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HellermannTyton unveils new location
April 15, 2013 10:00 AM
HellermannTyton held a grand opening event for its new location on Saturday, offering employees and their families refreshments, plant tours and activities.

The facility, a renovated 92,000-square-foot building at 6701 W. Good Hope Road in Milwaukee, will host injection molding operations for specialty fasteners, as well as automation, maintenance and support.

HellermannTyton has moved 25 of 28 presses from its Faulkner Road plant to the Good Hope facility and operations are underway. There is room for 16 more presses as the company expands.

With the additional space created by moving the presses out of Faulkner Road, the company will enlarge the research and development area, tool room and quality labs there, said President Jim Campion.

The expanded capacity will allow the company to make more of its tools in house, and will create new jobs in toolmaking, design, quality and engineering when the renovations are complete.

“We launch to the market over 100 new fasteners per year, so we need more space to trial, to test, to prototype,” said Terry Tuttle, vice president of marketing and sales.

The company’s growth has been driven by the commercial sales team, Campion said.

The new building is the HellermannTyton’s third Milwaukee manufacturing facility, with 11 acres of land for further expansion.

The company has hired 21 employees at Good Hope facility and plans to add a total of 50 in the next two years. The company also hopes to add 125 jobs over the next five years.

About 200 people attended the Good Hope grand opening. Employees from Illinois and local sales managers joined employees from the three Milwaukee facilities at the event.

The company built a temporary ice skating rink for the day in some open space they plan to eventually expand into.

“It really speaks to the culture of our organization being very family-oriented,” Tuttle said. “We very much want people to know the strength of the organization and feel part of the organization.”

One of the stations on the tour showcased HellermannTyton’s work making 24 custom components used for wire protection and fastening in a Mercedes vehicle.

HellermannTyton’s North American headquarters is in Milwaukee. The company is in 34 countries and has 3,200 employees worldwide. There are about 600 HellermannTyton North America employees.

The company manufactures high performance cable management solutions used for fastening, identifying, protecting, organizing, routing and connecting components in the electrical, automotive and datacom markets.

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Dueco expands reach
April 15, 2013 10:00 AM
Dueco, Inc. has expanded its reach by adding two territory managers.

Rob Bahneman has been hired as territory manager for the Twin Cities and Western Wisconsin markets. He had worked in sales for Wells Fargo for the past five years. Bahneman lives outside of Minneapolis.

Adam Tischer has been named territory manager for Northern Wisconsin and Northern Michigan. He joined the company in 2005 as an installation mechanic and then served as schematic engineer, inside sales coordinator and, most recently, customer solutions coordinator. Tischer will move to northern Wisconsin.

Waukesha-based Dueco is the largest provider of Terex bucket trucks, digger derricks and cranes for the U.S. utility market. It serves 15 states.


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As wars wind down, Oshkosh Corp. will cut 900 jobs
April 15, 2013 10:00 AM
Oshkosh Corp. announced that its Oshkosh Defense division plans to reduce its workforce in Oshkosh by approximately 700 hourly positions starting in mid-June 2013 and by approximately 200 salaried positions through July.

The layoff announcement comes as the U.S. combat mission in Iraq is finished and the war in Afghanistan is winding down.

After the layoffs, Oshkosh will employ approximately 2,800 Defense employees in Oshkosh.

Oshkosh Corp. expects domestic military vehicle production volumes to decline significantly as the year progresses. The company said its lower expected vehicle production is due mainly to the reduction in U.S. Defense budgets and a return to peacetime spending levels as the U.S. winds down war activities. Daily production volumes are expected to decline by approximately 30 percent this summer.

"These were difficult, but necessary decisions," said John Urias, Oshkosh Corp. executive vice president and president of Defense. "When other business segments of Oshkosh and many companies in the U.S. were enduring layoffs, pay cuts and furloughs during the Great Recession, Oshkosh Defense was hiring employees and retaining jobs which ended up helping many people manage through that difficult period. However, circumstances have now changed."

Urias added, "We have taken numerous actions to lessen the impact, including insourcing work customarily done externally, thus saving more than 165 production jobs."

The company will be reaching out to the county and state workforce development agencies, as well as local employers to help those affected by the layoffs make the transition to other employment if they so desire.

