*Amanda C. Goetsch and Thomas L. EggertJuly 2012

2012 Wisconsin New Technology Jobs Report

Table of Contents

Introduction. ..................................................................... 1Defining the New Tech Job Sector and the New Tech Economy.................................................... 1Peformance of New Tech Jobs in the Economy............ 2Midwestern States and New Tech................................... 3Education, Training and Wages...................................... 4Expading New Tech Job Opportunities......................... 5Key Sectors for Wisconsin............................................... 5Solar.................................................................................... 5 Wind................................................................................... 6Biofuels.............................................................................. 7Smart Grid......................................................................... 8Construction..................................................................... 9Transportation.................................................................. 9Water................................................................................... 10Paper and Packaging......................................................... 10Existing Federal and State Policies and Initiatives........ 11Market Opportunities & Hiring Outlook...................... 13Strategies for Advancing the New Tech Economy........ 13Conclusion......................................................................... 14

*Amanda Goetsch- Program Director for the WI Sustainable Business Council’s Green Masters Program and graduate stu-dent in the University of Wisconsin’s Conservation Biology and Sustainable Development Program.

Thomas Eggert- Executive Director of the WI Sustainable Council

IntroductionWisconsinites are a proud bunch, and we have as much pride in our industries as we do in our beers and our sports teams. We are united in our desire to see Wisconsin’s economy return to robust growth. One key to re-create robust growth is to grow the “new technology” sector. As we demonstrate below, Wisconsin is uniquely positioned to take advantage of emerging trends, innovative technologies and new opportunities.

Wisconsin’s economy is shaped by agriculture, manufacturing and service providers. However, since 2000, we have lost 170,000 manufacturing jobs. The absence of these jobs is impeding the state’s economic recovery. While neighboring mid-western states are adding jobs and growing their state domestic product, Wiscon-

sin continues to struggle. Although our state is currently committed to creating 250,000 jobs by 2015, we ranked very low in job creation in 2011. The new technology (new tech) sector is poised for job growth in Wisconsin, now and into the future.

New tech jobs are defined more by industry than occupation. For the purposes of this report, new tech jobs are jobs related to energy efficiency (including green building), renewable energy (including transportation fuels), alternative transportation (including electric cars and mass tran-sit), packaging, water use, and recycling and waste minimization. In ad-dition for the creation of new tech jobs, Wisconsin’s agricultural strength

presents a multitude of opportunities in bioenergy and biofuels produc-tion.

Defining the New Tech Job Sector and the New Tech EconomyOur use of the terms “new tech jobs” and “new tech economy” in this report encompasses what have been called “green jobs”, “green-collar jobs”, “clean tech jobs”, “clean energy jobs” and the “clean economy”. New tech jobs will define the industries of the future; industries such as energy efficiency, building retrofitting, smart grid deployment, wind turbine manufacturing, solar panel installation, and bioenergy.

We have been creating new tech jobs in Wisconsin since World War II. Many new tech jobs require minimal job retraining. Existing jobs are be-

ing transformed into new tech jobs; “com-puter control operators who can cut steel for wind towers as well as submarines; or mechanics who can fix an electric motor as well as an internal combustion engine,” (Green for All Overview, 2012).

The new technology economy empha-sizes technology and manufacturing; both strengths of the Wisconsin economy. As stated by Muro, “No swatch of the econo-my has been more widely celebrated as a source of economic renewal and potential job creation,” (Muro et al., 2011).

“While private enterprise ultimately will deliver a robust clean economy, federal, state, and local government all have roles to play in co-producing a clear, supportive, and stable growth environment. In that role, govern-ment must work to structure a vibrant domestic market, ensure the avail-ability of finance, and keep the innovation pipeline charged,” (Muro et al., 2011).

The [new technology] economy matters because its emergence responds to critical global and national environmental, security, and economic trends,” (Muro et al., 2011).

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Photo courtesy of Paul Bica

Photo courtesy of Argonne National Laboratory

The vast majority of new tech jobs will be found in traditional occupa-tions and industries. New tech workers are:• Machinists• Assemblers• Truckdrivers• Pipefitters• Insulators• Carpenters• Technicians• Mechanics• Maintenanceworkers• Bookkeepers• Receptionists• Customerservicerepresentatives

New Tech Jobs in the EconomyThe new tech economy has become a reliable source of job creation through the recession of 2008; new tech jobs grew while jobs in many other sectors fell or moved overseas. For instance, 500,000 new tech jobs were added to the American economy between 2003 and 2010, at an an-nual rate of 3.4 percent (Muro et al., 2011). In Indiana, jobs within the new tech economy were not only less sensitive to the economic down-turn, but employment actually increased into 2010 (Kelley School of Business, 2011).

