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Monday, May 6, 2013
Manpower addresses skills gap
May 6, 2013 10:30 AM
Milwaukee-based global workforce solutions company ManpowerGroup has advised manufacturers to solve the skills gap through collaborative industry groups.

According to Manpower, manufacturers should create private-public sector task forces to develop solutions to the shortage of skilled workers in each market.

"Innovative manufacturing and prototyping enterprises are growing in the U.S., but hiring in manufacturing is not as robust as we'd like to see," said Jonas Prising, president of ManpowerGroup. "Contemporary U.S. manufacturing means highly unique and relevant design, however, many manufacturers can't find the skilled talent needed to competitively accelerate their R&D, CAD/CAM and production cycles, which are required for staying competitive in the Human Age."

Manpower created a Manufacturing Challenge Council to foster this kind of group problem solving in Februarty. Manufacturing employers, trade groups, educators and government leaders met to discuss the issues facing the industry and the skills that were missing in the labor force.

The small groups that met at the Council and honed in on the idea of rebranding manufacturing to attract younger workers to the industry and creating partnerships to increase the industry’s visibility to the general public.

Manpower will host several more Manufacturing Challenge Council events throughout the country this year to open conversations between local groups.

"Working together, employers and educators can bring added focus and prestige to increasingly technical manufacturing roles, ultimately attracting more young people to these important professions," said Jorge Perez, senior vice president, North America. "Most people don't realize that careers in manufacturing today are innovative and creative and require not only high-level skills to operate technical equipment and machines, but also problem-solving and collaborative skills to drive results. Techs in manufacturing are in demand and individuals with the right skills and certification can count on steady employment and excellent earning potential. We need to encourage more young people to see manufacturing as a career path. At the same time, manufacturers need to reach out to young people and build collaborative training alliances with educators to sustain a high-skilled labor pool for years to come."

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Caterpillar negotiations to resume
May 6, 2013 10:00 AM
Caterpillar Inc. and United Steelworkers Local 1343 are scheduled to resume negotiations in South Milwaukee on Wednesday.

Local 1343 sent a letter to its 800 South Milwaukee Caterpillar members last week asking them to support the union by wearing USW colors to work on Wednesday.

“We have an opportunity to let Caterpillar management know that we demand a fair contract that makes our jobs, earnings and benefits more secure – not just for ourselves – but for our families and communities,” the letter said.

On Tuesday, the union rejected the company’s proposed six-year labor pact.

The company’s proposal would have frozen workers’ wages for six years and increased their share of payment for health care benefits. The company also has announced plans to lay off 250 to 300 workers in South Milwaukee.

Some workers were also unhappy with Caterpillar’s workforce contingency planning, which had salaried workers training at Milwaukee Area Technical College to replace production employees in case of a strike.

Caterpillar has been negotiating with the union since April 2. This is the first contract negotiation since the facility became part of Caterpillar when it acquired Bucyrus International Inc. in 2011.

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Walker names Council on Workforce Investment
May 6, 2013 10:00 AM
Gov. Scott Walker has named the new membership of the Council on Workforce Investment, a federally mandated panel that will advise Walker and the Department of Workforce Development on the allocation of federal workforce development funds.

The council will be responsible for approving the Workforce Investment Act plan each state is required to create each year. It coordinates the efforts of Wisconsin’s 12 regional workforce investment boards.

“As we look to target substantial investments to develop the workforce and help Wisconsinites successfully pursue family-supporting careers and find true independence, the Council on Workforce Investment will provide valuable input with representatives from business, education, legislative and other key groups,” Walker said.  “My administration’s continued focus on creating jobs will guide the work of the Council as we look to address the skills gap and fill employers’ current and future labor market needs.”

Mary Isbister, president of General Metalworks Corporation in Mequon, will serve as chair of the council. She has experience service on the boards of several organizations, including the Metropolitan Milwaukee Association of Commerce and the Wisconsin Manufacturing Extension Partnership, and was formerly the vice chair of the Council on Workforce Investment.

