The Business Excellence Consortium (BEC), a business outreach arm of the Milwaukee School of Engineering (MSOE), has evolved into a one-stop resource for manufacturing, engineering, technology and related businesses in southeastern Wisconsin.

Founded in 2002, the BEC was started as a small outreach organization by the school, said Timothy Valley, MSOE's vice president of enrollment management. Earlier this summer, the school named David Tietyen, a former teacher in its Rader School of Business, as its director.

The BEC now has six full-time employees, as well as 20 coaches, consultants and trainers. It also has about 150 businesses that are members.

"In 2002, when the BEC was launched, we weren't sure where the university fit in (the business community)," he said. "Now we've seen some of the integration points. David's been brought on to start bringing us in that direction - to be a one-stop shop."

The group provides businesses with executive leadership, operational, individual and networking support, Tietyen said, through one-on-one, group and public education programs.

"When you go into a company, in an ideal situation, you sit down with the company and ask them what their strategic plan is - how they're measuring it and you try to identify what they need," he said. "We come in from a third-party perspective to help companies identify what they need to do to achieve growth."

Many of the BEC's courses help companies improve their processes and output, through lean manufacturing, Six Sigma, 5S and other continuous improvement programs, Tietyen said. However, using its connection to MSOE, the group is developing new programs, focused on product innovation and leadership, which are expected to launch in the first quarter of 2009.

"We've got to focus on the executive level," Tietyen said. "The marketplace is screaming (for someone) to prepare those people. That's the next step. We're looking at… applied organizational leadership - how do you learn how to take an organization from A to B? Part of it will be public, but a lot of it will be internal programs (with client companies)."

Corporate membership in MSOE's BEC is $3,000 per year and includes an initial company assessment, reduced rates for courses, as well as access to the group's resources, special interest groups and company tours, Tietyen said. For more information, visit www.bec.msoe.edu.

Wausau Equipment Company to expand in Wisconsin
New Berlin-based Wausau Equipment Company Inc. plans to build a satellite facility for research and development, testing, final assembly and product installations in the Town of Fond du Lac.

The firm plans to build a 22,050-square-foot facility.

"Wausau Equipment Company Inc. will continue to be based in New Berlin. We currently employ about 100 people in New Berlin. We are projecting 34 employees within three years at the new Fond du Lac facility," Rod Winter, president and chief executive officer of the company, told SBT.

Wausau Equipment, formerly Schmidt Engineering & Equipment, manufactures heavy-duty snow removal and ice control equipment for municipalities and airports. The company's products include heavy-duty snowplows, rotary brooms, loader and truck-mounted snowblowers and spray deicing systems.

Wausau Equipment will be the first company to occupy space in the Fond du Lac Aeronautical Industrial Park, a new industrial park being developed on the north side of the Fond du Lac County Airport.

The company purchased more than six acres in the new industrial park directly adjacent to the airport and has an option to purchase another six acres for future expansion.

The Wisconsin Department of Commerce is providing $221,000 in Enterprise Development Zone tax credits for the expansion.

Wausau Equipment is owned by Wausau-Everest LP, a holding company that also owns Everest Equipment in Quebec, Canada. Wausau-Everest, through its two operating companies, markets its heavy-duty snow removal equipment under the brands Wausau, Everest, Snogo, American Sno-Plows, Frink America and Tyler Ice.

Wausau-Everest is a portfolio company of ELB Capital Management LLC, a Philadelphia-based private equity firm.

Slowdown will prompt Johnson Controls to close plants, cut jobs
Johnson Controls Inc., the largest publicly held company in Wisconsin, announced last week that it will close plants and eliminate jobs as it reacts to economic slowdowns in the automotive and construction sectors.

The Glendale-based company said it plans to initiate restructuring activities which will result in an estimated pre-tax charge of $450 million to $500 million in its 2008 fourth quarter.

The company said the restructuring charge relates to cost reduction initiatives in its automotive experience, building efficiency and power solutions businesses and includes workforce reductions and plant consolidations. The company expects to substantially complete the initiatives by early 2010.

Keith Wandell, president and chief operating officer of Johnson Controls, said the company will not disclose where the plant closings and job eliminations will take place until after the employees have been notified.

