knowledge. It’s about family legacy and it’s about company culture,” Seefeldt says. “There are a lot of complex emotional issues in the business and in the family. If you go with a leader from outside the family, how do you deal with that?” n Rick Berg is a freelance writer and editor. www.newnorthb2b.com
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Employers: To SHOP or not to SHOP? by Daren Allen of Common Ground Healthcare Cooperative Among the new health insurance options for Wisconsin’s small businesses to consider is the federal “Small Business Health Options Program” (SHOP) Marketplace available online this fall. Starting with the 2015 plan year, employers with 50 or fewer fulltime equivalent employees will have the option to offer employees their choice of health plans through the federal SHOP Marketplace. After registering for SHOP, an employer can select a metal tier and define the contribution it will pay toward employee health benefits. Then, employees can go to the Marketplace to compare and enroll in coverage from the choices offered within the selected metal tier. Purchasing health insurance through SHOP can benefit employers and employees. For one, employers can offload the burden of
trying to select a health plan that works for all employees. If the employer decides to allow “employee choice,” workers can select the carrier, plan and provider network that works for them from among the options available in the selected metal tier. SHOP also allows the employer to offer only one plan to its employees. Also, buying through SHOP is the only way qualifying businesses and organizations can access tax credits designed to help offset the cost of small employer-sponsored coverage. Employers can find out if they are eligible for tax credits by visiting healthcare.gov and searching for “SHOP Tax Credits.” SHOP coverage can start any time during the plan year, but to qualify employers must have at least one employee in addition to the owner and his or her spouse and offer coverage to every employee working 30-plus hours per week. From November 15 to December 15, there are no minimum participation requirements. After December
15, employers will be required to enroll 70 percent of their eligible employees in SHOP to qualify. Employers can select health coverage outside of SHOP too, and their choices can differ from county to county. We recommend employers and non-profits compare all options before selecting coverage. It is also helpful to work with a trusted health insurance broker that has the organization’s best interests in mind when recommending coverage either inside or outside the SHOP Marketplace. Daren Allen is the Vice President of Business Development at Common Ground Healthcare Cooperative, a nonprofit, health insurance carrier governed by the employers and individuals that buy its insurance. For more information about SHOP or other health insurance matters, contact Daren at 855532-2667 or visit CGHC’s website at www. commongroundhealthcare.org.
NNB2B | October 2014 | 37
New North B2B publishes monthly new business incorporations filed with the Wisconsin Department of Financial Institutions. Brown County
Renewable Algae Group LLC, Steven Michael Herman, 1387 Bingham Dr., De Pere 54115. Cotter Cremation Services LLC, Matthew Cotter, 860 N. Webster Ave., De Pere 54115. Spring Valley Angus Farm LLC, Maryke - Schmidt, 2551 Oak Ridge Cir., De Pere 54115. Luna Cleaning LLC, Jetzabel Guerrero, 1400 N. Baird St., Green Bay 54302. Freedom And Hope Ministries Inc., Douglas Hoppe, 3537 Blackberry Lane, Green Bay 54313. First Choice Beauty Supply LLC, Nadine Pinchart, 1242 Main St., Green Bay 54302. First Choice Employment Service LLC, Ying Vang, 1755 E. Mason St., Green Bay 54302. Ridgeline Home Builders LLC, David Novitski, 860 Moon Dr., Green Bay 54313. Centro De Restauracion El Camino Inc., Seniasor Rodriguez Gomez, 1528 Shawano Ave., Green Bay 54303. Gravity Salon & Spa LLC, Nancy Duquaine, 2712 Altair St., Green Bay 54311. Washington Street Brewing Company LLC, Chad Sharon, 957 Mancel Lane, Green Bay 54304. Ked Beauty Supplies LLC, Kristin Keithley, 978 Willard Dr., Apt. 10, Green Bay 54034. El Ranchero Bar And Grill Authentic Mexican Restaurant LLC, Cassandra Ann Gonzalez, 940 Waube Lane, Green Bay 54304. Next Level Performance Sports LLC, Michael Burdette, 2420 Nicolet Dr., Green Bay 54311. Greg Severson Plastering LLC, Gregory Allen Severson, 641 Alpine Dr., Green Bay 54302. Alpha Home Repair LLC, Jeff Roeser, 2183 King James Dr., Green Bay 54304. Fortune Retail Marketing Inc., Elizabeth Pirus, 711 S. Broadway, Ste. 5, Green Bay 54304. True Living Massage And Wellness LLC, Cassidy Dittmer, 860 Hansen Road, Green Bay 54304. Deadwell Guide Service LLC, Kyle Pauls, 813 Riverview Dr., Green Bay 54303. Pure & Natural Soap Studio LLC, Lee Ann Traeger, 1601 Carole Lane, Green Bay 54313. Awakening Hope Counseling Center LLC, Kristinq Metoxen, 4850 Stella Ct., No. 79, Hobart 54155. Green Frog Yoga & Fitness LLC, Pamela Josifek, 2456 Royal Bay Ridge Road, New Franken 54229.
