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Rockwell Consolidates in Wisconsin

Armed with economic development awards and grants, the Badger State is awarding numerous companies with monies to train workers. Silicon Graphics, for example, received $315,000 in Technology Development Grant monies to defray costs when the computer systems and three-dimensional graphics systems manufacturer consolidated its manufacturing operations in Chippewa Falls. The money was also used toward the cost of providing high-performance computer, software and technology upgrades, and three years of on-site maintenance to help create an advanced computational facility at the UW-Madison Engine Research Center.

Industrial Revenue Bonds are promoting job creation and investment in communities in need of economic development opportunities. Re-Box Packaging received $18 million in bond money when it located to De Pere, Brown County, to manufacture corrugated containers and cartons out of recycled paper.

The biggest testimony to Wisconsin as a pro-business state came when Rockwell International Corp. decided to move its headquarters from Costa Mesa, Calif., to Milwaukee.

"Wisconsin is a great place to live and work," says Don Davis, Rockwell chairman and CEO. Rockwell's move was completed in late 1999.

The reason for the relocation was to be closer to its main operations, which are based largely in the Midwest. These operations include Milwaukee-based Rockwell Automation. Rockwell's business is now based primarily in the Midwest, following the spin-off of its Newport Beach, Calif.-based Semiconductor Systems business into Conexant Systems.

"Locating our headquarters close to our businesses in the Midwest significantly enhances the lines of communications within the company and increases the overall effectiveness of our operations," says Davis.

Chicago was a close contender for the headquarters' relocation. According to Davis, Rockwell chose Milwaukee over suburban Chicago, because Milwaukee provides a good base for working with its business units. In addition, Davis points to Milwaukee's quality of life and the fact that Wisconsin proposed to cut business taxes by $50 million a year by changing the way corporate income taxes are assessed as deciding factors.

Rockwell has a small but rapidly growing w-commerce business located in Wood Dale, Ill., outside of Chicago, which provides computer-controlled call-management systems for a wide array of consumer applications.

To ensure the deal, the state is providing a $1 million, low-interest loan to help finance Rockwell's relocation. The Milwaukee Economic Development Corp. also offered a $1 million low-interest loan.

Being pro-business is one aspect the state likes to promote. The Madison, Green Bay, Eau Claire and Appleton-Oshkosh-Neenah metro area economies won high marks as being among the strongest in the nation, according to a national study released by POLICOM Corp. POLICOM measured 18 economic elements for 318 U.S. metro areas over a 25-year period to determine their rankings.

The Madison metro area, at the number six spot, was ranked higher than several other metro areas that are known for their base of high-technology companies. The Raleigh-Durham-Chapel Hill, N.C. metro area (7th), the Minneapolis-St. Paul metro area (15th), the San Jose, Calif. metro area (42nd) and the Boston-Worcester, Mass.-N.H. metro area (59th) all ranked lower than Madison in economic strength.

--Karen E. Thuermer is a freelance writer based in Berwyn, Pa.