It’s worth the investment
Foxconn would bring billions of dollars in new economic growth to the region
The Foxconn announcement has generated more talk show conversation, news articles and editorials than any other event in Wisconsin this year. It’s a big deal. It deserves scrutiny and serious questioning.
As we’ve found so often in our open and democratic society, public debate is healthy. But given the sheer size of Foxconn’s commitment to Wisconsin and the complex incentive package supporting that commitment, it’s easy to get lost in the weeds, easy to be confused by some of the claims and counterclaims and easy to lose sight of the bigger picture and the broader goals.
First, a bit of background. Foxconn is one of the largest, most successful companies in the world. It employs more than 1 million people. Based on revenue, it is the fourth largest tech company on the planet. Apple, Microsoft, Sony and Hewlett Packard — to name just a few — depend on Foxconn to manufacture the electronic tools of the Internet era — smart phones, computers and entertainment systems — that consumers across the world stand in line to buy.
It’s important that Foxconn has developed a new technology called 8k — which has a clarity and resolution never seen before. This technology has the potential to dramatically improve medical surgeries, take homeland security to a new level, strengthen our national defense and make sports and entertainment events literally jump off the screen. And yes, Foxconn wants to bring that 8k technology to the United States by building a massive production plant that could employ as many as 13,000 people right here in Wisconsin.
So … it’s fair to say that this is anything but a normal economic development project. Foxconn is committing to creating an entirely new industry here — an industry that simply does not exist in the U.S. today. Creating this new industry here will mean that as many as 150 Foxconn suppliers must set up or expand operations near the new Foxconn campus — creating thousands of additional job and career opportunities.
We have several estimates of the broad economic impact of “Wisconn Valley,” starting with the need to employ 10,000 construction workers to build a 20-million square-foot campus. One credible analysis projects that more than $83 billion in new economic activity would take place in the state over the first 15 years of Foxconn’s operations here.
The opportunity that this injection of economic growth could provide for our families and generations to come is incredibly powerful. Wisconsin would stand at the epicenter of the evolving digital world — offering solid careers and even more reason for our young, talented workers to live and prosper here.
As business leaders, we must responsibly balance the rewards of any decision against its risks. We believe that the state has appropriately managed the risks involved in this partnership with Foxconn.
Wisconsin has not lowered its environmental standards for
plant operations, and any wetlands disrupted must be replaced at a higher ratio than currently exists in the state statutes today. The incentive package follows a “pay as you go” structure. Foxconn’s payroll and employee numbers will be audited and will drive the tax credits that are tied to jobs. So only when jobs are created, will jobs tax credits be paid.
And clearly, this is no field of dreams. Foxconn’s $10 billion capital investment is a key component of its growth strategy and operating plans. Our conclusion is this: Balancing the upside of $83 billion in new economic activity against an incentive package that pays out only as Foxconn delivers on its promises is a risk well worth the reward. Wisconsin will realize that reward through an opportunity to build on our manufacturing prowess, our skilled workforce and our improving business climate.
We urge the Legislature to pass this bill. We’re proud to call Wisconsin home, and we believe Foxconn will add to the prosperity of families across our great state.
Welcome to Wisconsin, Foxconn!
This commentary was submitted on behalf of Gale Klappa, WEC Energy Group, Milwaukee7 co-chair; Ted Kellner, T&M Partners LLC, Milwaukee 7 co-chair; Steve Booth, Robert W. Baird & Co. Inc.; David Lubar, Lubar & Co.; Blake Moret, Rockwell Automation; Allen Leverett, WEC Energy Group; John Schlifske, Northwestern Mutual; Jonas Prising, Manpower Group; John Bergstrom, Bergstrom Corp.; Matt Levatich, Harley-Davidson Inc.; Todd T eske , Briggs & Stratton Corp.; Cory Nettles, Generation Growth Capital Inc.; Ulice Payne Jr., Addison-Clifton LLC; Fisk Johnson, SC Johnson; O.C. Boldt, The Boldt Co.; Rich Meeusen, Badger Meter Inc.; Philip Flynn, Associated BancCorp.; David Casper, BMO Harris Bank; Michael B. Mahlik, Legacy Private Trust Co.; Wilson Jones, Oshkosh Corp.; David G. Voss Jr., Miron Construction Co., Inc.; Thomas Riordan, Neenah Enterprises Inc.; Michael J. Jansen, Faith Technologies Inc. and James F. Bere Jr., Alta Resources.