Tailored Label Products Inc. (TLP), a Menomonee Falls-based designer and manufacturer of high performance labels and precision die cut adhesives, recently expanded its manufacturing space from 28,000 to more than 52,000 square feet. TLP's makes labels and precision die cut products for automotive lens shields, DNA test vials, wristbands for hospitals and theme parks, biomedical equipment, specialized computer and telecom equipment, and many other applications.

The expansion is TLP's third in four years. It grown to 64 employees from 28 in 2004, and expects to hire about six more workers by the end of the year, said Mike Erwin, president of the company. The company's revenues have grown in the same way. "Our revenues have more than doubled since 2004," Erwin said. "We're in the mid 20's (percent) annually." TLP's revenues will be slightly lower this year, because of its significant research and development investments, Erwin said. However, the company projects significant revenue growth in 2009 and 2010.

While many of its peers have struggled in recent years, TLP continues to grow because of its emphasis on R&D, Erwin said. "Our specialty is the creation and invention of new products," he said. "We're not just making commodity products – we tend to be higher end. Invention is a big part of our process. We have six patents under way now across four clients for new processes, new materials and new science for markets that tend to be more reliable in challenging (economic) times such as the medical and hospital markets."

The company's expansion includes a vacant area in the middle of its manufacturing space, which will be used for future expansion, Erwin said. "Our patents will change the mix and face of who we are," he said. "That's why we've left that center area open so we can create a line in the bowels of the business with its own offices, utilities and everything."

TLP's facilities have been laid out in similar fashion. With the assistance of the Wisconsin Manufacturing Extension Partnership (WMEP), the company has paid close attention to the layout of its supplies, machinery and office locations. "Our goal was to build mini plants with their own specialization, each with their own shipping and receiving," Erwin said.

The expanded plant is also more energy efficient, and uses light fixtures built by Orion Energy Systems, based in Manitowoc. "We've got all new Orion lighting, which gives us 50 percent more light at the printing press," Erwin said. "It uses 50 percent less current than our prior lighting and the energy savings allowed us to power three new presses. It was a literal tradeoff."

For more information, visit www.tailoredlabel.com.

Mid Valley Industries, a Kaukauna precision machine and fabrication shop that serves the paper, oil and gas, power generation and mining industries, is expanding by 25,000 square feet, nearly doubling in size. The company is currently 30,000 square feet. The expansion will allow Mid Valley to nearly double its employment in the next three years, said Doug Pribyl, vice president.

Mid Valley has 82 employees. It will hire 24 to 25 workers during the third and fourth quarters of the year and an additional 25 workers in 2009 and 2010, he said. The expansion is expected to be completed by early October. "We're bursting at the seams," Pribyl said. "We have excellent customers who keep us very busy and they want more from us. We're also bringing in some equipment that we don't have that will give us higher capacity and higher tolerances."

One of Mid Valley's new machines will be the largest wire cut EDM machine in North America. "That's brand new technology that we don't have now," Pribyl said. Many of the jobs that Mid Valley takes on require oversized machinery and cranes to support them, Pribyl said, which also takes highly skilled operators.

Mid Valley's revenues are anticipated to rise by about 20 percent this year, largely because of the increased capacity and new technology. "The last part of the year will be heavier in growth than the first part," Pribyl said. "We're on the front end of the expansion now. As it comes online and we have more capacity, we'll have more growth by the end of the year."

The project is expected to cost about $4 million. Mid Valley recently received $437,000 in Enterprise Development Zone Tax Credits from the state Department of Commerce.

The propulsion plant of the nation’s first Littoral Combat Ship, Freedom (LCS 1), has completed testing in preparation for dock trials. The ship, under construction in Manitowoc, is now ready to begin dock trials – the final stage of testing before underway trials. 

Freedom is being built by a Lockheed Martin-led team including naval architect Gibbs & Cox, ship builders Marinette Marine, a subsidiary of The Manitowoc Company, Inc., , and Bollinger Shipyards, as well as best-of-industry domestic and international teammates to provide a low-risk, affordable LCS solution.

“Freedom is now exercising her propulsion train to the full extent possible in port, running the gas turbines and diesel engines; spinning shafts and pumping water through the steerable water jets,” said Dan Schultz, vice president and general manager of Lockheed Martin’s [NYSE: LMT] Maritime Security & Ship Systems line of business.  “We are looking forward to beginning underway trials in the lakes and demonstrating the capabilities this unique ship will bring to the U.S. Navy.”

