— In the latest episode of Talking Trade, Crow Holdings Industrial Vice President Jack Rabenn says a new air cargo facility set to open in Milwaukee will provide an alternative to the delays and congestion importers and exporters currently face in Chicago.
Rabenn spoke with show co-host Sandi Siegel about the new supply chain center set to open in the third quarter of next year at Milwaukee International Airport. He said under the current system, freight is trucked between Wisconsin and O’Hare International Airport in Chicago. He said that “doesn’t make sense.”
“There’s an understanding among the shipping community in Wisconsin of … it does not make sense operationally for stuff to be trucked down in Chicago, then back up to Wisconsin,” Rabenn said. “There’s a lot of uncertainty with the congestion of O’Hare. So when their goods fly in, and they might be stuck for days sometimes before they can get back up to Wisconsin, or on the way out, get stuck at the building because of their ground stops, what have you.”
He also said using the Milwaukee facility would be about 60% cheaper for importers and exporters than O’Hare.
Rabenn said there has been a lot of excitement about the new facility, and he’s working on turning that into action by addressing any perceived risks. He said he understands no one will lose their job sending goods through O’Hare, even if it’s inefficient and costs more.
“So we’re working to reduce that perceived risk to make sure we get a first mover,” Rabenn said. “Because the first question I always get from a carrier or even a forwarder that doesn’t know the area is, ‘Well, who’s currently flying in there?’ And that’s inherently the wrong question, because there’s no facilities for them to fly into, and that’s why there’s the opportunity.”
Rabenn said part of tackling the issue will involve working with state lawmakers to create incentives, such as reducing landing fees or offering fuel tax subsidies, working with freight forwarding groups to demonstrate the benefits, and engaging with shipping companies.
“Because ultimately, if enough of them agree, making some type of commitment to a carrier on loads as a whole is a lot less risk than one of them sticking their neck out. So that’s where we’re at right now,” Rabenn said.
The show is hosted by E.M Wasylik Associates Managing Director Ken Wasylik and M.E. Dey & Co. President and Managing Director Sandi Siegel.
Watch the full episode here.
“Talking Trade” is now available in audio form on Apple Podcasts and Google Podcasts. Subscribe and find more episodes here.
— The Joint Finance Committee has signed off on providing $1.4 billion in new state money to cover Medicaid costs and raising the state’s assessment on hospital patient revenues to 6%.
The assessment is currently at 1.8%, and Gov. Tony Evers had proposed upping it to 5.4% with the backing of the state’s hospitals. The state uses the assessment to generate additional federal matching funds, and the Evers administration estimates hospitals would see over $1 billion more under the proposal.
The state would retain 30% of the funds, which would go into Wisconsin’s Medicaid trust fund. Republicans at the national level had proposed a crackdown on that assessment as part of the reconciliation bill. The two houses of Congress have had different language on the assessment.
The committee has also approved several mental health-related measures in the budget motion, including:
- $55.5 million in borrowing for the second phase of an expansion at the Mendota Mental Health Institute;
- $10 million for grants to Rogers Behavioral Health to develop an integrated mental health campus in the Chippewa Valley;
- $7 million for 988 Suicide & Crisis Lifeline grants to organizations that provide crisis intervention services; and
- $1 million for Lutheran Social Services to purchase and renovate a treatment center to create a 50-bed treatment center serving men with substance use disorders.
— Gov. Tony Evers has announced the Wisconsin Economic Development Corporation is authorizing up to $2 million in business development tax credits to support Catalent’s $45 million expansion.
The pharmaceutical and biotech company is expanding its Madison facilities, where Catalent works on new biological therapies and mammalian cell line engineering. The amount of tax credits Catalent receives of the $2 million will depend on the amount of jobs created. The expansion is expected to create 200 new highly skilled jobs, according to Evers’ office.
“Catalent is a perfect example of how our world-class workforce, our outstanding educational institutions, and our culture of innovation all fit together to make Wisconsin a leader in the field of biohealth and biopharmaceuticals,” Evers said. “This announcement is an incredible win for local folks and families, this vital industry, and our state as a whole, and I look forward to seeing how this development will continue to take shape in the months ahead.”
Catalent Group President of Biologics David McErlane praised Wisconsin as a “growing hub for innovation and collaboration.”
“We are proud to expand our operations in Wisconsin, a growing hub for innovation and collaboration, enabling us to advance the important work we do for pharma and biotech customers and the patients they serve,” McErlane said. “We have enjoyed a supportive business environment and access to skilled talent in Madison, and we look forward to Catalent’s continued presence and growth in Wisconsin.”
Wisconsin was named a U.S. Regional Tech Hub last year, paving the way for federal funding and new jobs in the state.
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