The American solar energy industry is thriving, as is the broader renew-able energy industry. The number of solar jobs in America has doubled since 2009 and today “more than 100,000 Americans work in the solar industry, at more than 5,000 companies in every single state,” (Sanders, 2011). In addition, nearly 400 U.S. manufacturing facilities, employing 20,000 workers, produced wind turbines and components in 2010, up fromasfewas30in2004,”(Roberts,2011).

26% of the new tech economy is comprised of manufacturing jobs and $49.4 billion in new tech goods were exported in 2011 (5.3% of all U.S. goods exported). This amounts to $20,129 worth of exports for every

job in the new tech economy, compared to just $10,390 in exports for the average U.S. job. Wisconsin’s manufacturing strength makes the new

tech economy an ideal fit. Wisconsin manufacturing has been adapting, growing, innovating, and churning out products. Wisconsin manufactur-ers are holding their own in an expanding industrial world and manufac-turing jobs have been a highlight of 2011’s job growth. Below are some little-acknowledged facts about Wisconsin manufacturing:

•Inspiteoftheexplosionofmanufacturingactivityinthedevelopingworld (now over the past three decades), the US share of global manufac-turing is almost unchanged at 22% of the total. •Exportsofmanufacturedgoodsgrewby60%to$1.4trillionbetween2000 and 2008 and now represent 57% of our total exports; that is, the U.S. not only makes stuff, but the world buys it from us. High-tech prod-

ucts like medical equipment account for 23% of exports.•Weexperiencealotofanxietyabout the “outsourcing” of manufac-turing jobs to other countries, but we pay little or no attention to the “in-sourcing” of jobs. But the fact is that the U.S. attracts more direct investments than any other country. Foreign manufacturers like Talgo and Ingeteam have built facilities in the U.S. that now employ more than 2 million Americans.

Dow Chemical Company CEO Andrew Liveris wrote, “A renaissance is within reach. If Americans are the ones who design and build the technologies of the future it will re-energize commerce in the United States, creating, without a doubt, millions of high-paying jobs” (Muro et al., 2011).

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(Muro et al., 2011)

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Because of rising wage rates in China, there is an on-going shift in the location of manufacturing jobs. As China’s wage rates rise, its economy begins to show signs of slowing down. In an op-ed in The New York Times, the head of emerging markets at Morgan Stanley wrote, “China’s slowdown is opening a door to a revival in American manufacturing.” The Times also notes that the recent domestic boom in cheap natural gas production “signals a manufacturing renaissance” for the U.S. (Sharma, 2012). Moreover, in an article titled “U.S. Manufacturing Defying Nay-sayers,” The Wall Street Journal reports that China’s rising wage rates are erasing the labor cost advantage China enjoyed for two decades. Now many manufacturers, both foreign and domestic, are weighing a return to the U.S. (Bussey, 2012). In a survey of 106 large U.S. companies released in April, 2012, Boston Consulting Group found that 37% of these com

panies are bringing manufacturing activities home (a process some call “re-shoring”) and 70% said that operating in China is more expensive than it looks on paper.

Midwestern States and New Tech JobsMidwestern states are embracing the potential of the new tech economy. Forinstance,in2011,MichiganRepublicanGovernorSyndergrewthenew tech sector. Michigan is currently ranked number one in the nation for job creation; and new tech jobs play a critical role in Michigan job creation. 17 battery companies and 50 solar, wind and biofuels compa-

nies have moved to Michigan since 2009. In total, Michigan has more than 240 manufacturing firms in the wind and solar supply chain. As an even better predictor of the future, 23% of the nation’s clean energy patents are registered in Michigan (Pruss, 2011).

In 2011 Indiana had an estimated 47,000 direct new tech jobs as well as 17,400 jobs that support new tech production activities. About 16 percent of new jobs in Indiana are part of the new tech sector and are concentrated in construction, architecture and engineering occupations (Kelley School of Business, 2011).

In 2009, more than 783,974 Ohio workers were employed in new tech in-dustries; approximately 15.4 percent of 2009 total Ohio nonfarm employ-ment (and 17.6 percent of private employment). Four industry sectors account for most of the new tech jobs: construction with 169,628 jobs; manufacturing with 150,653 jobs; professional, scientific, and technical services with 148,272 jobs; and management of companies and enterpris-es with 104,362 jobs,”(Bureau of Labor Statistics, 2011).

“Michigan is becoming a center for clean energy R&D, and that tends to feed itself. More development attracts more equipment manufacturers and so on,”Howard Learner (Gallucci, 2011).

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Trey Ratcliff

(Muro et al., 2011)

Education, Training and WagesAlthough part of creating a new tech economy will involve creating new industries, most of the transition will involve transforming industries and jobs already in place. Colleges should therefore focus “less on creat-ing courses of study and curricula from scratch and more on embed-ding [new tech] curricula for [new tech] skills into existing and broader courses of study” (White, 2011).

