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Monday, June 23, 2014
Ingeteam: Renewable markets developing more slowly than expected
June 23, 2014 10:21 AM
Spanish wind and solar product manufacturer Ingeteam Inc. hasn't created jobs in Milwaukee at the pace it expected, which is due in part to slow growth in the renewable markets it targeted.

“Even though we had a slower than forecasted growth in our employment numbers at this point, our commitment to reach 275 employees remains the same,” said Aitor Sotes, U.S. chief executive officer. “The markets for our products in the renewable energy sectors have not grown at the pace we expected. However, we have developed partnerships in other industries such as marine, industrial drives, etc. that have made us bring a new business unit to the U.S. earlier than anticipated, giving us confidence that we will reach our original employment numbers.”

The Redevelopment Authority of the City of Milwaukee last week gave Ingeteam the OK for five more years to create the 275 jobs it promised in return for a loan from the City of Milwaukee. The Milwaukee Common Council also needs to approve the extension.

The company received a $2 million forgivable loan from RACM in June 2010 to finance the construction of its $15 million, 140,000-square-foot Menomonee Valley manufacturing facility. The funds for the loan were provided by a tax incremental financing district.

As a condition for receiving the forgivable loan, Ingeteam set an ambitious hiring timeline — 275 employees by 2015. The company has created just 77 jobs to date, Sotes said.

Under the new timeline, Ingeteam plans to reach just 100 employees in 2015. But the company expects the pace of hiring to pick up soon, attributable to new fields it is entering, improvement in the overall economy and new partnerships it is forming, said Milwaukee Department of City Development spokesman Jeff Fleming.

“There had been some uncertainty in renewable energy tax credits, and that delayed contracts being executed,” Fleming said. “They are upbeat at Ingeteam about their future. They simply have not attained the growth they anticipated.”

The company, which got off to a slow start manufacturing wind turbines and solar inverters at its facility at 3550 W. Canal St., also received $1.6 million in federal stimulus tax credits, a $500,000 capital financing loan from the state and $4.5 million in state tax credits to locate in Wisconsin.

Manufacturing started in December 2011 for the Power Electronics products and October 2012 for the generators, Sotes said.

“We have only applied for the loan modification for the RACM loan,” Sotes said. “We have not requested any modifications to the other agreements.”

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Gardner Denver already considering expansion plans for HQ
June 23, 2014 10:40 AM
Gardner Denver Inc., which is in the process of moving its corporate headquarters from suburban Philadelphia to Milwaukee, is already considering future expansion plans here, according to Luis de Leon, chief executive officer of the firm's Industrials Group.

Gardner Denver currently has about 25 employees in Milwaukee, which is now the corporate headquarters for the company and the headquarters for its Industrials Group. Initially the company plans to grow the Milwaukee headquarters to about 40 employees.

“We are actively recruiting a team here,” said de Leon. “We’ve got 25 now. We will grow to about 40 and that will give us enough people for the headquarters. Then we will see how things work and decide what else we could bring here.”

One possibility the company is considering for Milwaukee is the creation of a training center.

“We have ideas (for the Milwaukee headquarters),” de Leon said. “We’re going to evaluate each of them.”

The company’s medical divison will remain based in Germany “for now,” de Leon said. Its energy division is based in Houston and will likely remain there, he said.

But the corporate headquarters in Milwaukee could grow to “a couple hundred people” in two to three years if a training center is established and other functions are moved here, de Leon said, but no firm plans have been established.

Gardner Denver, a manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems, is a Fortune 1000 company with annual revenue of about $2.4 billion and more than 6,000 employees worldwide. The company was established in Quincy, Ill. in 1859.

The company still has manufacturing and back office functions, including engineering and finance, in Quincy. Some of the back office operations could also eventually be moved to Milwaukee, de Leon said.

Gardner moved its corporate headquarters to the Philadelphia area in 2010 saying it needed to be based in a major metropolitan area.

Last year the company opened an office at 222 E. Erie St. in the Historic Third Ward in Milwaukee when Milwaukee business executive Tim Sullivan, the former chief executive officer of South Milwaukee-based Bucyrus International Inc., became the president and CEO of Gardner Denver.

The company occupies one and a half floors in the Third Ward building but will likely need to relocate if it grows the headquarters beyond its initial plans of about 40 employees.

