posted 8/28/09
 

Stillwater, OK…Here We Come


by Phil Montgomery
Wisconsin State Representative
 

Among our state’s many hometown companies, few have a longer Wisconsin history than Mercury Marine. Driving by the company’s world headquarters and manufacturing facilities in Fond du Lac, it’s hard to imagine the humble beginnings of the company founded back in 1939 by Carl Kiekhaefer. Seventy years later, Mercury Marine may soon call Stillwater, Oklahoma its new home.

Barring any last minute deal between the company and its plant workers, Mercury Marine will begin consolidating all of its manufacturing operations in Stillwater, Oklahoma perhaps as early as next month. Whether or not the company moves its headquarters there remains an open question, but it is by no means outside the realm of possibility.

The consequences will be devastating for the Mercury Marine workers, the communities in and around Fond du Lac as well as the State of Wisconsin. This point was driven home by Russell Kamphuis, Vice Chairman of the Fond du Lac County Economic Development Corporation, in an op-ed entitled “What Mercury Marine Means.” Let me share with you some of the more noteworthy statistics from this article.

• For starters, over the next two to three years, approximately 800 local Mercury Marine workers will lose their jobs. In total, 1,900 jobs will be lost should the company choose to relocate its world headquarters outside Wisconsin.
• In the seven-county region (Fond du Lac County and its adjoining counties), the direct and indirect impact is expected to result in the loss of almost 8,000 jobs and $450 million loss in annual earnings.
• Approximately 1,000 Wisconsin companies provide products and services to Mercury Marine. At the state level, the direct and indirect impact may result in the loss of more than 11,000 jobs and $600 million in annual earnings.

While I am still holding out hope an agreement can be reached that will keep Mercury Marine in Wisconsin, there are lessons to be learned from this episode and steps we must take to keep our hometown companies here and attract new businesses to the state.  

First of all, we must recognize the extraordinary competitive pressures facing hometown manufacturers. Current economic conditions are squeezing them from all sides. Their international competitors face fewer regulatory hurdles and in some cases receive preferential governmental benefits. To compete, our hometown companies must look for every advantage to make their product better and offer that product to customers at a lower cost.  

Second, we must shore up our state’s business recruitment and retention efforts. In the last few months, officials from Michigan, Louisiana and Georgia have successfully convinced local hometown companies to move at least a portion of their manufacturing operations out of Wisconsin. This disturbing trend will continue until we begin to offer incentives that are at least on par with those being offered by states like Oklahoma. 

Finally, let’s repeal the job-killing, anti-economic development initiatives adopted by the Democrat-controlled Legislature and signed into law by Governor Doyle since the beginning of the year. Six years ago, Governor Doyle said that “Wisconsin is already one of the nation’s most heavily taxed states. Adding to the burden would make it virtually impossible to attract new jobs while destroying more than 50,000 of the ones we already have.” Instead of following his own advice, Governor Doyle approved nearly $5 billion in new taxes, with the majority of those taxes negatively impacting job creation. Beyond the job-killing taxes, the Democrat-controlled Legislature has led the push for new regulations and restrictions that drive up the costs of doing business in Wisconsin.   

Next month, the State Legislature will reconvene for its fall floor session. Job creation and economic development should be at the top of our “to do” list. For my part, I will be working hard to enact the recommendations of the Wisconsin Jobs Now Task Force. 

 

State Representative Phil Montgomery represents Wisconsin’s 4^th Assembly District which includes the communities of Allouez, Ashwaubenon, De Pere and Green Bay. He currently serves as a member of the legislature’s Joint Finance Committee.