Eleven of Wisconsin’s Workforce Development Boards, which support services and training for adults, youth, and dislocated workers, have received $26 million of new Workforce Investment Act funds. This is significant for Wisconsin’s technical colleges as they will play a central role in training a new tech workforce. Madison Area Technical College, for example, connects with other technical colleges and the University of WisconsinthroughtheConsortiumforEducationinRenewableEnergyTechnology(CERT)(White,2011).

Programs like the Water Quality Technician diploma at Moraine Park, the Sustainable Design certificate at Northeast Wisconsin Technical Col-lege, and the Environmental and Pollution Control AAS at MATC’s Me-quon campus are clearly part of a new tech jobs future. Automotive tech training at a number of schools, which may include segments on biofuels

or hybrid electric vehicles, also supports evolution of the new tech econo-my. “The Center for Energy Conservation and Advanced Manufacturing (ECAM) at Milwaukee Area Technical College’s Oak Creek campus offers HVAC programs leading to either a one-year technical diploma or an associate’s degree, as well as shorter term technical diplomas in HVAC, CNC manufacturing, and power engineering programs, all of which may be critical to Wisconsin’s [new tech] economy” (White, 2011).

New tech jobs are also family supporting jobs that provide useful skills for the future. More than one-fifth of Wisconsin workers hold poverty-wage jobs and often cannot advance in their careers. New tech jobs pay family-supporting wages and provide opportunities for career advance-ment. Most of these jobs are well within reach for lower-skilled and lower-income workers. These jobs create an opportunity for workers in Wisconsin to work themselves out of poverty and in to economic self-sufficiency (Green for All Overview, 2012).

Iowa sought to establish itself as a manufacturing base for the wind sector and committed to growing this expertise before the recent explosion of interest in wind. In 2009, Iowa generated a greater percentage of their electricity from wind than any other state and was home to TPI Compos-ites and Siemens (major blade manufacturers), Clipper Windpower and Acciona (major turbine manufacturers), Trinity Structural Towers (major tower manufacturer) and Horizon Wind (one of the largest wind farm developers in the U.S.). In 2009, 2,300 jobs were directly linked to wind turbine manufacturing in Iowa, the most in the nation (2010 Iowa Office of Energy Independence). Wind power can create hundreds of thousands of support jobs, including electricians, welders, metal-workers and others. These projects also stimulate the rural economy by pumping $15-20 mil-lion into the local economy for each 100 megawatts of power produced,”(A Bright Future for the Heartland, 2011).

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Expanding New Tech Job Opportunities

New tech jobs develop in states with a skilled labor force, existing manu-facturing infrastructure, access to transportation, a responsive technical college system and supportive state laws and incentives (A Bright Future for the Heartland, 2011). Wisconsin has the manufacturing infrastruc-ture, the need for good paying family jobs and a 21st century constituent base to become a leader in the new tech economy.

Wisconsin has the potential to excel in a variety of new tech sectors including solar (i.e. solar panel production and installation), wind (i.e. wind tower and turbine manufacturing), biofuels (i.e. local cultivation of ethanol), construction (i.e. LEED certified buildings), transportation (i.e. lithium ion battery production) and water (i.e. water management). These sectors have the potential to create thousands of quality jobs that will improve Wisconsin’s economy.

Key Sectors for WisconsinFor every million dollars spent on creating new tech jobs, 16.7 jobs are created. This is “three times the 5.3 jobs per million dollars that are cre-ated in the fossil fuel industry,” (Center for American Progress, 2011).

SolarIn 2010, Wisconsin ranked 16th in the country for solar jobs.

Wisconsin has more than 300 businesses involved in solar energy, pro-viding more than 12,000 jobs to Wisconsin workers (Newman, 2011).

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“These are real jobs; these are real businesses. Many are existing businesses that are branching out into new product lines,” Howard Learner, Executive Director at the Environ-mental Law and Policy Center in Chicago.

White (2011)

Emily Mills

Milwaukee has established itself as a national hub for solar thermal companies with the support of the Milwaukee Shines Program. Milwau-kee hosted the annual Solar Thermal national conference in 2011, and, because of the leadership of Milwaukee Shines, will be hosting it again in 2012. Companies in the solar thermal sector include Caleffi Solar, RundleSpenceandHotWaterProducts.

Between 2003 and 2010, solar thermal expanded by 18.4 percent annually, and solar photovoltaic expanded by 10.7 percent (Center for American Progress, 2011). Toward the end of 2011, the U.S. solar industry employed an estimated 100,237 solar workers. U.S. solar

businesses added 6,735 workers since August 2010, representing indus-try-wide job growth of 6.8%. During the same 12 month period, jobs in the overall economy grew by a mere 0.7%, while fossil fuel electric gen-eration lost 2% of its workforce,” (The Solar Foundation, 2011).

