TAPPING IDEAS, TALENT AND PASSION TO GROW BUSINESS IN WISCONSIN.

Transcription

1 WISCONSIN ECONOMIC DEVELOPMENT CORPORATION TAPPING IDEAS, TALENT AND PASSION TO GROW BUSINESS IN WISCONSIN. ANNUAL REPORT FISCAL YEAR 2014 PHOTO COURTESY OF ARIENS COMPANY 1

2 WELCOME TO A STATE OF SOLUTIONS. Effective busiess developmet meas fidig the right solutios for your busiess from securig capital for startup or expasio to tappig iteratioal markets. By coectig with the Wiscosi Ecoomic Developmet Corporatio (WEDC), you gai a parter who delivers high-impact fiacial assistace ad strog busiess developmet programs. As the state s lead ecoomic developmet agecy, we work with a etwork of more tha 600 local, regioal ad statewide parters to provide resources ad customized support to busiesses I Wiscosi. To help techology-orieted startups grow, WEDC provides direct fudig ad tax credits to help facilitate ivestmet capital. Whe more mature busiesses eed to upgrade employee skills or expad their facilities, WEDC offers fiacial assistace, icludig loas, grats ad tax credits. For busiesses lookig to start or expad their export strategy, WEDC s global developmet team provides expertise o doig busiess successfully i may of the world s fastest growig markets. To lear more about WEDC programs ad resources desiged to help your busiess succeed I Wiscosi., call 855-INWIBIZ (toll free), DoBusiess@IWiscosi.com, or visit IWiscosi.com. I Wiscosi is a registered trademark of Wiscosi Ecoomic Developmet Corporatio.

3 Be it through workforce traiig, export assistace, loas to eable capital ivestmets, tax credits to icetivize expasio, or oe of the may other tools ad resources we offer, the Wiscosi Ecoomic Developmet Corporatio (WEDC) always operates with the growth of Wiscosi s ecoomy foremost i mid. This aual report offers a summary of our umerous ad varied programs ad highlights chages ad successes durig fiscal year 2014 (July 1, Jue 30, 2014). As the state s lead ecoomic developmet orgaizatio, we are costatly workig to update the meu of programs ad services we offer to meet the eeds of Wiscosi compaies ad commuities. This year, we created a ew, flexible Special Projects Loa Fud to provide loas for projects that might ot otherwise qualify for traditioal fiacig. We also worked with lawmakers to update the regulatios that gover our Ecoomic Developmet Tax Credits, so that recipiets of these credits ca trasfer them to other compaies uder certai coditios. We expect that this additioal flexibility will make this already popular program eve more effective at spurrig growth ad job creatio. WEDC also demostrated our resposiveess with a $5 millio emergecy loa guaratee program that allowed us to provide loa guaratees to fiacial istitutios i Wiscosi for ew or expaded lies of credit to propae distributors i respose to a propae shortage that hit much of Wiscosi. WEDC also played a key role i the implemetatio of the ehaced tax credits for historic buildigs. The credits were doubled to cover 20 percet of eligible rehabilitatio costs, a chage that stimulated ecoomic developmet i commuities across the state. Two etirely ew programs itroduced durig FY14 have already had a sigificat impact o commuity developmet. Six vacat sites were selected for the Idle Idustrial Sites Redevelopmet Program, ad 20 muicipalities ad couties received grats for dowtow redevelopmet efforts through the Commuity Developmet Ivestmet Grat Program. Durig the fiscal year, WEDC cotiued to expad Wiscosi s iteratioal represetatio ad busiesses access to iteratioal markets. We have expaded our iteratioal etwork of trade represetatives to cover 54 coutries up from 36 a year ago ad just four a year before that. I April 2014, we hosted the first-ever bus tour of our state for 33 trade commissioers from 25 coutries who udoubtedly shared their positive experieces with busiess leaders i their home coutries. WEDC also supports the geeratio of ew commercially viable ideas withi our atioally reowed educatioal istitutios. For example, i FY14, we partered with the Uiversity of Wiscosi System to lauch the Ideadvace Seed Fud, which supports studet, staff ad faculty etrepreeurs with seed fudig ad busiess modelig traiig. WEDC s Capital Catalyst Program ad Seed Accelerator Program are helpig tur groudbreakig research ito ew busiess opportuities i Wiscosi. Improvemets i our busiess climate ad the publicity these brig are drawig atioal attetio. Amazo.com s decisio, aouced i November 2013, to ope a ew facility i Keosha is just oe positive outcome of Wiscosi s growig reputatio as a busiess-friedly state. Amazo s ivestmet is expected to create more tha 1,250 ew jobs. WEDC does ot work aloe, ad our impact is multiplied through our work with parter orgaizatios. I FY14, we worked with the Mid-West Eergy Research Cosortium (M-WERC) to pla for the 2015 opeig of the Eergy Iovatio Ceter, which will brig together scietists, egieers ad busiess leaders to accelerate iovatio i the eergy, power ad cotrol idustry. This ew ceter is modeled o the successful formula of the Global Water Ceter, a 98,000-square-foot space i Milwaukee that, through a partership with The Water Coucil, moves iovatio forward i the water sector. Wiscosi s ecoomy is growig stroger every day, ad WEDC plays a critical role i esurig that busiesses of all sizes ad all idustries have the tools they eed to be part of the state s success story. Whether it s helpig iovative startups secure iitial capital ivestmet, providig compaies with the assistace eeded to expad ad create ew jobs, or persuadig busiesses i other states to establish operatios here, WEDC s proactive approach to ecoomic developmet is payig huge divideds. The bold strategies put forth by WEDC ad their may ecoomic developmet parters throughout the state combied with the cofidece that comes from elimiatig the state s budget deficit, cuttig taxes ad esurig a ready ad capable workforce make Wiscosi the right place to start, grow or relocate a busiess. Scott Walker, Goveror State of Wiscosi I all, WEDC provided more tha $156 millio i fiacial assistace durig FY14 a total of 316 loas, tax credits, ivestor credits, grats ad bod fiacig awards, expected to result i the creatio or retetio of more tha 32,000 jobs. Workig with our key strategic parters, ecoomic developmet assistace was provided to 4,272 compaies ad 119 commuities throughout the state. We are proud of these accomplishmets, ad, as we look back o last year ad forward to the year ahead, we reaffirm our dedicatio to helpig to move Wiscosi s ecoomy forward. Sicerely, Reed E. Hall Secretary ad CEO 3

4 MAXIMIZING WISCONSIN S ECONOMIC PERFORMANCE Creatig a busiess climate i Wiscosi that supports busiess developmet requires dedicated attetio to the state s iheret stregths its rich atural resources, leadig educatio system, taleted workforce ad prove idustry leadership. Additioally, the state s may ecoomic developmet stakeholders must work together to leverage available resources to esure busiesses operatig withi the state receive the help they eed to grow their operatios ad create ew jobs i Wiscosi. Above all, the state eeds to demostrate its iterest i ew busiess developmet through a combiatio of log-term strategic plaig ad day-to-day resposiveess to ew opportuities. As a public-private etity formed to foster a positive busiess climate i Wiscosi, WEDC is uiquely positioed to effectively deploy the talet ad fuds available to drive busiess growth i the state. WEDC s priorities are formed through iput from the busiesses we serve. Our areas of emphasis iclude the followig: Assistig startups ad etrepreeurs Nourishig existig Wiscosi compaies Recruitig busiesses from other states Seekig opportuities for exportig ad foreig ivestmet Opeig doors for miority-owed busiesses Buildig strog parterships WEDC s structure allows us to be adaptable so that we ca respod quickly to chagig ecoomic coditios ad add ew programs to meet market demads. From raisig capital for iovatio to fiacig workforce traiig ad expadig global markets, WEDC uderstads busiess ad delivers customized solutios to help compaies succeed I Wiscosi. I have worked with represetatives of state govermet i Wiscosi for more tha 10 years ad have witessed a evolutio toward greater resposiveess to busiess eeds i that time. The team i place at WEDC uderstads busiess ad kows how to get thigs doe. Mike Eickhoff Midwest Practice Leader, Credits ad Icetives Services Grat Thorto LLP Located i New Richmod, Wiscosi, Egieered Propulsio Systems, Ic. (EPS) is desigig a ew diesel egie that the compay s owers hope will chage the course of geeral aviatio by offerig sigificatly better fuel efficiecy tha today s gasolie-powered egies. WEDC certified EPS as a qualified ew busiess veture (see p. 6) i The compay received more tha $3 millio of qualified ivestmets through the program i

