Businesses and the voting public are opposed to a federal cap-and-trade system, according to two recent surveys by the National Federation of Independent Business.

The surveys were done in late November and early December and asked respondents about their positions on policy issues surrounding Congressional energy and environmental policy debates.

Key findings among small business owners and managers include:

• 66 percent of small business owners and managers oppose a federal cap-and-trade system while 24 percent are in favor of such a system.
• 54 percent of small business owners and managers believe a federal cap-and-trade system would lead to more job losses while 15 percent believe it would have no effect and 17 percent believe it would create jobs.
• 71 percent of small business owners and managers believe a federal cap-and-trade system would increase energy costs while 14 percent it would have no effect and only 5 percent believe it would lower costs.
• 58 percent of small business owners and managers believe a federal cap-and-trade system will limit economic growth while 14 percent say it will have no effect and 14 percent believe it will increase growth.

“Small business owners and the voting public are very much aligned on the potential impact that a federal cap and trade system would have relative to jobs, energy costs and economic growth,” said Dan Danner, NFIB’s president and CEO. “Collectively, a clear message is being sent from small business owners and the voting public that they view a federal cap-and-trade system as a hindrance to job creation, affordable energy and economic growth.”

 Voters listed the economy and jobs as the most important issues. With respect to the potential impact of a federal cap-and trade-system, 54 percent of small business owners and managers, and 42 percent of voters, believe that such a system would result in a loss of jobs. A substantial majority – 71 percent of businesses and 57 percent of voters – think the system will increase the costs of energy. And a significant majority of small business owners, 74 percent, and voter respondents, 50 percent, say they would be less likely to support a candidate who supported a federal cap-and-trade system.

“The results of these polls show that there is little domestic support for a U.S. cap and trade system in view of the economic impact and the additional costs that would be required by businesses, consumers and households,” Danner said. “It appears we simply cannot afford, and should not seek to implement, such a risky, unpopular system that shows no potential for positive economic results. As small business owners and voters clearly believe, according to these surveys, cap and trade would more likely result in significant economic harm, higher energy prices and more lost jobs.”

Oshkosh reaches production milestone for MRAP military vehicle

Oshkosh Corp. announced last week that it reached a milestone production rate for the MRAP All Terrain Vehicle, producing 1,000 vehicles per month on Dec. 18.

December is the sixth consecutive month that Oshkosh has exceeded delivery requirements. Since June 30, Oshkosh has been steadily ramping up production and will continue at the rate of 1,000 vehicles per month through May 2010 to deliver the 6,619 vehicles currently under contract.

“Our employee gave a great effort to meet the aggressive production timeline for these urgently needed vehicles. These M-ATVs will help improve the safety and mobility of our soldiers and Marines in Afghanistan,” said Robert G. Bohn, chairman and chief executive officer. “Staying on or ahead of our delivery schedule goes beyond the M-ATV program. It is a core value with every order we receive and every high-quality vehicle we produce here at Oshkosh.”

Oshkosh reached the milestone by using production capacity at existing manufacturing facilities in Oshkosh and McConnellsburg, Pa. These and other Oshkosh Corporation manufacturing facilities have available production capacity for all current and pending military vehicle programs, including the M-ATV and the U.S. Army’s Family of Medium Tactical Vehicles (FMTV) program, as well as any surges in production.

Oshkosh uses an integrated assembly line to simultaneously produce as many as 10 vehicle models with 29 variations at its facilities. In addition to exceeding the M-ATV’s production requirements, Oshkosh has received orders to send its fully trained field service representatives (FSR) to Afghanistan and supply spare-parts kits to provide the full spectrum of life-cycle support that will help sustain the M-ATV program. Oshkosh has the experience and infrastructure in place in the theater of operation to provide the required level of support, from parts supply to remanufacturing.

Bankruptcy court approves sale of Grede Foundries

Milwaukee-based Grede Foundries’ agreement to sell its principal operating plants to an affiliate of Wayzata Investment Partners LLC of Minnesota has been approved by the U.S. Bankruptcy Court for the Western District of Wisconsin.

The transaction includes Grede’s corporate headquarters in Milwaukee and foundries in Wauwatosa; Reedsburg; St. Cloud, Minn.; Wichita, Kan.; New Castle, Ind. and Iron Mountain/Kingsford, Mich.

The Grede facilities in Greenwood, S.C., and Vassar, Mich., were not part of the Wayzata sale package. The Greenwood foundry has been closed for several months, and Grede is selling the remaining real estate and equipment. The Vassar foundry, which continues to operate, was previously sold to Kentucky-based Revstone Industries.

Grede board chairman Richard Koenings said he anticipates the closing, which is subject to typical closing conditions, including antitrust review, will take place in late January or February of 2010. It is anticipated that almost all of Grede’s more than 1,600 employees associated with these facilities will be hired by Wayzata, according to Grede executives.