The company will continue to build trucks and trailers, and provide support service and training for its military customers around the clock and around the world.

Oshkosh Defense is a leading provider of tactical wheeled vehicles and life cycle sustainment services.

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Pacific Sands Q3 revenue up 33%
April 15, 2013 10:00 AM
Kenosha-based Pacific Sands Inc. reported that its fiscal third quarter sales revenue was $573,053, an increase of 33 percent compared with revenue in fiscal third quarter 2012.

For the nine months ended March 31, sales rose 20 percent compared with the nine months ended March 31, 2012.

"We believe our increased and very targeted investments in manufacturing and additional promotion during the last several quarters are producing positive results in driving and supporting sales," said Michael Michie, president and CEO. "In prior years, the capital to support the company's accelerated sales growth came from the issuance of additional shares of common stock. With the company on the threshold of profitable operations, the policy going forward has been to restrict new share issuance to a minimum."

Pacific Sands manufactures "environmentally friendly," non-toxic pool and spa treatment products, and liquid and powder cleaning, laundry, and personal care products, today announced revenue for the fiscal third quarter ended March 31, 2013.

The company said it is currently seeking a bank line of credit to support future sales growth. With a backlog of unfilled sales from the third quarter and increased sales levels from existing customers in the first week of the new quarter, the company said it believes fiscal fourth quarter could produce another quarterly sales record. Sales for the fiscal year ending June 30 are expected to be double the revenue generated in the fiscal year ended June 30, 2010.

"We are very optimistic that the work accomplished in the past several years to expand capacity, significantly reduce debt, and build sales volume has positioned Pacific Sands for continued revenue growth and to achieve consistent profitability in the near future," said Michie. "Our products continue to meet with success and have been well-received by the trade and by end-users. We have structured our manufacturing to be very scalable, so we are confident in our ability to efficiently and cost-effectively meet increased future demand."

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OSHA cites Cudahy plant for violations
April 15, 2013 10:00 AM
The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has cited Joy-Mark Inc. for six health violations, including two repeat citations, for exposing workers to airborne refractory ceramic fiber at the mold manufacturing facility in Cudahy.

OSHA has proposed penalties of $50,050, as a result of the October 2012 follow-up inspection.

"Joy-Mark has a responsibility to monitor worker exposure to respiratory hazards and to provide and train workers on the proper use of appropriate respirators," said Christine Zortman, OSHA's area director in Milwaukee. "Employers who are cited for repeat violations demonstrate a lack of knowledge and commitment to protecting worker safety and health."

The first repeat violation involves allowing workers to use non-HEPA respirators, which are ineffective in filtering exposure to known respiratory hazards. The second violation involves exposure to airborne refractory ceramic fiber above the recommended exposure limits set by the National Institute for Occupational Safety and Health. Exposure to refractory ceramic fibers can result in adverse respiratory health effects, such as irritation and compromised pulmonary function, lung cancer and mesothelioma.

A repeat violation exists when an employer previously has been cited for the same or a similar violation of a standard, regulation, rule or order at any other facility in federal enforcement states within the last five years. These violations were previously cited at the Cudahy facility in 2009, 2010 and 2011.

Also cited were four serious violations of OSHA's respiratory protection standards, including a lack of medical evaluation for a worker required to wear a respirator, not conducting initial or annual respirator fit testing and allowing a respirator to be worn with a beard. An OSHA violation is serious if death or serious physical harm can result from a hazard an employer knows or should know exists.

Joy-Mark employs 65 people at the Cudahy facility, which manufactures ceramic molds to be used as pouring aids in the foundry industry. The company has 15 days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA's area director or contest the findings before the independent Occupational Safety and Health Review Commission.

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Briggs launches new fuel treatment compound
April 15, 2013 10:00 AM
Engine experts at Milwaukee-based Briggs & Stratton Corp. have developed a super-concentrated fuel treatment and stabilizer that treats more fuel and protects engines from the impact of ethanol-blended fuels for up to three years.

A single 16-ounce bottle of Briggs & Stratton's Advanced Formula Fuel Treatment and Stabilizer now treats up to 80 gallons of gasoline. Ethanol is now blended into more than 95 percent of the nation's gasoline supply, according to the Renewable Fuels Association, making it nearly impossible to avoid.

