THU AM News: Kooyenga predicts substantial development of Chicago-Milwaukee corridor in coming years; State defense industry members form new advocacy group

— Incoming MMAC President Dale Kooyenga predicts the corridor between Chicago and Milwaukee will see substantial development in the coming years, anchored by Microsoft’s operations in the region. 

“There’ll be a point here I think in the next five, six years where you see no agricultural land; it’s all developed,” the former GOP lawmaker said yesterday during a Newsmaker luncheon hosted by WisPolitics and the Milwaukee Press Club. “And that Microsoft investment is going to gain a lot of momentum.” 

After announcing in the spring that it would invest $1 billion in a Racine County data center, the Washington-based tech giant more recently said it would invest “billions of dollars” into the site originally destined for Foxconn’s Wisconsin operations. 

“What I see us at MMAC doing with our M7 is recognizing the ecosystem that’s going to create, and then recruiting companies that want to be a part of that ecosystem,” Kooyenga said, referring to the Milwaukee 7 regional economic development initiative that includes Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington and Waukesha counties. 

Kooyenga is set to take over leadership of the Metropolitan Milwaukee Association of Commerce in January after outgoing President Tim Sheehy steps down after three decades in the role. 

Also during yesterday’s event, Kooyenga touted the region’s advanced manufacturing industry, pointing to companies like Rockwell Automation that are on the cutting edge of robotics applications. Even as the number of manufacturing jobs in the region has declined, manufacturing output has “significantly increased” due to higher productivity. 

“Where the future is headed is where Milwaukee is at … We actually represent more of the manufacturing sector of America than we have for generations,” he said. 

He also weighed in on the controversy surrounding diversity, equity and inclusion as lawmakers and Universities of Wisconsin leadership spar over a deal that would cut DEI positions in exchange for other UW priorities such as employee pay raises and engineering building funds. 

In response to an audience question, Kooyenga said he’s skeptical “that we’re going to be able to change everyone’s messaging” on that particular issue. 

“All we can do is message for ourselves, and for ourselves, for MMAC, our members, we made very clear that we need to have a diverse community where everyone is thriving, where everyone has opportunities,” he said. “Because economically, it’s all hands on deck.” 


He argued DEI efforts are “the right thing to do” given the “huge” disparities between various Milwaukee communities, pointing to education and housing as examples. 

See the MMAC leadership transition announcement: https://www.mmac.org/news/mmac-announces-leadership-transition 

— Members of the state’s defense industry have formed a new advocacy group to drive opportunities for Wisconsin manufacturers. 

Wisconsin Manufacturers & Commerce recently announced the formation of the Wisconsin Defense Industry Council, created in conjunction with WMC and the Metropolitan Milwaukee Association of Commerce. 

Pindel Global Precision CEO and former U.S. Navy SEAL Bill Berrien is the council’s vice chair. The New Berlin company is a contract manufacturer of precision-machined components for various industries. In an interview yesterday, Berrien said Wisconsin’s relatively small contribution to the national defense sector is a “mismatch” to its historically strong manufacturing industry. 

WMC’s announcement cited a 2022 Department of Defense report showing Wisconsin ranks 30th in the country for defense contract spending, making up 0.6% of total U.S. defense spending. That’s about $5 billion of the more than $800 billion defense budget, according to the release. 

“We realized there’s an opportunity here to both assist those companies that already have direct government contracts, that are larger and more established, but also to help position small, medium-sized manufacturers that might not have any contribution to the defense industrial base at this time, and yet they’re part of this 120-year-old, robust manufacturing ecosystem,” Berrien said. 

The council’s advocacy will be more industry-focused rather than on legislation, with WMC and MMAC handling any specific policy issues that may arise, he said. Instead, the new group aims to help “prime” defense contractors such as Boeing and General Dynamics understand Wisconsin’s capabilities and how the state can help address national defense supply chain issues. 

“We’re thinking that there’s almost a business development gap in how these small, medium-sized manufacturers across the state aren’t aware of opportunities, don’t have the relationships with larger defense companies in and outside of the state,” he said. 