5 INVESTING IN WISCONSIN S FUTURE WEDC admiisters more tha two doze fiacial assistace programs to help compaies relocate, start up ad grow their operatios I Wiscosi. These programs iclude tax credits, loas ad grats targeted at spurrig busiess developmet ad job growth across a wide rage of idustries ad throughout the state. WEDC s FY14 budget was both fiacially resposible ad sustaiable. Reveues equaled ogoig operatioal expeditures, ad programmatic ivestmets were drive by a operatioal pla that reflected WEDC s strategic pla ad divisioal objectives. REVENUES $ 32.2 M I FY14, WEDC deployed $32.2 millio i fudig though grats ad loas to help busiesses succeed i Wiscosi either through direct fudig or through strategic ivestmets i parter orgaizatios whose work complemets our ow. State Geeral Purpose Reveue (GPR) $6,124, % State Ecoomic Developmet Fud $33,776, % Other Itergovermetal Reveue $1,679, % Iterest o Loas $1,006, % Other Reveues $455, % TOTAL REVENUES $43,042, % EXPENDITURES BY OBJECT Programs $10,436, % Key Strategic Parters $4,644, % Loa Loss Reserve $7,558, % Total Direct Ecoomic Developmet $22,638, % Promotios $4,715, % Payroll ad Beefits $8,661, % Operatios, Geeral, Capital ad Debt $4,305, % TOTAL EXPENDITURES $40,321, % Net Chage i Fud Balace $2,721,608 FUND BALANCES - BEGINNING OF YEAR $95,328,888 FUND BALANCES END OF YEAR $98,050,496 LOAN DRAWS $17,109,441 WEDC s fiacial ivestmets i fiscal year 2014 fulfilled our operatioal goals relatig to highimpact ecoomic developmet ad full accoutability ad trasparecy. Stephaie Walker, CFO Wiscosi Ecoomic Developmet Corporatio FY14 Grat ad Loa Fudig Allocatio % 18% ECONOMIC AND COMMUNITY DEVELOPMENT ENTREPRENEURSHIP AND INNOVATION 4% 2% BUSINESS AND INDUSTRY DEVELOPMENT INTERNATIONAL BUSINESS DEVELOPMENT 3

6 $ 1.6 BILLION I FY14, WEDC ivested i cotracted projects that will result i more tha $1.6 billio i capital ivestmets i Wiscosi. MEASURING ECONOMIC DEVELOPMENT SUCCESS WEDC employs a variety of measures to gauge the effects of our ecoomic developmet ivestmets. Our work rages from helpig fud ew high-tech startups to icreasig the competitive advatage of targeted idustries ad assistig compaies i their efforts to reach ew iteratioal markets. I FY14, WEDC ad our key strategic parters (see page 19) achieved the followig measurable results from fiacial awards ad techical assistace to customers: Key Strategic FY14 Recipiet WEDC Parters Total Goal Busiesses 668 3,604 4,272 2,140 Commuities ASSISTING BUSINESSES WEDC uses a rage of ivestmet tools from state ad federal programs to help busiesses start up, grow ad relocate operatios i Wiscosi. I additio to fiacial awards through grats, loas ad tax credits, WEDC ad our ecoomic developmet parters provide operatioal assistace to help busiesses i Wiscosi maximize their potetial. This operatioal assistace icludes geeral busiess educatio as well as highly specialized cosultig services. ASSISTING COMMUNITIES WEDC also provides fiacial ad operatioal assistace to commuities where ew busiess opportuities deped upo sigificat ifrastructure improvemets, from dowtow revitalizatio iitiatives to idustrial site cleaup. LEVERAGING WISCONSIN S ECONOMIC DEVELOPMENT NETWORK Less visible tha our direct fudig to busiesses are our ivestmets i parter orgaizatios ad special projects. Parter ivestmets iclude cotracted busiess assistace services ot provided by WEDC as well as strategic support for small busiess assistace operatios throughout the state. CAPITAL INVESTMENT Whe a compay speds millios of dollars o a expasio project, much of that moey is pumped ito the local ecoomy through the purchasig of cotractor ad vedor services. These ivestmets icrease Wiscosi s competitiveess for additioal ew busiess attractio. I short, a successful busiess ourishes other busiesses. The types ad amouts of WEDC s FY14 cotracted fiacial awards are listed to the right, alog with the leverage ratio achieved for each award type. Details of these cotracted awards ca be foud i the olie database at IWiscosi.com/impact. IMPACTING JOBS May of WEDC s fiacial assistace cotracts iclude a job impact measuremet. This data poit captures the effect of WEDC s ivestmet o curret ad future jobs i the state. I some cases, compaies are able to hire ew employees as a result of WEDC assistace. I other cases, compaies retai existig employees by either stregtheig their operatios or maitaiig their presece i the state. I both scearios, WEDC ad the compay uder cotract project the umber of jobs that will be either created or retaied as a result of the ivestmet. That job impact umber is recorded i the cotract, ad the award is cotiget upo its attaimet. Of course, it takes time sometimes years for the positive effects of a WEDC ivestmet to be realized. The issue, the, is: whe are the jobs are i questio actually impacted? Ad whe do they get couted? We report the total impact of the jobs i the year the cotract is executed ad track performace progress to that impact goal throughout the life of the project. 4

7 BONDS* AWARDED 7 *No loger icludes the Midwest Disaster Area Bod Program MILLION LEVERAGE RATIO $ 28.4 NA GRANTS :1 INVESTOR CREDITS 31 $ :1 LOANS 40 $ :1 TAX CREDITS 96 $ :1 TOTAL 316 $ :1 For more details regardig WEDC programs ad ivestmets, please refer to our Act 125 report published olie at IWiscosi.com. WEDC S FY14 JOB IMPACT DATA JOBS TO BE CREATED JOBS TO BE RETAINED TOTAL JOBS IMPACTED* 10, ,068 = 32,689 FY14 GOAL 20,825 *Jobs impacted totals are derived from cotracts executed betwee July 1, 2013, ad Jue 30, These iclude executed cotracts from both curret ad previous year commitmets. Jobs impacted for commitmets ot yet cotracted at curret fiscal year ed are ot icluded i these figures. 5

