Friday, June 26, 2009

The HWY 23 Job Loss Corridor - Responding to Dad29

Dad29 says:
But distribution counts. Wisconsin is located in a part of the country which is very cold in the winter; people do not use powerboats on frozen lakes. The South doesn't have that problem, AND the South actually has lakes. A lot of them. And fishermen, too. (We could also postulate that "taxing the rich", a Wisconsin "solution" has an effect on boat-and-motor purchasing.)
Source: Dad29 — Merc Outta Here?
I don't know if Dad29 is being serious with this point, perhaps some sarcasm I am missing?

If Mercury Marine engines were only sold and distributed to local dealers — meaning WI, IL, MI, and perhaps MN then I would agree. However, Mercury Marine engines are sold worldwide meaning the winter season is going to affect Mercury Marine sales regardless of their actual location. A major portion of Mercury Marine's market is frozen every year and a move to Oklahoma will not change that.

The only consideration Mercury Marine must give to being located in the Frozen North is their ability to test their products during the winter and their test location is located in Florida not in Oklahoma.

At his blog Dad29 reiterates the word distribution. He says that he is talking about the cost to ship parts and accessories, which he believes (with good reason) down south still sell during the winter. While he does have a point I don't believe (no solid figures to back me up on this point, just a gut instinct) that to be a large or even a mid-sized factor. We are seeing WI not only strike out at luring new job centers to WI but are losing ones already here, this is not the first time.