The agile 378-foot Freedom is powered by an innovative, combined diesel and gas turbine propulsion plant, with steerable water jet propulsion.  This system will power the ship at cruise speeds out to ranges exceeding 3,500 nautical miles and will also allow the ship to sustain sprint speeds over 40 knots. Dock trials includes a series of demonstrations of propulsion, navigation, communication and other systems conducted to ensure the ship is ready for sea trials.

Harley-Davidson, Inc. will acquire MV Agusta Group, an Italian motorcycle manufacturer for about $109 million plus payment of about $70 million of the company's debt, Harley officials announced this morning. The transaction is expected to close in several weeks.

MV Agusta makes a line of high-performance sport motorcycles and a line of lightweight cycles under the Cagiva brand. It sells cycles through about 500 dealers, primarily in Europe. Last year, the company shipped about 5,800 motorcycles. Due to financial hardship, the company has significantly slowed production this year.

Harley will continue to operate MV Agusta from its Italian headquarters. MV Agusta's chairman Claudio Castiglioni will continue to lead the company and will assist in future product development. The acquisition will help expand Harley's European presence, said Harley-Davidson, Inc. Chief Executive Officer Jim Ziemer.

"Motorcycles are the heart, soul and passion of Harley-Davidson, Buell and MV Agusta," he said. "Both have great products and close connections with incredibly devoted customers. The MV Agusta and Cagiva brands are well-known and highly regarded in Europe. They are synonymous with beautiful, premium, Italian performance motorcycles."

Cudahy-based Ladish Co. Inc. has acquired Aerex Manufacturing Inc., a South Windsor, Conn. precision machining manufacturer that serves the aerospace and commercial airline industries, for about $14 million cash and stock.

"The acquisition of Aerex, with projected 2008 sales of approximately $15 million, represents an excellent addition to our existing value-added, precision-machining capabilities," said Kerry L. Woody, President and CEO of Ladish. "Ladish and Aerex serve mutual customers in the aerospace supply chain and we have had a long-term relationship with Aerex, based on their providing finish machining of titanium forgings produced by Ladish Forging."

Aerex's founder Armund Ex and its management team will continue to lead the company's operations.

Ladish is a producer of highly engineered technically advanced components for the jet engine, aerospace and general industrial markets. In addition to its headquarters and operations in Cudahy, it has plants in Wisconsin, Connecticut, Oregon and Poland. Ladish is traded on the NASDAQ index under the symbol LDSH.

Olympus Flag and Banner, a Milwaukee based printing company, has acquired Holzhauer Graphics in Brown Deer. Holzhauer Graphics is now a division of Olympus Flag & Banner. Holzhauer specialized in large format printing of vehicle graphics, sponsor signage, custom printed tents and tent material, sports venue graphics, wall coverings and more since 1985.

"As we have grown over the years, we have continually evaluated options that would allow us to increase our product offerings, improve customer service, and exceed customer expectations. With that in mind, and after months of research and evaluations, we are excited to announce that Holzhauer Graphics has been acquired by Olympus Flag & Banner," said Ryan Holzhauer, who will continue working with the merged company. All eight Holzhauer employees will be retained.

"The additional capabilities will increase our abilities and allow us to address a wider spectrum of customers. The services we provide to our customers constantly take us to new levels. This purchase will allow us to continue to exceed our customers’ expectations with even greater resources," said Brian Adam, vice president of sales and marketing at Olympus.

Packers' Chemical Inc. (PCI) is moving its manufacturing operation from Missouri to Wisconsin and will receive $65,000 in Community Development Zone tax credits to construct and equip a new facility in Kieler, which is located in Grant County. The total project cost is $3.4 million. PCI has committed to create 27 new positions at the Kieler facility.

Packers' Chemical, Inc. is a chemical blending manufacturing company that supplies the food industry with EPA/FDA approved products and equipment for production and cleaning.

The Wagner Companies has promoted Connie Knaak to manager of employee development and training. Knaak will assume responsibility for the establishment and standardization of training and skill development across The Wagner Companies with the ultimate goal of servicing customers at continuously improving levels. She has been a contributor to the success of R & B Wagner for the past 20 years. She has served in a variety of positions including receivables, sales, sales management and most recently production control.

