Category Archives: Local Business

More Not-So-Great News For Two Major Local Employers

Caterpillar released its first-quarter earnings Monday, and, as expected, it wasn’t pretty — for the company, or South Milwaukee.

Check out coverage from the Milwaukee Business Journal, Reuters and the Wall Street Journal. From the WSJ:

Caterpillar increased its exposure to the mining sector with its 2011 purchase of Bucyrus International Inc. for $8.8 billion. Caterpillar predicted that sales of Bucyrus machinery lines this year will decline 15%, while sales of big mining trucks, large wheel loaders and other mining machinery traditionally built by Caterpillar are expected to fall 50% from last year.

Chief Executive Doug Oberhelman said he remains upbeat about the Bucyrus purchase and the company’s deeper penetration into mining. “I still firmly believe that our move into mining was a change for the better,” Mr. Oberhelman said during a conference call Monday with analysts. “We’re definitely in a down cycle now [in mining], but long term it’s a great business for us.”

And check out Milwaukee Journal Sentinel and Business Journal coverage of Cooper Power Systems deciding to ship jobs in Pewaukee to Mexico. Thankfully, this doesn’t seem to impact South Milwaukee, where Cooper Power Sytems employs hundreds of people at its facility on Ninth Avenue.

You’ll recall that Eaton Corp. acquired Cooper last year.

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Caterpillar Negotiations Update

Update: Here is Business Journal coverage. Cat reports earnings Monday.

The Milwaukee Journal Sentinel has a brief update — provided by the Steelworkers union — on the ongoing Caterpillar contract talks.

While minor issues are being resolved, big differences remain, according to the story. From it:

“Management is still seeking sweeping changes to our layoff and seniority language, and is demanding unfair concessions in other major economic and noneconomic areas,” the Steelworkers union said.

Negotiations have been under way for several weeks.

I’ll keep you posted.

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Still Time To Get Chamber Dinner Tickets!

Just got this from the South Milwaukee Chamber of Commerce …

I encourage you to attend. It’s a great event to honor people making a real difference in local business. And the food is good too.

Spring Social & Awards Dinner – April 19 at Salvatore’s

The reservation deadline to attend the South Milwaukee Chamber of Commerce Spring Social & Awards Dinner has been extended.  If you are interested in attending, but have not made a reservation, please contact the SM Chamber office by 10am on Wednesday, April 17.  The event begins at 6pm with the Silent Auction/Cash Bar, Dinner at 7pm, Awards Program at 8:15pm.  The cost is $25/person to attend.

Here is a post on last year’s event.

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More Health Services Coming To South Milwaukee Walgreens

The Business Journal has the story. From it …

In the Milwaukee area, Walgreens runs seven Take Care Clinics. They are in Milwaukee, Wauwatosa, South Milwaukee, Mequon, Brookfield and Waukesha.

The new services include assessment, treatment and management for chronic conditions such as hypertension, diabetes, high cholesterol and asthma, Deerfield, Ill.-based Walgreens said Thursday.

Walgreens said it is introducing the service to address the nation’s physician shortage, aging population, growing prevalence of chronic diseases and the estimated 30 million people who are expected to gain insurance coverage in 2014 through the Affordable Care Act.

The Chicago Tribune has more details.

The South Milwaukee Walgreens is at 2985 S. Chicago Ave.

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South Milwaukee Caterpillar Update: Contract Talks Begin, CEO Wants Help Closing Wokforce “Gaps”

The Milwaukee Journal has a story on Caterpillar CEO Doug Oberhelman’s remarks this week before an Illinois business group, where he called for relaxed immigration laws to make it easier to attract workers — this after Cat announced last week it was laying of up to 300 people at its South Milwaukee plant.

From the story:

Caterpillar has seen foreign workers it trained in the United States leave for overseas competitors because they couldn’t get visas to stay in this country, Oberhelman said. And companies worldwide are scrambling to find engineers and scientists.

“When we recruit engineers from the University of Illinois, Purdue, Texas A&M, Stanford or wherever, we want the brightest talent. I really don’t care if that person was born in Chicago or India or England. I want that talent working for Caterpillar, not one of those competitors around the world,” Oberhelman said, according to a transcript of the speech he delivered Monday.

Also, Fox 6 was in South Milwaukee this week taking a closer look at the potential impact of the looming layoffs, as contract talks begin. The verdict — much remains to be seen. I’ll keep you posted.

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Not Surprising: More On The Cat Layoffs

The Business Journal has a follow-up piece on the looming Caterpillar layoffs, with comments from a Robert W. Baird analyst who is not surprised by the announcement.

Check out the story here. From it:

Caterpillar’s mining customers shrank their capital spending budgets this year, and many have even been spending below that lowered budget line, Dobre said.