Mike Laszkiewicz, vice president and general manager of Power Controls at Rockwell Automation, will be vice chair. He is currently the chair of the national Manufacturing Council, which advises the secretary of the U.S. Department of Commerce on manufacturing issues.

Reggie Newson, secretary of the DWD, will serve as executive director.

The other members are:


  • David Brukardt, associate vice president for economic development, University of Wisconsin System, Madison
  • Alan Petelinsek, president and CEO, Power Test Inc., Sussex
  • County Executive Allen Buechel, Fond du Lac County
  • Rep. Warren Petryk, Wisconsin State Assembly, 93rd District
  • Jeffrey Clark, president and CEO, Waukesha Metal Products, Sussex
  • Dawn Pratt, human resources and EEO officer, Payne & Dolan, Fitchburg
  • Morna Foy, president, Wisconsin Technical College System, Madison
  • Mark Reihl, executive director, Wisconsin State Council of Carpenters, Madison
  • Sarit Singhal, president and CEO, Superior Support Resources Inc., Milwaukee
  • Grailing Jones, director of owner/operator small business development, Schneider Finance Inc., Green Bay
  • Howard Teeter, president and managing partner, Anteco Pharma LLC, Lodi
  • Theresa Jones, vice president of diversity and inclusion strategies, Wheaton Franciscan Healthcare, Brookfield
  • Sen. Tom Tiffany, Wisconsin State Senate, 12th District
  • Sen. Julie Lassa, Wisconsin State Senate, 24th District
  • Rep. Robin Vos, Wisconsin State Assembly, 63rd District
  • County Executive Daniel Vrakas, Waukesha County
  • Terrance McGowan, president, International Union of Operating Engineers Local 139, Milwaukee
  • Brian White, president, General Electric-Waukesha Gas Engines, Waukesha
  • Dan Mella, principal, Plymouth High School, Plymouth
  • Wyman Winston, executive director, Wisconsin Housing and Economic Development Authority, Madison
  • David Mitchell, president/COO, Monarch Corp., Milwaukee
  • Rep. Josh Zepnick, Wisconsin State Assembly, 9th District
  • Alan “Kent” Olson, president, Olson Tire and Auto Services Inc., Wausau

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Johnson Controls and UWM honored for collaboration
May 6, 2013 10:00 AM
Glendale-based Johnson Controls Inc. and the University of Wisconsin-Milwaukee have received a Gold Award in the Edison Awards for their recent energy collaboration.

The international awards recognize those who have the spirit of innovation, creativity and ingenuity displayed by Thomas Alva Edison.

Johnson Controls recently helped fund the Energy Advancement and Research Lab and Showcase at UWM.

"This is an honor for Johnson Controls and the work we are doing in the area of energy storage," said MaryAnn Wright, vice president of technology and innovation for Johnson Controls Power Solutions. "The work we are doing in this lab demonstrates our commitment to being the industry leader. Our partnership with UWM will help transform the campus and the City of Milwaukee."

The Energy Advancement Research Lab is a space where UWM students and Johnson Controls scientists work together to conduct research in advance energy storage. The EARLS, which facilitates “fast fail” experimentation, is the only advanced manufacturing dry lab on a college campus in the country.

"The Gold Edison Award is a terrific validation of the Johnson Controls-UWM partnership," said UWM Chancellor Michael Lovell. "We already knew the partnership was making a positive difference for our faculty, staff and students, and now we have significant external recognition as well."

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JR Prototypes expands services
May 6, 2013 10:00 AM
Menomonee Falls-based JR Prototypes has added selective laser sintering, cast urethane prototyping, fused deposition modeling and CNC prototyping to its offerings.

JR Prototypes is the prototype and short-run manufacturing division of Dielectric Corp. It has added the new capabilities by buying SLS and cast urethane prototyping equipment.