Fond du Lac County
Wiepking Farms LLC, Gary Wiepking, N11939 Oaklane, Brownsville 53006. Jasman Electric LLC, Larry Jasman, N11770 Lettau Dr., Brownsville 53006. Stylish Looks By Dana LLC, Dana Rose Schommer, 321 Washington St., Campbellsport 53010. Advanced Flooring LLC, Nevin Reynolds, 156 E. 13th St., Fond du Lac 54935. Ellie Thom Design LLC, Mary Ellen Thom, 1006 Fond du Lac St., Mount Calvary 53057. Tire Installation, Repairs & Equipment Supplies LLC, Douglas Schendel, 425 Kellogg St., Ripon 54971. Walker's Bar & Grill LLC, Tom Trapp, W11649 State Road 23, Ripon 54971.
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N.E.W. Lawn Services Plus LLC, Eric William Lockstein, 4140 Brookside Cemetery Road, Abrams 54101.
Law Office Of Peter J. Carman S.C., Peter Carman, 1225 N. Hawthorne Dr., Appleton 54915. Drip Free Hydraulics LLC, Gregory Ronald Sprangers, W3045 Emons Road, Appleton 54915. Tasty Treats & Eats LLC, Sandra Theisen, 2171 W. Wisconsin Ave., Appleton 54914. White Eagle Publications LLC, Mary Clare Wojcik, 1107 W. Winnebago St., Appleton 54914. Casey Communications LLC, Patrick Casey, 707 E. Brewster, Appleton 54911. Bay Ridge Electrical Services LLC, Brandon Lawrence, 1116 N. Bay Ridge Road, Appleton 54915. Vinco Fitness Systems LLC, Matthew Joel Bartman, 2885 Glen Creek Pl., Apt. 6, Appleton 54914. Backwoods Vapor LLC, Logan James Wilz, 650 N. Hickory Farm Lane, Appleton 54914. Red Raven Photography LLC, Sara Scheel, W6024 Greystone Ct., Appleton 54915. Intrepid Law Partners LLC, Timothy Lennon, 425 W. Water, Appleton 54911. Powerhouse Marketing LLC, Alex Marc Laroux, 1408 W. Seneca Dr., Appleton 54914. Techlin Painting And Maintenance LLC, Timothy Richard Techlin, 2610 N. Viola St., Appleton 54911. Super Mix Concrete LLC, Lora Zimmer, 100 W. Lawrence St., Appleton 54911. Mw Guns & Gear Inc., David Wagner, 4010 W. Spencer St., Appleton 54914. Touch Massage Studio LLC, Maja Lyn Turenne Glidden, 806 N. Clark St., Appleton 54911. N.I.S. Construction LLC, Peggy Lehrer, W3326 Schroeder, Appleton 54913. Meister & Behm Tax Services Inc., David Behm, N1090 Spring Valley Dr., Hortonville 54944. Brick's Hortonville Hardware LLC, Edwina Kay Brick, 168 E. Main St., Hortonville 54944. Rocky & Tara's Nut Haus LLC, Tara L. Erickson, 2015 Foxland St., Kaukauna 54130. Baer Tax Prep LLC, Travis Baer, 1810 Green Bay Road, Kaukauna 54130. Zirbel Masonry LLC, Andrew J. Zirbel, 2209 Wildenberg Dr., Kaukauna 54130. Everest Framing LLC, Scott Murphy, 214 Newton Le Ct., Kaukauna 54130. Eden Construction LLC, Matthew Enger, 1006 E. Florida, Little Chute 54140. Verkuilen-Van Deurzen Family Funeral Home Inc., Derek Van Deurzen, 101 Canal St., Little Chute 54140. Badger Specialty Landscape Design LLC, Charles Paul Stangel, 1509 Grant St., Little Chute 54140. Karen Van Liere Matuszak Agency LLC, Karen Marie Van Liere Matuszak, N6970 Van Boxtel Road, Oneida 54155. Winn Machinery LLC, Kevan Krahn, W3078 County Road VV, Seymour 54165.
Reveal Investigation Services LLC, Merisha Kroening, 2215 Hillington Dr., Neenah 54956. Jem Care And Cleaning LLC, Heidi Meyer, 821 Main St., Neenah 54956. Integrated Water Resources LLC, Dennis Lamers, P.O. Box 1025, Neenah 54957. Ron’s Short Haul LLC, Ronald Mueller, 224 Bond St., Neenah 54956. Eyes Of An Eagle Home Inspection LLC, Travis Baus, 743 W. 5th Ave., Oshkosh 54902. Main Street Paddlesports LLC, Karen Draxler, 1224 County Road FF, Oshkosh 54904. Salon On The Boulevard LLC, Leonard Tews, 1109 E. Irving, Oshkosh 54901. Wisconsin Outdoor Festival Inc., Wayne Folske, 4477 Poberezny Road, Oshkosh 54902.