8 $ 2013 QNBV Summary $8.6M QNBV CREDITS $ 8.6 M $5.8 millio i agel tax credits were issued alog with $2.8 millio i earlystage seed credits M Total fudig received by certified compaies icludig qualifyig ivestmets, other private ivestmets ad grat fudig. $34.3 M QUALIFYING INVESTMENT $24 M GRANTS $60.4 M OTHER PRIVATE INVESTMENT WEDC is a valuable ecoomic developmet egie. At CosortiEX, we foud WEDC resources, programs ad assistace key to expadig our healthcare IT services that support hospital pharmacy quality maagemet. I additio to providig icetives such as fiacial assistace ad tax credits to our ivestors, WEDC also guided us to other resources, programs ad opportuities i Wiscosi to promote our growth. We certaily will cotiue to work with WEDC as our busiess cotiues to grow. Neal Log CEO, CosortiEX SUPPORTING THE ENTREPRENEURIAL ECOSYSTEM I order to create ad sustai steady growth of ew busiesses i Wiscosi, it is importat to ecourage ad support etrepreeurs at every stage of their developmet. Simply put, we eed these iovators ad risk takers to move our ecoomy forward. Research cosistetly shows that the majority of et job creatio comes from youg compaies. WEDC ad the may educatioal ad ecoomic developmet parter orgaizatios we work with uderstad the eed to more efficietly commercialize the tremedous research ad developmet takig place i our colleges ad uiversities. While Wiscosi has may potetial ew busiess ideas at the startig lie, too few reach the fiish lie. To draw attetio to this challege, WEDC has developed the Start.Seed.Scale. (S 3 ) iitiative. Uder the S 3 umbrella, WEDC ad parters across the state are implemetig fiacial ad operatioal assistace programs to address Wiscosi s busiess startup ad seed fudig challeges. QUALIFIED NEW BUSINESS VENTURE PROGRAM I caledar year 2013, WEDC helped 69 early-stage compaies directly leverage more tha $35 millio i private ivestmet ad a additioal $84 millio i other fiacig ad grats through the Qualified New Busiess Veture (QNBV) Program. The QNBV Program, also kow as the Early-Stage Busiess Ivestmet Tax Credit Program, allows eligible ivestors to claim a 25 percet tax credit o the amout they ivest i a QNBV-certified compay. The tax credit, which applies to equity ivestmets made by idividual ivestors, agel groups ad veture capital ivestors, is a good example of a program desiged to address a specific barrier to startig ad growig a high-tech busiess i Wiscosi. TECHNOLOGY DEVELOPMENT LOAN PROGRAM Traditioal fiacig is oftetimes uavailable to techology-based startups. WEDC s Techology Developmet Loa Program provides a ledig optio to our iovative etrepreeurs as they advace their techologies ad ideas through critical stages of busiess developmet from cocept, research, prototypig, productio, ad market aalysis. I FY14, a total of $5.2 millio i loa commitmets were made to 19 compaies, ad the program achieved a 8:1 leverage ratio of WEDC loas agaist other fiacig. CAPITAL CATALYST PROGRAM WEDC utilized its Capital Catalyst Program to provide fudig i partership with the UW System to lauch the Ideadvace Seed Fud, which supports studet ad faculty etrepreeurs with seed fudig ad busiess modelig traiig. We uderstad that effectively deployig capital to spur ew busiess geeratio requires a aget that is close to the actio. The UW System plays that role o campuses throughout the state. Capital Catalyst also supported commuity-based seed fuds established by orgaizatios icludig the Iovatio Foudatio of Wester Wiscosi; Whitewater Commuity Developmet Authority; Baraboo Commuity Developmet Authority; ad Greater Gree Bay Chamber/ Advace. I additio, two ew seed fuds providig capital to health care startups were created with Capital Catalyst support by Bridge to Cures ad the Wiscosi Techology Iovatio Iitiative. SEED ACCELERATOR PROGRAM WEDC s Seed Accelerator Program assisted i establishig ew busiess modelig traiig programs at UW-Oshkosh ad i Madiso ad cotiued to support ew water techology busiesses at The Water Coucil s BREW (Busiess. Research. Etrepreeurship. I Wiscosi.) accelerator. INNOVATION ENGINE $1.24 BILLION FEDERAL R&D FUNDING ACADEMIC INSTITUTIONS 72 DEVELOPMENT RESEARCH & 16,741 INTELLECTUAL PATENTS ISSUED (FROM 02-13) PROPERTY STEM #10 TALENT GRADS POOL QNBV EARLY-STAGE CAPITAL WEDC TECH LOANS UNIV. COMMERCIALIZATION PROGRAMS WEDC CAPITAL CATALYST SEED FUNDS START. SEED. SCALE. (S 3 ) WEDC SEED ACCELERATORS MENTORING SBIR/STTR PROGRAMS INNOVATION/RESEARCH PARKS INDUSTRY CONSORTIA INDUSTRY PARTNERS EXPANSION STAGE CAPITAL ECONOMIC GROWTH 6

9 WE GROW BUSINESS HERE. WE DO IT WITH INDUSTRY LEADERS, CUTTING- EDGE RESEARCH, AND POLICIES FOR A STRONGER BUSINESS CLIMATE IN WISCONSIN. The Wiscosi Ecoomic Developmet Corporatio ad its etwork of over 600 ecoomic developmet parters ca help you start, expad or locate your busiess i Wiscosi. Call 855-INWIBIZ, visit iwiscosi.com, or us at dobusiess@iwiscosi.com.

10 The etire team at WEDC has bee both professioal ad supportive i parterig with us to secure a loa i support of our critical startup activities. It is apparet through their actios that the WEDC has the state of Wiscosi s best iterests i mid ad is a leader i drivig ecoomic growth. Raphi Haessia Maagig Director PSC Ivestmets, a Califoria firm that is startig a ew biotech compay i Madiso ACCELERATING BUSINESS GROWTH Growth-orieted compaies aroud the state are eager to expad their facilities, hire more employees ad/or add ew equipmet i order to take advatage of market opportuities. Ad WEDC stads ready to help with a wide rage of ecoomic developmet tools that target key growth objectives. WEDC s most popular tool to spur busiess growth is the Ecoomic Developmet Tax Credit Program, ad i FY14, WEDC worked with legislators ad other parters to ehace the program, a chage expected to spur additioal growth ad job creatio. Compaies receivig Ecoomic Developmet Tax Credits are ow allowed to trasfer those credits to other compaies uder certai coditios. Before the law was chaged, those credits could oly be used by the compay authorized to receive them. If that compay had o state icome tax liability, it had o eed for the credit, a provisio that hampered the program effectiveess. Aother programmatic chage i FY14 aimed at helpig compaies grow was the creatio of WEDC s Special Projects Loa Fud, a flexible fud desiged to provide loas of up to $250,000 for projects ad expeditures that might ot qualify for traditioal fiacig. The ew fud was desiged to help a busiess prepare for future growth; diversify operatios, markets or product lies to become more competitive; or prepare a project site for future ecoomic developmet. The fud is meat for projects that may ot result i immediate job creatio but would provide log-term divideds by positioig the busiess ad/or regio for greater ecoomic growth. TOP 5 WEDC-SUPPORTED PROJECTS IN FY14 (Raked by capital ivestmet) Compay Locatio Value of Type of Estimated WEDC Project Project Job Impact Support Amazo.com Keosha $155.2M Costruct two ew Create Up to $10.3M distributio facilities 1,250 jobs i tax credits Meijer Pleasat $146.1M Costruct Create Up to $5.25M Prairie distributio ceter 256 jobs i tax credits Agropur, Ic. Luxemburg $100M Expad Retai $1M loa productio facility 100 jobs SHINE Jaesville $88M New maufacturig Create Up to $2M Medical facility 141 jobs i tax credits Workig with WEDC was a great experiece. They helped us fid a loa that met our eeds, ad the process was quick ad smooth. This will help the compay cotiue to grow ad succeed. Bria Larso Accout Maager Forte Research Systems, Ic. Schreiber Gree Bay $87M New headquarters Create Up to $4.5M Foods, Ic ad maufacturig 160 jobs i tax facilities Retai credits 545 Jobs Goveror Scott Walker aouced that DealerFire, a Oshkosh-based custom automotive Web desig ad Iteret marketig firm, is relocatig its corporate headquarters to a reovated historic buildig i the city s dowtow, a move that is expected to create more tha 100 jobs. 8

11 NEW BUSINESS LOCATIONS EXISTING BUSINESS EXPANSIONS H WINDOW COMPANY LLC $220K JOBS 11 PRINTPACK INC $60M JOBS 138 POLARIS INDUSTRIES INC $1.7M JOBS 60 WEATHER SHIELD MFG INC $10M JOBS 1045 SARTORI COMPANY $14M JOBS 53 UNITED NATURAL FOODS INC $37M JOBS 314 RIVERSIDE MACHINE & ENG $6M JOBS 91 HARTER S QUICK CLEAN-UP SVS INC $2M JOBS 81 3M COMPANY $238M JOBS 743 MATHEWS MFG INC $5M JOBS 242 DIE MAKERS MFG CORP $2M JOBS 57 SCHREIBER FOODS INC $30M JOBS 173 BIERY CHEESE CO $14M JOBS 142 CRYSTAL FINISHING SYSTEMS INC $17M JOBS 710 BALL METAL BEVERAGE CONTAINER CORP $18M JOBS 192 WISCONSIN WHEY PROTEIN $20M JOBS 52 SERVICE COLD STORAGE $20M JOBS 38 SUB-ZERO WOLF INC $8M JOBS 529 EXACT LOGIX INC $1.6M JOBS 100 FAITH TECHNOLOGIES $4M JOBS 787 ALLIANCE LAUNDRY SYSTEMS INC $23M JOBS 1568 SCHREIBER FOODS INC $87M JOBS 705 SARGENTO FOODS INC $30M JOBS 46 MEDLINE INDUSTRIES INC $8M JOBS 200 FED EX SMARTPOST $40M JOBS 125 SHINE MEDICAL TECH INC $88M JOBS 141 MEIJER $146M JOBS 256 AMAZON.COM $155M JOBS 1250 CAMBRIDGE MAJOR LABS INC $20M JOBS 248 AGROPUR INC $100M JOBS 100 JOHNSON CONTROLS INC $43M JOBS 1316 MCLANE FOODSERVICE INC $15M JOBS 393 UMB FUND SERVICES INC $5.5M JOBS 292 A sample of sigificat ecoomic developmet projects i fiscal year

