International Thermal Systems LLC, a West Milwaukee-based manufacturer of ovens, washers and dryers used in beverage canning, commercial laundry equipment and other industrial applications, has been acquired by the PS Capital Partners LLC, a Milwaukee-based private equity firm operated by Paul Stewart and Paul Sweeney, and the company’s management team.

Terms of the acquisition, which closed Aug. 20, were not disclosed. The team’s management team, led by its president and chief executive officer John Zea, purchased a minority stake in the firm, while PS Capital holds a majority position.

The company’s management team is part of what made ITS an attractive purchase, Stewart said.

“They are highly experienced in the industry segment. They work as a team together, and frankly, we like them,” he said.

ITS’ headquarters are based at 4697 W. Greenfield Ave., where its main manufacturing facility is also based. The company also has smaller manufacturing and engineering facilities in China and Europe.

ITS has about $30 million in annual sales now, and the company’s global footprint give it significant long-term growth potential, Stewart said.

“They’re very well known – they have a good reputation with their customer base,” he said. “There is the opportunity for continued expansion as the economy rebounds. (Dollars are) beginning to be freed up in the capital investment sector, and we see opportunities in South America, Mexico, China, the Middle East and Europe.”

Stewart and Sweeney’s firm takes a longer term view on its investments than most private equity firms – many private equity investors look to buy, build and sell their portfolio companies in a five to seven year time frame. PS Capital Partners plans to hold its companies for 10 years or more.

ITS is positioned for significant growth in the next several years, Stewart said, and has a building order backlog over the next six months.

“This company will have one segment of growth following the larger corporations that provide metal packaging products (around the world) as a supplier to those companies,” he said. “The other area is in the general industrial product line, where they address a wide range of applications. As those companies come back, they’re expanding or launching new lines.”

The Paranet Group, which is known for its networking and development groups for high level manufacturing managers and executives, will offer a new group this fall for new managers in manufacturing firms.

The First Time Manager Advisory Group is being offered because most manufacturing managers have little to no previous managerial experience. The group will include monthly roundtable meetings, behavior and motivational coaching and participation in other Paranet activities.

The Paranet Group will hold an informational breakfast on Tuesday, Oct. 12 from 8 to 10 a.m. at Westmoor Country Club, 400 S. Moorland Rd., Brookfield. For more information isit www.paranetgroup.com or call 262-796-2560. Registration is required and space is limited for the event.

Ex-Im Bank approves loan application for Bucyrus equipment

The U.S. Export-Import Bank has approved $600 million in loan guarantees for Bucyrus International Inc. to manufacture mining equipment for a power-plant operator in India.

According to Bucyrus spokeswoman Amy Malingowski, the loan application will now go to Congress for final consideration, and the company expects that decision within 30 days.

“The bank had a team of people over in India reviewing the site, and we were optimistic it would be approved,” Malingowski said.

The $600 million in financing was sought to help an Indian firm, Reliance Power Ltd., to buy Bucyrus mining equipment that would be used for a coal mine that is to supply a power plant under construction at Sasan in the Indian state of Madhya Pradesh.

The Ex-Im Bank reversed its initial rejection of the loan application because of concerns that the equipment would be used to mine coal, which is not a clean-burning fuel.

Hundreds of jobs at South Milwaukee-based Bucyrus are at stake with the loan application. If the loan is not approved, Reliance Power is prepared to buy the equipment from overseas competitors.

The bank reconsidered its decision after receiving pressure from the White House and Wisconsin's congressional delegation.

OSHA cites Karl’s Event Rental for violations

The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has cited Karl's Event Rental Inc. in Oak Creek with 23 safety and health violations that include exposing workers to combustible residues and electrical hazards.

The proposed penalties total $85,000.

"This company exposed its workers to unsafe and unhealthy conditions, and failed to properly train them in the correct use of personal protective and emergency equipment," said OSHA area director George Yoksas in Milwaukee. "By ignoring safe practices, companies invite tragedy into the lives of their workers."

Some of the 18 serious citations with proposed penalties of $45,000 include failure to remove accumulated combustible residues within spray booths, train workers in how to use respirators and fire extinguishing equipment, develop required procedures for machinery operation and have an adequate personnel platform when elevating workers. The company also has received four repeat citations with proposed penalties of $40,000 for failing to develop an energy control program, provide required energy control training to workers, develop and implement a written hazard communication program, and train workers on chemical hazards in their work area. OSHA issues repeat violations if an employer previously was cited for the same or a similar violation of any standard, regulation, rule or order at any other facility in federal enforcement states within the last three years.

The company also has received one other-than-serious violation with no penalty for improper mounting of fire extinguishers.

Karl's Event Rental, which is one of the nation's largest event rental companies, has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA's area director or contest the findings before the independent Occupational Safety and Health Review Commission.

Wisconsin manufacturing employment down 2.5 percent this year

Manufacturing employment in Wisconsin fell 2.5 percent over the past twelve months according to the 2011 Wisconsin Manufacturers Register, an industrial directory published annually by Evanston, Ill.-based Manufacturers' News Inc.”

