Providing perhaps the strongest sign yet that the recession is ending, the Milwaukee area economy improved considerably in August, according to the latest Business Survey of the Institute For Supply Management-Milwaukee.
The seasonally adjusted Milwaukee Index increased 11 points to 56 this month. New orders received increased 14 points to 59. Production rose 11 points to 56. Backlog increased 13 points to 51. Supplier lead times declined eight points to 47.
Readings over 50 indicate business expansion.
Blue collar employment went up nine points to 42. White collar employment increased five points to 47. Inventory levels are up four to 37. Capital equipment spending increased two points to an even 50.
The Prices Paid Index went up 13 points to 60. Nineteen items increased in price, one did not change and one declined. Sixteen are now above 50. Four are at 50 and one is below. The biggest increase was fuel at 67, followed by petroleum at 45. Ferrous went up 29 and aluminum went up 18. Copper and stampings were up 16. Computer hardware/software declined seven points.
Meanwhile, the closely watched Chicago Purchasing Managers Index (PMI) rose to 50.0 from 43.4 in July, its third consecutive monthly improvement.
Still, investors shrugged off the positive manufacturing data and were poised this morning to end a nine-day streak of gains in the Dow Jones Industrial Average. Decliners outnumbered advancers this morning. The largest local decliners in the BizTimes Stock Index this morning were A.O. Smith Corp. (down $1.14 to $37.57) and Kohl's Corp. (down $1.06 to $51.58). The largest local gainers this morning were Badger Meter Inc. (up 17 cents to $36.12) and Twin Disc Inc. (up 5 cents to $12.46).

The fallout continues today from the announcement by Mercury Marine that it will not honor the results of its union's second vote because the vote was not completed by the Aug. 29 midnight deadline that the company had set for its contract offer.
The company said it will now begin plans to move most of its 850 union jobs from Fond du Lac to Stillwater, Oklahoma. The company had requested several concessions including wage freezes, benefits cuts and pay cuts for new and recalled employees who have been laid off.
The company said the concessions were necessary to keep operations in Fond du Lac. However, those concessions were rejected by the union. Last week, some union members wanted to vote again on the company's proposal. But union leaders said there would not be a vote unless changes were made to the company's contract proposal. The company refused to make any changes, saying the proposal was its best and final offer.
Union leaders finally agreed to re-vote on the proposal late Saturday night, but the company said that decision was too late.
Now, some union members are blaming union leaders for the failure to complete a second vote before the deadline. Union members continued to vote today, even though the company said it will not extend its deadline.
Read more in BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.

U.S. Rep. Jim Sensenbrenner (R-Menomonee Falls), who confirmed today that he will seek re-election, also announced that he has been diagnosed with an early stage of prostate cancer and is beginning treatment.
"In late July, during a routine checkup, my PSA (prostate-specific antigen) levels were found to be high, which can be an indicator of prostate cancer," Sensenbrenner said. "After some additional testing was conducted, the doctor confirmed that I have an early stage of prostate cancer. Fortunately, it was caught in time, and the cancer has not spread beyond the prostate."
Sensenbrenner said his doctor informed him that that the cure rate for his type of cancer is 85 to 95 percent.
"Over the next several months I will undergo treatment, including radiation therapy," Sensenbrenner said. "My treatments will have a minimal effect on my duties of serving the people of the Fifth Congressional District. I intend on maintaining my active schedule, both in Washington and in the district, and will still hold the numerous town hall meetings that have been scheduled.

Explore Minnesota Tourism has begun running two ads on Minnesota radio stations in collaboration with the Wisconsin Department of Tourism.
The ads promote fall travel to both the Minnesota and Wisconsin sides of the St. Croix River and the Mississippi River. Each of the rivers is popular for viewing fall color, and the partnership markets both sides of the river as a joint destination.
The radio spots will air through Sept. 13 on more than 70 stations throughout Minnesota as part of an agreement between Explore Minnesota Tourism and the Minnesota Broadcasters Association. Reciprocal radio ads are planned to run in Wisconsin next spring.
"Wisconsin and Minnesota are good neighbors, with lots of leisure travel back-and-forth by the residents of both states," said John Edman, director of Explore Minnesota Tourism. "This collaborative tourism marketing is a cost-effective way to draw visitors to both sides of our very scenic border. It's a partnership that works well for both states."

Three Wisconsin manufacturing leaders have been elected to the board of directors of the Wisconsin Manufacturing Extension Partnership (WMEP).
The WMEP is a private, nonprofit organization committed to the growth and success of Wisconsin manufacturers. The WMEP's 21-member board of directors is comprised of business, labor, education and state government leaders.

The new WMEP board members are:

• Troy Berg, president of Dane Manufacturing Inc., a precision stamping and sheet metal fabricating firm that serves U.S.-based original equipment manufacturers.
• Tom Duffey, president of Plastics Components Inc. (PCI), a Germantown-based producer of injection molded plastic parts. Since Duffey started the company in 1989, it has grown from a 10,000 square-foot-facility with three presses to a 44,000 square-foot-facility with 42 presses.
• Tom Jacobson, vice president of operations at Bruno Independent Living Aids Inc., a global original equipment manufacturer of durable medical equipment products including stairlifts, vertical platform and vehicle lifts and turning automotive seating.

The new board members will serve three-year terms.
"There's no question our organization will benefit greatly from the talent, experience and commitment of these individuals. We're grateful for their willingness to serve," said Jim Martin, newly-elected WMEP board chair and director of operations for Donaldson Company, which has a division in Stevens Point. "Their efforts will be instrumental in helping WMEP achieve its mission to elevate Wisconsin manufacturing to be the best in the world, and in the near-term, help state manufacturers survive the recession and thrive in recovery."
In addition, Michael Erwin, president of Tailored Label Products Inc. in Menomonee Falls, was elected vice chair of the WMEP, and Mary Isbister, president of GenMet Corp. of Mequon, was elected secretary.

The coalition group Milwaukee County First began circulating a petition today to rally support for a sales tax intended for transit services, park up-keep and emergency services that was passed last November by Milwaukee County voters, but vetoed in July by Gov. Jim Doyle.
The organization said County Executive Scott Walker is considering plans to cut bus routes by up to 40 percent and raise fares by charging a quarter for each transfer. The group said Walker also is considering plans to cut spending on the county's park system and its emergency medical system.
Walker does not plan to unveil his budget plans until Sept. 24.
Chris Liebenthal, Milwaukee County First chair, said, "It is sad and unacceptable that it has gotten to the point that we have to remind lawmakers to honor the will of the people who have been waiting for almost a full year for this bill to be passed. What is equally egregious is that we need to fill the leadership role, putting Milwaukee County first, instead of the current administration in trying to resolve the funding issue facing the transit, park and emergency medical systems today."

Racine-based Modine Manufacting Co. has begun full-scale production of its Effinity 93 line of gas-fired heaters. The company expects to begin shipments of the new line of high-efficiency commercial, industrial and agricultural heaters in late September. Read more in the new edition of the BizTimes Manufacturing Weekly.

Consultant June Kriviskey says a positive attitude is critical for survival in the Great Recession. Read more in today's Milwaukee Biz Blog.