“It’s getting to the point that we’re already pretty tight,” de Leon said. “It’s already getting pretty packed.”

If the office is relocated it will likely remain in the downtown area, he said.

“We like where we are,” de Leon said. “The employees enjoy everything the Third Ward has to offer.”

Gardner Denver announced recently that Sullivan was resigning after about 10 months in the position. His replacement is Peter Wallace, a Gardner Denver board member who previously worked for West Milwaukee-based Rexnord Corp. for 25 years, including a stint as CEO.

De Leon was chief operating officer at Bucyrus for seven years and joined Garnder Denver when Sullivan became CEO.

The company is moving its headquarters to Milwaukee to get back to its Midwestern roots and closer to its Midwestern operations, including those in Quincy, Ill., de Leon said.

“Quincy is very remote,” he said. “We have a history in the Midwest. We wanted to come back close to where our operations are, but we didn’t want to go to those remote locations.”

Milwaukee also offers lower costs, a good workforce, a pro-business state government and proximity to Chicago for international travel, de Leon said.

The company also has a plant in Sheboygan.

De Leon spoke today at a press conference for the Gardner Denver 200 Fired Up by Johnsonville, a NASCAR Nationwide Series Race that will be held Saturday at Road American near Elkhart Lake in Sheboygan County. Gardner Denver will have 300 customers visiting Milwaukee this weekend to attend the race.

The coincidence of sponsorship of the Wisconsin auto race and the company’s headquarters move to Milwaukee has been “good timing,” de Leon said. The company wanted to sponsor the race to help re-energize the Gardner Denver brand, he said.

“The company has been very internally focused,” he said. “We felt we needed to refocus on our customers. We want to get our name out there to make it a better known brand to help them sell our products.”

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Harley unveils electric motorcycle
June 23, 2014 10:37 AM
Milwaukee-based Harley-Davidson Motor Co. has introduced its first electric motorcycle, Project LiveWire.

The motorcycle looks and feels like a classic Harley-Davidson, with a new sound.

"The sound is a distinct part of the thrill," said Mark-Hans Richer, senior vice president and chief marketing officer. "Think fighter jet on an aircraft carrier. Project LiveWire's unique sound was designed to differentiate it from internal combustion and other electric motorcycles on the market."

The company will begin allowing select customers to ride Project LiveWire and give comments on the model beginning next week. The motorcycle is not yet on the market, and is currently being used to gather feedback and gauge interest.

That rider reaction will drive future retail availability, the company said.

"America at its best has always been about reinvention," said Matt Levatich, president and chief operating officer, Harley-Davidson Motor Co. "And, like America, Harley-Davidson has reinvented itself many times in our history, with customers leading us every step of the way. Project LiveWire is another exciting, customer-led moment in our history."

The motorcycle manufacturer will also offer a virtual test drive of the new model through Jumpstart.

Harley’s 2014 U.S. tour will travel down Route 66, stopping at more than 30 dealerships along the way. And in 2015, the company will extend the Project LiveWire Experience across the rest of the U.S., Canada and Europe.

"This builds on many recent reinvention successes for Harley-Davidson," Levatich said. "In just the last few years, we've broadened our reach to serve an increasingly diverse society, as well as reinvented our approach to product development and manufacturing. This has resulted in cutting-edge products like the recently launched Project Rushmore touring bikes, Harley-Davidson Street 500 and 750 models and this reveal of Project LiveWire."

One of Harley’s core values is sustainability and preserving the riding environment, the company said.

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Florida company to acquire Emteq
June 23, 2014 10:49 AM
New Berlin-based Emteq Inc. is being acquired by B/E Aerospace Inc., a Wellington, Fla.-based manufacturer of aircraft cabin products and aerospace fasteners.

B/E Aerospace, which is publicly traded on the Nasdaq (BEAV), announced it has signed definitive agreements to acquire Emteq and F+E Fischer + Entwicklungen GmbH & Co. KG (Fischer), a German manufacturer of seating products for civilian helicopters.

Emteq manufactures aircraft interior and exterior lighting systems, as well as aircraft cabin management and power systems.

Amin Khoury, chairman and chief executive officer of B/E Aerospace said, “Demand for comprehensive and integrated solutions for power management, lighting and connectivity within the aircraft cabin is growing, and the acquisition of Emteq will enable us to offer more comprehensive solutions. Customers value the ability to partner with a company that can deliver turn-key solutions.”

