The weight of the world on their shoulders

by Russ Kamphuis, President and CEO of the Bank of Oakfield, Vice Chairman for FCEDC

As the next chairman of the Fond du Lac County Economic Development Corporation (FCEDC) board of directors, it is my job to look to 2010 and assess, with staff, what the near future will hold for our communities, our businesses and our residents. The outcome of the vote by Mercury Marine’s union on Sunday will most assuredly affect our future.

This is a difficult situation for everyone involved, especially the employees who will be casting their vote. I truly empathize with them for they must feel like the weight of the world is on their shoulders. It is not only their job at stake, but the jobs of approximately 4,000 of their neighbors in Fond du Lac County who work for companies who are suppliers to Mercury Marine or work for organizations who will be greatly affected by the potential loss of the company. The responsibility of each voting employee is incredible.

It is important that everyone understand the impact of Mercury Marine on Fond du Lac County. All told, an estimated $353 million in annual income in our county is on the line, and it is an impact that extends far beyond the boundaries of Fond du Lac County. 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. Bump the scope to the state level, and loss climbs to over 11,000 jobs and $600 million in annual earnings.

As incoming chair of FCEDC, I have to look at how it would affect our business climate. Approximately 1,000 companies in Wisconsin provide products or services to Mercury Marine, 250 of which are in Fond du Lac County. Among the hardest hit industries will be local governments, restaurants, health care and a wide-range of manufacturing businesses.

Our stakeholders are also the citizens of Fond du Lac County. So how does this decision affect us as individuals? Mercury Marine is a significant water and sewer customer of the City of Fond du Lac. If no new customers took their place, the water and sewer rates would possibly have to increase by up to 5.5% which equates to approximately $44 a year for the typical residential customer. In addition, Mercury pays over $620,000 in total property taxes, $219,000 of which is to the City of Fond du Lac. If the buildings were vacated, the value would decrease significantly leaving the other property taxpayers in the city, county, school district, and technical college district to pick up the difference.

The negative impact will be felt in all communities in Fond du Lac County. Nearly 400 of Mercury Marine’s employees live in Fond du Lac County communities outside the Fond du Lac zip codes. The potential loss of population could impact some of the smaller communities quite severely. For example, Oakfield is home to many Mercury Marine employees and their families. The loss of the company could directly affect over 12% of the 1,038 residents. This is not taking into account supply chain and those additional job losses previously mentioned.

The list goes on – property values, the impact on the area technical college system, the effects of higher unemployment rates, etc., but you get my point. The vote of the workers is a responsibility I wouldn’t wish upon anyone, but it is a challenge they face none-the-less. I would like to personally thank each and every one of the employees for making an educated decision based on facts, integrity and conviction.

Russell Kamphuis is President and CEO of the Bank of Oakfield and currently serves as Vice Chairman for the Fond du Lac County Economic Development Corporation.