The additional services will improve the speed to market and lower the cost for customers. They can also improve the design of products before they are manufactured.

"Our customers have really appreciated the opportunity to test design concepts before investing in production," said Perry Pabich, Chief Operating Officer for Dielectric. "These new capabilities will provide more options and even greater opportunities for savings and productivity gains."

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Milwaukee manufacturing sector contracts
May 6, 2013 11:00 AM
The Milwaukee-area manufacturing industry contracted in April, according to a monthly report from the Institute for Supply Management-Milwaukee.

The Marquette-ISM Report on Manufacturing showed the PMI, a measure of manufacturing growth, was at 48.43 in April, down from 50.98 in March.

A reading above 50 indicates growth, while below 50 indicates contraction. This is the first time the index has shown contraction since a five-month dip ending in November 2012.
The indices for new orders, production, employment, supplier deliveries, customers' inventories, prices and backlog of orders were weaker or declining. Inventories, exports and imports were growing.

Blue collar employment was at 49.3 in April, down from 54.2 in March. White collar employment was at 49.3, down from 50.2 in March.

A participant comment about employment: "I am looking for good purchasing people. What does the balance of the industry see for talent shortages/surplus?"

Here are some responses to the April survey from area manufacturers:

    "The main problem we're having is the weather; spring is late in most of the country and that affects our sales."
    "Most commodity prices continue to move sideways, although there have been some announced increases (i.e. corrugated and natural gas) despite the lack of sound economic fundamentals to support them."
    "Short term - China labor not returning after New Year; taking until June to rebound; short term burst of demand from China customers."


The six-month outlook on business conditions showed a huge shift in manufacturer attitudes. About 25 percent of employers expect worse economic conditions in the next six months, up dramatically from 5 percent in March. And only 33 percent expect positive conditions for the next six months, down significantly from 52 percent in March.

Here are some responses about the six-month outlook from area manufacturers:

    "Expect continued slow economic growth through the remainder of the year with commodity prices relatively flat during the same time."
    "No solid LT forecast seen."
    "Based on implemented and expected defense budget cuts."
    "The plastics market still seems soft. Customers still holding off on placing large orders as they may have in the past."

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BuySeasons lays off dozens of employees
May 6, 2013 10:00 AM
New Berlin-based BuySeasons Inc., an online retailer and supplier of costumes, accessories and party supplies, issued layoff notices last week to between 90 and 100 employees, according to sources.

Holly Botsford, public relations manager for BuySeasons, acknowledged that the company issued layoff notices Wednesday to some full-time and part-time employees across all departments. She declined to disclose the specific number of layoffs, but said "less than 100" employees are being laid off.

The layoffs went into effect Wednesday, Botsford said.

The company has a large number of seasonal and part-time employees, but sources said a substantial number of the employees that received layoff notices are full-time employees. Some of the employees have been with the company for more than 10 years, sources said. The company was founded in 1999.

The layoffs included the entire customer service department, sources said.

"(BuySeasons has) reorganized to better position the company to respond to current demand and growth in our year-round party and costume businesses," Botsford said.

In January, chief executive officer Dan Haight left the company and was replaced by Dev Mukherjee, who had been a senior vice president in Sears Holdings Corp.'s home appliances division.

BuySeasons has traditionally hired hundreds of seasonal employees each year between July and November to accommodate the influx of costume and party favor demands. The company will continue to hire seasonal help despite these layoffs, Botsford said.

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Demand for generators drives Generac profit surge
May 6, 2013 10:00 AM
Profits for Waukesha-based Generac Holdings Inc. surged in the first quarter by 68.4 percent. The company reported first quarter net income of $50.7 million, or 73 cents per share, compared to $30.1 million, or 44 cents per share for the first quarter of 2012.

Net sales for the first quarter increased by 35.7 percent to $399.6 million compared to $294.6 million in the first quarter of 2012.

