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Mercury Marine Reportedly Looking to Consolidate in Oklahoma

This would hurt.

With its major plants running under capacity and the boat industry sinking during the recession, Fond du Lac-based Mercury Marine has become the subject of intense speculation that it may seek to consolidate operations either in Wisconsin or Stillwater, Okla.

For Wisconsin, the stakes are great.

Mercury Marine is one of the most storied names in the boat engine business and employs about 1,900 workers in Fond du Lac. The firm also employs 400 workers at a facility in Stillwater.

Representatives of Mercury Marine and Stillwater Chamber of Commerce President Larry Brown were reported in negotiations to move more production from Wisconsin, the Stillwater NewsPress reported Tuesday.

This little blurb was disturbing.

Some Republican lawmakers in Madison have grown restive, however, expressing fears that the state may be on the verge of losing more jobs in the manufacturing sector.

Shouldn’t they all be worried about losing more jobs?  Democrats too? 

Perhaps Governor Doyle will dispatch an intern from Commerce to explain the benefits of a regional cap and tax system to them. 

Blogger Beer has a source with a little more information. 

A source I have reports they are uncertain if this will affect all of Mercury Marine but he notes the Oklahoma people believe this to be the case.

Posted by Owen at 1025 hrs
Economy + Politics + Politics - Wisconsin

1. Thanks for the call out Owen.

   In the past, I have worked at Mercury Marine as a consultant. I liked working there and the pride it gave me during my travels to see the product on so many boats.

   That 1900 number I think is only the direct employees of Mercury Marine and probably does not count local vendors and contractors (e.g. the cafeteria staff).

   I have yet to hear any sort of timeframe on this, it would be a huge move.

   Posted by Marcus Aurelius on June 25, 2009 at 1100 hrs
   
   
   

2. Last weekend I was in Madison boating on Lake Monona and had occasion to meet the Dane County Sheriff boat on patrol.  Very nice guys by the way, very helpful.  BUT—- what immediately caught my eye was the big Yamaha 225 motor on their boat.  I asked my friend why on earth don’t they have a Mercury motor because it’s made in Wisconsin.  I was going to ask the deputies but my friend discouraged that.  How frustrating, we have a company right here and our state doesn’t even buy the product.  My friend said he thought it may be a “competitive bid” type of purchase but still this does not bode well for Wisconsin.

   Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1100 hrs
   
   
   

3. Combined reporting wouldn’t have anything to do with this decision would it?

   Even if you move to another state that has combined reporting - the less states you are in the cheaper it is for you.

   I’m also worried about Harley. Their $22 million is taxes gives them an awful lot of incentive to consolidate in another state. You can buy a lot of buildings with that as an annual payment…

   Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1129 hrs
   
   
   

4. I’m sure Gov. Doyle will explain how choo-choos are the wave of the future anyway and boats are no longer needed.

   :zzdeadhorse:

   Posted by hsgbdmama on June 25, 2009 at 1153 hrs
   
   
   

5. BUT—- what immediately caught my eye was the big Yamaha 225 motor on their boat.  I asked my friend why on earth don’t they have a Mercury motor because it’s made in Wisconsin.  I was going to ask the deputies but my friend discouraged that.  How frustrating, we have a company right here and our state doesn’t even buy the product.  My friend said he thought it may be a “competitive bid” type of purchase but still this does not bode well for Wisconsin.

   I’ve got a mercruiser on my boat, but having said that, may the best engine win.

   Engine/boats are usually sold as a package.  But the best outcome for any organization would be to purchase the product that best meets your needs regardless of local/regional emotinal factors. 

   I’ll tell you what. If the Milwaukee Police Department had all honda motorcycles they’d have probably spent a LOT less on them initially, DEFINITELY spend way less on gas, and definitely spend WAY WAY less on maintenance costs.

   All things being equal.  Heck yeah, buy local.  But when all things are not equal, don’t sacrifice a wise purchase decision to buy a substandard product from a local firm. 

   I don’t know what went into the purchase decision for the Madison police boats, and I have a v-8 mercruiser in my boat, so I’m not slamming them, but I (personally) am not so quick to get my panties in a wad over a yamaha motor on a police boat in wi.

   Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1210 hrs
   
   
   

6. Bottom line, MOST people purchase on price when features are tit-for-tat. When OMC (Evinrude/Johnson) was still around, Merc was never able to compete price-wise i.e.; I have a 150GT Johnson & a 5.5 Evinrude.

   When Cap & Ta happens, no-one will be able to afford boat gas anyway. It’s hard enough trying to find the alcohol free fuel the engine requires.

   Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1234 hrs
   
   
   

7. I guess if they have to move at least they are moving to Oklahoma, I had heard they were moving to Mexico.

   Doyle driving away more businesses…what a surprise (not).

   Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1246 hrs
   
   
   

8. Back in the 60’s my grandpa worked at Evinrude. They had three big factories here. All gone now.

   Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1256 hrs
   
   
   

9. Gee ... Another major Wisconsin Employer likely moving out of state.  What a shock.

   Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1346 hrs
   
   
   

10. My brother was an exec at Mercury - got laid off about a month ago.  I knew then that something like this would happen *sigh*

    Posted by .(JavaScript must be enabled to view this email address) on June 25, 2009 at 1413 hrs
    
    
    

11. I talked with some friends who work for John Deere. They wouldn’t be surprised if Horicon got shut down. Right now they’re being offered early retirement packages.

    We received a notice from Farm Bureau about the change in definition of “ag land” being saught by the state (Dems). Developers have taken advantage of the lower taxes on ag land so of course, let’s punish ALL the farmers…so what if milk prices don’t support the price of production?

    If it weren’t for wanting to be near our kids and grandchild, we’d be so out of here.

    Will the last factory leaving Wisconsin please shut off the lights?

    Posted by .(JavaScript must be enabled to view this email address) on June 26, 2009 at 0702 hrs
    
    
    

12. To Maynard,

    Bombardier Recreational Products owns the Evinrude brand and manufactures several lines in Sturtavent.  OMC is no more.

    Posted by .(JavaScript must be enabled to view this email address) on June 26, 2009 at 0828 hrs
    
    
    

13. Cross-posted on the crap budget thread…

    Hope and Change Wisconsin Style…

    General Electric just announced a new R&D facility - in Michigan - with plans to hire about 1200.

    How many just got laid off from the Wisconsin Healthcare operations this year?

    Even companies in bed with Obama know that the business climate in Wisconsin sucks.

    Posted by .(JavaScript must be enabled to view this email address) on June 26, 2009 at 1112 hrs
    
    
    

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