Khoury added, “The combination of our lighting and power management systems business with Emteq’s highly complementary lighting, cabin management and power systems businesses, as well as their electrical and connectivity expertise, will allow us to expand our product and service offerings in the commercial airliner and business jet markets. This acquisition will allow B/E Aerospace to provide complete aircraft lighting and engineering integration solutions, allowing technology crossover and additional product and service offerings in numerous aircraft platforms. We also expect significant product development, manufacturing and operational synergies.”

The total combined acquisition purchase price for both companies is approximately $470 million. Emteq and Fischer reported combined annual revenues of approximately $150 million.

The Emteq transaction is expected to close this month, while the Fischer transaction is expected to close around the beginning of the third quarter of 2014, subject to regulatory approvals.

B/E Aerospace is the world’s leading manufacturer of aircraft cabin interior products and the world’s leading provider of aerospace fasteners, consumables and logistics services. B/E Aerospace designs, develops and manufactures a broad range of products for both commercial aircraft and business jets. B/E Aerospace manufactured products include aircraft cabin seating, lighting systems, oxygen systems, food and beverage preparation and storage equipment, galley systems, and modular lavatory systems. The company also provides cabin interior reconfiguration, program management and certification services.

The company provides aerospace fasteners, consumables and logistics services as well as oilfield services and associated rental equipment. B/E Aerospace sells and supports its products through its own global direct sales and product support organization.

Jerry Jendusa, who co-founded Emteq, has resigned as its CEO but continues to work with the company periodically as a consultant. Jendusa is launching a new executive coaching company, Getunstuck.net, with Paul Schulls.

The 10th annual Emteq Charity Golf Outing will take place as scheduled on Monday, July 21. Since it was started by Jendusa, the outing has raised more than $650.000 for Children’s Hospital of Wisconsin. BizTimes Media continues to serve as the media sponsor for the golf outing. To register to attend the outing or donate to the charity, click here.

After the sale of Emteq is closed, Jendusa said he will expand his philanthropic work.

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Jason Inc. to move HQ to 833 East
June 23, 2014 10:55 AM
Milwaukee-based finishing, seating, components and automotive acoustics manufacturer Jason Inc. plans to move its corporate headquarters to 833 East, the 17-story office tower that real estate development firm Irgens will build at 833 E. Michigan St. in downtown Milwaukee.

The downtown Milwaukee offices of Cresa and First American Title Insurance Company will also move to the 833 East building.

Those three tenants will all move from other downtown addresses. Jason Inc. will move from the 411 East Wisconsin Ave. building, First American will move from the ASQ Center at 648 N. Plankinton Ave. and Cresa will move from the City Center at 735 building at 735 N. Water St.
Those tenants will join the previously announced tenants in the project: Godfrey & Kahn, the Milwaukee office of Colliers International and Irgens’ own headquarters office.

Godfrey & Kahn is leasing 77,817 square feet in the building, Irgens will occupy 25,328 square feet, Colliers International is leasing 20,422 square feet, Jason Inc. is leasing 12,506 square feet, First American is leasing 5,952 square feet and Cresa is leasing 2,516 square feet.

Two additional tenants have signed leases, but are not being named by Irgens at this time. One is leasing 18,135 square feet and the other is leasing 5,479 square feet. Both of those tenants are currently located in the city of Milwaukee, said Mark Irgens, chief executive officer, president and manager of Irgens.

Irgens has obtained signed leases for 168,155 square feet of office space in the project. The building has a total of 358,017 square feet of leasable office space.

Irgens also still hopes to attract a high end restaurant to the building.

Site preparation work for the project began recently and demolition work to remove half of a parking structure to make way for the new building will begin this week. A groundbreaking ceremony will be held on Wednesday.

Construction is expected to be complete in mid-February of 2016.

The 833 East project will cost $101.51 million. The project is being financed with a $24 million loan from The PrivateBank, a $24 million loan from Associated Bank, an $11.5 million loan from Bank Mutual and an $11.5 million loan from Anchor Bank. The remaining $30 million for the project is being provided in the form of equity financing.

“It’s good to celebrate our successes,” Irgens said “But we’re not done. Our focus now is on how to complete the project successfully.”

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Actuant recovers from loss
June 23, 2014 10:45 AM
Menomonee Falls-based Actuant Corp. reported fiscal third quarter net earnings of $50.6 million, or 70 cents per share, up from a loss of $93 million, or $1.24 lost per share, in the third quarter of 2013.