Meanwhile, George Whittier, CEO of Fairbanks Morse Defense and chair for the group, underlines the “critical” role Wisconsin’s manufacturing base already plays in the U.S. defense infrastructure. The Beloit-based company produces marine defense system technologies, including engines, motors, water treatment systems and more. 

“Creating a group like WDIC is long overdue in order to give defense contractors and suppliers a unified voice on issues that impact national security,” he said in a statement. 

During yesterday’s Newsmakers event in Milwaukee, Kooyenga said the council presents a chance to organize players in the statewide manufacturing ecosystem. 

“We have Oshkosh here, we have Marinette Marine, we have DRS Power Systems. I sense that we have tons of, not the primes, but the contractors that serve the primes that already do that work,” he said. “But there’s a real opportunity here to get more organized on that front, and seek more work and more opportunities for Wisconsin businesses.” 

Berrien yesterday declined to provide a full list of council members, as the group is still in the process of communicating with interested businesses. He said around a half-dozen have reached out to learn more about the council. 

And though the council is still formulating its objectives and related metrics, Berrien added he wants to see Wisconsin’s contribution to the national defense base rise over time. 

“Given our manufacturing strength in this state, we should be able to make a much bigger contribution to the defense industrial base,” he said. “

The WDIC is planning a kick-off event in February, though details are yet to be determined. 

See the release: https://www.wmc.org/press-releases/wisconsin-defense-industry-forms-advocacy-group/ 

— Wisconsin is getting nearly $42 million in federal funding to develop more housing and related services. 

Gov. Tony Evers yesterday announced the HOME-American Rescue Plan program, which has $5 billion in ARPA funding, has allocated more than $41.8 million to the state. Wisconsin’s related efforts will be overseen by the state Department of Administration’s Division of Energy, Housing and Community Resources, according to the release. 

The state’s plan for the funds is focused on developing rental housing units, supportive services, nonprofit capacity and more.

Applicants can seek funding to develop those units and provide services to certain vulnerable populations such as people fleeing human trafficking or those at risk of becoming homeless. 

“Whether it’s rehabilitating blighted properties, expanding renter protections, or improving safety, this new program will help us connect the dots between some of the most pressing challenges facing our state,” Evers said in a statement. 

See more: https://content.govdelivery.com/accounts/WIGOV/bulletins/37f678d 

— State officials have announced $414.4 million in financial assistance for 84 municipalities through the Clean Water Fund Program. 

In a release yesterday, Evers said the funding will help recipients build new water infrastructure, develop projects to reduce phosphorus pollution and address aging equipment, particularly in smaller and disadvantaged communities. 

The state Department of Natural Resources will allocate $358.3 million in subsidized reduced-interest-rate loan funding and $56.1 million in principal forgiveness, according to the release. 

See the release: https://content.govdelivery.com/accounts/WIGOV/bulletins/37f95f7 

— Badger Corrugating Company has joined Wisconsin’s Green Tier program and plans to implement an environmental management system in the coming year. 

This program of the DNR aims to support businesses, local governments and other organizations in pursuing sustainability goals. 

The La Crosse-based company, launched in 1903, is a distributor of interior and exterior millwork, cabinets and building products. By joining the program as a Tier 1 participant, the business aims to reduce its environmental impacts in 2024. 

Quality Specialist Jake Highum says the company wants to “increase our efficiency, give more visibility to our efforts and strategically choose our next goals to make our business more sustainable and resilient.” 


See details: https://dnr.wisconsin.gov/topic/GreenTier/Participants/BadgerCorrugating 

See the release: https://www.wisbusiness.com/2023/dept-of-natural-resources-badger-corrugating-company-joins-dnrs-green-tier-program/ 

— The Wisconsin State Building Commission has approved $589 million in new projects, including 17 “crucial” maintenance and repair efforts at state agencies. 

Projects include building a new facility for UW-Stout’s programs in its College of Arts and Human Services, construction on UW-Stevens Point’s Champions Hall as well as a new two-story Student Health and Wellness Center there, and more. 

