TUE AM News: 73 percent of businesses in WMC survey say public high school grads unprepared for workforce; Johnson Controls announces $455M acquisition

— About three-fourths of businesses tapped in a recent WMC survey say public high school graduates in the state aren’t prepared to join the workforce. 

Wisconsin Manufacturers & Commerce yesterday rolled out education-related findings from its latest Wisconsin Employer Survey, which found 56 percent of respondents employ people who struggle with reading or math. Plus, 41 percent said they are providing workers with education or tutoring on “basic” career skills. 

Meanwhile, 63 percent of respondents said they have reduced hiring requirements in hopes of getting more applicants. And 40 percent said they’ve removed bachelor’s degree requirements for job postings that previously required them. 

In a statement on the results, WMC Senior Director of Workforce, Education & Employment Policy Rachel Ver Velde argues the state’s public school system is “failing our children” and harming both the workforce and economy. 

“Not only is this new data disappointing, but it should also make all of us outraged,” she said.

In response to WMC’s comments, Department of Public Instruction spokesperson Abigail Swetz said the agency is “glad to see the WMC recognizes the need” for Wisconsin students to be well-prepared for the workforce. 

“I would be interested in looking back over their press releases during budget season to see if WMC advocated for the robust funding our public schools need to meet the needs of our future workforce, or if WMC instead decided to double-down on supporting private schools receiving public money while operating under fewer accountability measures than public schools,” Swetz said in an email. 

She charged the manufacturing group with “constantly advocating to siphon money away from” public schools for voucher programs and using divisive rhetoric to stir up negativity. 

WMC’s survey found 99 percent of respondents support expanding funding for apprenticeships, dual enrollment credits and work-based learning opportunities for high school students, including 78 percent that strongly support it and 21 percent that somewhat support it. 

It also found 89 percent support providing more funding for school choice and charter schools, including 62 percent that strongly support it and 27 percent that somewhat support it. 

The June survey was conducted online and through the mail and included 170 businesses. 

See the release: https://www.wmc.org/press-releases/wisconsin-employers-give-k-12-schools-a-failing-grade/ 

See more survey results: https://media.wmc.org/wp-content/uploads/2023/07/17104044/CEO-Survey-Report_Summer-2023_EDUCATION.pdf 

— Johnson Controls has announced it is acquiring a North Carolina-based workplace management software company called FM:Systems for $455 million. 

Chairman and CEO George Oliver says FM:Systems’ platform will build on Johnson Controls’ OpenBlue building automation software system, which aims to improve building efficiency and reduce operational costs for its customers. 

“Coupled with our building asset solutions, energy management offerings and global field network, this acquisition further differentiates Johnson Controls’ leadership in the fast-growing segment for autonomous and digitally enabled buildings,” Oliver said in a statement. 

FM:Systems currently has more than 200 employees and 1,200 customers, and is owned by California private equity firm Accel-KKR, the release shows. Along with the base purchase price of $455 million, the acquisition will include additional payments linked to earnings milestones. 

While Johnson Controls is headquartered in Ireland, the company has a significant presence in Wisconsin anchored by its corporate campus in Glendale. 

See the release: https://www.prnewswire.com/news-releases/johnson-controls-to-expand-openblue-digital-buildings-capabilities-through-acquisition-of-workplace-management-software-leader-fmsystems-301878111.html 

— A flooring products manufacturer called Powernail Company is moving its headquarters and production facilities to Walworth County, WEDC announced. 

The Wisconsin Economic Development Corp. will be providing up to $400,000 in state income tax credits over the next three years, which the company can earn by adding jobs and investing capital in the project. 

According to a release from the state agency, Powernail Company has begun construction on the $5.7 million, 40,000-square-foot building in the village Genoa City. The business says it plans to employ 39 full-time workers within three years. 

Company President David Anstett says Wisconsin is “the perfect location” for the company to be located. Its current facilities are based in Illinois. 

“There is a long history of manufacturing and a deep talent base to support our long-term goals,” Anstett said in a statement. “We are thrilled to be growing our company in a production-friendly state like Wisconsin.”

The company’s products include pneumatic nailers and flooring cleats used in hardwood floor installation. 

WEDC’s release notes the village’s Business Tax Incentive Program will provide the company with tiered reimbursement for some property taxes over a four-year period. 

See the release: https://wedc.org/blog/flooring-equipment-manufacturer-relocating-to-walworth-county/ 

— Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce, says Wisconsin companies are fully embracing diversity, equity and inclusion efforts despite GOP lawmakers criticizing and defunding programs in the city of Milwaukee and within the UW System.

“I think Republicans should let the UW System and the city address those issues as they see fit,” Sheehy said on WISN’s “UpFront,” which is produced in partnership with WisPolitics.com. “And I don’t think it’s an area where I think the Legislature needs to be putting its fingers either into the UW System, quite frankly, or the city or private employers.”