Michael R. Blum, Attorney At Law LLC, Michael Blum, 429 Algoma Blvd., Oshkosh 54901. Black Wolf Community Auction Barn And Grill LLC, Richard Mueller, 4823 County Road R, Oshkosh 54903. Extreme Construction LLC, Marvin Davis, 417 S. 3rd, Winneconne 54986.
B2B includes a monthly list of building permits (not to include residential projects) in excess of $400,000.
Kimberly-Clark Corp., 2100 County Road II, town of Menasha. $498,832 for interior alterations to the existing office complex. General contractor is C.R. Meyer Inc. of Oshkosh. August 20. Beautiful Savior Evangelical Lutheran Church, 2160 Packerland Dr., Green Bay. $870,000 for an addition to the worship space and an interior remodel to accommodate classroom space. General contractor is Smet Construction Services of Green Bay. August. Panda Express, 859 W. Johnson St., Fond du Lac. $884,092 for a new restaurant building. Contractor is Restaurant Specialties Inc. of Ohio. August 22.
St. Vincent Hospital, 835 S. Van Buren St., Green Bay. $600,000 for alterations to the existing health care facility. General contractor is J.H. Findorff & Son Inc. of Madison. August.
Azco Inc., 2150 Holly Road, town of Menasha. $609,000 for a 9,456-sq. ft. addition to the existing industrial facility. General contractor is Keller Inc. of Kaukauna. August 26.
Galloway Company, 601 S. Commercial St., Neenah. $1,900,000 for a 5,488sq. ft. railcar unloading facility. General contractor is Miron Construction Co. of Neenah. August 5.
Holiday Ford, 390 N. Rolling Meadows Dr., Fond du Lac. $912,232 for an addition to the showroom at the existing automotive dealership. General contractor is C.D. Smith Construction of Fond du Lac. August 27.
Breakthrough Fuel/Meyer Theater Corp., 101 S. Washington St., Green Bay. $2,200,000 for a remodel of a portion of space in the theater for new commercial offices and the addition of a rooftop patio. General contractor is Smet Construction Services of Green Bay. August.
Huntley Elementary School/ Appleton Area School District, 2224 N. Ullman St., Appleton. $2,026,216 for interior renovations and an addition to the existing school building to include administrative offices and a multi-purpose room. General contractor is Miron Construction Co. of Neenah. August 28.
Bergstrom Automotive Used Car Supercenter, 2925 Victory Lane, town of Grand Chute. $5,297,000 for a 42,474-sq. ft. body shop and car dealership office. General contractor is Miron Construction Co. of Neenah. August 12.
Ultratech Tool & Design Inc., 1210 W. Scott St., Fond du Lac. $869,000 for an addition to the existing industrial facility. General contractor is Capelle Bros. & Diedrich of Fond du Lac. September 8.
Third Street Market, 403 Third St., Menasha. $1,257,702 for an interior renovation to the existing commercial building to accommodate a new grocery store. General contractor is Keller Inc. of Kaukauna. August 14.
Holiday Inn, 625 W. Rolling Meadows Dr., Fond du Lac. $1,100,000 for an addition to the existing conference and banquet facility. General contractor is Northcentral Construction of Fond du Lac. September 11.
Aurora Health Care, 2845 Greenbriar Road, Green Bay. $477,000 for alterations to the existing health care facility. General contractor is Boldt Construction Co. of Appleton. August.
Boys & Girls Club of Menasha, 600 Racine St., Menasha. $5,100,000 for a 33,000-sq. ft. community center for children. General contractor is Miron Construction Co. of Neenah. September 15.
Belmark, 600 Heritage Road, De Pere. $1,197,712 for interior alterations to the existing industrial facility. General contractor is Boldt Construction Co. of Appleton. August 19.
Unison Credit Union, 900 Main Ave., De Pere. $900,000 for a 3,984-sq. ft. financial institution branch office. General contractor is Keller Inc. of Kaukauna. August 19.
DigiCopy Inc., a Stevens Point-based chain of digital printing centers, opened at 211 E. Walnut St. in Green Bay. For more information call 920.857.2208.
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NNB2B | October 2014 | 39
Name changes Directions Marketing of Neenah changed its name to Brand Directions. The company also has changed its website to www.brand-directions.com. Schaefer Behnke Group of Oshkosh changed its name to SBG Financial, under the broker dealer Woodbury Financial Services Inc.
