If the federal government implements strong energy policies that encourage alternative energy and use of cutting edge high-capacity batteries, the Midwest’s manufacturing hub stands to gain significantly, according to a report by the nonprofit Climate Group and the University of Michigan.

“American Innovation: Manufacturing Low Carbon Technologies in the Midwest” looks at the impacts on wind turbine, hybrid powertrain and advanced battery manufacturing. The study anticipates three factors – a $17 per ton price on carbon, a green economic stimulus program, and a 20 percent federal renewable electricity standard by 2020.

The study anticipates that the three factors could lead to greatly increased revenues and employment in the wind turbine, advanced battery and hybrid powertrain industries between 2010 and 2015. The include:

• About $7.3 billion in revenues for wind turbine components, and about 63,000 new jobs in the manufacture of components for the industry.
• About $1.45 billion in revenues for advanced battery manufacturing, and about 12,000 new jobs.
• Roughly $3.8 billion for hybrid powertrain manufacturers and about 31,000 new jobs.

“The Midwest already has the value chain needed to produce many low carbon technologies that are vital to America’s future,” said Amy Davidsen, U.S. executive director with Climate Group. “This report shows that the right policies will spur much-needed job and revenue growth.”

The report looked at five states – Wisconsin, Illinois, Indiana, Michigan and Ohio. It did not examine potential costs or job cuts related to the proposed federal policies, which include the American Clean Energy and Security Act of 2009, also known as cap and trade.

Several of the Midwestern manufacturers that could benefit from such federal programs are located in the Milwaukee area. They include:

• Johnson Controls-Saft, a joint venture between Milwaukee’s Johnson Controls Inc. and the French battery producer Saft, which makes lithium-ion batteries for hybrid cars;
• Menomonee Falls-based ZBB Energy Corp., a maker of zinc energy storage systems;
• Menomonee Falls-based Magnetec Inc., which makes power inverters for wind turbines;
• Helios USA, a startup manufacturer of solar energy panels that expects to develop a Milwaukee manufacturing facility this year;
• Red Arrow Energy Systems, a Hubertus-based manufacturer of wind turbines.

To read the full report by the Climate Group and the University of Michigan, visit:

http://www.greenbiz.com/sites/default/files/American-Innovation.pdf

The unemployment rate in the U.S. fell to 9.7 percent in January from 10 percent in December, 2009, according to a report issued by the federal Bureau of Labor Statistics on Friday.

The manufacturing sector, as a whole, gained about 11,000 jobs last month. The sector’s best performers were motor vehicles and parts and the plastic and rubber products sectors, which gained 23,000 and 6,000 jobs respectively. The gains in those sectors offset losses in other manufacturing sectors, the report says.

Other manufacturing-related areas such as construction, transportation and warehousing, continued to lose jobs last month. Construction employment fell by 75,000, while transportation and warehousing lost 19,000 jobs, the report states.

Badger Meter caps record year

Badger Meter Inc. finished 2009 with record annual net earnings of $34.2 million, or $2.28 per share, up from $25.1 million, or $1.69 per share, in 2009. The Milwaukee-based company’s net sales dipped in 2009 to $250.3 million from $279.6 million in 2008.

For the fourth quarter, Badger Meter’s net earnings fell to $5.1 million, or 34 cents per share, from $6.2 million, or 42 cents per share, in the same period a year ago.

"We achieved three record quarters and a record year for earnings and earnings per share from continuing operations in 2009. This was despite the downturn in the economy and its impact on our sales. Our record strong performance was due to lower commodity costs earlier in the year and ongoing cost controls. In addition, we recognized a tax benefit in discontinued operations related to the shutdown of our former French subsidiaries," said Richard Meeusen, chairman, president and chief executive officer of Badger Meter.

Meeusen said the fourth quarter results were impacted by lower sales, continuing the trend of the past few quarters.

"Many water utilities are still delaying purchasing decisions while waiting to see if they would receive federal stimulus funding for infrastructure improvements. In addition, sales of our other flow products continued to be negatively impacted by the economy," Meeusen said.

Meeusen also said the company had an unusually strong fourth quarter in 2008, which included sales related to a large residential metering project in Mexico and a $994,000 pre-tax gain from the sale of a former manufacturing facility in Rio Rico, Ariz.

Sensient stays in the black

Sensient Technologies Corp., a Milwaukee-based manufacturer and marketer of colors, flavors and fragrances, reported fourth quarter net earnings of $16.3 million, or 33 cents per share, down from $20.6 million, or 43 cents per share, in the same period a year ago.

The company’s quarterly revenue grew to $311.5 million from $293.8 million a year earlier.

Sensient’s consolidated revenue for 2009 was $1.2 billion, down slightly from $1.3 billion in 2008.

"Sensient's business has held up well throughout this year's difficult economic environment," said Kenneth Manning, chairman and chief executive officer of the firm. "Our strong cash flow and low debt levels have allowed us to continue to invest in our business, which will enhance our ability to grow in the future."

Sensient expects 2010 diluted earnings per share to be within a range of $1.98 to $2.05. Sensient's earnings growth is expected to be weighted toward the second half of 2010, partly as a result of the timing of expected raw material cost reductions.