In February 2011 Helios USA, LLC opened the first solar photovoltaic (PV) manufacturing facility in Wisconsin. Steve Ostrenga, CEO said, “Milwaukee’s commitment to renewable energy and its expertise in man-ufacturing makes this an ideal location for Helios.” (SolarServer, 2011).

Helios can serve as an anchor company in the solar PV sector. Consul-tants from CH2M Hill conducted a feasibility study and concluded that the Milwaukee region “has some natural advantages with regard to com-ponents—the valves, the pipes, the metal tubing, the stamping, the metal fabrication and robotics. All of this is critical in the solar supply chain, and this is something that Milwaukee can succeed at,” (Content, 2010).

WindThere has been job growth in the wind sector as well. Between 2003 and 2010, “the U.S. wind sector saw 35 percent average annual growth,

accounting for 35 percent of new U.S. power capacity in that period” (Center for American Progress, 2011). This equates to 15,000 jobs, grow-ing 14.9% annually with more than two-thirds of jobs in manufacturing (Muro et al., 2011). In 2010 there were 2,000 Wisconsin jobs supporting the wind industry (Anthony, 2011).

Manufacturing, project development and operation and maintenance are expected to experience rapid growth as the wind power industry continues to grow. Over the next five years, the wind industry could provide oppor-tunities for workers to expand their careers beyond wind farms to develop-ing new businesses in gear replacement, painting and general maintenance (Liming, 2010). A new business, Gearbox Express, perfectly exemplifies this concept. Gearbox Express provides a full service maintenance and refurbish-ing service for turbines. Instead of taking a month or more to take a turbine down and send it to Europe to replace worn parts, they can do all of the work in a week. This business cuts down on transportation expenses, down-time, and rental costs for the cranes that are needed to work on the turbines.

“The United States has a positive trade balance in solar power components such as photovoltaic components and solar heating and cooling components of $1.9 billion, and are exporting com-ponents to China. Contrast this with the oil industry, where in 2010 alone we imported over $250 billion in petroleum-related products. As our nation’s basic manufacturing base declines, we risk losing our place in the forefront of innovation if we don’t invest in advanced manufacturing in the [new tech] sector,” (Center for American Progress, 2011).

Oregon Department of Transportation

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Growth of the wind industry will increase demand for skilled workers. In 2009, Wisconsin had 469 Megawatts (MW) of wind energy online, 20 MW were added in 2010, 162 MW were under construction and 908 MW of wind projects were in the queue. Wisconsin currently ranks 19th for total installed wind capacity with 1.7% of the state’s power provided bywind.AccordingtoaresourceassessmentfromtheNationalRenew-able Energy Lab, Wisconsin’s wind resource could provide a much larger share of the state’s current electricity needs (Anthony, 2011).

Farmers around the state also support wind energy, using their land for both crops and wind turbine establishment. These projects produce lease payments for landowners and increase the tax base of communities, adding an additional stream of income for Wisconsin farmers. In fact, in Ger-many, which has a comparable wind resource to Wisconsin, farmers now make, on average, more from their energy production than they do from their crops.

In Wisconsin over 300 companies either produce, sell or install wind power components, with 40 new companies identified in 2010 alone. In 2010, “The New North, the regional economic development group representing 18 coun-ties in north-east Wisconsin, developed Wisconsin Wind Works, a consortium of manufacturers representing the wind manufacturing supply chain within Wisconsin. 360 companies have identified themselves as associated with the wind industry, and, according to the database, more than 7,000 jobs may end

up being associat-ed with the wind energy indus-try.” Accord-ing to Wis-consin Wind Works,

Wisconsin has become the leader in the domestic wind energy supply chain (Anthony, 2011).

BiofuelsWisconsin is also poised to excel in the biofuels sector. Biofuels include transportation fuels (ethanol, bio-diesel), fuels that substitute for natural gas, and fuels that are used to make electricity. Wisconsin has a natural advantage in the biofuels sector because of cows, a historic agriculture base and the presence of the Department of Energy’s Great Lakes Bioen-ergyResearchCenterattheUniversityofWisconsin.

Energy from biofuels and biomass has increased by 8.9% nationally, adding 9,296 jobs between 2003 and 2010. “The most export-oriented segment—on an exports per jobs basis—is biofuels which generates an estimated $189,000 in exports per job” (Muro et al., 2011).

Wisconsin has an opportunity to lead the nation in the development of biogas as a viable fuel alternative. Currently there are enough corn stalks, wood chips, and switchgrass in Wisconsin to replace 40% of our gasoline and half our coal use while putting $14 billion back into the state econ-omy (Walsh, 2008). Wisconsin already has more anaerobic biodigesters than any state, with 22 on-farm and 31 total systems. Farmers and food processers install digesters both to provide energy for their operations and to sell energy back into the grid.