“The reorganization efforts we have undertaken over the past several months have strengthened our company and returned it to profitability, and we are confident that the business is positioned to grow and prosper with Wayzata’s strong financial backing,” Koenings said. “We have taken significant steps forward, and great credit must be given to all of our employees.  They have put forth exemplary effort under extremely challenging circumstances. Grede Foundries has a proud, 90-year history and an outstanding reputation that we expect will continue with Wayzata.  We believe this process, once completed, will be beneficial for our customers, our employees, our vendors and the communities in which we operate.”

Grede filed for reorganization under Chapter 11 of the bankruptcy code in late June. In November, the company announced it had reached a purchase agreement with the Wayzata affiliate that would serve as the “stalking horse” or opening bid in an auction for the company.

Koenings said that while there were other interested parties, Wayzata’s offer was the best.

“Our goal throughout this process has been to get the best value possible, and this arrangement allows us to do just that,” he said.

Bucyrus to acquire mining equipment business of Terex Corp.

South Milwaukee-based Bucyrus International Inc. has reached terms to acquire the mining equipment business of Terex Corp. for $1.3 billion in cash.

The transaction, expected to close by the end of February, will create the world's largest supplier of mining equipment, and is likely to create 400 to 500 new jobs in metro Milwaukee in the next several years. The company currently has about 1,500 employees in southeastern Wisconsin.

"We are extremely excited about acquiring Terex Mining and we believe that this is a unique opportunity to build an even stronger company for our customers, employees and shareholders," said Tim Sullivan, chief executive officer of Bucyrus. "Customers will reap benefits from this transaction as Bucyrus will be able to offer a broad, complementary product line that is driven by technology, quality, and first class service.”

With the acquisition of Terex’s mining equipment, Bucyrus will offer a comprehensive product portfolio comprised of walking draglines, electric rope shovels, hydraulic excavators, off-the-highway haul trucks, highwall miners, underground longwall, room and pillar and transport machinery and a full line of drills and belt systems for all mining applications.

"Like Bucyrus, the Terex mining assets have a proud history powered by hard-working, loyal employees who are passionate about mining,” Sullivan said. “This broad product line and our infrastructure around the world will be met with positive reaction by our customer base around the world. We have positioned ourselves to do business with some of the big multinationals as well as some of the smaller applications where Terex has had success in the last decade.”

Terex’s mining equipment business has 38 facilities around the world with approximately 2,150 employees. After the acquisition, Bucyrus will have approximately 10,000 employees in nearly 100 locations around the world.

The company will have also greatly increased its market share – from Bucyrus’ current addressable market of $15 billion to about $30 billion.

“This will (make) us the largest mining equipment supplier in the world today,” Sullivan said.

The global company will also achieve roughly $100 million in annual savings, to be worked in over the next year or two. It expects to save roughly $28 million on manufacturing and distribution, approximately $33 billion in the supply chain and $24 million in overhead.

While Bucyrus will achieve significant cost savings with the acquisition, it expects to add 400 to 500 employees in the Milwaukee area in the next two to three years, Sullivan said. About half of the new jobs will be in manufacturing, with the balance in engineering and management positions.

Bucyrus’ facility in South Milwaukee is the company’s global headquarters, and Terex’s mining division management will be housed there in the future, Sullivan said. The company is now negotiating to bring many of Terex’s managers to the metro area.

“We will go through the entire (negotiation and evaluation) process over the next few weeks,” he said. “We value the people at Terex. The people we have met there are top notch.”

Dickten Masch receives tax credits for job creation

Dickten Masch Plastics LLC in Nashotah has received $293,000 in Economic Development Tax Credits from the Department of Commerce for an expansion project that will create 75 jobs and retain 160 existing jobs in Waukesha County.

Wisconsin Department of Commerce Secretary Richard Leinenkugel made the announcement during a visit to the Dickten Masch facility last week. The company is installing a new production line at a cost of $2.8 million.

Dickten Masch Plastics produces plastic components for the power tool, electronics, small engine, construction, health care and food industries. The company specializes in thermoplastic processes using 40 to 725 ton presses and thermoset injection and compression/transfer presses from 55 to 800 tons.

The news about Dickten Masch’s growth plans was first reported in a BizTimes cover story in October.

A “do it now” mantra, hard work, strategic planning, clear communications, focused action and willingness to take risks have put the Kunshan province in China at the top economically, but that is only half the story.

Kunshan has also been a leader in the areas of ecology, social development, education, scientific research, urban planning, architectural preservation and cultural promotion.

But, what strikes you as you walk around Kunshan are the people, the cab driver who is listening to the foreign exchange report; the communist party leader who wants to discuss detailed computer supply chain issues and current technological developments; and the planning director who is mixing her foreign educational training in urban design and development with Chinese concepts of symmetry and balance.

How many American mayors do you know who have created their supply chain strategy by ripping apart a laptop, isolating each component and telling their economic development people to recruit the leading companies who supply the parts to the area within the next year?