Manufacturers News Inc. reports that Wisconsin lost 15,223 industrial jobs and 154 manufacturers between June 2009 and June 2010.

The decline in manufacturing employment in the state has slowed. The 2009-10 job loss in the state was about half of the manufacturing job loss in Wisconsin during the 2008-09 period, according to Manufacturers News.

Manufacturers' News reports Wisconsin is now home to 11,872 manufacturers employing 580,184 workers.

"The recession continues to affect Wisconsin's manufacturing sector, particularly industrial machinery and industries reliant on the housing market. But we're definitely seeing fewer job losses than we did a year ago," said Tom Dubin, president of Manufacturers News.

Machinery and equipment remains the state's largest manufacturing sector by employment, with 100,743 jobs, down 4.7 percent over the past twelve months.

Fabricated metal products ranks second with 65,254 manufacturing jobs, down 2.9 percent over the past 12 months.

Food products accounts for 64,219 industrial jobs, down 2.1 percent over the past year. Other industrial sectors in Wisconsin that lost jobs during the past 12 months included lumber and wood, down 10.3 percent; printing/publishing down 7.7 percent; furniture/fixtures down 5.6 percent; primary metals down 5.2 percent; electronics down 3.2 percent and textiles/apparel down 3 percent.

Employment in transportation equipment and rubber and plastics remained steady over the year, Manufacturers News said.

Few industry sectors showed employment growth in the state during the last year. Employment in chemicals manufacturing rose 3.2 percent and paper products increased 2.1 percent, according to Manufacturers News.

Manufacturers' News reports that southeastern Wisconsin has more than half of the state's industrial employment, with 313,412 jobs, down 3.1 percent over the last year.

Manufacturers’ News city data shows Milwaukee is Wisconsin's top city for manufacturing employment, home to 56,013 jobs, down 4.7 percent over the last year. Second-ranked Green Bay has 22,894 jobs, about the same as a year ago.

Madison has 18,066 industrial jobs, down 4.8 percent over the last year.

Waukesha has 17,256 manufacturing jobs, about the same as a year ago.

Appleton has 14,167 manufacturing jobs, down 3.2 percent over the last twelve months.

Phoenix Products Co. Inc., makes lighting products that are designed to withstand some of the harshest environments – where reliable lighting is crucial for safety and continued operations.

The company’s fixtures and lamps are made to withstand shock, vibration and corrosion, and can be found in some of the world’s largest mines and mining machinery, military and merchant marine craft, and industrial operations.

“The fixtures are made with special aluminum alloys and have built-in shock absorption materials and structures,” said Scott Fredrick, chief executive officer of the company. “We protect the very fragile lamp with our fixtures.”

Phoenix Products got its start in the lighting business in the 1950s, when a mining equipment manufacturer asked it to develop a shock-resistant light housing. Since then, the company has made lighting the cornerstone of its business. Today, Phoenix Products sells its mining-related lighting products to some of the largest mining equipment makers and mine operators around the world, Fredrick said.

“(Because the fixtures are so durable) they save on down time, because they’re not having safety and maintenance problems,” he said.

The company’s fixtures for the marine industry are made to withstand heavy vibrations, as well as the corrosive conditions that salt water environments can present. Making corrosive-resistant lights requires extensive sealing on fixtures, which has also helped Phoenix Products develop its fixtures for heavy industrial uses.

Read more in the latest issue of BizTimes Milwaukee.

In 2006, the state Council Leading Group on Science,  Technology and Education, chaired by Premier Wen Jiabao established a 2006-2020 National Plan for Science and Technology Development, which stressed increasing the number and quality of intellectual property (IP) registered in China.

The effort has two basic prongs: encourage the development and  registration of new IP developed in China by indigenous Chinese  people and encourage outside firms to develop and register IP in China.

Since then, China has offered tax breaks for research centers locating in China, reduced IP filing fees, offered free legal advice for those looking to register new IP, recruited research personnel and entrepreneurs and set up a government procurement preference program for indigenous IP.

Four years later, as China’s economy hums along  and the developed world sags, multinational corporations (MNCs) are feeling the heat. Their basic fear is that IP registered in China could be a heavy price to pay, if it is the price of access to China government procurement program. The idea being that if the IP is not protected, it could be used against the company not only in China but the rest of the world.

 On Nov. 15, 2009, the Chinese government issued Circular 618, requiring companies to register their indigenous products by Dec. 10. A firestorm of comments mostly by MNCs, Chambers of Commerce and Embassy Trade Departments followed. The result was a new comment period was established.

Read more in the latest Dispatches From China column.

Pat Hatem has been named vice president of operations for Gaco Western, a manufacturer of coatings and spray foam for the construction and waterproofing industries. Gaco Western is based in Washington, but has a manufacturing facility in Waukesha.

Hatem worked previously at JohnsonDiversey where she held numerous manufacturing and material leadership positions throughout her 16 year career with the Johnson family of companies. She has also held positions at The Dial Corporation, Abbott Laboratories and the Olin Corporation in a variety of positions in R&D and process and environmental engineering.  