"It's critical to look for products developed by companies that truly know engines --and that have the engineering expertise to understand how best to protect them," said Carissa Gingras, marketing director, consumer engines and service at Briggs & Stratton. "Additionally, owners should feel confident that the product they choose has been thoroughly tested, offers maximum protection, and stabilizes fuel for more than a year after opening and that's what our product does."

The product can be used in any gas engine, including two-cycle engines such as those on string trimmers and chain saws which run on a gasoline/oil blend. It is especially important to use the product in equipment that is used intermittently or infrequently, including lawn mowers, generators, pressure washers, chipper shredders, outboard motors and recreational vehicles.

"Ethanol-based fuels are particularly damaging because they attract moisture which eventually separates from the fuel, forming a layer of ethanol-enriched water at the bottom of the tank where it does its damage," says Eric Risse, fuel systems engineer at Briggs & Stratton.

Briggs & Stratton Advanced Formula Fuel Treatment & Stabilizer combines a "triple antioxidant" formula with additional ingredients to protect the entire fuel system.

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Koss Corp. plays role in 'Mad Men' premiere
April 15, 2013 10:00 AM
In case you missed it, Koss headphones were featured on the recent two-hour premiere of the Emmy-Award winning show, “Mad Men.”

Read more in a Milwaukee Biz Blog by Michael Koss.

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BizTimes announces recipients of Bravo! Entrepreneur and I.Q. Awards
April 15, 2013 10:00 AM
BizTimes Media LLC has announced the winners of its 2013 Bravo! Entrepreneur Awards and I.Q. (Innovation Quotient) Awards.

The recipients include some of the most bold and dynamic business leaders and the most innovative companies in southeastern Wisconsin.

The winners of the Bravo! Entrepreneur Awards are:

    Steve Laughlin, CEO, Laughlin Constable , Milwaukee.
    Greg Rucinski, president and CEO, Tricast Inc., Wauwatosa.
    J.P. Fingado, president and CEO, API Healthcare Corp., Hartford.
    Katherine Gehl, CEO, Gehl Foods, Germantown.
    Chris Wiser, CEO, TechSquad IT, Waukesha.
    Lori Highby, president, Keystone Click, Milwaukee.
    Michael Erwin, president, Tailored Label Products Inc., Menomonee Falls.
    Jimi Michalscheck, CEO, ESC Services Inc., Franklin.
    Sara Santiago, partner and president, Roll Mobile, Milwaukee.


Regional Spirit Award: Michael Zimmerman, president and CEO, Zimmerman Ventures LLC.

Lifetime Achievement Award: Michael Cudahy.

The winners of the I.Q. Awards for innovation in business are:

    Wixon Inc., St. Francis.
    Aries Industries Inc., Waukesha.
    Connecture Inc., Brookfield.
    DP Electronic Recycling, Elkhorn.
    Goff's Enterprises Inc., Pewaukee.
    Graff Faucets Co., Milwaukee.
    Sussex IM Inc., Sussex.
    Master Lock Company Inc., Oak Creek.
    Harley-Davidson Inc., Milwaukee.
    Allen Edmonds Shoe Corp., Port Washington.


"These awards salute some of the brightest, most innovative executives and companies in the region. We invite the leaders of all of southeastern Wisconsin's businesses to attend this luncheon and learn about the best practices that are driving these companies and local economy forward," said BizTimes publisher Dan Meyer.

The winners of the Bravo! Entrepreneur Awards and I.Q. Awards will receive their awards at a luncheon on Thursday, May 16, at the BizExpo, to be presented by BizTimes Media. The awards presentation will be emceed by Craig McKee, news anchor at WISN-Channel 12, a media partner of BizTimes. The program also will include a live interview featuring Michael Cudahy and BizTimes executive editor Steve Jagler. To register to attend the luncheon, visit www.biztimes.com/bravo.

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Declining demand leads to more Caterpillar layoffs
April 8, 2013 10:00 AM
Peoria, Ill-based Caterpillar Inc. announced Friday it will lay off more than 460 supplemental employees from its plant in Decatur, Ill.