12 Without WEDC s efforts i helpig small busiesses with their exportig processes, busiesses like ours would t be able to successfully reach their busiess aspiratios abroad. Max Phillips, Accoutat, Superior-Lidgerwood- Mudy Corporatio (DBA Dutchess Baker s Machiery), Global Busiess Developmet Grat Recipiet EXPANDING GLOBAL OPPORTUNITIES Exportig products overseas ad doig busiess iteratioally is o loger a optio or a luxury it s a ecessity. Already, 95 percet of the world s populatio lives outside the U.S., ad middle classes i may atios are growig while the America middle class is projected to shrik i comig decades. Compaies that seek to grow must take advatage of these demographic treds. WEDC provides Wiscosi compaies with the resources they eed to successfully expad ito overseas markets. WEDC employs a team of experts based i Wiscosi as well as a etwork of iteratioal trade represetatives based i coutries aroud the world. These experts ca provide vital couselig ad traiig as well as relevat market isights to build or erich a compay s exportig pla. WEDC also offers fiacial assistace to help busiesses grow their exports ad succeed i the global marketplace. I additio, WEDC regularly leads Global Trade Vetures that offer compaies a i-perso itroductio ito foreig markets, complete with customized, pre-arraged meetigs with potetial parters i each market. Global Trade Vetures durig FY14 visited Colombia, Chile, Brazil, the Uited Arab Emirates, Qatar ad Idia. WEDC also hosted the Asia Iboud Buyers Delegatio. WEDC also stregtheed its relatioship with the Chicago Iteratioal Trade Commissioer s Associatio whe it hosted a first-ever bus tour of Wiscosi for 33 trade commissioers from 25 coutries. The daylog trip i April helped develop a better relatioship with each coutry i a effort to expad exportig opportuities for state compaies ad to start discussios o havig overseas compaies establish operatios i Wiscosi or ivest here. Members of the Chicago Iteratioal Trade Commissioer s Associatio delegatio lear about Wiscosi s water techology leadership at Milwaukee s Global Water Ceter. GLOBAL NETWORK OF AUTHORIZED TRADE REPRESENTATIVES WEDC grat assistace has made it possible for us to atted idustry trade shows throughout Caada, expad our sales force, develop biligual packagig ad work with some of the top food professioals i the market. I less tha two years, we have goe from havig zero sales experiece i Caada to havig distributio ad product placemet from Vacouver to Quebec. Today, our pasta is becomig icreasigly popular i the Caadia market, ad we believe that with sustaied effort, we will have great success i Caada. Steve Ciurczak Vice Presidet, RP s Pasta Madiso Durig FY14, WEDC laid the groudwork for expadig its iteratioal etwork of trade represetatives from 36 to 54 coutries. With the growth of this etwork, Wiscosi compaies ca beefit from the expertise of these represetatives, who thoroughly uderstad the cultural ad regulatory eviromets of the coutries they cover. The represetatives help compaies avigate these complexities ad fid suitable local busiess parters, makig for a smoother experiece as compaies eter ew foreig markets. GLOBAL BUSINESS DEVELOPMENT PROGRAM WEDC s Iteratioal Market Access Grats ad Collaborative Market Access Grats (CMAGs) help compaies create export strategies as well as provide techical ad fiacial assistace to implemet those export strategies. I FY14, 70 Wiscosi compaies beefited from Global Busiess Developmet Grats, icludig two CMAGs that together ecompassed 19 sub-awards. EXPORTECH WEDC delivers export traiig ad strategic plaig to Wiscosi compaies i partership with the Wiscosi Maufacturig Extesio Partership ad the Uiversity of Wiscosi- Stout Maufacturig Outreach Ceter. The program ExporTech helps compaies expad ad accelerate their global market reach through targeted export strategy developmet ad executio. Durig FY14, 27 Wiscosi compaies wet through the ExporTech Program. Of these, seve had ever exported before; the other 20 utilized the program to expad their exports ito ew iteratioal markets. Compaies surveyed i FY14 reported a average impact of early $450,000 i added reveue. I 2014, a ExporTech graduate compay received the Presidet s E Award for Export Excellece; aother was a fialist for the Goveror s Export Achievemet Award i Wiscosi. We also coducted the first-of-its-kid idustry-specific ExporTech sessio, focused o the food ad beverage idustry. Sice the program s iceptio, compaies from 37 of Wiscosi s 72 couties have participated i ExporTech. 10

13 With trade represetatio i 54 coutries, WEDC helps busiesses i Wiscosi coect with a world of busiess opportuities. Lati America ad Europe Idia, Middle East, Africa Botswaa Asia Pacific the Caribbea Uited Kigdom Estoia* Idia Mauritius Chia Mexico Frace Hugary* Uited Arab Emirates Malawi South Korea Chile The Netherlads Latvia* Saudi Arabia Namibia Idoesia Brazil Belgium Lithuaia* Kuwait Lesotho Australia Colombia* Luxembourg Romaia* Bahrai Swazilad New Zealad Peru* Germay Slovakia Qatar Mozambique Argetia* Costa Rica* Polad Czech Republic Sloveia* Oma South Africa Tazaia Zambia Caada Jamaica* Domiica Republic* Ukraie Russia *Added i FY 2015 Nicaragua* Bulgaria* Paama* Croatia* Uruguay* SUCCESS STORY: Matrix Product Developmet, a Su Prairie-based maufacturer of wireless sesors used i the food processig idustry, participated i ExporTech i FY14. As a ew-to-export compay, they have sice received ad fulfilled their first iteratioal order. While it is a small iitial order, they expect it to lead to much bigger orders i the future. Represetatives of WEDC ad Wiscosi Maufacturers ad Commerce meet i Madiso with a delegatio from Idia to talk about parterships betwee the two coutries. 11

14 ATTRACTING NEW BUSINESSES Persuadig a global compay like Amazo.com to ope a ew distributio ceter i Wiscosi is t the kid of deal that happes overight. Whe the olie retailer aouced i November 2013 that it was opeig the ew facility i Keosha, it was the culmiatio of a yearlog effort by WEDC staff that ivolved workig closely with the compay, local govermet officials ad other parters to develop a proposal that ot oly met the exact specificatios of Amazo, but also was attractive eough to esure the compay did t locate elsewhere. The ed result: Amazo is ivestig $155 millio i two ew facilities that ultimately will create more tha 1,250 jobs i southeaster Wiscosi. As the competitio amog states to lure compaies like Amazo becomes more itese tha ever before, WEDC has adopted a multiproged busiess attractio strategy that has already started to pay big divideds. Whe compaies choose locatios for a ew facility or cosider relocatig, they look at several factors: quality of the workforce, access to markets, trasportatio systems, real estate costs, busiess climate, fiacial icetives ad quality of life. To succeed i today s competitive eviromet, WEDC s busiess attractio efforts must esure that the state s competitive advatages are clear ad covicig, eve i the face of quickly chagig market coditios. To accomplish that, WEDC i FY14 lauched a ew busiess attractio strategy that focuses o these key areas: Buildig a quality sales team that is imble, proactive ad savvy, ad works closely with regioal ad local ecoomic developmet agecies ad other parters. Buildig relatioships with commercial real estate decisio-makers, who play key roles i a compay s decisio to expad or relocate. Leveragig iteratioal busiess developmet efforts by coectig with foreig compaies ad discussig establishig operatios here. Proactively recruitig compaies i Wiscosi s key driver idustries as well as busiesses that ca help fill gaps i the state s supply chai. Coductig strategic outreach based o market itelligece to promote the state s attributes to out-of-state compaies, site selectors ad trade associatios. The importace of icreasig awareess of all that Wiscosi has to offer busiesses caot be overstated. The efforts of WEDC s busiess attractio team have bee ethusiastically supported by Goveror Scott Walker ad Lieuteat Goveror Rebecca Kleefisch through their attedace at evets with site selectors ad commercial real estate professioals ad through outreach calls to compaies cosiderig locatig i Wiscosi. WEDC s staff also made umerous call trips to decisio-makers outside the state. The team at the WEDC took the time ad made the effort to work with us ad uderstad our eeds. Their support helped us i makig a critical busiess ivestmet that ultimately beefits our commuity, our busiess, ad the state of Wiscosi. Chad Pyle, Cotroller Bemis Healthcare Packagig WEDC s aggressive efforts to attract busiesses to Wiscosi have paid off. I additio to Amazo, compaies like Meijer, Kerry, Ic., Niagara Bottlig, Uited Natioal Foods, Ic., Medlie Idustries ad Koecraes all decided to establish operatios i Wiscosi i FY14 creatig thousads of jobs ad pumpig hudreds of millios of dollars ito the state s ecoomy. Goveror Scott Walker jois officials with Uited Natural Foods Ic. at the compay s groudbreakig ceremoy i Prescott. Those compaies ad others cosidered umerous optios i other states ad sometimes i other coutries before decidig that Wiscosi was the right fit for their operatios. Amazo s search icluded more tha a doze states, icludig Coecticut, Texas ad Ohio. I the ed, the state s strog busiess climate, outstadig workforce ad the ability of multiple parters to develop a strog icetive package coviced Amazo that Wiscosi was the ideal locatio for its ewest distributio ceter. We appreciate the state ad local elected leaders who have supported Amazo comig to Wiscosi, said Mike Roth, Amazo s vice presidet of North America operatios. 12