Residential product sales for the first quarter increased 45.8 percent to $255.2 million. The company said that sales increase was primarily driven by a significant increase in demand for home standby and portable generators created by increased consumer awareness created by major power outages in recent years.

"We have started 2013 with yet another record quarter in revenues and earnings," said Aaron Jagdfeld, president and chief executive officer at Generac. "Organic revenue growth continues to be very strong and broad based across all major regions of the United States as the market for standby generators continues to expand with more homeowners and businesses becoming aware of the importance of having a backup power solution. We believe the significant growth that we delivered during the quarter has further elevated the Generac brand as being the household name in backup power. Additionally, we took the initial steps in accelerating our Latin American expansion efforts with the first full quarter of the Ottomotores acquisition and we're excited about the opportunity to execute on the potential revenue and cost synergies of the combined companies."

Full-year 2013 net sales are now expected to increase at a low-to-mid teens rate over the prior year, the company said.

"We believe that continued underinvestment in the electrical grid, an aging and more electrically dependent population and more severe and unpredictable weather will continue to drive additional awareness of the need for backup power," concluded Mr. Jagdfeld. "We are also working on a number of strategic initiatives that we believe will further grow our baseline business over the long term. When considering all the compelling macro growth drivers to our business, our internal initiatives, and the potential for a more meaningful recovery in residential investment and non-residential construction, we believe Generac is well positioned for future growth as a more balanced company with improved global focus."

The company also announced a recapitalization plan in which it intends to incur approximately $335 million of additional debt to fund a special cash dividend of up to $5 per share on its outstanding common stock. The company expects to enter into new debt financing in the aggregate amount of about $1.15 billion, the proceeds of which will be used to pay the special cash dividend and refinance the company's existing senior-secured term-loan credit facilities. The new debt financing would also include a $150 million asset-based revolving credit facility.

"For a second consecutive year we are pleased to announce that we plan to return significant capital to shareholders through a special cash dividend, which is directly attributable to our strong free cash flow and demonstrated track record of paying down debt," Jagdfeld said. "We are confident this capital structure will allow us to further invest in organic growth initiatives and provide the flexibility to pursue additional acquisitions in the future. Given the new credit facility is expected to provide a meaningfully lower interest rate than our current facility, we believe this is another attractive use of capital as we continue to drive shareholder value higher through strong execution."

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Harley-Davidson donates $2.4 million to Hunger Task Force farm
May 6, 2013 10:00 AM
The Harley-Davidson Foundation has committed to allocating more than $2.4 million in grant funds to support the growth of the Hunger Task Force Farm in Franklin.

The 208-acre farm, which operates year round, harvests fresh produce for food pantries, soup kitchens, homeless shelters and senior centers throughout greater Milwaukee. Last year, more than 350,000 pounds of produce – including apples, corn, broccoli, asparagus and more – benefited local programs.

The Harley-Davidson Foundation's grant, which will be rolled out over the next three years, will act as a funding force for the farm's spectrum of educational and job training programs.

In addition to hosting nutrition education courses for students from Milwaukee Public Schools and providing opportunities for area residents to learn about Wisconsin agriculture, the farm is developing a job training program for individuals to build soft job skills.

"If you live in the central city and you have no access to a decent job you probably haven't learned how to be on time, what to wear to work, how to follow your supervisor's directors," said Sherrie Tussler, executive director of Milwaukee-based Hunger Task Force. "And you haven't gained the necessary job experience to put on your resume."

The year-long job training program currently has six participants, each of whom receive $10 per hour for their efforts to run and maintain the farm. Hunger Task Force aims to grow the program to prepare 18 trainees for future employment, Tussler said.

"We would like to see people who are low income and who are having a hard time finding a job in the central city have an opportunity to not just learn job skills but ultimately work for a local corporation like Harley Davidson," Tussler said.

The nonprofit also relies on thousands of volunteers to stay on top of the upkeep of the farm. Last year, nearly 2,500 volunteers took part in tending, weeding, planting, harvesting, and picking fruits and vegetables.