“Products built in Decatur are used in the mining industry, which is weaker than last year at this time,” said Rachel Potts, a company media relations representative. “While some cost reduction measures such as temporary layoffs, shutdowns and shortened workweeks have already been implemented, more permanent measures must be taken in the near-term.”

The layoffs will take effect in 60 days, in cooperation with the Worker Adjustment and Retraining Notification Act.

“We know this is difficult for our employees and their families, but we are taking steps to position the company for long-term success,” Potts said.

The decision was made to bring production in line with demand, according to Caterpillar.

On March 28, the company announced it will lay off 250 to 300 employees in South Milwaukee by June for the same reason. It expects those layoffs to be temporary.

But United Steelworkers Local 1343, which represents 803 workers at the South Milwaukee plant, said the timing of the layoff announcement was suspicious.

Last Tuesday, Caterpillar began its first labor negotiations with USW since the South Milwaukee facility became part of the company after the Bucyrus International Inc. acquisition.

The company said there is nothing significant to report on the negotiations so far. It has set up a website to keep the community informed about the negotiations at http://2013milwaukeenegotiations.cat.com.

“I assure you that we will bargain with the union in good faith and hope to reach an agreement that is fair to all our employees and allows us to make the business decisions necessary to compete on a global scale,” says a letter on the site from Vince Clark, South Milwaukee factory manager.

Ross Winklbauer, United Steelworkers union sub-district director for District 4, said he hadn’t heard about the Illinois layoffs. It’s too early to tell how negotiations will go in South Milwaukee, he said.

“We did exchange proposals and it’s been cordial so far,” Winklbauer said.

Caterpillar plans to release its first quarter financial results on Monday, April 22.

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Wisconsin leading the way in manufacturing
April 8, 2013 10:00 AM
Wisconsin is one of the states leading the way out of the recession because of its strong manufacturing sector, according to a report from Area Development Online.

Wisconsin is second in the nation in manufacturing share of non-farm employment, fourth in terms of the manufacturing share of total gross state product at 19.6 percent and eighth in total manufacturing jobs.

Manufacturing companies employ about 17 percent of Wisconsin’s non-farm workforce, which is almost double the national average of 9 percent.

There are 11,453 manufacturers in Wisconsin, which account for 450,000 jobs and contribute to employment in related industries.
Wood products, transportation equipment and electrical equipment drive Wisconsin’s manufacturing industry. Exports are most commonly for the industrial machinery equipment, electrical machinery and medical/scientific instrument sectors.

“We’re seeing significantly improved health of our manufacturing sector compared to two years ago,” said Lee Swindall, vice president of business and industry development for the Wisconsin Economic Development Corporation. “Wisconsin manufacturers are investing in new capital equipment as they experience rising demand for their products overseas.”

The report made note of the state’s new income tax credit for manufacturing and the two-year income tax holiday for businesses that relocate to Wisconsin. The technical college system was also singled out as a benefit to manufacturers, since it serves one out of eight adults in the state.

The full report can be found here.

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Kenrich to build new facility
April 8, 2013 10:00 AM
Kenrich Industrial Inc. plans to build a new facility on a 32-acre site on Busse Road in Pewaukee.

The facility will be designed, engineered and constructed by MSI General Corporation in Oconomowoc. The site size will allow for future expansion for Kenrich and its subsidiary companies.

About 20 workers will work at the new 20,000-square-foot facility, at least initially. The company plans to begin construction in April and complete it in August.

Kenrich, which services hoist and industrial air tools, was founded in 1953 as a construction distributor. It will relocate its operations to the new facility from its Waukesha location.


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Immigration agency closes case against Palermo
April 8, 2013 10:00 AM
Milwaukee-based Palermo Villa Inc. announced that the U.S. Immigration & Customs Enforcement (ICE) agency has closed its case on the company after verifying it had followed all applicable employment law.