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Biofuel production represents an exciting new opportunity for many medium to large farms to diversify their income streams and help control the erratic price fluctuations in energy prices.

Holsum Dairies has installed digesters and generators at its two farms, Irish Dairy and Elm Dairy near Hilbert, WI. With 4,000 cows at each farm, Holsum produced enough biogas to generate 9.2 million kilowatt-hours (kWh) of electricity in 2010—enough to meet the needs of both farms and an additional 486 homes (Buelow, 2010).

The biofuels industry has taken root in Wisconsin and is growing rap-idly. During the month of October, 2011 alone, over a dozen European (mostly German) companies were in WI to promote their biogas prod-ucts and to look for a North American base. Wisconsin was the only state to host this delegation and discussions are ongoing about European

company expansion into Wisconsin. In late Decem-ber 2011, a biomass power plant under construction inRothschild,Wisconsinhas already “put more than 75 people to work full time, providing them with family-sustaining wages” (Miller,2011)saidRandyDeMeuse, Vice President of operations for The Boldt Co., an Appleton-based

firmoverseeingconstruction.“TheplantatDomtar’sRothschildpapermill will generate steam for the papermaker and electricity for We Ener-gies and is expected to be complete by late summer of 2013.” This project has the chance to employ over 250 Wisconsinites, each making about $20 an hour plus overtime and benefits. Once the first steps are completed, Boldt will begin to hire pipefitters, boilermakers, electricians and plumb-ers. In addition to being beneficial to the local economy, when complete, the plant will burn about 500,000 tons of biomass and will help We Ener-gies obtain at least 8% of sales from renewable energy sources by 2015

(Miller, 2011).

As fuel prices rise, the desire for alternative, American-produced trans-portation fuel is increasing. Virent, a Wisconsin-based company employ-ing 117 staff in Madison, converts soluble biomass-derived sugars into products molecularly identical to gasoline, diesel, jet fuel, and chemicals used for plastics and fibers (Virent, 2012). They have partnered with Honda, Shell and Coca Cola to develop their technology and create an alternative to the United State’s reliance on foreign oil.

Smart GridWisconsin is poised to develop and build our smart grid capacity in our cities. In early 2010, Madison barely lost to Kansas City in Google Fiber’s competition to pilot the installation of a city-wide smart grid. Since that time, interest in smart grid technologies has increased across the state.

According to the Wisconsin Technology Council, “Today’s game chang-ing technology has improved broadband connections,” (Wisconsin Technology Council, 2011). The Milwaukee Journal Sentinel reported that Chattanooga has attracted new businesses because of its investment in a superfast broadband service. The business climate in Chattanooga is good, and there is a wave of economic development taking place. Even during the recession, high quality smart grid jobs were created. Start-up companies launched because of the superfast network for computer simulations. Amazon.com has opened a distribution center, and Volk-swagen invested a billion dollars in a new manufacturing plant.

Nearly two dozen dairy farmers across Wisconsin are reaping extra revenue from an unlikely source: cow manure. These farmers col-lect the manure for use in a specialized anaerobic digester, which produces biogas. The biogas is then burned to produce electricity and heat.

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ConstructionIn 2010, 32.9% of all national new tech jobs were in construction ser-vices and architecture. Construction jobs were some of the most deeply impacted by the recent economic downturn, however, these jobs can be recovered through updating building structures, energy efficiency im-provements and new construction. In Indiana, “The majority of occupa-tions in the energy efficiency area are construction-related, with electri-cians and installation workers leading the occupation list,” (Kelley School of Business, 2011).

The one bright spot in the construction economy over the last three years has come from a dramatic increase in the number of LEED (Leadership in Energy and Environmental Design) buildings that are being built. From the new Education Building at the University of Wisconsin-Madi-

son to the Holy Wisdom Monastery in Westport to the Johnson Controls campus in Glendale (these are all Platinum certified buildings), there has been an explosion of interest in high perfor-mance “green” buildings.

TransportationAs we saw with con-struction, transportation

is one of the larger segments of the new tech economy; mass transit alone employs 350,000 workers nationally (Muro et al., 2011). In addition, careers in grid modernization, battery system development and electric vehicle maintenance are areas with the potential to create a multitude of jobs in Wisconsin’s new tech economy.

Companies such as ZBB Energy Corporation, located in Menomonee Falls, provide advanced electrical power management platforms targeted at the growing global need for distributed renewable energy, energy ef

ficiency, power quality, and grid modernization. Specifically, ZBB makes batteries and fuel cells that get used in renewable-energy products.