“Pat’s commitment to collaboration and leadership will bring a new level of excellence to our national operations strategy,” says Peter Davis, president and CEO of Gaco Western. “As a Six Sigma Black Belt and Lean manufacturing leader, she’s skilled at driving process improvements, increasing output and realizing cost savings –we’re looking forward to leveraging her talent and positioning the company for future growth.”

St. Francis-based Wixon Inc. has named Kim Holman director of marketing. Holman’s responsibilities include managing all marketing, advertising and promotional activities and staff, overseeing business development activities and trade shows, and providing analysis of customer research, market conditions and competitor data.

“We’re happy to have Kim at the helm of our marketing initiatives as Wixon continues to grow its brand and product line,” said Peter Gottsacker, Wixon president. “She is a proven communicator and the skill sets she brings to the table will enhance our commitment to drive innovation and exceed our customers’ expectations.”

Holman worked previously at SC Johnson, overseeing marketing initiatives, and as a brand manager for a variety of products and new business ventures. After leaving SC Johnson, she started her own business, VIM Marketing.

Manpower warns of global labor shortage in skilled trades

According to a new study by Manpower Inc., businesses, governments and trade associations need to work together to develop long-term strategies to alleviate talent shortages in the skilled trades.

Worldwide, skilled trades positions are the hardest to fill, according to Milwaukee-based Manpower’s global Talent Shortage Survey of 35,000 employers across 36 countries and territories.

In a new World of Work Insight Paper titled: "Strategic Migration - a Short-Term Solution to the Skilled Trades Shortage," Manpower warns that as the global economy recovers, it is necessary to implement strategic migration policies to create a mobile workforce and plug the gap of skilled workers.

In the survey, “skilled trades” refers to a broad range of job titles that require workers to possess specialized skills, traditionally learned over a period of time as an apprentice. Examples of 'skilled trades' jobs include: electricians, carpenters, cabinet makers, masons/bricklayers, plumbers and welders.

The lack of skilled blue-collar workers could impede the progress of infrastructure projects and inhibit national growth - such as transportation in India and power in Brazil, for example. It is a problem that national governments must address for the long-term to foster economic health and fuel business growth. In the meantime, increasing the mobility of those workers can help ease the talent shortage.

"As the global recovery gathers pace, cultivating future talent and alleviating the shortage of skilled workers is becoming vital to ensure economic growth," said Jeffery Joerres, Manpower Inc. chairman and chief executive officer. "With unemployment high around the world, migration is an emotive subject but strategic migration will be necessary to create a global workforce and alleviate the current shortage. Countries should be developing policies which facilitate positive migration to fuel economic growth through providing skilled workers where they are needed, rather than creating barriers to immigration."

Joerres added, "Employers and governments need to bring honor back to the skilled trades. They must look ahead to forecast their future skill demands in this area and start working to alleviate this now. Unemployment levels remain high across the globe, particularly among young people, and providing training programs while working to promote skilled trades as a viable career choice could open up these jobs to a wider talent pool, as well as helping businesses tackle their shortages effectively and sustainably."

To obtain the full Manpower Talent Shortage Survey results, click on the following link: http://www.manpower.com/ResearchCenter.

Master Lock wins patent suit appeal

The U.S. Court of Appeals for the Federal Circuit has overturned a previous $5.35 million patent infringement jury verdict against Oak Creek-based Master Lock Company LLC.

The lawsuit was filed by Philip W. Wyers and Wyers Products Group Inc.

A three-judge panel found that three patent claims were obvious as a matter of law. Combining elements that were already known "was a matter of common sense," according to the panel. The patents in the lawsuit cover hitch pin locks that secure trailers to cars, trucks and sport utility vehicles.

"We are pleased the appeals court agreed with Master Lock's position and we want to thank our customers for their continuous support during the appeals process," said Dave Love, vice president and general manager of automotive for Master Lock.

Master Lock is an operating unit of Fortune Brands Inc., a leading consumer brands company headquartered in Deerfield, Ill.

The Waukesha County Business Alliance, will hold an informational meeting for its Beijing City Stay trip on Wednesday, Sept. 1 from 6:30 to 7:30 p.m. at Brookfield Travel, 19045 W. Capitol Dr. Brookfield. The 10 day China trip is scheduled for April, 2011.

The informational meeting is free. For information to reserve a space, call Barry at Brookfield Travel at (262) 373-1000.

For information about the China trip, click http://www.waukesha.org/Library/carolyn/ChinaTripInfo.pdf.

The University of Wisconsin Center for Quick Response Manufacturing will present the workshop “How to Use Manufacturing Critical-Path Time to Reduce Your Lead Time” on Wednesday, Oct. 6 from 8 a.m. to 4:30 p.m. in the Center for Quick Response Manufacturing, 3160 Engineering Centers Building, 1550 Engineering Drive, Madison. Speakers will include Ananth Krishnamurthy, director, QRM Center and Nathan Stoflet, manager of material flow, John Deere harvester works. For information, call (608) 262-4709 or visit www.qrmcenter.org.