See the full list here: https://content.govdelivery.com/accounts/WIGOV/bulletins/37f6be1 

<br><b><i>Top headlines from the Health Care Report…</b></i> 

— The winners of this year’s WARF Innovation Award are developing potential treatments for heart failure, obesity and diabetes. 

<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i> 

Sign up here: http://forms.gle/o8FtqTLviGJPja8C9

#TOP STORIES#

# Amid federal push to employ home health care workers, Wisconsin is celebrated for its progress

https://www.wpr.org/federal-employment-home-healthcare-eldercare-workers-wisconsin-celebrated

# PlantPharm BioMed awarded federal grant to develop edible COVID-19 vaccine for animals

# Donors who contributed $1 billion to UW-Madison say future support hinges on regents vote

https://www.bizjournals.com/milwaukee/news/2023/12/13/business-leaders-may-pull-support-for-uw-projects.html

#TOPICS#

# AGRIBUSINESS 

– The chairman: How a plan to develop Wisconsin’s largest pig farm upended a small town’s politics

http://wisconsinagconnection.com/story-state.php?Id=1077&yr=2023 

– Wisconsin farm to school grant program now open

http://wisconsinagconnection.com/story-state.php?Id=1078&yr=2023 

# CONSTRUCTION 

– Delafield mass timber development adds four tenants

# EDUCATION 

– Wisconsin schools superintendent wants UW regents to delay vote on deal to limit diversity positions

https://apnews.com/article/republicans-vos-universities-wisconsin-diversity-underly-vote-57a0ac73eb4b6de2d72a22178f41bb33

# FOOD & BEVERAGE

– The Wedge tavern and cheese shop will open on Atwood Ave. in February

https://captimes.com/food-drink/the-wedge-tavern-and-cheese-shop-will-open-on-atwood-ave-in-february/article_a676cb7c-9948-11ee-a900-ff5bb6131b8b.html

– Amorphic estimates over 25% production expansion, Leinie’s collaborates with High Life: Beer Biz MKE

https://www.bizjournals.com/milwaukee/news/2023/12/13/amorphic-estimates-over-25-production-expansion.html

– Leinenkugel’s to release a new beer, bring back a much-requested favorite in 2024

https://www.bizjournals.com/milwaukee/news/2023/12/12/whats-new-for-leinenkugels-and-what-is-the-brew.html

# REAL ESTATE 

– Northridge Mall, facing demolition, listed for sale at $2 million

https://www.jsonline.com/story/money/real-estate/commercial/2023/12/13/northridge-mall-facing-demolition-listed-for-sale-at-2-million/71904012007/

– Gorman selling dozens of single-family rental homes in Milwaukee to tenants

# SPORTS 

– ‘That’s a sticky issue’: Head of Panthers athletics promotes examining diversity in college sports

https://www.wpr.org/morning-show-uwm-athletic-director-panthers-diversity-college-sports

– Sausage company owners join Milwaukee Brewers ownership group

https://www.bizjournals.com/milwaukee/news/2023/12/12/johnsonville-owners-join-milwaukee-brewers-ownersh.html

# TOURISM 

– Anonymous donors gift $10M to new Lawrence University, Trout Museum site; renderings released

https://www.postcrescent.com/story/news/local/2023/12/13/lawrence-university-trout-museum-of-art-announce-gift-share-renderings/71904628007/

# TRANSPORTATION 

– Federal grant will restore airfield at Milwaukee international airport

# UTILITIES 

– Solar can save renters big money, but Wisconsin law gets in the way

https://captimes.com/news/government/solar-can-save-renters-big-money-but-wisconsin-law-gets-in-the-way/article_eb743268-9912-11ee-9fa1-f7dd2b5c5a81.html

# PRESS RELEASES

<i>See these and other press releases: 

https://www.wisbusiness.com/press-releases/ </i>

UW-Madison: Innovation Award winners tackle heart disease, diabetes

Dept. of Transportation: Transportation Projects Commission advances US 151 and US 18/151 projects