15 ADVANCING INDUSTRY DEVELOPMENT WEDC is committed to helpig Wiscosi busiesses i every sector succeed, but the Divisio of Busiess ad Idustry Developmet places a special emphasis o a hadful of idustries that have the greatest promise for future growth. I these sectors maufacturig; water techology; agriculture ad food processig; eergy, power ad cotrol; aerospace maufacturig; medical devices ad techologies; ad life scieces WEDC works to support ad stregthe the already robust growth etworks that lik compaies withi each sector ad foster iovatio. The Global Water Ceter i Milwaukee, which opeed its doors i September 2013, is already payig divideds for the commuity ad the state i the form of iovatio, growth ad compaies decisios to relocate here. WEDC partered with The Water Coucil to develop the seve-story, 98,000-square-foot buildig, providig facilities for water-related research ad space where established compaies i the water sector ca work side by side with ew, emergig compaies, brigig ewfoud vitality to a previously blighted eighborhood. By acceleratig iovatio i this rapidly growig global market through regioal collaboratio, the Eergy Iovatio Ceter will eergize ew ad existig busiesses. Mike Laszkiewicz Vice Presidet, Rockwell Automatio ad Chair of the U.S. Maufacturig Coucil, which advises the U.S. Secretary of Commerce Followig this successful formula, i FY14 WEDC laid the groudwork for aother Targeted Idustry Project: the Eergy Iovatio Ceter, desiged to accelerate the developmet of iovative techology i the eergy, power ad cotrol idustry. With physical space i Milwaukee, this ceter will brig together idustry ad academic scietists, egieers ad busiess leaders to coduct joit research, jump-start iovative techologies, trasitio prototype products to the commercial stage, ad urture startup compaies. FY14 was a plaig period for the $9.6 millio ceter for which WEDC committed to providig more tha $850,000 i grats to the Mid-West Eergy Research Cosortium. As the Global Water Ceter has doe i Walker s Poit, the ceter is already spawig ew ivestmet ad developmet i the Milwaukee s 30th Street Corridor. The ceter s grad opeig is expected i late WEDC is providig fudig to the Wiscosi Maufacturig Extesio Partership for its Wiscosi Profitable Sustaiability Iitiative. So far, more tha $157 millio i ecoomic impact has bee documeted for 76 maufacturers. This historic, oe-of-a-kid program is cosidered a atioal model for best practice i maufacturig sustaiability to help compaies grow while achievig a positive evirometal impact. Durig FY14, WEDC also served as a key ivestor i a pilot program desiged to support emergig growth compaies i the Milwaukee regio. Scale Up Milwaukee targets established small to midsize eterprises with rapid growth potetial. Of 12 compaies that participated i the first traiig program offered as part of this pilot, all have already reported dramatic icreases i sales. These are just a few examples of parterships through which WEDC has ecouraged the developmet of key idustries. Other examples iclude a traiig program offered i partership with the Wiscosi Truckig Cosortium ad other parters i respose to a shortage of truck drivers; a program to prepare high school studets for i-demad occupatios, offered i partership with Waukesha Couty Techical College ad the Departmet of Workforce Developmet; ad a Daiel Iseberg is applyig the prove priciples from partership with UW-Stout Maufacturig the Babso Etrepreeurship Ecosystem Project to help Outreach Ceter that has assisted 145 Milwaukee compaies scale up their operatios. compaies, resultig i the creatio of 143 ew jobs ad the retetio of 166 jobs. PROFITABLE SUSTAINABILITY INITIATIVE $ 234 PROJECTED 5 YEAR ECONOMIC IMPACT 107 JOBS $ 15.2 INVESTMENT M M 13

16 As a small compay, Xpertz Egieerig does ot have the fudig to carry payroll for 75 days as routiely eeded to acquire cotracts. The Revolvig Loa Fud Program assisted Xpertz Egieerig with capital to fud the iitial payroll util the first project ivoice was received. Tracy P. Gilliam, P.E., CEO Xpertz Egieerig OPENING DOORS FOR MINORITY-OWNED BUSINESSES Workig side by side with the state s miority chambers of commerce, WEDC is playig a role i helpig miority-owed busiesses overcome obstacles i startig ad growig their compaies. The Miority Busiess Developmet Revolvig Loa Program aims to spur busiess creatio ad expasio, icrease busiess diversity i miority commuities, ad make capital accessible by removig barriers to loa fuds. Workig with the Africa America Chamber of Commerce, the America Idia Chamber of Commerce of Wiscosi, the Hispaic Chamber of Commerce, ad the Hmog Wiscosi Chamber of Commerce, WEDC is makig seed capital available to busiesses i the uderserved commuities of the state. WEDC s seed moey is leveraged by matchig fuds from private sources ad foudatios, helpig to facilitate busiess developmet ad job creatio i commuities that eed it most. I FY14, the Miority Busiess Developmet Revolvig Loa Program provided the Hmog Wiscosi Chamber of Commerce, the Africa America Chamber of Commerce ad First America Capital Corp. (the fiacig arm of the America Idia Chamber of Commerce) each with a $100,000 grat. I additio, the Hispaic Chamber of Commerce is cotiuig work o the $100,000 grat it was awarded i FY13, with the expectatio that by the ed of FY15, it will have established a commuity fud ad attracted $5 millio i capital from private ivestors, with structure put i place with the help of the WEDC grat. Oe of the most importat iitiatives WEDC udertakes to support miority- ad womeowed busiesses is the Goveror s Coferece o Miority Busiess Developmet, the largest ad logest-ruig evet of its kid. The Marketplace coferece provides busiesses with opportuities such as etworkig, oe-o-oe meetigs with buyers, workshops ad more. The 2013 evet was the most successful to date, with more tha 550 attedees. To help improve the quality of busiess techical assistace provisio i Wiscosi, WEDC, i partership with Wiscosi Ecoomic Developmet Associatio ad other local orgaizatios, hosted a course i Milwaukee o Ecoomic Developmet Fiacig offered by the Natioal Developmet Coucil. The series of four courses cocluded i May 2014, ad graduates were certified as Ecoomic Developmet Professioals. Amog the graduates, 10 are from orgaizatios that serve the uderserved commuities. Also i FY14, WEDC provided a $25,000 traiig grat to sposor 14 miority, wome ad vetera busiess owers attedace at a fiveday executive traiig program i supply chai maagemet. 66 EXHIBITORS Marketplace 2013 attracted 66 exhibitors ad 28 buyig orgaizatios. More tha 250 oeo-oe sales meetigs were held durig the two-day coferece, as busiess owers made meaigful coectios with a wide array of potetial buyers. Marketplace s trade show exhibits allows busiess owers to coect with service providers. 14