Business honors Miron Construction Co. Inc. of Neenah was named to the Top 100 Green Building Contractors list by Engineering News-Record. The Port of Green Bay was presented with a Robert J. Lewis Pacesetter Award from the St. Lawrence Seaway Development Corp., an agency of the U.S. Department of Transportation. The award recognizes the port’s increase in international tonnage during the 2013 shipping season. It is the port’s 11th award from the agency and
third straight year it was recognized. H.J. Martin and Son in Green Bay received 2014 Build Wisconsin Awards from Associated General Contractors of Wisconsin in the categories of Specialty Contractor-Exterior Finishes and Specialty Contractor-Interior Finishes, both for work completed for Cabela’s in Green Bay.
New hires Oshkosh Area Community Foundation hired Jennifer Sheahan as director of finance. She previously worked for Plexus Corp. in Neenah as manager of corporate accounting and SEC reporting. Faith Technologies in Menasha hired Sherri Pingel as vice president of value added purchasing, Diane Pence as vice president of strategic sourcing, and Dane Dorn to its construction services team as general manager of prefabrication.
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UW-Oshkosh Credit Union hired Patti Langkau as operations officer. She most recently served as a financial analyst with Johnsonville Sausage.
Wisconsin Family Business Forum at University of Wisconsin-Oshkosh named Meridith Jaeger executive director. Complete Auto Repair in Neenah hired Bob Nault as a master certified technician. He has 32 years of industry experience.
ThedaCare added Drs. Mayank Arora, Michael Kagen and Cherian Varghese. Arora, an internal medicine specialist, will see patients at Appleton Medical Center and Theda Clark Medical Center in Neenah. Kagen will practice through ThedaCare Physicians-Internal Medicine in Appleton. Varghese, an interventional cardiologist with Appleton Cardiology, will practice at AMC and Theda Clark.
Ledgeview Partners, an Appleton-based customer relationship management consulting firm, hired James Kreisman and Tammy Hansen as inside sales account managers. Sprtel
NE Wisconsin Chapter of American Red Cross named Michelle Lippart major gifts officer. She previously worked for J.J. Keller and Associates in Neenah.
Menasha-based Goodwill Industries of North Central Wisconsin named Dan Flannery vice president of community relations and Tania Spofford regional community organizer for its NeighborCare program. Flannery recently served as executive editor of Post-Crescent Media in Appleton and regional executive editor of Gannett Wisconsin Media.
Agnesian HealthCare Fond du Lac Regional Clinic South added Dr. Bryan Royce as an orthopedic surgeon. E-Power Marketing, an Oshkosh-based integrated online marketing agency, hired Molly Jaster as an online marketing account manager.
The Radisson Paper Valley Hotel in Appleton hired Nicole Neal as catering sales manager and Chadd Scott as corporate sales manager.
Schaper, Benz & Wise Investment Counsel Inc. in Neenah hired Mark Sprtel as an investment analyst.
Prevea Health added bariatric surgeon Dr. Hassanain Jassim. He will see patients at Prevea Allouez Health Center and Prevea St. Mary’s Health Center in Green Bay.
Keller Inc., a Kaukauna-based design/build general contractor, hired Tanya Van Groll as accounts payable administrator.
Silver Star Brands in Oshkosh hired Bruce Valk as vice president of I.T. and Tim Kolbeck as vice president of finance.
BayCare Clinic in Green Bay added emergency physicians Drs. Christopher Chancey and Daniel Gale and plastic surgeon Dr. Elizabeth O’Connor.
Candeo Creative, an Oshkosh-based marketing firm, hired Britni Hart as business manager. Lady
Bank First hired Aaron Faulkner as vice president of business banking. He has nine years of banking experience, and will be based out of the bank’s Bellevue branch. Affinity Medical Group added Dr. Ping Lady as a general surgeon. Dr. Lady will see patients at St. Elizabeth Hospital in Appleton.
Keller Inc., a Kaukuna-based design/build general contractor, promoted Richard Eiles to supervisor and Tracy Huiting to purchasing agent. Eiles has been with Keller for 27 years, working most recently as a building foreman. Huiting has been with Keller for seven years, most recently serving as accounts payable clerk.
First Business Bank - Northeast hired Denee Mott as vice president – business development. Mott has 25 years industry experience.
H.J. Martin and Son in Green Bay promoted Gary VandenLangenberg to vice president of commercial interiors,
NNB2B | October 2014 | 41
overseeing the firm’s commercial flooring division. VandenLangenberg joined H.J. Martin in 2010 as a project coordinator.
Goodwill of North Central Wisconsin’s vocational support services program promoted Kalli Nee to vocational coordinator. Nee previously served as a team leader at Goodwill’s Menasha retail store and training center.
The Green Bay Area Chamber of Commerce named Michael Moore its Daniel Whitney Award recipient, which recognizes the organization’s volunteer of the year, and Judith Docter its Athena Award winner, which recognizes individuals for their contributions to the advancement of women in the community. Moore is senior renewable and product services consultant for NatureWise and program manager for SolarWise for Schools at Wisconsin Public Service. Docter is executive vice president and chief human resources officer for Associated Banc-Corp.
