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Buy Regional: Business to BusinessSponsors

• Dairyland Printing• Mayo Clinic Health Systems –

Franciscan Healthcare• Southeast Technical College• Northwest Wisconsin

Manufacturing Outreach Center (NWMOC)

• Western Wisconsin Workforce Development Board & Workforce Connections

3PA Administrators • Brenengen AutoFastenal • Synergy Leadership Group

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7 RIVERS REGION FINDINGSVicki Markussen, 7 Rivers Alliance

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= Labor, Media, Consumer PatternsBorderless

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Traffic Patterns

2 out of every 5 workers in

Houston County are

employed in either Wisconsin,

Iowa, or outside of the SE

Minnesota area

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CIRCULATION• Business to Business• Consumer to Business

Our Economy

INCOME• Earned: Sales to someone

from outside• Unearned: Grants,

Investments, etc.

LEAKAGEPrior to Circulation or After• Taxes• Outside Purchases• Outside Investments

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Exports: High Skill, High Wage

ExportingCompanies

Local SalesCompanies

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LEAKAGE

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MEconomic Modeling Specialist Inc.

(EMSI)• Looks at reports from Federal Bureau of Economic Analysis

– Gross Output– Land area of the subject region– Regional in/out commuter patterns. – Workforce Development: Iowa, Minnesota & Wisconsin

• Creates a Regional multiplier, the resulting matrix is multiplied by the sales vector and converted back to jobs or earnings.

• Specifically, this data comes from the U.S. Department of Commerce, Bureau of Economic Analysis, Industry Economic Accounts: Benchmark & Annual Input-Output (I-O) Accounts.

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M It’s not exact,but it’s the closest thing we have.

That’s why we need you.

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Creates Graph

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Creates TableDescription Total

Requirements (K)

% Satisfied in

Region

Out of

Region

Crop and animal production $978,478 95% 5%

Petroleum Refineries $553,600 0% 100%

Corporate, Subsidiary, and Regional Managing Offices $335,244 60% 40%

Commercial Banking $249,380 55% 45%

Lessors of Residential Buildings and Dwellings $142,219 57% 43%

Lessors of Nonresidential Buildings (except Miniwarehouses) $138,799 43% 57%

Offices of Real Estate Agents and Brokers $137,647 34% 66%

Wholesale Trade Agents and Brokers $130,103 24% 76%

Cheese Manufacturing $127,924 93% 7%

General Freight Trucking, Long-Distance, Truckload $123,574 95% 5%

Offices of Lawyers $122,340 29% 71%

Wired Telecommunications Carriers $119,990 57% 43%

Iron and Steel Mills $119,211 0% 100%

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) $104,620 80% 20%

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Rail transportation $98,509 95% 5%

Temporary Help Services $97,013 37% 63%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Crude Petroleum and Natural Gas Extraction $68,327 20% 80%

Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial

Refrigeration Equipment Manufacturing

$68,014 94% 6%

Couriers and Express Delivery Services $66,775 62% 38%

Plastics Material and Resin Manufacturing $65,379 84% 16%

Fossil Fuel Electric Power Generation $63,701 95% 5%

Residential Property Managers $63,535 39% 61%

Natural Gas Distribution $62,029 34% 66%

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How to ReadDescription Total

Requirements (K)

% Satisfied in

Region

Out of Region

Crop and animal production $978,478 95% 5%

Petroleum Refineries $553,600 0% 100%

Corporate, Subsidiary, and Regional Managing Offices $335,244 60% 40%

Commercial Banking $249,380 55% 45%

Lessors of Residential Buildings and Dwellings $142,219 57% 43%

Lessors of Nonresidential Buildings (except Miniwarehouses) $138,799 43% 57%

Offices of Real Estate Agents and Brokers $137,647 34% 66%

Wholesale Trade Agents and Brokers $130,103 24% 76%

Cheese Manufacturing $127,924 93% 7%

General Freight Trucking, Long-Distance, Truckload $123,574 95% 5%

Offices of Lawyers $122,340 29% 71%

Wired Telecommunications Carriers $119,990 57% 43%

Iron and Steel Mills $119,211 0% 100%

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) $104,620 80% 20%

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Rail transportation $98,509 95% 5%

Temporary Help Services $97,013 37% 63%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Crude Petroleum and Natural Gas Extraction $68,327 20% 80%

Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial

Refrigeration Equipment Manufacturing

$68,014 94% 6%

Couriers and Express Delivery Services $66,775 62% 38%

Plastics Material and Resin Manufacturing $65,379 84% 16%

Fossil Fuel Electric Power Generation $63,701 95% 5%

Residential Property Managers $63,535 39% 61%

Natural Gas Distribution $62,029 34% 66%

Sorted by $= Amount Needed

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= $2.6 billion needs being met outsideDescription Total Requirements