A company spokeswoman said Johnson Controls has about 2,500 employees in Wisconsin, but she said she could not comment about the impact the restructuring will have in the state.

The company said automotive-related restructuring is in response to the fundamentals of the European and North American automotive markets. The actions target reductions in the company's cost base by decreasing excess manufacturing capacity due to lower industry production and the continued movement of vehicle production to low-cost countries, especially in Europe.

Johnson Controls said it expects the restructuring plan will improve its long-term growth prospects in its highly competitive global markets.

"The (vehicle) production volumes in North America are down … And even though we do see continued vehicle build growth around the world, there will be a redistribution of that production, and we're just merely realigning our resources to best take advantage of that and really to improve our cost position in the industry downturn, if you will, in North America," Wandell said.

The company is projecting a 20-percent reduction in its outlook for 2009 automotive production than was projected a year ago.

Plexus to expand in China
Neenah-based Plexus Corp. will begin manufacturing in Hangzhou, China, in late 2009, and has entered into an agreement to lease approximately 106,000 square feet in the Binjiang Hi-Tech Park located in Hangzhou.

The new facility will enable Plexus to better serve global customers with regional decision centers in the greater Shanghai area and will boost Plexus' ability to deliver a lowest-total-cost value proposition. The new location will be the third for Plexus in Asia, adding to the current footprint in Xiamen, China, and Penang, Malaysia.

Y.J. Lim, regional president of Plexus Asia Pacific, said, "Our facilities in Asia are integral components of Plexus' global manufacturing and supply chain solution sets. Having proximity to customers and the supply chain in the greater Shanghai area will allow us to support our future growth prospects in this region. It will also provide us with greater opportunity to tap into the broad availability of technical talent from the strong education system in the Hangzhou area, setting the stage for future growth in our engineering services offering."

Dean Foate, president and chief executive officer of Plexus, said, "We are pleased to announce this further expansion in China, an outcome to our strategic planning process to proactively align our footprint to meet the future needs of customers. This investment is aligned with our value proposition to deliver intelligent, profitable growth as we continue our vision to be the best EMS company in the world at serving customers with products in the mid-to-low-volume, higher-mix segment of the market."

Joy Global reports strong quarter
Joy Global Inc. reported fiscal third quarter net income of $113 million, or $1.03 per share, compared, up from $73 million, or 66 cents per share, in the same period a year ago.

The Milwaukee-based mining equipment manufacturer's latest quarter benefited from the realization of foreign tax credits of $24 million, or 22 cents per share.

The company's net sales for the quarter were $904 million, up 45 percent from the sales in the same period last year.

Meanwhile, a China Mining Machinery, a wholly-owned subsidiary of Joy Global, will acquire all outstanding shares of Wuxi Shengda, a Chinese manufacturer of longwall shearing machines, for $22.0 million, excluding closing costs.

Wuxi Shengda primarily serves the markets for provincial mining companies and employs approximately 450 at its facility in Wuxi, China. Completion of the transaction is subject to customary regulatory approvals and other closing conditions and is expected to occur during the fourth calendar quarter.

Mike Sutherlin, president and chief executive officer of Joy Global, "The acquisition of Wuxi Shengda provides us with a foothold in the China market for domestic equipment and will allow us to better serve that country's local and regional mining industry."

"We see opportunities to grow revenues and margins at Wuxi Shengda by enhancing its existing product offering through newer shearer technology, improving operational efficiencies and establishing our service/aftermarket capabilities," said Ted Doheny, president of Joy Mining Machinery, Joy Global's underground mining business.

Snap-on launches new cordless wrench
Kenosha-based Snap-on Tools Inc. unveiled a new compact, lightweight 3/8-inch cordless impact wrench.

With 230 foot-pounds of bolt break away torque, the CT4410 allows technicians to rev it up and get jobs done quicker and easier, the company said. The patented super heavy duty impact mechanism and the heat-treated alloy gears deliver strength and durability and reduce the chance of breakage.

Featuring an oversized trigger for precise control, a cushion-grip handle for less strain, a cushion-mounted motor for reduced vibration and a one-handed forward/reverse switch to easily change directions, the new wrench allows technicians to work longer with less fatigue.

The CT4410 comes with a 14.4-volt battery system that includes dual rail slide-on batteries with self-aligning terminal block for longer battery life.