Giacomo Fallucca, president and chief executive officer of the frozen pizza manufacturer in Milwaukee's Menomonee River valley, issued the following statement regarding the agency's decision:

"The U.S. Immigration & Customs Enforcement Agency has informed Palermo Villa Inc. that it has concluded its review of our company. We are pleased that this case is now closed and that the ICE review showed that we had followed all appropriate employment laws. We also are pleased there are no fines or other regulatory actions. The final part of the agency review was focused on three remaining employees who had submitted additional documentation for ICE review. Palermo Villa Inc. retained these employees until a final ruling was made on their eligibility to work in the country. Now, ICE has concluded its review and informed us that only one of the three individuals is eligible to work in the United States. Unfortunately, ICE has also now informed us that it has reaffirmed its original ruling that the other two individuals are ineligible to work in the United States. With this determination by ICE, Palermo Villa, Inc. was required to separate with those two individuals, and we have complied with the government's requirements in this regard, though it was not easy. The two employees in question were highly valued workers, great leaders and good people who have made many positive contributions to Palermo Villa, Inc. While we wish the outcome were different, we obeyed the law and respect the agency's determination. We have made it known to these two employees that if they are able to resolve their documentation issues with the government, we will gladly hire them back."

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Harley unveils more headliners for festival
April 8, 2013 10:00 AM
Harley-Davidson Inc. has unveiled its list of musical acts that will perform along the Milwaukee Lakefront at the company's 110th Anniversary Celebration, which will take place Thursday, Aug. 29, through Sunday, Sept. 1.

Headliners at the festival will include Kid Rock, Lynyrd Skynyrd, ZZ Top, Katey Sagal & The Forest Rangers, Dropkick Murphys, Lupe Fiasco, Common, Brantley Gilbert, the Doobie Brothers, Buckcherry, Joan Jett & the Blackhearts, Gaslight Anthem, Sublime with Rome and Halestorm.

"This is just the tip of the iceberg of the talent we're bringing to town for the 110th Anniversary Celebration," said Mark-Hans Richer, chief marketing officer at Harley-Davidson. "Stay tuned for the unveiling of even more bands, including two additional headlining acts."

All of the concerts featured on the Summerfest Grounds stages are included in the cost of a 110th Anniversary Celebration ticket. Two ticket options are now on sale at www.h-d.com/110tickets.

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Magnetek rejects acquisition offer
April 8, 2013 10:00 AM
Menomonee Falls-based Magnetek Inc. said that it recently rejected an unsolicited offer by New York-based investment firm Blott Asset Management LLC and Talanta Investment Group LLC to purchase the company.

"While it is the fiduciary duty of the board to review credible offers, the board unanimously concluded that Magnetek's business and strategic plans and long-term prospects as a stand-alone company would support a substantially better return to our stockholders than that represented by this expression of interest," said Mitchell Quain, Magnetek's chairman of the board. "As presented to the board, the expression of interest refers only to a 'price in the range of $15.00 per share,' which is less than a $1.00 premium to the $14.05 closing price of Magnetek's common stock on April 2, 2013. Furthermore, the expression of interest appears to be based on a number of conditions and speculative assumptions including that a number of members of management and large stockholders would exchange their Magnetek common stock for shares in a newly formed company rather than receiving cash. We believe that pursuing this highly conditional expression of interest would distract us from achieving our business objectives and building the long-term value of the company."

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Allen Edmonds unveils new Nicklaus golf shoes
April 8, 2013 10:00 AM
Golf legend Jack Nicklaus and Port Washington-based Allen Edmonds Shoe Corp. have collaborated to introduce the new Jack Nicklaus Signature Golf Line by Allen Edmonds, a comprehensive line of golf shoes and golf-related products respecting the traditions of the game and providing innovations for improved comfort and performance.

The new Jack Nicklaus Signature Golf Line will include three series of golf shoes, all named after some of the most renowned Nicklaus-designed courses. The line also includes several accessories, such as socks, belts, hats, a glove, cedar shoetrees and coasters.

"Allen Edmonds and Jack Nicklaus are two American icons who share the values of customer service, superior quality and classic tradition," said Paul Grangaard, chief executive officer and president of Allen Edmonds. "As we collaborated on the Nicklaus Signature Golf Line, we embraced our mutual values of respect for the game of golf, authenticity, and American heritage."

"I was very involved with Allen Edmonds in the design, performance aspects, and look of this new Signature Line of golf shoes," Nicklaus said. "Initially, I shared my vision of a golf shoe designed for stability from the ground up and for the modern golf swing. While I appreciate the athleticism of golf, I wanted a line that included both a current, comfortable athletic shoe, as well as a more classic design for this Signature shoe, combining performance, comfort and stability."