Faith Technologies, a Menasha-based electrical and specialty systems contractor, promoted Ken Baumgart to director of risk management. Baumgart joined the company in 2011 and previously served as compliance manager. He has more than 20 years of professional experience. The University of Wisconsin-Fox Valley in Menasha promoted to associate professor and awarded tenure to Kathy Phillippi-Immel, department of psychology and education, and Frances Perkins, department of communication and theatre arts. John Beaver, department of computer science, engineering, physics and astronomy, was promoted from associate professor to professor.
Business calendar New North B2B encourages businesses and organizations looking to attract interested persons to upcoming events to email firstname.lastname@example.org. For more events, log on to www.thenewnorthevents.com.
The New North Inc. appointed Donald Gesick, Lorrie Jacobetti, David Martin and Mike McEvoy to its board of directors. Gesick is chief financial officer at Marinette Marine Corp. Jacobetti is senior vice president/CFO at Prevea Health in Green Bay. Martin oversees operations of H.J. Martin and Son in Green Bay, while McEvoy is executive vice president of operations at Sargento Foods in Plymouth.
October 1 Fond du Lac Area Association of Commerce Coffee Connection, 7:30 to 8:30 a.m. at CitizensFirst Credit Union, 1045 E. Johnson St. in Fond du Lac. Cost is $5. For more information or to register, call 920.921.9500 or go online to www.fdlac.com.
Janice Jackering, service line operations director of Heart & Lung, Cancer and Neurosciences for Menasha-based Affinity Health System, was named to the board of examiners for the 2014 Malcolm Baldrige National Quality Award. This is the fourth year Jackering was appointed to the board.
October 7 Green Bay Area Chamber of Commerce power networking breakfast, 7:30 to 9 a.m. at the chamber offices, 300 N. Broadway, Ste. 3A in Green Bay. No cost for chamber members and $16 for nonmembers. To register or for more information, visit www. titletown.org or call 920.437.8704.
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9 2 0 . 7 3 3 . 3 1 3 6 y 866.966.3928 y www.newbt.org 42 | October 2014 | NNB2B
Business calendar www.oshkoshchamber.com.
October 8 Propel Leadership Breakfast, an event for young professionals through Oshkosh Chamber of Commerce, 7:30 to 9 a.m. at Continental Girbau Inc., 2500 State Road 44 in Oshkosh. Free to members. For more information, call 920.303.2266 or visit www.oshkoshchamber.com.
October 14 Fox Cities Chamber of Commerce Business Connection, 5 to 7 p.m. at Thrivent Financial, 4321 N. Ballard Road in Appleton. Cost is $5 for members and $20 for nonmembers. For more information or to register visit, www.foxcitieschamber.com or call 920.734.7101.
October 8 Green Bay Area Chamber of Commerce Business After Hours, 5 to 6:30 p.m. at Ja Jora Olive Oil Co., 2069 Central Ct. in Green Bay. No cost for members and $16 for nonmembers. To register or for more information, visit www.titletown.org or call 920.437.8704.
October 14 Imagination Network of Wisconsin monthly meeting, 5 to 7 p.m. at Elks Lodge, 33 Sheboygan St. in Fond du Lac. Various local entrepreneurs discuss how they launched their businesses. For more information call 920.929.2928.
October 9 Women in Management – Oshkosh chapter monthly meeting, 11:15 a.m. to 1 p.m., at La Sure’s Banquet Hall, 3125 S. Washburn St. in Oshkosh. To register or for more information, contact Lisa at email@example.com or visit www.wimiwi.org. October 9 Oshkosh Chamber of Commerce Social Hub, social media learning event, 7:30 to 8:30 a.m. at the chamber offices, 120 Jackson St. in Oshkosh. For more information, call 920.303.2266 or visit www.oshkoshchamber.com. October 9 Morning Business 60, presented by Epiphany Law, topic is hiring and firing, 7:30 to 8:30 a.m. at Cambria Suites, 3940 N. Gateway Dr. in Appleton. To register, call 920.996.0000 or email firstname.lastname@example.org. October 14 Oshkosh Chamber of Commerce Sales Club, 7:30 to 8:30 a.m. at the chamber offices, 120 Jackson St. in Oshkosh. For more information, call 920.303.2266 or visit
October 16 Green Bay Area Chamber of Commerce Business and Breakfast, 7 to 8:30 a.m. at F.K. Bemis Conference Center at St. Norbert College, 100 Grant St. in De Pere. Cost is $20 for members and $40 for nonmembers. Presenter is Shelby Milock with Stellar Blue Technologies. To register or for more information, visit www.titletown.org or call 920.437.8704. October 16 Oshkosh Chamber of Commerce Breakfast Briefing, 7:30 to 9 a.m. at Hilton Garden Inn, 1355 W. 20th Ave. in Oshkosh. Presenter Attorney Jim Macy of Davis & Kuelthau will discuss employee classifications. No cost for chamber members. For more information, call 920.303.2266 or visit www.oshkoshchamber.com. October 20 Green Bay Area Chamber of Commerce Annual Dinner, 5 to 7 p.m. at KI Convention Center, 333 Main St. in Green Bay. Cost to attend is $57. To register or for more information, visit www.titletown.org or call 920.437.8704.