Revenue was $378.2 million, up from $344.2 million in the same period a year ago.

“I am pleased with the results for the third quarter, which were in line with our guidance, including 3 percent core growth and EPS at the mid-point of our range, excluding the income tax planning benefit,” said Mark Goldstein, chief executive officer. “Energy and Engineered Solutions both delivered a solid 5 percent increase in core sales, while Industrial’s core sales growth rate improved sequentially. Our targeted margin improvement activities are progressing, but third quarter results included unfavorable segment mix, choppy demand, and costs and inefficiencies related to the facility closures, consolidations and relocations that we are completing to simplify our business. EPS increased year-over-year reflecting higher sales and operating earnings, as well as fewer shares outstanding.”

However, Goldstein said the tepid end market demand has persisted in some parts of its business, so Actuant’s full-year results may be lackluster. Mining, offshore mooring, off highway equipment and other sectors are showing poor growth activity.

Fiscal 2014 sales expectations were lowered to $1.4 billion.

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Manufacturers top list of Future 50 winners
June 23, 2014 10:58 AM
For the third year in a row, manufacturers that make everything from plastics coatings and steel tubes to custom hardware and interactive kiosks hold the most spots – 15 – on Council of Small Business Executives Future 50 list for 2014.

The Future 50 program, now in its 27th year, recognizes top locally-owned companies that have been in business for at least three years and are growing rapidly in both revenue and employment.

This year’s list – and the business community in general – reflect the Milwaukee region’s past as a manufacturing powerhouse and its innovative future, according to the Metropolitan Association of Commerce and COSBE.

“We are proud of the range of companies that are receiving the award and believe they represent a robust economic future,” said Mary Steinbrecher, executive director of the COSBE.

Technology firms also have a strong showing on this year’s list (10 of the winners fall into that category).

“As businesses continue to recover from the recession, we see more and more of them reinvesting in their business – whether that’s technology solutions, marketing communications or office furniture,” said Steinbrecher.

The list also includes such diverse businesses as the Lowlands group, which owns seven bar/restaurants in the Milwaukee area, Stella & Chewy’s, a manufacturer of frozen organic pet food, and Angelic Bakehouse, which makes popular sprouted grain bread products.

Combined revenue figures for all 50 firms in 2013 reported a 15-percent increase in growth over the previous year, and by year-end, the firms are predicting another 15-percent growth rate. Total employment for all 50 firms was 4,941 in 2013 and the companies are projecting to employ 5,550 by the end of this year (a 12-percent increase). Notably, nearly half of the firms (46 percent) say they do more than 75 percent of their business with customers outside the Milwaukee region – a measure of how much new income is brought into the region.

On the 2014 Future 50 application, MMAC/COSBE asked applicants how they would recommend strengthening the entrepreneurial climate in the Milwaukee tegion. Answers included more incentives for start-ups; addressing failures in our education system; better access to financial resources; and bolstering Milwaukee’s image.

“Portraying Milwaukee as an attractive and fun place to live and work is vital,” said Timothy Rudd with M&M Office Interiors.

“We need continued support of incubator programs that encourage technology startups and foster the growth and development of a technical talent pool,” said Steven Borucki from Offsite LLC.

The 2014 Future 50 winners will be recognized for their achievements at the annual awards luncheon to be held Thursday, Sept. 11, at the Hyatt Regency Milwaukee Hotel.  Park Bank is the long-standing partner and presenting sponsor of the Future 50 program. The Future 50 Luncheon sponsors include Chortek, Findorff, Reinhart Boerner Van Deuren s.c. and the University of Wisconsin-Parkside. BizTimes Media is the media sponsor of the program and will produce profiles of the winners.

To view the list of the 2014 Future 50 companies, click here.

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Manufacturing Events
June 23, 2014 11:05 AM

The Paranet Group will host a Golf Outing on Monday, Aug. 11, starting at 10 a.m. at Ozaukee Country Club, 10823 N. River Road in Mequon. The event will include golf, lunch, speakers, cocktails and networking with other manufacturing executives. The event, open to members, co-workers of members and prospective members, will raise money for manufacturing/engineering students at a local college or university. Cost is $155. For more information or to register, visit http://www.paranetgroup.com/events/2014-paranet-golf-outing.

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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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