Manufacturing survey will provide benchmarks for Wisconsin
What are the best practices that will propel Wisconsin manufacturers to success in 2015?  To what extent are the state's 10,000 manufacturers embracing world class manufacturing strategies to transform their companies?

Wisconsin's Next Generation Manufacturing Survey will provide answers and fresh insights to those and other questions. The web-based survey was launched today and can be accessed at www.WisconsinNGM.com.

Any Wisconsin manufacturing owner, chief executive officer or senior level executive is eligible to participate. The survey is confidential and takes approximately 30 minutes to complete. Deadline for participation is Sept. 30.

Survey participants will receive a personalized Next Generation Manufacturing Performance Report or a summary report after results are tabulated. 

The survey will identify and measure key performance metrics and best practice strategies consistent with next generation manufacturing. The elements of next generation manufacturing are customer-focused innovation, global engagement, green/sustainability, supply chain management and collaboration, process improvement and talent acquisition and retention.

"Everyone - industry leaders, government officials, academia - understands that Wisconsin's manufacturing base must change if it's going to win in this new economy," said Mike Klonsinski, executive director of the Wisconsin Manufacturing Extension Partnership (WMEP). "The survey results will provide us with a scorecard to determine where we are today, and where we need to be to be considered a world class manufacturing center."

The survey is being conducted by the Manufacturing Performance Institute for WMEP and its partners, the Wisconsin Department of Commerce, Wisconsin Manufacturers & Commerce (WMC), Milwaukee 7, New North, Inc. and the Northwest Wisconsin Manufacturing Outreach Center (NWMOC). 

The survey findings will be used to align and strengthen local and state policies, programs and infrastructure supporting the state's 10,000 manufacturers. Klonsinski said.  Survey results will be released this fall, and will be widely disseminated to business leaders, elected officials, state policymakers, the media and general public. For more information on the survey, call 1-877-800-2124 or email results@wmep.org.

Tax rebates gave temporary boost to GDP
The U.S. Department of Commerce reported last week that the national gross domestic product (GDP) increased by 3.3 percent annual rate in the second quarter, revised from the government's previous estimate and exceeding economists' expectations.

The growth was fueled by additional consumer spending after the federal tax rebates and by the continued declining value of the U.S. dollar that made American products more price-competitive.

The rebound came after two dismal quarters. The economy shrank in the final three months of 2007 and grew in the first quarter at 0.9 percent pace.

Federal Reserve Chairman Ben Bernanke recently warned that the economy will be weak through the rest of this year.

Economist Peter Morici, who is ranked as the most accurate economic forecaster at Marketwatch.com, predicts the economy will hit another pothole in the second half of the year, as the impact of the tax rebates subsides.

"Consumer spending was given a big bounce from the stimulus package tax rebate checks, especially during May and to a lesser extent in June. However, the effects of that stimulus package have now worn off and consumer activity is slowing," said Morici, professor at the Robert H. Smith School of Business at the University of Maryland. "My forecast is for a very small gain of 0.2 percent in July but that still would not be enough to offset the effects of inflation. Real consumer spending appears to be contracting  … The good news is that productivity growth remains strong, American industry continues to bang out new creative and attractive products, and the economy is likely to have only a shallow recession. The economy should bottom out in the fourth quarter of this year and the first quarter on 2009, and then recover. Don't look for the Federal Reserve to raise interest rates before 2009."

Rexnord Industries, LLC recently named Darryl L. Mayhorn as president of its Aerospace Group. The unit supplies high-performance, engineered bearings and mechanical seals to the commercial air transport, regional aircraft, business aircraft, helicopter and military aircraft markets for use in engine systems, flight control systems, airframe structures and landing gear systems. Mayhorn will report to Robert Hitt, Rexnord's president and chief executive officer.

"Darryl’s leadership experience and demonstrated success with product development, quality improvement and delivery performance provide the necessary attributes to help us leverage and expand our capabilities to drive customer loyalty, innovation and growth," Hitt said.

Mayhorn was most recently group president of Danaher Corporation’s Aerospace Group. Prior to joining Danaher, Mayhorn held several leadership positions within Eaton Corporation. Earlier in his career, Mayhorn held management positions with Monsanto, Aramark and General Dynamics.