Magnetek CEO expects company to rise from bottom

Menomonee Falls-based Magnetek Inc. posted a fiscal second quarter net loss of $1.2 million, or 4 cents per share, compared with net income of $1.9 million, or 6 cents per share, in the same period a year ago.

The company’s quarterly net sales fell to $19.2 million from $26.8 million a year earlier.

However, Magnetek’s quarterly operating loss was reduced to $0.8 million from $1.3 million in the first quarter of the fiscal year.

The company’s second quarter sales increased by $1.4 million, or 8 percent, over first quarter sales said Peter McCormick, Magnetek's president and chief executive officer. Its operating results improved by $500,000, while its backlog at the end of the second quarter was more than $20 million, including an $11 million order it received in October for wind power inverters.

In response to lower levels of sales throughout the economic downturn, the company has reduced its workforce by nearly 60 positions, approximately 16 percent of its workforce, and implemented a wage and salary freeze that is expected to remain in place throughout fiscal 2010. It has also taken actions to temporarily suspend its 401(k) plan matching contributions and also has changed the method of payment of the company's incentive compensation plan for fiscal 2010 from cash payments to payment in company common stock in an effort to preserve cash

"While we believe we have seen the cyclical bottom in our business, it remains very difficult to predict how robust the overall economic recovery will be, and more specifically, how that will impact our served markets," McCormick said. "Market conditions appear to be improving in renewable energy and, to a lesser extent in material handling; however we have also seen recent indicators of softening in the elevator and mining markets. Despite these mixed signals, we expect our sales for the third quarter to increase sequentially from the second quarter. In addition, our current outlook projects improving quarterly trends for the remainder of the fiscal year.”

Snap-on reports drop in earnings

Snap-on Inc., a Kenosha-based manufacturer and marketer of tools, diagnostics, equipment, software and service solutions for professional users, reported fourth quarter net earnings of $38.1 million, or 63 cents per share, which was down from a record quarter of $60.5 million, or $1.01 per share, in the same period a year ago.

The company’s quarterly net sales fell to $618.1 million from $667.8 million a year earlier.

For the full fiscal year, Snap-on’s net income fell to $143.7 million from $243.6 million in 2008.

"We are encouraged by Snap-on's fourth quarter results and by the financial and strategic headway reflected in our performance," said Nick Pinchuk, Snap-on chairman and chief executive officer. "While our overall results were below the record earnings achieved in the strong fourth quarter of 2008, our operations continued their sequential increases in the period. In addition, our financial services transition remains on track as we build our on-book finance portfolio.

Federal stimulus funds help finance Serigraph’s expansion

Serigraph Inc, a West Bend-based specialty printer, has secured more than $7 million from the U.S. Department of Agriculture’s Business & Industry Loan Guarantee program to help finance an expansion.

The company said the USDA federal stimulus money will support its business growth strategy for 2010 and help minimize financial risk. As a result of the financing, the company was able to retain 462 employees and intends to hire up to 50 to accommodate new projects.

Ridgestone Bank assisted Serigraph in obtaining the financing. M&I Bank provided a revolving line of credit to Serigraph.

"We were pleased to be able to work with Serigraph to support their efforts to adjust to the current economic conditions and prepare to continue on the road to recovery," said Bruce Lammers, chief executive officer of Ridgestone Bank.

Modine turns corner to profitability

Racine-based Modine Manufacturing Co. reported fiscal third quarter net earnings of $3.8 million, or 8 cents per share, which was a vast improvement over a net loss of $56.1 million, or $1.75 per share, in the same period a year ago.

The company’s quarterly net sales fell to $302.4 million from $325.6 million.

"We are very pleased with the progress we are making to improve our liquidity and financial position," said Robert Kampstra, vice president, corporate controller and chief accounting officer for Modine. "We generated positive free cash flow through our strong operating results during the quarter. This cash flow, combined with the proceeds from the sale of our Korea-based vehicular HVAC business and the capital raised in our secondary stock offering last quarter, allowed us to substantially reduce our net debt balance since March 31, 2009."

"Modine's performance during the third quarter of fiscal 2010 affirms that our four-point plan is working," said Thomas Burke, president and chief executive officer of Modine. “These results reflect the favorable impact of our restructuring activities and our significantly lower cost structure year over year. During the quarter, we completed the sale of our Korea-based vehicular HVAC business, as part of our ongoing portfolio rationalization activity. We used the strength of our cash flow from operations, as well as the proceeds from this sale, to reduce even further the company's overall debt position. Although we are clearly pleased with our progress during the third quarter, we are mindful of near-term pressure on our business.”

The products made at Menomonee Falls-based The Brewer Company LLC are important features in physicians’ offices, clinics, dental offices and some industrial applications – but the company is far from a household name.

Most of Brewer Co.’s products are made for the medical market. It makes goods ranging from examination and procedure tables to IV stands and other chrome-plated support stands used in hospitals and clinics. It also makes specialized ergonomic seating for dental offices and industrial markets, as well as custom upholstery for health care-related original equipment manufacturers.