Read more here.

Irene Schwechler, vice president of manufacturing at Gaco Western’s Waukesha facility, will retire on Jan. 29, 2010.

Schwechler has been with the company for 36 years and has served as vice president of manufacturing and general manager of the Waukesha facility since 1996. In addition to her current position, she has been a Gaco Western board member and an integral part of the executive team which was responsible for tripling the size of the company.

“She’s successfully guided us through many changes and growth periods, most recently the building of our new, state-of-the-art Waukesha manufacturing facility. This was a huge accomplishment and true testament to Irene’s talent and hard work – on time and under budget. The new facility will be instrumental in taking the company to the next level and ensuring extraordinary service to our customers,” said Peter Davis, president of Gaco Western.

Gaco Western is a manufacturer of the most technologically advanced, proprietary elastomeric coatings and polyurethane spray foam for the construction and waterproofing industries.

An external search to fill the position at the Waukesha facility will begin immediately.

State funds available to help manufacturers improve operations, achieve growth

The Wisconsin Department of Commerce still has funds available to help Wisconsin manufacturers implement lean manufacturing principles or develop growth strategies.

“Wisconsin manufacturers who adopt Next Generation Manufacturing principles can improve their competitiveness, win a greater share of global markets, and react quickly to market opportunities,” said Department of Commerce Secretary Richard J. Leinenkugel.

The Next Generation Manufacturing grants, authorized by the Department of Commerce, are targeted to small and midsize manufacturers with less than 500 employees. The grants, ranging from $5,000 to $6,500, pay up to 50 percent of project costs. Remaining project costs are paid by the company. Eligible projects include:

Lean Transformation

Up to $5,000 per company is available for Enterprise Business Transformation projects, which include a comprehensive assessment of a company’s operations, identification of key competitive priorities and an action plan to achieve them. This lean transformation approach improves performance across all facets of the business enterprise and generates significant financial results.

Business Growth

Grants up to $6,500 per company are available for small to midsized manufacturers to implement Eureka! Winning Ways®, a nationally recognized and proven system that accelerates growth and generates ideas for new products and services.

Grants are offered on a first- come, first-serve basis. Project completion deadline is December 31, 2010. Interested manufacturers should call 1.866.880.2262.

Wisconsin packaging supplier acquired by North Carolina firm

The InterFlex Group, a flexible packaging company with operations in North America, the United Kingdom and Brazil, has acquired C&H Packaging Company, Inc., a subsidiary of Appleton's Performance Packaging Division and a regional flexible packaging converter.

Based in Merrill, C&H is a supplier to major packaged food companies in the United States and Canada. C&H has strong market positions in the meat snacks, processed meat and snack food sectors.

The acquisition adds a third manufacturing facility to Wilkesboro, N.C.-based InterFlex's North American operations and provides scale and depth in technical services as well as in printing, laminating, coating and pouch-making activities. The combined entity will trade as InterFlex Group with its North American headquarters based in Wilkesboro.

As part of the transaction, InterFlex will invest in additional printing, lamination and pouch-making capacity for the Merrill plant.

"The acquisition creates an operationally robust packaging supplier offering North American customers a range of flexible packaging solutions and technical resources. At the same time we will continue to deliver the flexibility and customized service that has been a signature of both companies," said Stephen Doyle, chief executive officer of InterFlex Group.

The transaction was completed through InterFlex's North American subsidiary and in conjunction with its equity investment partner, Red Diamond Capital.

BizTimes Milwaukee invites readers to get a jumpstart on 2010 by attending the annual Northern Trust Economic Trends Breakfast.

The breakfast, which will be presented by BizTimes Milwaukee on Friday, Jan. 22, at the Italian Community Center, 631 E. Chicago St., Milwaukee, will provide forecasts and insights about the year ahead in business.

The featured panelists for 2010 will be:

• Michael Knetter, Ph.D., the dean of the University of Wisconsin School of Business in Madison and a former U.S. presidential economist. Knetter will provide a macro-economic overview.
• Bob Arzbaecher, CEO of Actuant Corp., which is expanding and moving its global headquarters from Butler to a facility in Menomonee Falls. Actuant is a $1.2 billion diversified manufacturing company with facilities in 30 countries. Arzbaecher will discuss the outlook for global competition and manufacturing.
• Aaron Jagdfeld, CEO of Generac Power Systems Inc., which is growing in Waukesha and recently filed to become a publicly traded company. Generac manufactures portable residential power generators. Jagdfeld will provide the outlooks for manufacturing, innovation and energy.
• Andy Nunemaker, president of EMSystems LLC, a Milwaukee-based company that develops software systems for emergency rooms throughout the United States. EMSystems has acquired three other companies in the past 18 months and continues to grow. Nunemaker will discuss the outlooks for technology and health care.

For additional information or to register to attend, visit www.biztimes.com/trends.