17 MINORITY BUSINESS AWARD WINNER DRAWS NATIONAL ATTENTION After receivig the Risig Star Woma-Owed Busiess Eterprise Award at the 2013 Goveror s Coferece o Miority Busiess Developmet, BCP Trasportatio of Deerfield was featured i the Wiscosi State Joural. That publicity led to stories i atioal publicatios icludig 10-4 Magazie ad Road Kig. BCP Trasportatio Presidet Nacy Spelsberg eve received a call from a L.A. productio compay that wated to feature her i a reality show that highlighted wome i o-traditioal roles. The attetio the compay received resulted i several ew customers as well as cotacts from truck drivers across the coutry watig to work for the compay. Spelsberg reflects, Who eeds a public relatios or sales departmet whe you have this award? 550 REGISTRANTS Marketplace features oe-o-oe sales meetigs with state, federal ad corporate buyers. Marketplace 2013 drew more tha 550 attedees who celebrated the success of miority- ad womeowed busiess eterprises, met with prospective buyers, coected with small busiess resource agecies, ad leared how to leverage certificatio programs. 15

18 Our commuity of 3,323 residets lost over 700 family-supportig jobs with the 2004 closure of a pritig plat ad office space. For ie years, we struggled puttig together a redevelopmet package. The WEDC Idle Idustrial Site Redevelopmet Program was the key to triggerig multiple redevelopmet opportuities i Waterloo. We have WEDC to thak. Mo Hase, Former Waterloo Clerk/Treasurer MAIN STREET IMPACT JOBS CREATED 90 BUSINESSES OPENED DEVELOPING THRIVING COMMUNITIES I Wiscosi, we kow that the state s ecoomic success relies ot oly o thrivig urba ceters, but also o ecoomic developmet i small ad midsize commuities i every regio of the state. As the state s busiess climate cotiues to improve, WEDC is workig closely with commuities throughout Wiscosi to esure they are proactively seizig opportuities. To help local commuities accomplish that goal, WEDC i FY14 itroduced two programs that had a sigificat impact o commuity developmet. The Idle Idustrial Sites Redevelopmet Program provided muicipalities with more tha $5 millio i grats for the redevelopmet of large vacat idustrial sites. Desiged to stimulate ivestmet ad job creatio i idle, abadoed ad uderutilized maufacturig sites, the program offers grats of up to $1 millio to commuities to use for demolitio, evirometal remediatio, or other improvemets to advace the site to shovel-ready status or ehace the site s market attractiveess. Amog the seve sites selected for the first year of the program is a 20-acre parcel that is part of the Cetury City redevelopmet project o Milwaukee s orth side. That property, which was oce home to Tower Automotive ad A.O. Smith Corp., will be trasformed ito a ew office park. Milwaukee officials say the $1 millio grat was key to gettig the site, which has bee uused sice 2006, ready for developmet. The other ew iitiative i FY14 is the Commuity Developmet Ivestmet Grat Program that provided 20 muicipalities ad couties with more tha $1.3 millio i grats. The program supports urba, small city ad rural commuity redevelopmet efforts, with emphasis o job creatio ad retetio, ad creatig ad supportig vibrat dowtow districts to urture idepedet ad family-owed busiesses ad bolster local tax bases. That program is a mai reaso the commuity of Florece i far orther Wiscosi ow has its first full-service grocery store i seve years. The $250,000 grat that WEDC awarded to the couty was the fial piece of the puzzle that made it possible for a regioal grocery chai to ope a store i dowtow Florece. Revitalizig dowtow busiess districts also is the key goal of the Wiscosi Mai Street Program ad its complemetary Coect Commuities Program. With these programs, commuities are brigig back foot traffic ad breathig ew life ito districts with historic appeal through strategies such as creative reuse of buildigs, streetscape improvemets, ew teat recruitmet ad proactive marketig ad promotios. $ 6 MILLION COMMUNITY DEVELOPMENT GRANTS $85M PRIVATE INVESTMENT $9.6M PUBLIC INVESTMENT 355 BUILDINGS RENOVATED/CONSTRUCTED 385 EVENTS HELD EVENT ATTENDANCE Lieuteat Goveror Rebecca Kleefisch aouces that La Crosse was selected as the latest Wiscosi Mai Street commuity. 16

19 The prestigious Wiscosi Mai Street Program, part of a atiowide program of the Natioal Trust for Historic Preservatio, has bee recogized atioally for its participatio, iitiatives ad outcomes. The program has resulted i the creatio of more tha 4,500 ew busiesses ad 17,000 ew jobs i Wiscosi sice its iceptio i I Jue, the City of La Crosse was desigated as the ewest Wiscosi Mai Street commuity, makig it the 36th curretly active Mai Street commuity. The city was selected because its Dowtow Mai Street orgaizatio has take a strategic ad comprehesive approach to stregtheig dowtow La Crosse by workig with the city, the couty, local uiversities, ad dowtow busiess ad property owers. To allow a broader swath of commuities to beefit from similar resources, without such striget requiremets ad the rigorous applicatio process of the Mai Street program, WEDC i 2012 created the Coect Commuities Program. This program, which provides access to resources ad traiig for local staff to help commuities pursue revitalizatio ad redevelopmet efforts, welcomed its secod cohort i Jue ad ow brigs together a total of 40 Wiscosi commuities. Both programs provide techical assistace, etworkig ad coectio to resources to help with dowtow redevelopmet. Aother key tool used to boost ecoomic developmet i dowtows is the state s Historic Preservatio Tax Credit, a WEDC-ru program that makes owers of historic commercial buildigs eligible for a state icome tax credit to help offset the costs of rehabilitatig those structures. I FY14, the credit was doubled to 20 percet of eligible costs ad WEDC saw a flurry of applicatios oce the chage was implemeted. Wiscosi Mai Street Commuities Coect Commuities WEDC staff has bee a great parter i several Florece Couty developmet projects. Without their Commuity Developmet Ivestmet Grat Program, our residets ad visitors would still be drivig to Michiga to purchase grocery ad hardware items. Now, those moies are revolvig i our commuity ad growig Wiscosi jobs. Wedy Gehlhof Florece Couty Ecoomic Developmet Director CONNECT COMMUNITIES IMPACT (20) 450 JOBS CREATED 77 BUSINESSES OPENED $6.2M PRIVATE INVESTMENT $125.4M PUBLIC INVESTMENT MAIN STREET CUMULATIVE INVESTMENT ,168 JOBS CREATED BUSINESSES OPENED PRIVATE INVESTMENT $305.1M PUBLIC INVESTMENT 3.26:1 PRIVATE TO PUBLIC LEVERAGE It has bee a pleasure to work with the staff ad everyoe at the WEDC as Wiscosi s ewest Mai Street program. We have already see beefits from valuable traiig sessios ad etworkig opportuities with other commuities to lear best practices ad share kowledge. Robi Moses Executive Director Dowtow Maistreet Ic., La Crosse 17