“That, along with quite a bit of uncertainty for miners with regards to which projects they’re going to expand and continue versus the ones that they’re going to cancel, has created a near-term environment that is quite difficult for all mining (original equipment manufacturers),” Dobre said.

He pointed out that Caterpillar competitor Joy Global Inc. has faced these same challenges. The Milwaukee-based mining equipment maker has been going through a couple of rounds of restructuring, which you can read more about here.

Dobre told me he expects a “challenged” mining environment for the foreseeable future.

“But it remains to be seen as to whether or not incremental demand from slightly better growth in China is going to have a little bit of impact in lifting sales,” Dobre said.

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Reports: Caterpillar Laying Off Up To 300 Union Workers In South Milwaukee

Update: This story from February (just came across it) quotes a senior Cat executive as being “bullish” on the future of his company’s mining operations. Let’s hope he’s right, and these layoffs are indeed temporary.

Bad news for South Milwaukee …

Check out coverage in the Business Journal and Milwaukee Journal Sentinel. From the Business Journal story …

Caterpillar Inc. told South Milwaukee employees Thursday morning that it plans to lay off 40 percent of its union work force there by June, or between 250 and 300 production workers, a local union official said. …

Fox 6 Milwaukee, The Business Journal’s TV partner, first reported the news.

Local United Steelworkers official Ross Winklbauer confirmed the company’s announcement to The Business Journal, after he spoke with Kevin Jaskie, president of USW Local 1343 and a Caterpillar employee.

The union represents about 810 workers at Caterpillar’s South Milwaukee plant. The Peoria, Ill.-based equipment manufacturer (NYSE: CAT) also has its global mining equipment unit based in Oak Creek.

The company is citing lower sales as the reason for the cuts, Winklbauer said. Caterpillar said this month that global retail sales of its machines dropped 13 percent in the three-month rolling period through February, compared with the same period a year earlier, according to MarketWatch.

But Winklbauer questioned the timing of the layoff announcement, with labor talks scheduled to begin Tuesday. The union’s contract expires at the end of April.

I’ll post more details when I get them.

And post your comments below!

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Farewell, Lenny’s

Lenny's

Here’s the scene at 15th and Rawson, if you haven’t driven by that corner lately … I’ll keep you posted about future plans for what used to be Lenny’s, the service station that closed years ago.

 

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Report: Union Leaders Want MATC To Stop Training Potential Caterpillar Replacement Workers

As labor negotiations loom for workers at the South Milwaukee Caterpillar plant, a local union is asking Milwaukee Area Technical College to stop training potential strike replacement workers.

That’s according to the Milwaukee Journal Sentinel. From it:

United Steelworkers Local 1343 says Caterpillar has placed about 25 nonunion employees in the college’s welder training program before contract negotiations with the union, which are set to begin in April.

Should the talks break down, those employees could step in and replace striking workers.

“Please don’t allow MATC to be used as a pawn in Caterpillar’s union-busting games,” the Steelworkers said Wednesday in a letter to the college’s board of directors and President Michael Burke.

The union has asked the college to immediately stop the training and to return any training materials to Caterpillar.

“Judging from its training of these potential replacement workers, and the company’s long history of confronting unions, we already know that these negotiations will be tough,” Local 1343 said in a note to its membership.

The union has represented workers at the mining equipment factory for more than 70 years, but this will be the first contract negotiations since Caterpillar acquired the plant as part of its $7.6 billion purchase of the former Bucyrus International in 2010.

Caterpillar acknowledges putting nonunion employees into the welder training program, and it says that’s standard practice when preparing for contract talks that could break down and result in a work stoppage.

“We do this well in advance of a contract expiring. We train our own employees to do specific jobs so that we don’t have a slowdown in production,” said company spokesman Jim Baumgartner.

“This is a normal precautionary plan that we go through in any union labor situation,” he said.

Here is a previous post on fears of a Cat strike.

I’m sure this won’t be the last we hear about the labor talks that have yet to begin. I’ll keep you posted.

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South Milwaukee Has Moxie (Fitness)

Just wanted to give a quick shoutout to downtown South Milwaukee’s newest business — Moxie Fitness.

Here is how the owners of the business, located in the former home of PJ’s Variety Store at 1234 Milwaukee Ave., describe themselves …

Moxie Fitness creates coaching and training plans for triathlon, running, cycling, fitness, and more. Tori Oman is one of the most well-loved triathlon coaches in the Milwaukee area. Tori and her workout leaders provide individual attention, group coaching, goal setting, and more. Group programs provide an environment of support and team building, and all programs can be individualized with additional sessions.

Learn more on the Moxie website, and welcome to South Milwaukee!

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Strike Looming At South Milwaukee Caterpillar Plant?