In addition to style features, the new golf shoes have been designed with innovative comfort and performance benefits, including a patent-pending Stability Rim sole, which provides a swing platform for greater traction and footwork stability. The sole is also spikeless -making it green friendly - and versatile enough to wear on and off the course. The entire line features full leather uppers, certified waterproof construction, and removable insoles for those who desire custom orthotics.

"I'm pretty tough when it comes to perfecting a design, so we went through a comprehensive design and development process," Nicklaus said. "In our first offering, we believe we have created core shoes that appeal to golfers of all skill levels and tastes in style. Allen Edmonds built a company and a brand-based commitment to design features that improve performance and comfort. This is a great fit for the high demands that come with a golf shoe."

Nicklaus has played in more than 700 professional tournaments, and in amassing his record 18 professional major championship titles has walked more than 11,000 holes in major championship play.

"Mr. Nicklaus' personal experience playing golf, walking and designing courses, and his challenges with proper fit inspired us while designing and crafting this new line," Grangaard said. "We were fortunate to have him so involved in this process, one that spanned meetings with him in Florida, Muirfield Village in Ohio, and at our factory in Port Washington, Wis."

The Jack Nicklaus Signature Golf Line shoes will retail for $195 and are now available at golf specialty retailers, green-grass accounts, Allen Edmonds stores, and at allenedmonds.com. Shoes will be made to order and delivered in six to eight weeks.

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Quad to open commingling center in New Berlin
April 8, 2013 10:00 AM
Sussex-based Quad/Graphics Inc. announced that it plans to start up a Midwest commingling center in May in a 225,000-square-foot building in New Berlin.

The building, currently owned and occupied by Ace Distribution Services Inc., is located at 5600 S. Moorland Road, just south of I-43, in New Berlin. Quad expects to be operational in the building by May 20 and will have 145 employees there.

Ace Distribution Services and Quad will co-occupy the building as Quad moves in and Ace Distribution Services transitions out. Quad will lease the property from Ace Distribution Services, which will retain ownership.

Quad said it also plans to create an East Coast commingling center at its existing direct mail production plan in Westampton, N.J.

The facilities are part of a multimillion-dollar investment that Quad is making in its direct marketing platform.

The commingling process merges individual mail pieces together to improve presort discounts and drop-ship savings. Quad said the process reduces postal handling and delivery time.

"Postage is typically our clients' single largest production-related expense and can be as much as 60 percent of their budget," said Steve Jaeger, president of Quad/Graphics direct marketing. "By consolidating direct mail volume into these two new mailing centers, Quad/Graphics will help our clients qualify for greater postal discounts."

Jaeger said the company plans to add co-palletization (a manufacturing process that consolidates mail onto pallets and ships them to U.S. Postal Service sorting facilities) capabilities to its New Berlin facility "in the near future…to further enhance postal discounts for our clients."

Quad also plans to add a new custom web press and other equipment upgrades at its Effingham, Ill. plant and will add print capabilities to the Westampton plant.

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iMet Center to host Gov. Walker
April 8, 2013 10:00 AM
The SC Johnson integrated Manufacturing & Engineering Technology Center at Gateway Technical College in Sturtevant will host Gov. Scott Walker on Thursday, April 11 at 11:30 a.m.

Walker will present “Promoting Manufacturing in Wisconsin” at the iMET facility, which was recently expanded.

The iMET Center offers training in computer numerical control machining, welding, metal fabrication, automated manufacturing systems and industrial robotics in its flexible training facility.

The 18,000-square-foot addition, which opened in February, includes a Fab Lab, which will be used for industrial design and rapid prototyping, the engineering technology programs and the CNC and welding and fabrication boot camps. The facility is now 61,000 square feet.

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Cardiac Science sells product line to Mortara
April 1, 2013 09:00 AM
Waukesha-based Cardiac Science Corp. has sold its diagnostic cardiology product line to Milwaukee-based Mortara Instrument Inc.

Cardiac, which is part of Bangalore, India-based medical technology group Opto Circuits Ltd., develops and manufactures advanced diagnostic and therapeutic cardiology devices and systems. Its products include automated external defibrillators, electrocardiograph devices and cardiac stress treadmills. Cardiac has operations in North America, Europe and Asia.