(K)

% Satisfied in

Region

Out of

Region

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Couriers and Express Delivery Services $66,775 62% 38%

Securities Brokerage $61,597 32% 68%

Direct Property and Casualty Insurance Carriers $61,574 19% 81%

Other Activities Related to Real Estate $61,333 35% 65%

Office Administrative Services $60,100 89% 11%

Computer Systems Design Services $59,900 19% 81%

Sawmills $59,810 80% 20%

General Warehousing and Storage $59,386 95% 5%

Machine Shops $58,572 42% 58%

Electric Power Distribution $58,387 95% 5%

General Freight Trucking, Local $58,013 95% 5%

Data Processing, Hosting, and Related Services $55,456 22% 78%

Portfolio Management $54,793 16% 84%

Offices of Certified Public Accountants $53,358 42% 58%

Janitorial Services $53,271 49% 51%

Landscaping Services $53,128 57% 43%

Corrugated and Solid Fiber Box Manufacturing $52,176 59% 41%

Computer and Computer Peripheral Equipment and Software Merchant

Wholesalers

$52,164 16% 84%

Pharmaceutical Preparation Manufacturing $49,989 0% 100%

All Other Basic Organic Chemical Manufacturing $48,855 85% 15%

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How to use

• Business Triad

– Business Attraction

– Business Retention

– Business Startup

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Find Gaps

• ObviousDescription Total Requirements

(K)

% Satisfied in

Region

Out of

Region

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Couriers and Express Delivery Services $66,775 62% 38%

Securities Brokerage $61,597 32% 68%

Direct Property and Casualty Insurance Carriers $61,574 19% 81%

Other Activities Related to Real Estate $61,333 35% 65%

Office Administrative Services $60,100 89% 11%

Computer Systems Design Services $59,900 19% 81%

Sawmills $59,810 80% 20%

General Warehousing and Storage $59,386 95% 5%

Machine Shops $58,572 42% 58%

Electric Power Distribution $58,387 95% 5%

General Freight Trucking, Local $58,013 95% 5%

Data Processing, Hosting, and Related Services $55,456 22% 78%

Portfolio Management $54,793 16% 84%

Offices of Certified Public Accountants $53,358 42% 58%

Can we fill this gap within:• Talent Attraction (expansion)• Business Attraction• Business Startup

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Find Gaps

• ObviousDescription Total Requirements

(K)

% Satisfied in

Region

Out of

Region

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Couriers and Express Delivery Services $66,775 62% 38%

Securities Brokerage $61,597 32% 68%

Direct Property and Casualty Insurance Carriers $61,574 19% 81%

Other Activities Related to Real Estate $61,333 35% 65%

Office Administrative Services $60,100 89% 11%

Computer Systems Design Services $59,900 19% 81%

Sawmills $59,810 80% 20%

General Warehousing and Storage $59,386 95% 5%

Machine Shops $58,572 42% 58%

Electric Power Distribution $58,387 95% 5%

General Freight Trucking, Local $58,013 95% 5%

Data Processing, Hosting, and Related Services $55,456 22% 78%

Portfolio Management $54,793 16% 84%

Offices of Certified Public Accountants $53,358 42% 58%

RTP• Minimum Quantity Adjustment

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Find Gaps

• Not So Obvious (Unless You Ask)Description Total Requirements

(K)

% Satisfied in

Region

Out of

Region

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Couriers and Express Delivery Services $66,775 62% 38%

Securities Brokerage $61,597 32% 68%

Direct Property and Casualty Insurance Carriers $61,574 19% 81%

Other Activities Related to Real Estate $61,333 35% 65%

Office Administrative Services $60,100 89% 11%

Computer Systems Design Services $59,900 19% 81%

Sawmills $59,810 80% 20%

General Warehousing and Storage $59,386 95% 5%

Machine Shops $58,572 42% 58%

Electric Power Distribution $58,387 95% 5%

General Freight Trucking, Local $58,013 95% 5%

Data Processing, Hosting, and Related Services $55,456 22% 78%

Portfolio Management $54,793 16% 84%

Offices of Certified Public Accountants $53,358 42% 58%

RTP• Minimum Quantity Adjustment

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Find Gaps

• BHAG: Big, Harry , Audacious GoalDescription Total Requirements

(K)

% Satisfied in

Region

Out of

Region

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Couriers and Express Delivery Services $66,775 62% 38%

Securities Brokerage $61,597 32% 68%

Direct Property and Casualty Insurance Carriers $61,574 19% 81%

Other Activities Related to Real Estate $61,333 35% 65%

Office Administrative Services $60,100 89% 11%

Computer Systems Design Services $59,900 19% 81%

Sawmills $59,810 80% 20%

General Warehousing and Storage $59,386 95% 5%

Machine Shops $58,572 42% 58%

Electric Power Distribution $58,387 95% 5%

General Freight Trucking, Local $58,013 95% 5%

Data Processing, Hosting, and Related Services $55,456 22% 78%

Portfolio Management $54,793 16% 84%

Offices of Certified Public Accountants $53,358 42% 58%

Waste Wood in Rural Hilly Areas

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BHAG

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

Top 10 ExpendituresIn the Region Outside tehRegion

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Hmm….

