Investments paying off for Wisconsin’s manufacturers

Despite the recession, many Wisconsin manufacturers are benefiting from efforts to modernize and improve their operations.

The Wisconsin Manufacturing Extension Partnership says that projects it completed with state manufacturers generated an economic impact of $164 million — most of it from increased and retained sales.  The FY 2009 economic impact is based on data provided by 176 WMEP-assisted companies and compiled by an independent firm.

“These are solid results during a very difficult economy,” says Michael Klonsinski, executive director of WMEP, a non-profit consulting organization that helps manufacturers grow and succeed. “These numbers underscore the gains that can be achieved with proactive measures to improve business performance. The manufacturers represented in this data are better positioned to survive the recession and take advantage of business opportunities once the recovery begins.”

WMEP-assisted companies reported:
• $118 million in increased/retained sales
• $17 million in cost savings
• $29 million in investment, including new plant and equipment
• 798 created/retained jobs

In addition, an analysis of the data projects an $8 million tax revenue benefit to the state of Wisconsin as a result of increased/ retained sales.

Kurt Wollenberg, vice president of Freedom-based Performance Welding Inc., says WMEP has been a solid resource in helping the firm on its lean journey. “We’re not working any harder but we are working smarter,” says Wollenberg, who estimates the company has saved nearly $250,000 from lean improvements “Our firm also has expanded its capacity to handle new business as a result of better space utilization and increased efficiency.”

Other firms reporting notable positive impact as a result of WMEP services include: American Laser Products Inc., Middleton; Centerline Machine Inc., Waupaca; Dalco Metals Inc., Walworth; Design Specialties Inc., Milwaukee; G&G Machine Inc., Kaukauna; Lindquist Machine Corp., Green Bay; Mid-States Aluminum Corp., Fond du Lac; Reliable Plating Works Inc., Milwaukee; Terso Solutions Inc., Fitchburg; and Trilary Inc., Waunakee.

During the past five years, WMEP-assisted manufacturers reported impact of nearly $1 billion – $977 million – with 7,965 jobs created/retained.  WMEP provided services to 676 state manufacturers last year. Manufacturing contributes $48.8 billion to Wisconsin’s economy and employs 442,000 workers.

Looking ahead, Klonsinski said this is a pivotal time for state manufacturers. “We’re seeing some signs that the economy is recovering, and when that happens manufacturers will need to be ready for it,” he says. “Firms with outdated processes and poor operational performance could be left behind when the economic recovery begins.”

WMEP consultants bring best practices and business resources to help Wisconsin’s small and midsize manufacturers improve competitiveness and profitability. In December 2008, WMEP released the results of the state’s first-ever Next Generation Manufacturing Study, which revealed that many Wisconsin manufacturers, especially smaller firms, do not have the necessary strategies in place to compete effectively over the next five years.

WMEP’s impact data is compiled by an independent firm for the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP). Manufacturers are surveyed six months after the completion of a project facilitated by WMEP.

MOVERS

>> Five Wisconsin manufacturing leaders recently were elected to the board of directors of the Wisconsin Manufacturing Extension Partnership (WMEP): Troy Berg, president of Dane Manufacturing Inc. in Dane; Tom Duffey, president of Plastics Components Inc. (PCI) in Germantown; and Tom Jacobson, vice president, operations, Bruno Independent Living Aids Inc. in Oconomowoc. Michael Erwin, president of Tailored Label Products Inc. of Menomonee Falls, was elected vice chair and Mary Isbister, president, GenMet Corp. of Mequon, was elected secretary.

>> Kathy Collins is the new WEN Regional Director in Madison.

>> Skyline Technologies Inc. has added  Ned A. Haas as business development manager.

BUSINESS BRIEFS

MENASHA: Menasha Packaging Company was recently awarded one of Kimberly-Clark Corp.’s Top Supplier awards for 2008. Menasha designs and manufactures corrugated packaging and displays for K-C and was the only North American packaging company chosen for the prestigious award.

MILWAUKEE: For the second year in a row, Aurora Health Care is again the top performing health system in the country among 250 participants in a national Centers for Medicare & Medicaid Services (CMS), Premier healthcare alliance quality initiative.  Aurora BayCare Medical Center in Green Bay was the top performing hospital in the country.  Aurora BayCare is the only hospital to receive five Top Performer awards and one of four hospitals to receive the maximum 10 awards. Aurora Sheboygan Memorial Medical Center is one of nine hospitals to receive four Top Performer awards. The Sheboygan hospital also is one of eight hospitals nationally to receive eight of a possible eight awards.

WAUSAU: The Wisconsin Potato & Vegetable Growers Association has partnered with Thomas Marks & Associates and Peritus Design (TMA+Peritus) to increase awareness of the Wisconsin Potato and Healthy Grown potato brand among consumers and retailers nationwide. Wisconsin is currently ranked third in the nation for potato production. In 2008, Wisconsin potatoes generated over $293,000,000 in product dollars for farmers and shippers, $51.5 billion in economic activity via agribusiness, and jobs for 420,000 people.