20 LEVERAGING NETWORK PARTNERSHIPS WEDC s success draws upo the combied stregth of a iovative strategy ad strog relatioships with a extremely capable ecoomic developmet commuity i Wiscosi. We work closely with a strog etwork of ecoomic developmet parters that iclude regioal plaig commissios; regioal ad local ecoomic developmet etities; state ad federal agecies; idustry groups; ad chambers of commerce. We have formalized our collaboratio with the Uiversity of Wiscosi System to alig the ecoomic developmet resources withi our state uiversities. We also leverage the state s reowed techical college system to help esure that compaies operatig here have access to the talet they eed ow ad i the future. WEDC ivests i key strategic parters with specialized skills ad a prove track record of success. Their work cotributes sigificatly to the outcomes recorded i this report. The followig key strategic parters are uiquely positioed to help WEDC meet its strategic goals. By leveragig the existig services ad subject matter expertise of these orgaizatios, WEDC icreases the ecoomic developmet impact of the fuds we deploy. REGIONAL ECONOMIC DEVELOPMENT ORGANIZATIONS (REDOs) WEDC fuds admiistrative ad marketig activities for ie Wiscosi REDOs: 7 Rivers Alliace, Cetergy, Grow North, MadREP, Milwaukee 7, Mometum West, New North, Prosperity Southwest ad Visios Northwest. While each REDO is orgaized differetly to meet the eeds of its respective commuites, they all demostrate regioal collaboratio with couty ecoomic developmet orgaizatios, muicipal ecoomic developmet orgaizatios, regioal plaig commissios, workforce developmet represetatives, educators ad private-sector stakeholders. WEDC works closely with REDOs aroud the state to facilitate commuicatio ad coordiate support for local busiesses ad commuities. Examples of such cooperatio over the past year iclude the followig: Egagig, educatig ad leveragig the local ecoomic developmet parters withi each regio. Buildig the framework for best-practice busiess attractio ad commercial developmet policies for more rural regios of Wiscosi. Small busiess, startup ad etrepreeur resource mappig; icubator developmet ad support; ad techical assistace. Developig target idustry clusters ad strategizig. Developig rural ecoomic developmet iitiatives (e.g. broadbad). Developig programs that work with schools to educate teachers, admiistrators, parets ad studets o the opportuities that exist i maufacturig as well as workig with maufacturers to idetify their best practices for employee retetio, worker recruitmet ad productivity advacemet. Developig ad implemetig a itesive busiess retetio ad expasio strategy to assess the busiess climate of a particular regio. I additio, as a whole, the leadership of the REDOs formed the Regioal Leadership Coucil ad subsequetly was awarded a Capacity Buildig Grat to assess ad alig programs ad best practices withi their respective regios as well as develop shared programs that could be deployed throughout the state. Sigificat work was doe i FY14 to better idetify REDO roles ad to defie the partership with WEDC so that idividual efforts could be more flexible, yet better aliged with WEDC s missio ad core strategies. This resulted i pursuig a block grat-style fudig strategy for FY15 i which each REDO will be able to customize its ow work plas ad fudig requests to address the uique eeds ad issues of its regio, while havig a positive impact o statewide ecoomic developmet goals. WISCONSIN MANUFACTURING EXTENSION PARTNERSHIP (WMEP) WMEP provides advisory ad implemetatio services to small ad midsize maufacturers i easter Wiscosi to implemet Next Geeratio Maufacturig strategies. I FY14, WMEP reached 460 compaies with services, resultig i $2.7 millio i cost savigs; $19.2 millio i ew sales; $121 millio i retaied sales; ad 505 jobs created or retaied. 18

21 MOC, a resource withi the Discovery Ceter at UW-Stout, provides advisory ad implemetatio services to small ad midsize maufacturers i wester Wiscosi to implemet Next Geeratio Maufacturig Strategies. I FY14, MOC reached 145 compaies with services resultig i $6.67 millio i cost savigs; $5.9 millio i ivestmet i property ad equipmet; $10.1 millio i ew sales; $2.5 millio i retaied sales; ad 229 jobs created or retaied. WPI helps compaies sell products ad services to federal, state ad local agecies as well as prime cotractors. WPI avigates the govermet procuremet process for small firms ad helps them develop competitive processes ad techical capabilities to ear federal cotracts. I FY14, WPI provided impactful assistace to 1,104 compaies, helpig them obtai $120.5 millio i federal cotracts, which resulted i 773 jobs created or retaied. CTC services delivered by staff ad its statewide etwork of parters iclude review ad aalysis of busiess models ad commercializatio plas; advice cocerig patet, trademark, ad copyright issues; ad assistace to busiesses i obtaiig federal SBIR/ STTR grats. I FY14, CTC provided couselig to 411 cliets, activity which assisted i the creatio of 72.5 ew jobs ad the retetio of a additioal 25. CTC also admiisters WEDC s Etrepreeurial Micro-grat Program ad the Ideadvace Seed Fud, which is supported through WEDC s Capital Catalyst Program. The outcomes of those activities are icluded withi the respective program listigs i this report. WWBIC provides small busiess owers ad aspirig etrepreeurs with a array of educatioal programmig, idividual cosultig ad microloa assistace. I FY14, WWBIC provided 1,376 cliets with impactful couselig services totalig more tha seve hours each. WWBIC s microloa program provided more tha $5.8 millio i loa fiacig to small busiesses, icludig 47 startups. Of the total loa amout, $1.75 millio served busiesses i rural Wiscosi. WWBIC s assistace is expected to facilitate the creatio of ew jobs ad the retetio of a additioal positios. WTC cotributes to the state s high-tech ad etrepreeurial ecoomy through its policy work, hads-o work with ivestors ad compaies, educatioal forums ad etworkig evets. I FY14, key WTC evets icluded the Wiscosi Etrepreeurs Coferece ad Early-Stage Symposium (icludig the Goveror s Busiess Pla Cotest), atteded by a combied total of 410 busiesses i additio to ivestors, service providers ad other attedees. The iaugural Wiscosi Tech Summit facilitated 200 meetigs to explore potetial parterships betwee the 54 emergig compaies ad 16 major Wiscosi firms that participated. Etrepreeurs Edge evets drew a additioal 67 busiess participats. Through the Wiscosi Agel Network housed withi WTC, the orgaizatio held six educatioal semiars for agel ivestors throughout Wiscosi ad is assistig ogoig efforts to develop four additioal agel ivestmet groups i the state. BrightStar is a 501(c)(3)-desigated o-profit foudatio that maages a equity ivestmet fud capitalized by private doatios. BrightStar ivests primarily i techology-based, high growth early-stage busiesses to facilitate job creatio ad icrease ecoomic activity statewide. I FY14, BrightStar made ivestmets i five earlystage compaies totalig $493,000. WEDC has ATRs located i high volume ad high growth-potetial markets for Wiscosi compaies. I FY14, the Global Network covered 36 coutries ad cosisted of 14 idepedet cotractors, seve of which were uder a umbrella cotract maaged by the Coucil of Great Lakes Goverors. I FY14, the Global Network provided 183 i-coutry assistaces to 103 Wiscosi compaies. WISCONSIN S ECONOMIC DEVELOPMENT EXTENDED ENTERPRISE Africa America Chamber of Commerce, Ic. America Idia Chamber of Commerce of Wiscosi Associatio of Wiscosi Regioal Plaig Commissios Bay-Lake RPC BioForward Capital Area RPC Cetergy, Ic. Commercial Associatio of REALTORS Wiscosi Competitive Wiscosi, Ic. East Cetral Wiscosi RPC Ethically Diverse Busiess Associatios Coalitio Greater Milwaukee Committee Grow North Regioal Ecoomic Developmet Corporatio Hispaic Chamber of Commerce of Wiscosi, Ic. Hmog Wiscosi Chamber of Commerce Madiso Regio Ecoomic Partership Midwest Eergy Research Cosortium Milwaukee 7 Mississippi River RPC Mometum West, Ic. North Cetral Wiscosi RPC Northwest RPC Prosperity Southwest Wiscosi Southeaster Wiscosi RPC Southwester Wiscosi RPC The 7 Rivers Alliace The New North, Ic. Trasportatio Developmet Associatio of Wiscosi Uiversity of Wiscosi System UW Stout Maufacturig Outreach Ceter VETrasfer Visios Northwest The Water Coucil West Cetral Wiscosi RPC Wiscosi Agel Network Wiscosi Black Chamber of Commerce Wiscosi Busiess Icubator Associatio Wiscosi Busiess Iovatio Corporatio Wiscosi Ceter for Techology Commercializatio Wiscosi Departmet of Admiistratio Wiscosi Departmet of Agriculture, Trade ad Cosumer Protectio Wiscosi Departmet of Reveue Wiscosi Departmet of Workforce Developmet Wiscosi Dowtow Actio Coucil Wiscosi Ecoomic Developmet Associatio Wiscosi Etrepreeurs Network Wiscosi Housig ad Ecoomic Developmet Authority Wiscosi Maufacturers ad Commerce Wiscosi Maufacturig Extesio Partership Wiscosi Procuremet Istitute, Ic. Wiscosi Techical College System Wiscosi Techology Coucil Wiscosi Wome s Busiess Iitiative Corporatio Wiscosi Workforce Developmet Associatio 19