Mortara specializes manufacturing non-invasive ECG technology, including electrocardiographs, stress exercise systems and Holter systems. It has operations in Australia, Germany, Italy, the Netherlands and the United Kingdom.

The sale includes the Burdick and Quinton branded products manufactured at Cardiac Science. It does not include MySense, a wearable ECG Recorder System, and the Resuscitation unit, which sells automated external defibrillators.

"Divestiture of the diagnostic cardiology product line will bring more strategic focus to Cardiac Science,” said Neal Long, CEO, Cardiac Science. “The company will now be able to exclusively focus on innovation and the expansion of market share in its high margin Resuscitation Business.”

Both companies’ boards of directors approved the acquisition. They will both continue to operate under a transition services agreement until the transition is complete.

Acquiring the Burdick and Quinton brands will help Mortara extend its reach into office-based physician practices, clinics and acute care hospitals, said Dr. Justin Mortara, CEO of Mortara.

"The addition of these businesses to our organization represents a marked opportunity to accelerate the introduction of Mortara's leading ECG technology to new markets," Mortara said. "As a historic technology supplier to both Burdick and Quinton, we hold an enormous amount of respect for the people and the products behind these established names. We look forward to marrying our ECG expertise with these powerful brands and the know-how behind them to create exciting new solutions for our customers."

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Union: Timing of Caterpillar layoffs suspicious
April 1, 2013 10:00 AM
Peoria, Ill.-based Caterpillar Inc. announced Thursday it is planning to lay off 250 to 300 employees in South Milwaukee by June.

United Steelworkers Local 1343, which represents 803 workers at the South Milwaukee facility, says the timing of the layoff announcement is suspicious.


Caterpillar will begin its first labor negotiations Tuesday with USW since the South Milwaukee facility became part of the company. It was acquired as part of Caterpillar's acquisition of Bucyrus International Inc. in 2011.


USW Local 1343 sent the following update to its membership Thursday:


"As most everyone should be aware by now, Caterpillar management informed us today that the company plans to lay off 40% of its workforce in South Milwaukee. Your USW negotiating committee is taking this threat very seriously, as you would expect.

"Your committee also believes the timing of this layoff announcement is hardly coincidental, with negotiations scheduled to begin in less than a week. We urge you to avoid overreacting or swallowing every detail that management tries to feed us over the coming weeks.

"We believe that Caterpillar is frustrated that our union didn't panic over salaried and administrative employees 'shadowing' us on our jobs or its use of our publicly funded technical school to train
potential scabs how to weld.

"Instead, we are calmly and thoroughly continuing to prepare for negotiations and investigating the company's suspiciously timed layoff announcement.

"When negotiations begin next week, we are going to represent all 803 Steelworkers who have been nothing but loyal, productive and profitable for the 70 years we've operated our plant.

"We anticipate the negotiations to be tough, though we are committed to fairness and ready to engage Caterpillar in good faith at the table. We expect management to do the same, despite the company's recent attempts to intimidate us.

"We will continue to share information throughout the process, and as always, we will need your continued support and solidarity as we face the challenges ahead."
According to Caterpillar, the layoffs are a result of industry conditions.

"Short-term layoffs and other actions will be taking place," Caterpillar spokesman Rusty Dunn told BizTimes. "We are not getting into specific numbers, as we continue to evaluate the situation given the fluctuating economic and business environment. Various Caterpillar facilities and business units are taking action to bring our production in line with demand, including our operations in South Milwaukee. This includes some short-term temporary layoffs and other actions. These actions vary from location to location and impact both production and support and management employees. We know this is difficult for our employees, but we are taking steps to better align with the current economic circumstances, while at the same time remain focused on positioning the company for long-term success."

Ross Winklbauer, United Steelworkers union sub-district director of District 4, received word of the layoffs from union president Kevin Jaskie, who was present for the company announcement.

The union is unsure if layoffs will affect only union staff or both union members and management staff.

The union also remains uncertain about whether the layoffs will be temporary cuts or permanent dismissals, Winklbauer said.