Johnson Controls, also located in Milwaukee, is the leading supplier of hybrid and electric battery systems that make vehicles more energy ef-ficient. Johnson Controls is building domestic manufacturing capacity in the new tech economy “providing a foundation for long-term growth, new jobs, and global leadership in the development and manufacture of today’s hybrids, as well as future technologies like plug-ins and all-electric vehicles” (Johnson Controls, 2012). Incentives put forth by the state of Michigan in 2009 encouraged Johnson Controls to announce a joint venture between Johnson Controls and Saft establishing a facility in Holland, Michigan to manufacture lithium-ion cells and complete hybrid battery systems (Johnson Controls, 2012). Over 700 new jobs were cre-ated with the opening of the Holland, Michigan facility.

“The federal Weatherization Assistance Program is perhaps the original [new tech] employment program, creating jobs and reducing energy costs for low income households. It is up to Wisconsin, however, to determine if the dramatically expanded program will be designed to attract high-road contractors who pay family-supporting wages, and to figure out how to link short-term weatherization training to career pathways into better jobs in the better paid commercial sectors,” (White, 2011).

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WaterThe Milwaukee region has become recognized as a world hub for fresh-water research, education and economic development. Milwaukee’s focus on water is strategic, seeking to attract water-oriented businesses. “Mil-waukee exemplifies the hope that water may not only support growth, but catalyze it. Other cities want the lakes to attract new tourists and retired folks. In Milwaukee, a three-year-old Water Council, led by local busi-nessmen, intends to make the city a World Water Hub for water tech-nology; the United Nations has already given it an official designation,” (Economist, 2010).

The Water Council consists of 130 Wisconsin companies that are in-volved in water treatment or technology. Participating companies in-clude MillerCoors, Badger Meter, AO Smith and Veolia Water. Accord-ing to their website, “We can advance our global position by becoming a magnet that attracts creative talent, innovative ideas and is recognized as a water leader in tomorrow’s world,” (Milwaukee Water Council, 2012).

Paper and PackagingWisconsin produces more paper than any other state. Over 100,000 people are employed by paper companies according to the Wisconsin Paper Council. Thus, when major retailers, including Wal-Mart, Target and Amazon required suppliers to utilize more sustainable packaging, Wisconsin companies were on the front line for responding. Amazon now requires shipping boxes be made from at least 43% recycled materi-als and be 100% recyclable. Target requires suppliers of media items to

replace the PVC clamshell with a modified paperboard design. Wal-Mart hosts an annual Sustainable Packaging Exposition each year, and in 2008, pledged to reduce packaging of products sold by Wal-Mart by 5% by 2013.

Though jobs in paper and packaging companies are not generally seen to be new tech jobs, these new demands are creating environmentally supe-rior (and often times cheaper) packaging designs.

Wisconsin companies are developing ways to reduce overall packaging and increase efficiency by right sizing and light-weighting. These are two key themes in packaging efficiency, and investments in this area tend to pay off with reduced costs and transportation benefits. Menasha Pack-aging, Bemis Flexible Packaging and Inland Printing have found ways to re-imagine and reconstruct packaging options to reduce the amount of fiber or other raw material used in the packaging product. Menasha Packaging has been a leader in incorporating design elements such as fluting and corrugation to provide strength to packages made with lighter basis weight paper grades.

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Existing Federal and State Policies and InitiativesWisconsin is well positioned to attract and grow new tech jobs. By increasing Wisconsin’s focus on solar, wind, biofuels, energy efficiency, construction, transportation, packaging and water, job creation and economic growth will follow. In order to draw businesses to the state in these sectors and grow our new tech jobs base, the state could borrow ideas from other states or the federal government that support the new tech sector.

MorethanhalfofU.S.stateshavesomesortofRenewablePortfolioStandard(RPS)whichrequiresretailelectricitysupplierstoincludefixedpercentages of renewable energy in their portfolio by a particular date. In October, 1999, Wisconsin became the first state in the union to adopt anRPS.Theoriginalrequirementofhaving2.2%ofelectricitybegener-ated from alternate energy by 2012 was subsequently amended in 2006. WisconsinnowhasanRPSof10%ofelectricitysoldinthestatemustoriginate from renewable sources by 2015. Our utilities are well prepared to meet this standard, and little additional investment is needed to satisfy this requirement. Two years ago, legislation was introduced to increase both the percentage and the date. However, the 25% by 2025 proposed

standard never made it out of committee. Wis-consin should adopt a 25% by 2025 standard in order to drive continued innovation.

Among the most ambi-tiousRPStargetsare:Maine with targets over 40% of total electric-

ity from renewable sources by 2017, California with targets over 33% by 2020andNewYorktargets24%by2013.TheRPSforWisconsin’sneigh-bors include: Illinois targets 25% by 2025, Minnesota targets 25% by 2025 (Muro et al., 2011).

