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in China, its sales are increasing and the company is in expansion mode, building a $20 million testing facility visible to people driving by its massive manufacturing facility along U.S. 41. The new facility will allow the company to test a wider variety of engines, allowing it to develop new products more quickly. "The expansion going on now is directly related from overall market growth," Schwabero says. "In the U.S. market, we are seeing a recovery in some segments, such as engines for fishing boats and pontoons." With nearly $2 billion in sales, Mercury Marine is not only Fond du Lac's largest manufacturer with more than 1 million square feet of space, it's also a global manufacturing powerhouse. "Their presence in our community is almost immeasurable," says Joe Reitemeier, president of the Fond du Lac Association of Commerce. "Not only do they have a large employment base, there are several hundred companies that provide services or supplies to Mercury. They're also active in the community and looking for ways to make a difference." Innovation drives growth Although Mercury Marine plans to celebrate its 75th anniversary next year, there was a time not so long ago that some wondered if the engine maker would maintain its significant Wisconsin footprint. In 2009 as sales fell, the company decided to consolidate its engine making in either Fond du Lac or Stillwater, Okla., to help save money and right the company's financial ship. Differences on the water A boat engine is a boat engine, right? Wrong. Just as there are multiple engine types for vehicles, the same goes for marine vessels. The two main categories are outboards and stern drives – both of which are made by Mercury Marine. Outboard engines are the most common way to power small watercraft vessels such as pontoon boats and fishing boats. Outboard engines consist of a self-contained unit that includes the engine, gear box and propeller and is affixed to the outside of the vessel. Stern drives consist of an engine and drive connected to one another through the transom, or the flat area at the back of a boat. Stern drives are designed so that the engine is inside and enclosed by the boat, while the propulsion system (out drive) is outside of the boat and in the water. Mercury designs and manufactures engines that run on gas and diesel. The engines also vary in speed from 2 horsepower to 300 horsepower. Schwabero admits it was a difficult time, "but just as when you have emotional decisions in your personal life, they bring you closer to those around you. The experience left us with closer relationships with the city, county and state. I can't forget about our employees either. Their hard work has "Their presence in our community is almost immeasurable. Not only do they have a large employment base, there are several hundred companies that provide services or supplies to Mercury." > Joe Reitemeier, president of the Fond du Lac Association of Commerce Stillwater leaders brought considerable incentives to the table. It wasn't until the company's union agreed to concessions and the city, county and state brought their own incentives to the table that Mercury Marine decided to stay in Fond du Lac. Mercury Marine's financial package included $70 million from the state in refundable tax credits, a $50 million loan from the county paid for by a 0.5 percent sales tax, and $3 million in financial aid from the city. At the time, the saga dominated state headlines, especially after union workers voted initially to reject any changes. There was a lot of intensive negotiation before the second vote and the company reversed its decision to consolidate operations in Oklahoma. 24 | Insight • J u l y 2 013 allowed us to get where we are today. They are really great and have a passion for what we're all about." Today, that difficult time is past and the company is adding jobs. In the past three years, Mercury Marine officials estimate the company has brought an additional 950 jobs to the community – many of them by bringing work from Stillwater to the Fond du Lac plants. Other hiring has come from company growth. Most of the positions created and filled are related to engineering and product development. "Innovation is an essential component to our company's growth," says Schwabero, who has been w w w. i n s i g h t o n b u s i n e s s . c o m