22 TELLING THE WISCONSIN STORY With a strog foudatio established i 2013 for marketig the beefits of doig busiess i Wiscosi through a compellig brad platform, WEDC ramped up its outreach to busiess leaders i target markets i FY14, makig a strog case for growig operatios here. There s a outreach by the state govermet to say, What ca we do to help you employ more people here? WEDC lauched a first-of-its-kid televisio advertisemet campaig i borderig states to highlight Wiscosi s positive busiess climate ad strog workforce. The eight-week campaig featured testimoials from leaders of some of Wiscosi s most respected compaies talkig about the state s pro-busiess policies ad programs as well as the quality of our workforce. Complemetig this broadcast media strategy was a targeted olie marketig program that coected key audiece members with tools ad resources available to help busiesses succeed i Wiscosi. [Wiscosi] is really a excellet place to build a quality workforce. All marketig doe by WEDC drives recipiets to IWiscosi.com for more iformatio o busiess developmet programs ad icetives. Desiged as a oe-stop shop for data, tools ad resources related to growig a busiess i the state, IWiscosi.com was raked the third best website i the atio for ecoomic developmet iformatio by Sigala Ic., a cosultig firm that specializes i urba ad regioal plaig. WEDC s marketig strategy gives special attetio to atioal site selectors cosultats who help compaies determie where to relocate or add operatioal facilities. I additio to developig persoal relatioships with this ifluetial audiece through evets such as the Site Selectors Guild Coferece ad other face-to-face etworkig opportuities, WEDC maitaied regular cotact with site selectors through egagig high-touch marketig programs. For example, WEDC s busiess attractio team set each member of the Site Selectors Guild a persoalized three-dimesioal marketig packet cotaiig a video brochure featurig oe of our televisio commercials alog with hardhittig busiess climate data. This ad other marketig outreach helped establish a chael of commuicatio with each recipiet while also directig him or her to iformatio, tools ad resources available to help make the case for relocatig or expadig operatios i Wiscosi: WEDC s missio, guidig priciples, programs ad services are clearly laid out at IWiscosi.com. LocateIWiscosi a powerful site aalysis tool that combies detailed real-estate specificatios with i-depth commuity, demographic ad idustry data, providig a oe-stop solutio for objective site metrics to help users fid the best locatios for relocatio or expasio projects. Certified Sites 13 commercial sites throughout the state have bee certified as developmet-ready through a rigorous review process performed by Deloitte Cosultig. Busiess Cost Compariso Tool a iteractive map of the U.S. that allows users to compare the cost of doig busiess i Wiscosi with other states they may be cosiderig. A full library of marketig materials make a strog case for doig busiess I Wiscosi. All WEDC marketig drives target audiece members to cotact us by telephoe or though IWiscosi.com. Either way, busiess prospects receive quick resposes to their iquiries about busiess developmet opportuities I Wiscosi. 20

23 1 Bureau of Labor Statistics, Quarterly Cesus of Employmet ad Wages, Aual 2012 Employmet 2 Bureau of Labor Statistics, Quarterly Cesus of Employmet ad Wages, Aual 2012 Employmet Jue MANUFACTURING LEADERSHIP DRIVES GROWTH AND BUILDS BUSINESS IN WISCONSIN. A robust busiess climate, diversified idustry growth ad cotiuous iovatio i high techology makes Wiscosi the place to be for maufacturers. It s why we cosistetly rak amog the atio s top states i maufacturig. Wiscosi busiesses have access to world-class techology research ad developmet resources, which esures that maufacturers here ca tap the latest advaced maufacturig techologies quickly ad cost effectively. We ca better meet the eeds of maufacturers ow ad i the future through the highly skilled ad specialized workforce that comes from our strog techical college system. Plus, may compaies i Wiscosi ad those outside of the state gai a competitive advatage with access to the breadth ad depth of our Tier I, Tier II ad Tier III suppliers. Our eterprisig start-to-fiish supply chai itegratio reflects advaced thikig ad delivers cost effectiveess that positios Wiscosi as a global leader i meetig the eeds of OEMs. We show our commitmet to maufacturig with bold policies ad icetives, icludig the itroductio of the Wiscosi Maufacturig ad Agriculture Tax Credit, which virtually elimiates the tax o icome for maufacturig activity i Wiscosi. To lear more about the programs desiged to support your compay s maufacturig growth plas I Wiscosi, call 855-INWIBIZ (toll free) or visit Maufacturig.IWiscosi.com. A major compoet of WEDC s FY14 marketig pla icluded the promotio of the state s maufacturig capabilities. WEDC developed a idustry profile that detailed the state s may maufacturig assets from techical traiig programs ad idustry cosortia to research facilities as well as a supply chai brochure ad advertisemet toutig the state s global maufacturig leadership. WEDC also worked with the Tool, Die ad Machiig Associatio of Wiscosi ad other stakeholders to devise ad deploy a collaborative exhibit strategy for the AmCo Desig ad Cotract Maufacturig Expo ad Idustry Week Best Plats Coferece, both of which took place i Milwaukee. IWiscosi.com provides tools, resources ad cotact iformatio to compaies lookig to startup, grow ad relocate operatios i the state. I Wiscosi is a registered trademark of Wiscosi Ecoomic Developmet Corporatio. DOCUMENTING WISCONSIN S INDUSTRY LEADERSHIP WEDC s idustry marketig strategy icludes the productio of collateral materials that provide a authoritative profile of the state s uique stregths. RECOGNIZED INDUSTRY LEADERSHIP DRIVES MANUFACTURING ADVANCEMENTS IN WISCONSIN. WHY MANUFACTURERS CHOOSE WISCONSIN We build thigs i Wiscosi. Ad we re good at it. We established our maufacturig leadership i the idustrial age, ad that leadership cotiues i today s kowledge ecoomy. Techological advacemets made by Wiscosi maufacturers have kept Wiscosi at the forefrot of idustry treds, i both productivity ad sustaiability. A fudametal part of Wiscosi s maufacturig performace is a itegrated supply chai that combies igeuity, versatility ad resposiveess. Wiscosi s maufacturers keep productio lies hummig ot oly i our state, but throughout the world. INDUSTRY ADVANTAGES With more tha 9,400 maufacturers i the state employig over 450,000 workers (early 17 percet of the state s etire employees), 1 Wiscosi cosistetly raks amog the atio s top states for maufacturig jobs 9,419 Maufacturers per capita. Wiscosi has demostrated its resiliecy i maufacturig by cotiuig to add jobs i the sector, rakig 5th i the atio for maufacturig job creatio from 2009 through Wiscosi maufacturers produced early $50 billio worth of output i 2012, accoutig for over 19 percet of the state s gross domestic product. 3 Tappig Wiscosi s uique ifrastructure assets to create exceptioal 453,819 employed busiess growth are compaies i the electrical equipmet, dairy product, coverted paper, glass ad glass product, ad soap, cleaig, ad toiletry maufacturig subsectors, all of which grew by more tha 20 17% etire percet from 2008 to state s employees 4 A critical compoet of Wiscosi s maufacturig stregth is the state s uique geography ad the ifrastructure that was literally built to support the idustry. Wiscosi s cetral locatio ad its access to 23 ports ad three iteratioal airports all coected by a reliable iterstate highway system have produced a trasportatio ad logistics capability that delivers a competitive advatage for maufacturers operatig i the state. Wiscosi s proximity to Chicago, the atioal epiceter of rail, highway, ad air trasportatio, provides yet aother aveue for both iboud ad outboud maufacturig shipmets. Of course, such growth would ot be possible without a capable ad adaptable workforce. Wiscosi possesses oe of the highest quality maufacturig workforces i the atio. Wiscosi s electrical equipmet maufacturig idustry locatio quotiet, for example, is 6.65, 4 meaig there are more tha six times the umber of workers i that idustry i Wiscosi tha the atioal average. This idustry is by o meas a outlier whe it comes to demostrated workforce readiess. Dairy product; turbie ad power trasmissio equipmet; ad idustrial machiery maufacturig all have employmet umbers well over four times the atioal average. These employees are drive by a Midwester work ethic that stresses resposibility ad productivity ad a educatio that focuses o workplace readiess. Wiscosi raks secod i the atio i its high school 3rd RANKED BEST WEBSITE IN THE NATION FOR ECONOMIC DEVELOPMENT IN WISCONSIN.COM 3 Bureau of Ecoomic Aalysis 4 Maufacturig Performace Istitute, The Wiscosi Ecoomic Future Study Statewide ad Regioal Aalysis, WEDC developed a powerful trade show presece to demostrate the state s maufacturig capabilities at the Idustry Week Best Plats Coferece i Milwaukee. 21