SomeofthetechnologiesthatcanbeusedtosatisfytheRPSincludesolar hot water, photovoltaics, landfill gas, wind, biomass, hydroelec-tric, geothermal heat pumps, municipal solid waste to energy, anaerobic digestion, or fuel cells using renewable fuels (Public Service Comission of Wisconsin,2011).ThroughdevelopingamoreaggressiveRPS,Wiscon-sin could catalyze job creation in the eligible technologies above.

Wisconsin currently has financial incentives for renewable energy and efficiency improvement. These include Milwaukee’s local loan program called Milwaukee Shines Solar Financing, Madison’s Green MadisonRevolvingLoanProgramand Milwaukee’s Energy Efficiency RevolvingLoanProgram.Wiscon-sin also offers a property tax equip-ment exemption for solar and wind energy equipment.

Wisconsin has historically required utilities to contribute to a public

benefits fund known as Focus on Energy. Starting in 2007, more than $60 million was annually made available to the Focus on Energy pro-gram, and in turn this money was used to fund energy efficiency and alternative energy projects. In a recent report from the Legislative Audit Bureau, it was determined that for every dollar spent on projects, the public received $2.30 in benefits. In spite of this, benefits to cost balance, the 2011 Budget Act reduced the contribution levels and restricted the use of Focus monies on renewable energy projects.

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In April, 2010, Wisconsin’s Manufacturing Extension Partnership launched the Profitable Sustainability Initiative (PSI). In little over a year, while working with 45 small and medium-sized businesses, the Profitable SustainabilityInitiativegenerateda31-to-1returnoninvestment(ROI)

(calculated over five years). The program provided small grants and technical assistance services with $1.75 million from the Wis-consin Department of Commerce (now the WI Economic Develop-ment Corporation) and the State Energy Program. The success of the first year resulted in an addi-tional round of funding targeted at an additional 30 companies.

The Profitable Sustainability Initiative is clearly an ongoing success in Wisconsin. However, Wisconsin can and should do more to link job creation and economic policy development. Following are examples of successfully linking policy development and new tech jobs support from other states in our region.

Michigan offers the following new tech support programs:*CleanEnergyAdvancedManufacturingRevolvingLoanFund(6%interest on expenditures in the clean energy area up to $2m)* Photovoltaic Manufacturing Credit (25% of the capital costs of building a PV facility, up to $15 million)*RenewableEnergyTaxAbatementZones(manufacturingfacilitiesinthe new tech sector that locate in these zones pay no taxes for up to 15 years)*ExperimentalAdvancedRenewableEnergyProgram(offerscustomersa buy-back tariff program for electricity produced by solar photovoltaic (PV) systems)* Biogas gasification and Methane Digester Property Tax Exemption (exempts energy production related farm facilities from real and personal property taxes)

Ohio offers the following new tech support programs:* Advanced Energy Job Stimulus Fund (loans of $50k to $2m for ad-vanced energy projects from new or existing businesses)*RenewableandAdvancedEnergyProjectPropertyTaxExemption(ex-empts qualified energy projects from property taxes)

Minnesota offers the following new tech support programs: *RenewableDevelopmentFund(offersapaymentof1.0¢to1.5¢perkilowatt-hour for electricity generated by on-farm anaerobic manure methane digesters or for electricity generated by new wind-energy proj-ects less than two megawatts)* Bioenergy grants (for facilities that produce bioenergy, including biomass-based transportation fuels, biomass-based commercial heat, industrial process heat, or electrical power. Grants are limited to 50% of the total project cost)* Methane Digester Loan Program (provides zero-interest loans for on-farm anaerobic digesters used for the production of electricity)

Illinois offers the following new tech support programs:*RenewableEnergyBusinessDevelopmentGrantProgram($100k-$500k (per project) grant program for the development, retooling, or expansion of renewable energy business and component manufacturers) *RenewableEnergyandEnergyEfficiencyProjectFinancing(lowinter-est financing for wind, solar thermal energy, photovoltaic cells and pan-els, biodiesel, crops and organic waste biomass, landfill gas, and “other alternative sources of environmentally preferable energy” projects)* Biogas and Biomass to Energy Grant Program (50% cost sharing pro-gram for installation of gasification, co-firing or anaerobic digestion technologies)

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robbyB via flikr.com

TheFederalgovernmentprovidesincentivesincludingRenewableEn-ergyGrants,CleanRenewableEnergyBonds(CREBs),Energy-EfficientMortgages,RenewableEnergyProductionIncentives(REPI)andtheResidentialRenewableEnergyTaxCredit(NorthCarolinaStateUniver-sity, 2012).