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

Top 10 ExpendituresIn the Region Outside tehRegion

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$3.1 Billion in Internal Expenditures

Description Total

Requirements (K)

% Satisfied in

Region

Out of

Region

Crop and animal production $978,478 95% 5%

Petroleum Refineries $553,600 0% 100%

Corporate, Subsidiary, and Regional Managing Offices $335,244 60% 40%

Commercial Banking $249,380 55% 45%

Lessors of Residential Buildings and Dwellings $142,219 57% 43%

Lessors of Nonresidential Buildings (except Miniwarehouses) $138,799 43% 57%

Offices of Real Estate Agents and Brokers $137,647 34% 66%

Wholesale Trade Agents and Brokers $130,103 24% 76%

Cheese Manufacturing $127,924 93% 7%

General Freight Trucking, Long-Distance, Truckload $123,574 95% 5%

Offices of Lawyers $122,340 29% 71%

Wired Telecommunications Carriers $119,990 57% 43%

Iron and Steel Mills $119,211 0% 100%

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) $104,620 80% 20%

Other Animal Food Manufacturing $101,565 52% 48%

Engineering Services $101,519 1% 99%

Rail transportation $98,509 95% 5%

Temporary Help Services $97,013 37% 63%

Administrative Management and General Management Consulting Services $86,076 2% 98%

All Other Plastics Product Manufacturing $80,386 86% 14%

All Other Professional, Scientific, and Technical Services $78,702 62% 38%

Research and Development in the Physical, Engineering, and Life Sciences

(except Biotechnology)

$77,275 5% 95%

Insurance Agencies and Brokerages $76,943 61% 39%

Postal Service $71,988 81% 19%

Crude Petroleum and Natural Gas Extraction $68,327 20% 80%

Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial

Refrigeration Equipment Manufacturing

$68,014 94% 6%

Couriers and Express Delivery Services $66,775 62% 38%

Plastics Material and Resin Manufacturing $65,379 84% 16%

Fossil Fuel Electric Power Generation $63,701 95% 5%

Residential Property Managers $63,535 39% 61%

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The Good

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

Top 10 ExpendituresIn the Region Outside tehRegion

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Next Steps

• Focus Groups

• Why is that?

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SURVEY RESULTS

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Survey Overview

• Analyze the buyer-supplier relationship

• Each question became more manufacturing focused

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Diverse CompaniesSlightly Heavy in Construction & Education

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Role in Company

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Business LocationsWisconsin Heavy

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MPercentage of Suppliers

within 90 miles

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Buy Local Policies

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Buy Local Policies

Yes No

• We have national agreements with many suppliers for better rates.

• Product is web based

• certain ag specifications

• directive of the President/Owner

• when available and timely

• whenever possible

• fiscally responsible to do so

• as long as we do not pay 20% more than necessary.

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Selection is based on price, quality, capacity, etc. vs. noncompetitive bids or just price/capacity

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Products not availablePrice is #1 factorthen quality,then capacity

PolicyDelivery times

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Word of MouthTrade ShowsDirect SolicitationWebTheir Own Buyers Fair

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Workforce

Customer Service

Supplier Relations

Technology & Innovation

Lower Costs

Global*

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Sales & marketing

IT & Finance/Acctg.

Purchasing Best Practice

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Do Not Work with Suppliers

Provide Feedback

Working in Partnership to Improve

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MProcess Improvement Knowledge

(nearly ½ skipped)

1. Six Sigma2. Value Stream

Mapping3. Statistical

Process Control

4. Lean5. Risk &

Opportunity Management

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1. Disruption/contingency plans

2. Supplier incorporation plan

3. Global sourcing & logistics

4. Corporate strategy documentation

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Manufacturing Innovation Functions

Design TestingProtyping(physical)Design for

Analysis

Engineering Analysis

Protyping(virtual)

None

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Sales

Final

Supplier

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Next Steps

• Solidify the Buyer-Supplier Integration, Partnership for Innovation, Cost Savings,