Bringing two greats together.
Like football and brats, Capital and Pioneer credit unions are both fan favorites. That’s why we’ve joined forces to form a NEW Capital Credit Union with the same personalized service you’re used to. Together we’re “doing the right thing.” Serving members from 24 branches starting October 13.
NNB2B | October 2014 | 43
Business Calendar October 21 A.M. Oshkosh, a networking event of the Oshkosh Chamber of Commerce, 7:45 to 9 a.m. at Bella Academy of Cosmetology, 338 Pearl Ave. in Oshkosh. Cost to attend is $2. For more information, call 920.303.2266 or visit www.oshkoshchamber.com. October 21 Fond du Lac Area Association of Commerce Business Connection, 5 to 7 p.m. at Lakeland Care District, N6654 Rolling Meadows Dr. in Fond du Lac. Cost to attend is $5. For more information or to register, call 920.921.9500 or visit www.fdlac.com. November 4 Green Bay Area Chamber of Commerce power networking breakfast, 7:30 to 9 a.m. at the chamber offices, 300 N. Broadway, Ste. 3A in Green Bay. No cost for chamber members and $16 for nonmembers. To register or for more information, visit www. titletown.org or call 920.437.8704. November 5 Fond du Lac Area Association of Commerce Coffee Connection, 7:30 to 8:30 a.m. at The Spice Crate, 976 E. Johnson St., Ste. 800 in Fond du Lac. Cost to attend is $5. For more information or to register, call 920.921.9500 or go online to www.fdlac.com. November 5 Fox Cities Chamber of Commerce presents The Event, annual business awards, 5 to 11 p.m. at Radisson Paper Valley Hotel, 333 W. College Ave. in Appleton. Cost to attend is $75. For more information call 920.734.7101.
AdvantEdge Consulting ⎮www.advantedgesuccesscoaching.com . . . . . 36 Bank First National ⎮www.bankfirstnational.com. . . . . . . . . . . . . . . . . . 11 Bayland Buildings ⎮www.baylandbuildings.com. . . . . . . . . . . . . . . . . . . 16 Best Western Premier Waterfront Hotel & Conference Center ⎮ www.oshkoshwaterfronthotel.com . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Borsche Roofing Professionals ⎮www.wiroofer.com. . . . . . . . . . . . . . . . . 22 Builders Exchange of Wisconsin ⎮www.bxwi.com . . . . . . . . . . . . . . . . . . 15 Capital Credit Union ⎮www.capitalcu.com . . . . . . . . . . . . . . . . . . . . . . . 43 CitizensFirst Credit Union ⎮www.citizensfirst.com . . . . . . . . . . . . . . . . . 24 Common Ground Healthcare Cooperative ⎮ www.CommonGroundHealthcare.org. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Competitive Strategies ⎮www.wemakesoftwarework.com. . . . . . . . . . . . 40 Davis & Kuelthau, s.c. ⎮www.dkattorneys.com. . . . . . . . . . . . . . . . . . . . . 5 First Business Bank ⎮www.firstbusiness.com. . . . . . . . . . . . . . . . . . . . . . 2 First National Bank ~ Fox Valley ⎮www.fnbfoxvalley.com. . . . . . . . . . . . . 8 Fox Cities Convention & Visitors Bureau ⎮www.foxcities.org. . . . . . . . . . 35 Fox Communities Credit Union ⎮www.foxcu.org. . . . . . . . . . . . . . . . . . . . 28 Fox Valley Savings Bank ⎮www.FVSBank.com. . . . . . . . . . . . . . . . . . . . . 27 Fox Valley Technical College ⎮www.fvtc.edu/bis. . . . . . . . . . . . . . . . . . . 23 Guident Business Solutions ⎮www.guidentbusinesssolutions.com. . . . . 11 Keller Inc. ⎮www.kellerbuilds.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Moraine Park Technical College ⎮www.morainepark.edu. . . . . . . . . . . . . . 9 Network Health ⎮www.networkhealth.com . . . . . . . . . . . . . . . . . . . . . . . 47 44 | October 2014 | NNB2B
November 5 A.M. Oshkosh, a networking event of the Oshkosh Chamber of Commerce, 7:45 to 9 a.m. at Aurora Medical Center, 855 N. Westhaven Dr. in Oshkosh. Cost to attend is $2. For more information, call 920.303.2266 or visit www.oshkoshchamber.com. November 11 Oshkosh Chamber of Commerce Sales Club, 7:30 to 8:30 a.m. at the chamber offices, 120 Jackson St. in Oshkosh. For more information, call 920.303.2266 or visit www.oshkoshchamber.com. n
Better Business Bureau New Members Businesses accredited through the Northeast Wisconsin office during August 2014 A+ Automotive Tire & Brake, Oshkosh Allen’s Concrete, Athelstane Darrell’s Auto Repair, Princeton Defiant Fitness, Manitowoc Expressions & Renovations, Kaukauna J. Owen Construction, Greenleaf Kinnard Heating & Cooling, Green Bay Schadrie Poured Walls, Freedom Superior Exteriors, Kimberly The Simple Life Decor, De Pere Thiel Insurance Group, Appleton