As illustrated by the multitude of federal and state programs, momen-tum is building. Wisconsin can support the development of a new tech economy and the associated jobs. An added benefit is to keep more of the state’s expenditures on energy in the state and to decrease our depen-dency on energy (specifically petroleum) that comes from other coun-tries.

Market Opportunities and Hiring OutlookWisconsin’s business community is currently dealing with a financial crisis; job growth in Wisconsin is slow, busi-ness expansion in Wisconsin lags, and confidence in our businesses is at an all time low.

However, these challenges offer mar-ket and job growth opportunities. The number of potential jobs in the new tech economy is expanding rapidly, sig-naling promising market opportunities to private and public investors. With increasing demand for energy and a relatively fixed supply, economic princi-ples point to price increases. One often overlooked advantage of most renew-able energy technologies is the fixed

future costs of energy generation. Once a solar panel or wind turbine is operational, future energy costs are stable and predictable.

China’s fast-growing new tech economy could provide millions of new

jobs over the next decade; an estimated 4.5 million new tech jobs will be created by 2020—largely in the new tech energy and transportation industries. China’s solar photovoltaic industry is projected to create an average of 6,680 direct jobs annually between 2011 and 2020 and the wind power industry is expected to generate approximately 34,000 new tech jobs each year in the same time period (Cundy, 2011).

A great deal of the infrastructure and technology for the new tech economy is emerging from China. Just as German companies in the bio-energy sector came to Wisconsin in 2011 looking for partners and North American footholds, so too will Chinese companies seek out regions that support new tech sectors. This presents an opportunity for Wiscon-sin to become a major player within the new tech economy.

Strategies for Advancing the New Tech EconomyOne of the first steps to be taken is to identify existing strengths in Wisconsin. This may involve identifying clusters of companies (such as the Wind Works Consortium, the Solar Thermal cluster or the Water Council) or helping to identify additional clusters (such as around bio-digesters). Once these clusters are identified, a coordinated effort should be launched to attract strategic additional target companies to the state.

Another step that should be taken is to identify target companies that are looking to establish a North American base. For instance, following the imposition of tariffs on Chinese solar panel manufacturers, one company, Trina Solar, said it is looking to site a US manufacturing facility so as to avoid the tariffs (Bloomberg Businessweek, 2012).

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The company currently supplies 17% of the US market and expects to boost shipments to the US as much as 39% in 2012 (Bloomberg Business-week, 2012).

An additional approach would be to stimulate venture capital investment in Wisconsin. According to Tom Still, President of the WI Technology Council, “Wisconsin has historically lagged in attracting investment dollars for emerging companies.” In 2011, Wisconsin companies raised $72 million while Minnesota companies raised over $300 million (Still, 2012). In addition, 19% of Minnesota jobs are associated with small business startups compared to 3% of Wisconsin jobs. Wisconsin even falls substantially below the national average of 11% of jobs associated with start-ups (Still, 2012).

Wisconsin also needs to hold new tech businesses in the state. One of the higher profile smart grid companies in the country is Silver Spring Net-works. Their name comes from their original location on Silver Spring Drive in Milwaukee. However, as they needed funding, they were unable to secure it in Wisconsin. In 2003, Foundation Capital, a west coast ven-ture capital company, invested $8 million into the company and moved it fromMilwaukeetoRedwoodCity,CA.Thesmartgridbusinesshasbeengood, and utilities in Illinois, Maryland and Oklahoma are now installing and testing digital meters that use Silver Spring technology.

As more clusters or start-ups emerge, a formal linkage should be devel-oped with the Department of Workforce Development. Wisconsin could integrate new tech jobs initiatives into existing workforce systems. This should include identifying career pathways and ladders out of poverty.

ConclusionWisconsin is a manufacturing power in the US. We have the workforce, the infrastructure, the history and the know-how to establish a “new tech belt” to replace the “rust belt”. At present, we lack only the will to em-brace the opportunity that other states are acting upon.

Trends in this report demonstrate the opportunities and challenges in the ongoing development of the new technology economy, both across the United States and right here in Wisconsin. Nationwide, the Bureau of Labor Statistics recently found 3.1 million people hold jobs in “every-thing from energy efficient appliances to advanced batteries to pollution control” (Content, 2010). According to that same report, Wisconsin has 59,000 people working in “green jobs”, more than the total number of people employed in papermaking in the state (Content, 2010). Nation-wide, the new tech economy “employs more people than the fossil fuels industry,” (Muro et al., 2011).

The new tech economy is producing jobs that are relevant to our state’s need for a revitalized manufacturing base. New tech jobs are primarily manufacturing jobs with a substantial export potential. Likewise, seg-ments of the new tech economy encompass a balanced array of jobs and occupations, with substantially more opportunities, and better pay for lower-skilled workers along with positions in higher-end “innovation” fields. The time is now to recognize and support the development of the new tech economy in Wisconsin.

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