| 11/23/2009 10:44:00 AM | Email this article • Print this article |
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| IXONIA PLANT TOUR — State Sen. Scott Fitzgerald, R-Juneau, toured the K&S Tool, Die and Manufacturing plant in Ixonia on Friday as he met with company and industry leaders to discuss the economy and what the state can do to help small manufacturers thrive. Pictured above, K&S Vice President of Finance Cecilia Allison showcases a metal die used to produce lawn mower decks for John Deere. — Daily Union photo by James Debilzen. |
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Manufacturers voice concerns to Fitzgerald
By James Debilzen
Union staff writer
IXONIA - Leaders from a local manufacturing company and Wisconsin's tool, die and manufacturing association directed their concerns to Sen. Scott Fitzgerald about the impact of the economy and state policies on their industry during a Friday morning tour.
Fitzgerald, R-Juneau, visited K&S Tool, Die and Manufacturing in Ixonia, where he toured the facility and took part in the discussion.
Cecilia Allison, K&S Tool, Die and Manufacturing's vice president of finance, told Fitzgerald the downturn in the economy is hurting this business and those of other manufacturers across the state.
"At one point, in December of 2007 and January of 2008, we were at 110 employees ... Right now, we're holding at 80 employees," Allison said. "It's been an ugly tough year, and not just for us."
K&S Tool, Die and Manufacturing is a job shop for metal fabrication that was first established in 1974. They specialize in making metal stamping dies, tooling and fixtures, special machining and metal stampings, among other related services and products.
Allison said K&S' top customers are John Deere and Modine.
During the tour, Allison told Fitzgerald that Wisconsin has a lot of qualified skilled manufacturing workers, but larger companies continue to seek less-expensive products from suppliers like K&S.
Allison said it's a struggle to keep up with suppliers from other states and other countries where taxes are lower and, therefore, the products can be made cheaper.
"It's very difficult in the state of Wisconsin because we have a lot of disadvantages tax-wise compared to other states," Allison said.
Fitzgerald said he understood the concerns facing light manufacturing companies in the state, describing the industry as one of "the big three" next to agriculture and tourism.
"What we're seeing right now, based on what the Department of Commerce is giving to us, is that light manufacturing is the sector in the state that's taking a big hit right now," Fitzgerald said. "It's not only because of foreign competition, but also what you're seeing is some of the jobs that would typically come back once the economy bounces back, it just doesn't look like it's going to happen."
Fitzgerald agreed that part of the problem is the business climate in the state because of taxes and government policies, but added that there are some issues that are beyond the state's control.
"But this is a perfect example of the type of corporation and the level of employees and payroll that's currently really taking a hit," he said.
The state senator said he has been visiting "job creator" businesses over the course of the last year seeking ideas on how to foster a better business climate in Wisconsin.
"We're asking what are some of the things the state can do to either cut the red tape, allow for reinvestment, expansion, incubation, whatever we need to do to get these companies back on track," he said.
Greg Grabow, vice president of the Tool, Die and Machining Association of Wisconsin, said part of the problem stems from the state focusing on aiding what he calls "tier one" manufacturers, or those who make a final product.
Grabow proposed directing aid to "tier two" manufacturers like K&S, which supply the larger tier one industries.
"From our association's perspective, everyone's focused on the end product," he said. "For example, we're giving $50 million to Mercury Marine. I'm guessing when that money was earmarked, the consideration wasn't given to tier two, the suppliers in Wisconsin."
The association vice president said tier one companies have the ability to leave the state and can go anywhere in the world for their parts.
"All of this focus on the tier one (companies) doesn't necessarily mean it's being focused on the job creators in the state," Grabow said.
Allison agreed, citing Oshkosh Truck as an example.
Oshkosh Truck has been awarded millions of dollars in military contracts, she said, but there is no guarantee it will utilize suppliers in Wisconsin.
"Those are the hardest ones for small manufacturers to get into to supply because there is no gateway to help in the state," she said.
Allison said when K&S takes on a project, it often will turn around and buy $4 million to $5 million in supplies and services from other companies in Wisconsin.
"We have an incredible amount of supply base that are supporting other small manufacturing companies," she said. "The service companies are growing, but not the manufacturing companies that supply the other good wage earning jobs."
Grabow said one of his association's goals is to educate legislators on what is happening in the industry and what they need to help grow business.
"What we want to see is the state to create incentives for bringing tier two work in," he said. "I'm not sure if that's really understood yet. ... This is a much more serious situation than they think it is.
"We make things. That's our skill set in this state," Grabow added.
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