The company’s best known products are its examination tables, said Paul Siepmann, president and chief executive officer. The tables are used in general practitioners offices, as well as specialists including dermatology, OB/GYN, urology, gastro-intestinal and some cosmetic surgeons.

To read more, click here.

Steven Seeker, chief operating officer of Menomonee Falls-based ZBB Energy Corp., will retire from the company on June 30.

“On behalf of the board and senior management team, I want to thank Steve for his many contributions over the past four years,” said Eric Apfelbach, ZBB Energy’s Chief Executive Officer. “He has helped us to position the company for long-term success and we wish him well in his future endeavors.”

Seeker joined ZBB in 2006. He served previously as vice president of international sales and operations with Cooper Power Systems.

ZBB has appointed Scott Scampini to executive vice president of operations. Scampini will continue to serve as the company’s chief financial officer.

“Scott’s many years of senior management in the plastics manufacturing business will serve him well in his expanded role as we increase production of our ZESS product line,” Apfelbach said.

The company has also promoted Kevin Dennis to vice president of systems engineering, expanding his current role as vice president of sales and marketing.

Company plans to develop large new energy plant in Milwaukee

Milwaukee-based Alliance Federated Energy (AFE) has announced plans to build a 25-megawatt renewable energy project on the north side of Milwaukee.

The anticipated $225 million project will process municipal and industrial wastes into renewable energy using a process called plasma gasification. The gasification process exposes waste material to temperatures between 3,000 and 7,000 degrees Centigrade in an enclosed space, which captures all gases and vapors within the material.

The gases generated are cooled, scrubbed and refined – and are ultimately turned into a product called syngas that is burned to generate electricity.

“It takes the feed stock and breaks it down to its elemental form,” said Joshua Morby, a company spokesman. “What is now a waste stream will now be a fuel stream.”

AFE hopes to have its new facility open by 2013. Morby said the company now has an option on a 25-acre parcel on Milwaukee’s north side, but he would not disclose the exact location. The first phase of the project will be able to process about 1,200 tons of waste per day and generate enough energy to power as many as 20,000 homes.

The project, when operational, will have about 45 full time employees. AFE says it will generate about 250 jobs during the construction process.

The company is now in final negotiations with several Wisconsin-based institutional investors to fund construction of the project. It is also in discussions with city, state and federal officials about accessing public financing, Morby said.

AFE’s renewable energy plant will process municipal and industrial wastes that are not suitable for recycling, including industrial wastes including paint and fly ash. The plant will also be able to use household waste that is currently being placed into landfills.

“This commercially proven technology is the ultimate in recycling,” said Christopher Maloney, CEO of Alliance Federated Energy, “We are pleased to be building our first project right here in Wisconsin, a state committed to promoting environmental stewardship and technological innovation.”

Neenah Foundry's corporate parent files for Chapter 11 bankruptcy

Neenah Enterprises, Inc., one of the largest foundry companies in the United States and a large supplier of castings to the domestic municipal and industrial markets, has filed for reorganization under Chapter 11 of the the U.S. bankruptcy code. The company also said it has reached an agreement in principle with key creditors on reorganization that will reduce its debt by approximately $220 million while providing 100% recoveries for its suppliers and vendors.

"We've been going through efforts to streamline operations and reduce expenses over the last few years, with the intent of keeping sufficient liquidity to move operations forward," says Robert E. Ostendorf, Jr., President and CEO of NEI.  "We will emerge from this stronger and more financially sound than ever.  There is a bright future ahead for NEI."

The Company also announced that, pending the Bankruptcy Court's approval, it has received commitments for up to $140 million in debtor-in-possession (DIP) financing to fund continuing operations.  The financing will provide ample liquidity for the company and will allow it to continue funding its ongoing operations, including the payment of all employee wages and benefits in the ordinary course and the payment of all post-petition obligations to suppliers.

The Company filed a variety of customary "first day" motions with the Bankruptcy Court to enable it to continue business as usual during the restructuring.  These motions include requests to continue paying employee wages and benefits in the ordinary course and to continue all existing customer programs.

The Madison International Trade Association (MITA) will present “Solutions for Export Success” on Friday, Feb. 9 from 11:30 a.m. to 2 p.m. at the Sheraton Hotel Madison, 706 John Nolen Drive, Madison. The event will include information on export marketing plans, finding distributors or customers, customs relations and more. Cost is $30 for MITA members, $35 for non-members. For information or to register, visit http://www.mitaweb.org/Events.shtml or call (608) 251-2300.

The UW-Madison Center for Quick Response Manufacturing will hold the seminar “How to Implement Quick Response Manufacturing” on Tuesday and Wednesday, Feb. 9-10 from 8 a.m. to 5 p.m. at the Double Tree Hotel, 525 W. Johnson St., Madison. The event will highlight the improvements that quick response manufacturing can have in sales, order entry, design engineering, manufacturing and supply management. Cost is $495 for QRM Center members, $895 for non-members. For information or to register, visit http://www.engr.wisc.edu/centers/cqrm/Events/How2QRMFeb10.htm