Any company that lays off a significant number of employees in Wisconsin is required to notify the state Department of Workforce Development at least 60 days in advance. The DWD has not received any notification from Caterpillar at this time, said DWD spokesman Dick Jones.

City of South Milwaukee officials have heard nothing about the company's layoff plans, said city administrator Tami Mayzik.

"We have not been notified," she said.

According to information Winklbauer received from Jaskie, Caterpillar cited low sales as the reasoning for the layoffs.

Winklbauer, however, said he has not had any conversations with the company about low sales.

"Maybe there (are) some low sales, but the timing of it just makes it suspicious," Winklbauer said.

Recently Caterpillar has been getting contingency workforce planning training for salaried and management personnel in case of a labor strike at the South Milwaukee plant. The training, which readies managerial and support staff for production jobs, is a normal part of Caterpillar's planning cycle prior to any union negotiations, Dunn said.

The United Steelworkers asked Milwaukee Area Technical College to stop training Caterpillar's salaried and management personnel for production jobs. MATC officials rejected that request.

"If (Caterpillar is) really this slow as what they're saying, why would they spend money to have MATC train replacement welders?" Winklbauer said.

The MATC training was intended to intimidate union workers, according to Winklbauer.

The tactic has not worked, he said.

"Is this the next thing they're using to try to intimidate the workers by trying to scare them by saying, 'You'll be out of a job?'" Winklbauer said.

Caterpillar is facing some difficulties because of a slowdown in demand in China.

China's manufacturing industry, which has slowed amid slack external demand, is being challenged by poor innovation, excessive competition for low-end products and insufficient core components and key technologies, Chen Qihua, vice president of Caterpillar told ChinaDaily USA.

The overcapacity of low-end products has been a problem for China's construction equipment industry, Chen said.

China's economic growth fell under 8 percent for the first time since 1999 last year, mainly due to cooled manufacturing production and property investment.

In January, Caterpillar chief executive officer Doug Oberhelman admitted the company had overpaid for the acquisition of Chinese company Zhengzhou Siwei Mechanical & Electrical Manufacturing Co. last year. Siewei makes equipment to support the roof in coal mines.

Caterpillar paid about $700 million for Siwei parent ERA Mining Machinery Ltd., but later learned of the company's deliberate accounting misconduct, which was designed to inflate profits ahead of the sale. As a result, it wrote the value down by $580 million.

After the write down, which halved Caterpillar's fourth quarter 2012 earnings expectations, the company said it was exploring all avenues to recover the losses from the bad deal.

Meanwhile, Bloomberg Business News analysts are forecasting a global bear market for iron ore, which has led to some iron ore mines to be closed and workers to be laid off in North America in recent months.


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Milwaukee manufacturing pace slips
April 1, 2013 10:00 AM
Milwaukee-area manufacturing growth slowed considerably in March, according to the 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 50.98 in March, down from 56.48 in February.

A reading above 50 indicates growth, while below 50 indicates contraction. February's reading was well above the 51.31 recorded in January.

The indices for new orders, production, employment, customers' inventories, prices, exports and imports are all growing. Inventories, supplier deliveries and backlog of orders are on downward trends.

Blue collar employment was at 54.2 in March, up from 51.1 in February. White collar employment was at 50.2, down from 54.8 in February.

Buying policy also changed. The average commitment lead time for capital expenditures was down six days to 79 days. The average lead time for production materials decreased three days to 38 days. And the average lead time for maintenance, repair and operating supplies was up by four to 20 days.

Here are some of the responses to the March survey:

"Some announcements of price increases have been received, but the economics of the market will not support them. In general, supply and lead times are adequate."

"Building safety stock."

"March is starting to see the normal uptick."

"China suppliers struggling with staff not returning after China New Year."

"Still working down inventories."

The respondents' six-month outlook on business conditions shows manufacturers remain positive. The report indicates 52 percent expect positive conditions going forward, while 43 percent expect the same conditions and 5 percent expect worse conditions.

Here are some of the responses on the six-month outlook:

"Unsure—ahead of plan now but nothing solid forward beyond 12 weeks."

"Seasonal rise beginning."

"Automotive strength and housing improvements."

"While there is infrastructure investment in some sectors, EU 'uncertainty' and ineffective U.S. 'government' will be a drag."

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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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