NEW Building & Construction Trades Council ⎮www.newbt.org . . . . . . . 42 NWTC Business Success Summit ⎮ www.newbizsummit.com. . . . . . . . . 37 NWTC Corporate Training & Economic Development ⎮ www.corporatetraining.nwtc.edu. . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Oshkosh Convention & Visitors Bureau ⎮www.visitoshkosh.com. . . . . . . 33 Oshkosh Public Museum ⎮www.oshkoshmuseum.org. . . . . . . . . . . . . . . 23 Outagamie County Regional Airport ⎮www.atwairport.com. . . . . . . . . . . 35 Radisson Paper Valley Hotel ⎮www.radisson.com. . . . . . . . . . . . . . . . . . 34 R&R Steel Construction Company Inc. ⎮www.rrsteelconstruction.com. . 19 Sadoff & Rudoy Industries ⎮www.sadoff.com. . . . . . . . . . . . . . . . . . . . . 14 Security Luebke Roofing ⎮www.securityluebkeroofing.com. . . . . . . . . . . 40 Simply Snackin/Silver Creek ⎮www.silvercreekspecialtymeats.com . . . . . 7 Spark ⎮www.startaspark.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Stellar Blue Technologies ⎮www.stellarbluetechnologies.com. . . . . . . . . 36 TEC ⎮www.tecmidwest.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Thome Benefit Solutions ⎮www.thomebenefitsolutions.com. . . . . . . . . . 39 Tri-City Glass & Door ⎮www.tricityglass-door.com . . . . . . . . . . . . . . . . . 19 UniFirst ⎮www.unifirst.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 UW Oshkosh Alumni Welcome and Conference Center ⎮ www.uwosh.edu/awcc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 UW Oshkosh College of Business ⎮www.mba.uwosh.edu . . . . . . . . . . . . 46 Winnebago County Solid Waste Management ⎮ www.co.winnebago.wi.us/solid-waste/container-rental-program. . . . 25 Wright Advisor ⎮www.WrightAdvisor.com. . . . . . . . . . . . . . . . . . . . . . . . . 36
From the Editor
U.S. manufacturering resurgence Operating lean leads to closing cost gap with offshore competitors by Larry Avila, New North B2B editor As someone who grew up in the Midwest, manufacturing always has been a part of my life in some direct or indirect way. My dad worked for General Motors for more than 20 years, and my hometown in lower Michigan at one time harbored numerous GM plants and supporting operations. But through the years, as American car makers began losing its dominance to offshore competition, the U.S. manufacturing climate began changing. U.S. companies moved production to other countries in search of cheaper labor and less stringent environmental rules. It was sad to think U.S. manufacturing would never return to its glory days, but there are some who suggest the sector has turned a corner. The U.S. Department of Commerce reported in September that exports supported 126,147 jobs in Wisconsin in 2013 and more than 7.1 million jobs nationally. Top exporting categories for Wisconsin included: machinery, computer and electronic products, transportation equipment, food and kindred products and chemicals. Canada, Mexico, China, Japan and Germany were among the top destinations for Wisconsin-made goods, the government said. The nation recorded $2.3 trillion in exports in 2013, which also marked four straight years of exporting gains, the government said. The Boston Consulting Group, a Boston-based business strategy firm, has done extensive research on U.S. exporting growth and projects U.S. exports will continue rising for the near future. In another report the firm predicted higher exports as well as reshoring from China and elsewhere could add between 2.5 million and 5 million manufacturing and related service jobs by the end of this decade. BCG said during the past 40 years, domestic factory jobs migrated from high-cost to low-cost countries. However, the pendulum has begun shifting back because competitive labor and lower energy costs are benefitting the U.S. BGC said when adjusted for productivity, U.S. labor costs are projected to be between 15 percent and 35 percent lower when compared to Western Europe and Japan for many products by 2015. BGC said low energy costs also will help the U.S. Cost for natural gas in the U.S. next year, when compared to Europe and Japan, is expected to be between 60 to 70 percent less, www.newnorthb2b.com
while electricity is projected to be between 40 and 70 percent lower. Many offshore companies, including Toyota, Airbus, Yamaha, and Rolls-Royce, already are taking advantage of improving U.S. market conditions by moving production here and shipping those goods around the world, BGC said. There have been some signs businesses are experiencing the effects of reshoring, said Steve Straub, dean of manufacturing and agriculture technologies at Fox Valley Technical College. He said some regional manufacturers have seen customers return after realizing China’s low costs were short lived. Straub added the recession caused many companies to realize they could not bear the cost of inventory related to the long lead times for Chinese products. Buckley Brinkman, executive director and CEO