Deeply concerning news from the Wall Street Journal …

Caterpillar Inc., after prevailing in battles with unions in Illinois and Ontario last year, is preparing for the possibility of a strike at a mining-equipment plant in South Milwaukee, Wis.

Caterpillar, the world’s biggest maker of construction and mining equipment, is training managerial and support staff for production jobs at the South Milwaukee plant, which makes large shovels used in mining, a company spokesman said. The Peoria, Ill.-based company is due to begin talks soon with officials of the United Steelworkers union, which represents about 800 workers at the plant. The USW labor contract at the plant expires April 30.

The Caterpillar spokesman said the preparations were part of the “normal workforce contingency training process that we have been using since the early 2000s prior to labor negotiations.” But some USW officials saw the training as a warning to unionized workers that the company was prepared to keep producing even if they strike.

“We’re going to be very well prepared” for the negotiations, said Gary Hubbard, a spokesman of the USW in Washington. He described the union as both “tough” and “sophisticated” and said the USW “can help Caterpillar succeed.”

See the whole story here … and post your comments below!

I’ll keep you posted.

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Dunkin’ Donuts Coming To South Milwaukee?

Soon, South Milwaukee could run on Dunkin’.

The South Milwaukee Plan Commission is set to review on Monday an application for a conditional use permit for construction of a Dunkin’ Donuts at 3103 S. Chicago Ave. The proposed 2,129-square-foot restaurant would be built on an outlot in the shopping center that currently includes Aldi, Dollar Tree and Little Caesars Pizza.

I’ll post more details when I get them, and keep you posted.

Also, I’ll post more soon on another topic on the upcoming Plan Commission agenda — an application by a local non-denominational church for a conditional use permit for the former St. Adalbert’s facilities (school, church, convent, rectory) on 16th and Manitoba. The proposal calls for worship services, other church-related events, a small adult bible school and clergy housing at the site. Stay tuned.

Here is the agenda.

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Welcome To South Milwaukee, Max A. Sass & Sons

Turning a school into a funeral home? That unique transformation is happening now, as Max A. Sass & Sons Funeral Homes prepares to open at the former St. Mary’s School in South Milwaukee.

I had the chance to tour the new Sass South Shore Chapel location — still very much under construction — on Monday, and I came away impressed with a terrific example of a second-generation reuse of a property.

From the large, open hall in the basement to the classrooms remaining on the second floor, there’s still plenty of signs that this was a school not too long ago. The biggest changes, however, are coming on the main floor, as Sass plans a large chapel, offices and family lounge. Workers were busily rehabbing the interior this week, and the funeral home is expected to open in April.

The facility at 1314 Manitoba Ave. will be Sass’ fifth location and its first in the South Shore, as Sass celebrates its 76th year in 2013. It’s a welcome addition, and I wish Sass & Sons well in South Milwaukee.

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Grant Park Plaza Update: South Milwaukee CDA Approves Sale Of Pick ‘N Save Parcel

Last fall, you may recall the decision by the South Milwaukee City Council to allow the owners of Grant Park Plaza to divide the property into two parcels – making it easier to sell those properties to potential buyers.

Well, the first of those parcels – the one containing the Pick ‘n Save store – is poised to be sold.

The Community Development Authority on Monday approved the owners’ sale of the grocery store lot to Cole Real Estate Investments “or an entity controlled, directly or indirectly by Cole REIT Advisors III LLC.”

Cole is a national name in real estate, as “Cole-related entities own and manage more than 2,050 properties in 47 states with a combined acquisition cost of more than $12.4 billion,” according to its website. That includes a number of commercial properties and properties like this — buildings housing retailers that still have years left on their long-term leases.

The South Milwaukee City Council will take up the issue at its meeting next week. I am inclined to support it because a sale should help relieve pressure on the owners’ finances and make it easier to upgrade the long-vacant center section (and, in turn, lift the entire center).

In fact, the shopping center owners report they are talking to national retailer interested in leasing more than half of the empty space in that center section. We’ll see where that ends up.

In the meantime, the amended development agreement will also allow the plaza owners to spend $200,000 — retained as a “lease-up” incentive from the previous development agreement — to remodel the center section to suit a prospective new tenant. And the CDA is recommending additional funds from the Pick ‘n Save parcel sale be escrowed for parking lot improvements and other tenant space improvements.

So there’s progress at Grant Park Plaza. That’s a good thing. Let’s hope it leads to leases and a more vibrant shopping center. Head a few miles north on Highway 32 to see the alternative.

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Children’s Items Resale Shop Opens Downtown

Update: I Can’t Resist comes from Cudahy, where it opened in 2012. 

Downtown South Milwaukee has a new retailer.

I Can’t Resist Kids Resale has opened in the former home of Ooh La La Beauty Boutique, which closed recently.

Learn more about the new store on its website, and welcome to South Milwaukee!

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