Sheehy said the MMAC’s Region of Choice Initiative involves 125 employers representing 120,000 employees working to increase DEI efforts. The group set benchmarks to increase the number of Black and brown management talent by 25 percent within a five-year span and to increase overall Black and brown talent by 15 percent.

Sheehy said collectively, employers have already within three years increased management diversity by 26 percent and 12 percent among overall talent.

“I think it’s a misunderstanding or a misuse of diversity, equity and inclusion that causes people to challenge it,” Sheehy said. “For most employers, this is a strategy to make their workplace more hospitable and allow them to recruit a more diverse population to their workforce.”

See more from the show: https://www.wisn.com/upfront 

— The Wisconsin LGBT Chamber of Commerce has added a new position focused on programs for diverse business leaders across the state. 

Lo Villarreal has been hired to manage the chamber’s programs for Black, indigenous and people of color and trans and gender non-conforming peoples, according to a release. Villarreal, a Janesville native, is the co-director of entertainment for Janesville Pride, the release shows. 

“As a Gender-Fluid and LatinX person, I have always made it my mission to be a loud advocate for my communities, and to be visible and involved in the positive change in society,” Villarreal said in a statement. “I am honored to be stepping into a role and working with an organization that allows me to focus on creating new opportunities for people like me to grow and be successful in their business.”

See the release: https://www.wisbusiness.com/2023/wisconsin-lgbt-chamber-adds-new-bipoc-trans-program-manager-to-staff/ 

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

— A researcher at Marquette University is getting a $2 million federal grant to study the progression of opioid addiction. 

<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#

# Climate change threatens viability of wild rice on Spur Lake. Tribal leaders, conservationists are working to restore it 

https://www.wpr.org/wild-rice-spur-lake-working-group-climate-change-wisconsin-dnr-restoration

# For months, Milwaukee officials knew people could be living at contaminated affordable housing site

https://www.jsonline.com/story/news/investigations/public-investigator/2023/07/17/milwaukee-officials-had-evidence-of-people-living-at-contaminated-site/70399634007/

# Major shipping materials distributor Uline to hire hundreds in Kenosha area  

https://www.bizjournals.com/milwaukee/news/2023/07/17/uline-to-hire-hundreds-kenosha-area.html

#TOPICS#

# AGRIBUSINESS 

– Wisconsin dairy groups sue DNR over wastewater discharge permit requirement for CAFOs 

https://www.wpr.org/wisconsin-dairy-groups-sue-dnr-cafo-permits-manure-clean-water-regulations

– Dane County Farmers’ Market vendors cope with summer drought 

http://wisconsinagconnection.com/story-state.php?Id=683&yr=2023 

# EDUCATION 

– Younger students won’t have to walk as far under revised Kaukauna Schools busing policy 

https://www.postcrescent.com/story/news/education/2023/07/17/kaukauna-updates-bus-radius-kobussen-still-facing-driver-shortage/70413444007/

– Educators may be feeling a bit uneasy, given the budget and other factors. Here’s a look at what could be weighing on their minds 

https://www.jsonline.com/story/news/education/2023/07/17/underlying-issues-are-enough-to-give-educators-uneasy-feelings/70399105007/

– Little Chute church, school project moves forward with help of local construction firm 

# ENVIRONMENT 

– Milwaukee company charged after discarding untreated chemical waste into sewage system 

# HEALTH CARE 

– One year after launch, 988 crisis line has handled more than 91K calls 

https://www.wpr.org/wisconsin-988-crisis-line-mental-health-first-year-calls

# LABOR 

– Survey: Just under half of Wisconsin businesses plan to hire additional employees over the next 6 months 

https://www.wpr.org/wisconsin-business-survey-economy-hiring-wages-inflation-unemployment-recession

# LEGAL 

– Framing contractor charged with insurance fraud 

# POLITICS 

– Wisconsin billionaires quietly bankroll effort to shrink state’s social safety net 

https://www.wpr.org/wisconsin-billionaires-quietly-bankroll-effort-shrink-states-social-safety-net

– Madison election clerk interviewed by FBI about 2020 election 

https://www.jsonline.com/story/news/politics/2023/07/17/wisconsin-election-clerk-interviewed-by-fbi-about-2020-election/70420041007/

# REAL ESTATE 

– Downtown revitalization strategies will need to go beyond office conversions, experts say 

https://www.bizjournals.com/milwaukee/news/2023/07/17/downtown-revitalization-beyond-office-conversions.html

# TECHNOLOGY

– Johnson Controls paying at least $455 million to acquire workplace management firm 

# TOURISM 

– Milwaukee Mitchell airport still short of pre-pandemic passenger numbers in May 

https://www.bizjournals.com/milwaukee/news/2023/07/17/milwaukee-mke-under-2019-passenger-numbers.html

# PRESS RELEASES

<i>See these and other press releases: 

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

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Wisconsin LGBT Chamber: Adds new BIPOC & Trans Program Manager to staff