of Wisconsin Manufacturing Extension Partnership, said the sourcing discussion always has been complicated and is more fluid than ever. He said unit costs and labor expense are not the only factors in play. “Supply chain security, total cost of ownership, and response time may all be more crucial than just the landed cost per unit,” he said. The tsunami that struck Japan in 2011 and the disruption it caused to the global supply chain also made manufacturers rethink sources. Roxanne Baumann, director of global engagement at WMEP, said when Wisconsin manufacturers began moving production off shore around 2000, many didn’t understand the difference between piece price and landed costs. That’s changed. She said when suppliers are far from a U.S. factory, there are more variables to factor in beyond piece price including travel costs, clear communication to establish and monitor supply overseas, holding higher inventory levels to hedge risk, greater lead times, risk of shipment damage, currency risk, work stoppage and political risk. Brinkman and Straub agree U.S. manufacturers embracing continuous improvement as well as investments in better technology have helped the country close the gap between lower-cost overseas labor markets. Brinkman said running a manufacturing operation is a complicated business and there is no silver bullet to success. “More than 90 percent of the world’s market lies outside the U.S., so it’s very difficult to understand your company’s competitiveness without exporting and selling in those foreign markets,” he said. n NNB2B | October 2014 | 45
If there are indicators you’d like to see in this space, contact our office at 920.237.0254 or email email@example.com.
local gasoline prices
u.s. retail sales august
september 21.............. $3.39 september 14.............. $3.41 september 7................$3.44 august 31....................$3.44 september 21, 2013..... $3.50
existing home sales
$444.4 billion 0.6% from July 5.0% from August 2013
u.s. industrial production
(2007 = 100) august
homes sold median price brown cty .....................294 ....................$155,000 Fond du Lac cty ...........106 .................... $118,500 outagamie cty .............221 ....................$144,000 winnebago cty ............226 .................... $138,700 WI Dept. Revenue Collections
0.2% from July 4.1% from August 2013
air passenger TRAFFIC
2014 full FISCAL YEAR
$13.9 billion -2.0% from Fiscal Year 2013
(Local enplanements) AUGUST 2014 AUG. 2013 Outagamie Cty. ATW....................23,014 ...... 21,862 Austin Straubel GRB.....................32,164 ....... 31,030
local unemployment july june july ‘13 Appleton . ..... 6.9% .......7.1% ........8.5% Fond du Lac . . 6.7% ...... 6.5% ........7.9% Green Bay........7.3% .......7.4% ....... 8.8% Neenah ............7.1% .......7.9%........ 8.4% Oshkosh ........ 6.3% ...... 6.2% ........7.5% Wisconsin ..... 5.8% ...... 5.7% ........6.6%
natural gas prices Prices for small businesses using less than 20,000 therms. Listed price is per therm.
september.................. $0.90 august........................ $0.82 september 2013......... $0.63 Source: Integrys Energy
ism index Numbers above 50 mean expansion. Numbers below 50 mean contraction. august . . . . . . . . . . . 59 july. . . . . . . . . . . . . 57.1
Part-time, evening or online classes
Saturday-only classes,16-month completion
www.mba.uwosh.edu • 800.633.1430
46 | October 2014 | NNB2B
COMMUNICATION IS KEY TO ANY GOOD RELATIONSHIP
AT NETWORK HEALTH, WE LISTEN TO THE PEOPLE OF WISCONSIN. We recently teamed up with people all over our state to share ideas and improve the health insurance industry. We heard ideas for better products and services from people from Racine to Green Bay and Milwaukee to Madison. We listened, and today Network Health is tailoring products and services for your unique needs.
cocreatewi.com 800-826-0940 HMO plans underwritten by Network Health Plan. POS plans underwritten by Network Health Insurance Corporation, or Network Health Insurance Corporation and Network Health Plan. Self-funded HMO and POS plans administered by Network Health Plan.
S T R AT E G Y
C R E AT I V E
Craftsmen of old knew implicitly how to measure twice, cut once. Something similar is at work at Spark. We measure, talk to folks, think, think some more, and then execute. See, modern messaging isn’t only about good ideas. It’s about pairing market-driven research with good ideas that help sell your good ideas. It’s a subtle process but rendered with diligence and a kind of strategic spark.
I G N I T E Y O U R S T R A T E G Y. I G N I T E Y O U R B U S I N E S S .
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