"If you like getting your hands in the dirt, the farm is a great place to volunteer," Tussler said.

The Harley-Foundation, which has contributed funding to Hunger Task Force for more than 20 years, will lend the farm "a new beginning," Tussler said.

"It stabilizes the operation of the farm, and it really is a turning point for the farm and its history," Tussler said. "It creates an opportunity for the farm to serve the general community, to assure that people at food pantries are getting fresh produce rather than canned goods. It promotes health, and it creates dignity for people when they're able to get fresh and healthy foods."

Hunger Task Force leases its farm grounds from Milwaukee County for $1 a year in exchange for harvesting fish in a farm-based fish hatchery for Milwaukee County Parks as well as supplying 10 face cords of wood.

For more information about the farm and Hunger Task Force's mission to achieve a hunger-free community, visit www.hungertaskforce.org.

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Miller Lite launches new bottle design
May 6, 2013 10:00 AM
MillerCoors has unveiled a new bottle design for Miller Lite.

The design provides an innovative, contoured shape that is a modern interpretation of the brand's traditional long neck. The new Miller Lite bottle will only be available in bars and restaurants this summer.

Inspired by form and design, the modern look of the new bottle offers broad shoulders and a contoured grip, intended for easy handling from the bar to the pool table, the company said. The bottle defies the convention of the standard cylinder-shaped bottle, helping Miller Lite stand out among the brown bottle sameness of other light beers.

"Miller Lite is giving beer lovers a long-overdue reinvented look and drinking experience with the breakthrough new bottle design," said Ryan Reis, senior director of Miller Lite. "In our testing, consumers overwhelmingly preferred the new bottle to the standard beer bottle. We're proud of the new design and we're excited to see how everyone reacts to our new look. This time when you grab a Miller Lite, you'll know it."

The bottle was developed by the industry-leading designers from 4sight inc., a company renowned for its revolutionary product and package innovations.

"The beer category is focusing heavily on packaging design innovation and the new bottle from Miller Lite will take this category to new places," said Stuart Leslie, president of 4sight. "We are proud to help Miller Lite use design as a tool to influence the market and continue to be an industry leader."

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Manufacturing resources
Manufacturer Associations » Association of Equipment Manufacturers
» The Association for High Technology Distribution
» APICS – the Association for Operations Management
» Fabricators and Manufacturers International
» National Fluid Power Association
» Polyeurethane Manufacturers Association
» Precision Metalforming Association, Wisconsin District
» Society of Manufacturing Engineers - Chapter 4
» Society of Plastics Engineers - Greater Wisconsin
» Tool, Die and Machining Association of Wisconsin
» Wisconsin Truss Manufacturers Association
» Wisconsin Biotechnology and Medical Device Association
» Wisconsin Sign Association
» Wisconsin Electrical Machines and Power Electronics Consortium
» Water Quality Association of Wisconsin
Manufacturing Advocacy, Leadership Training and Continuing Education » The Paranet Group
» Wisconsin Manufacturing Extension Partnership
» MSOE's Business Excellence Consortium
» Center for Quick Response Manufacturing (QRM) at the University of Wisconsin
» UW-Milwaukee Center for Continuing Engineering Education
Other resources » American Society for Quality
» Wisconsin Manufacturers and Commerce
» Center for Advanced Technology and Innovation
» Wisconsin Department of Commerce
» Metropolitan Milwaukee Association of Commerce
» Milwaukee Export Assistance Center – U.S. Commercial Service
» Milwaukee World Trade Association
» MSOE's Applied Technology Center
» MSOE's Rapid Prototyping Center
» MATC's Energy Conservation and Advanced Manufacturing (ECAM) facility

Molly Newman This exclusive news bulletin is compiled by BizTimes Milwaukee reporter Molly Newman. This bulletin is published every Monday morning. Send manufacturing industry news and tips to molly.newman@biztimes.com or call her at (414) 336-7144.
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