State must refund $265 million to businesses
The state Supreme Court today ruled last week that the state was improperly collecting sales taxes on customized computer software sales. The ruling means that the state must return $265 million in improperly collected taxes to businesses. Another $28 million in taxes that was planned to be collected this year won't have to be paid by businesses. The court's ruling also means the state now has a $265 million hole in its budget.

The ruling upheld a Court of Appeals decision that said that Neenah-based Menasha Corp. does not owe the state use tax for the license and installation of its SAP enterprise-wide software System. Menasha Corp purchased the SAP software and then made some 3,000 changes to it.

"Any company using SAP software should not have to pay use taxes within certain guidelines because of the fact that SAP software is a customized software application for every company that uses it," said Chris Carter, chief executive officer of Milwaukee based CCI, a company that specializes in the sale and support of SAP/ERP systems. "Trying to find a tax, based on IT expenditures that the state legislature clearly does not understand is a bit shameful."

The Menasha case has been in litigation since 1998, said Nancy Whitton, director of corporate communications at Menasha Corp. "We are all really pleased that the decision has finally been made," she said. "It really clarifies the state's tax ruling for some companies." Menasha Corporation expects to receive a $275,000 refund from the state, plus an amount almost equal to that in interest, Whitton said.

Fears of inflation grow among small-business owners
For the first time in 27 years, the top concern of American small-business owners is inflation. The National Federation of Independent Business (NFIB) monthly Index of Small Business Optimism was basically unchanged in June, falling 0.1 points to a recession-level reading of 89.2. "The top concern of small business owners today is inflation - the first time since January 1981," said NFIB chief economist William Dunkelberg.

Since 1983, the average percent of owners citing inflation as a top problem has been 3 percent.  In February 2008, 8 percent cited inflation as their top problem. By May, 17 percent said inflation was their top concern, and in June that number rocketed to 20 percent.

However, employers' plans for hiring and capital spending, as well as job openings, inventory investment plans and expected credit conditions, are all stronger than in most past recessions, Dunkelberg said. Still, employers' expectations for real sales gains and improvements in business conditions are as bad as they were in 1980-82, the worst recession in recent years.

The net percent of owners reporting higher average selling prices rose another six points to a net 29 percent in June. Plans to raise prices rose four points to a net 36 percent of all owners - up 15 points from last September, when the Federal Reserve Board declared the existence of a credit crunch. "The inflation problem is getting worse, not better, as the economy weakens," Dunkelberg said. Unadjusted, 41 percent reported raising average selling prices, up four points, and 13 percent reported lower selling prices, unchanged from May.

Job creation among small business owners was down sharply in June - a decline of .5 workers per firm. Six percent of the owners increased employment by an average of 4.3 workers per firm, but 18 percent reduced employment an average of 4.6 workers per firm.

The frequency of reported capital outlays over the past six months drifted lower to 52 percent of all firms (down two points). Spending activity has declined eight points since last September and, adjusted for leasing activity, spending has fallen to early 1980s levels, Dunkelberg said.

The net percent of owners reporting earnings improvements declined in June.  Seasonally adjusted, those reporting declining earnings outnumbered those with gains by 33 percentage points, five points worse than May.

"Profits are under fire," Dunkelberg said. "Lower (interest) rates clearly are not stimulating capital spending, which has drifted lower as the Fed has cut rates. Unfortunately, the rate paid to savers has also declined as the Fed cut rates. Ordinary savers are being forced to help out the big Wall Street banks by Fed policy."

Regal Ware donates water distillers for flooding relief
Regal Ware Worldwide, a Kewaskum manufacturer of stainless steel cookware, recently donated 100 of its factory reconditioned AquaVie Healthy Water System units to the Salvation Army for distribution to residences, schools and shelters most affected by the recent flooding. The units will be distributed by the Salvation Army’s Midwest Offices based in Fond du Lac and Milwaukee. The AquaVie unit removes 99.9% of all contaminants from water using distillation, the company said. It does not require plumbing.

"We are happy to provide our AquaVie™ products to help supply safe drinking water so that people can remain in their local communities as they recover and rebuild from this unprecedented flooding," according to Jeff Reigle, President & CEO of Regal Ware Worldwide. "It is a long-term, affordable solution that by-passes the need to ship in and dispose of water bottles, thereby eliminating additional expenses to the affected areas."