Briggs & Stratton file for Chapter 11 bankruptcy

[Milaca]

I was very surprised to read this. Poor management?
https://www.usatoday.com/story/money...on/5473165002/

Also, I was surprised to learn that Briggs & Stratton owns Simplicity and Snapper.

[Milaca]

Found this diversification info on Briggs & Stratton's website: Changing Gears (2000 – 2010)

New Briggs & Stratton President and CEO Todd Teske, along with outgoing CEO John Shiely, continued carving out a future of maintained success for the Company. This future includes the entry into the end-products business.

In 2000, Briggs & Stratton purchased Generac Portable Products Systems, which produced pressure washers, generators, pumps and other home products.

In 2004, the Company acquired Simplicity Manufacturing, a leading designer and marketer of a broad range of premium outdoor power equipment used in both consumer and commercial lawn and garden applications. Included in this acquisition were the Snapper, Snapper-Pro, Giant-Vac and Ferris brands.

With a growing presence in the end-products business, the Company was restructured to more effectively meet the demands of its markets. In 2006, Briggs & Stratton organized our various segments into four main business groups: Engine, Yard, Home and International Products Groups.

On the heels of this strategic advance the Company also unveiled a new branding message, The Power Within. Aimed at sharing an emotional connection with its customers, the campaign emphasizes the Company's 101-year-old legacy, corporate strengths and the value of the independent spirit beyond its product lines. Briggs & Stratton believes there is an engine inside everyone that drives him or her forward. Evidence of this is seen in our Company’s customers, who have an extreme sense of pride and satisfaction in a job well done. Briggs & Stratton is committed to giving our customers the products to accomplish that.

[556063]

Don't be surprised. I've survived the last decade after regulatory mandates ended my heavy equipment run, closing many coal facilities, by selling 9-84 HP small Diesel engines. Tier 4 Final Diesel regulations are breathing down my neck again, and have more than doubled the cost of a new small Diesel. Many end users are throwing in the towel on Diesel. Meanwhile, Honda and the Chinese are flooding the market with cheap gas engines. My smallest 9HP Diesel costs $2000. You can buy a small 4-5 HP Chinese Honda knockoff for $250, and a Honda for about $400.

Briggs saw the writing on the wall, and tried to vertically integrate some end users into their company. Still, most brain dead consumers request Hondas on their equipment, then learn the hard way when they won't start a few years later how expensive parts are. They usually just buy another Honda powered piece and sell their dead item to an unknowing victim for a premium because it says Honda on it. I went and bought a Briggs powered push mower for my Son In Law because it was cheaper than fixing the used Honda he fell for.

Briggs did make some management mistakes, but the flood of cheap engines eroded their margins, even after moving some production to China. What I hope continues is the readily available supply of Briggs parts at low cost.

Every piece I own is Briggs, and I wouldn't have it any other way. It was the first engine I ever changed a crank in. A simple and great product in an over complex and over regulated market.

[JayBird]

Private equity firm means they will carve up the company and sell off those parts that have value and eventually abandoned the others as they are all about "Show Me the Money"

[8E45E]

Briggs did make some management mistakes, but the flood of cheap engines eroded their margins, even after moving some production to China. What I hope continues is the readily available supply of Briggs parts at low cost.

Every piece I own is Briggs, and I wouldn't have it any other way. It was the first engine I ever changed a crank in. A simple and great product in an over complex and over regulated market.

Don't be surprised if the Chinese end up buying the tooling, name and all the marketing rights, and move it over there complete, and resume production.

Craig

[jclary]

To me...it looks like business schools are failing somewhere in teaching lessons of sustainability as history continues to repeat. I have often heard that a business not growing, is a business that is failing. So... a lot of that potential growth was interpreted as "diversification." The problem with that is that often it looks like the executive's idea of diversification is to simply charge big bucks to attach their brand to a market and products in which they are not prepared in expertise nor long term market knowledge? OR...like Packard/Studebaker (K-Mart/Sears)...team up in a corporate club of misery.

For our small engine business, Tecumseh was a major competitor to Briggs & Stratton. However, they saw the future was not all that great with the flood of cheap Asian alternatives, and instead of continuing to diversify...they got out of the homeowner lawn equipment engine business and retreated into a market (refrigeration applications) in which they seem to be thriving. I have many Briggs & Stratton engines and a few Tecumseh's. I suppose for some time to come, we will be able to obtain parts for our Briggs engines the same way we do our Tecumseh engines...eBay!

OH...by the way...I have already begun to replace some of my Briggs engines with Honda engines. Plenty of good modern Honda small engines are available every spring for almost free on craigslist! Seems our younger generation mechanically illiterate (if it breaks throw it away) homeowners keep letting their pressure washer pumps freeze up and bust in winter and just discard them to buy another because replacement pumps are too expensive or too much trouble to fool with.

[345 DeSoto]

THANK you...again, Communist China...

[Colgate Studebaker]

Briggs also owns Kohler engines. My 2006 Simplicity lawn tractor was built about the same time that they were bought by Briggs. When we lived in Wiscosin I knew many, many people that worked for Briggs. Most were satisfied but rumblings were starting to brew. Other than my Simplicity I have Honda's on all my other equipment. Sad to say, but the B&S didn't hold up as they used to so I made the switch. Bill

[Milaca]

Briggs also owns Kohler engines.

I can find no relationship between Briggs & Stratton with Kohler, per my internet search. Kohler is an independent, very diversified, family-lead business according to this article: https://en.wikipedia.org/wiki/Kohler_Co.

Of other interest, I did find however that the Briggs & Stratton Vanguard V-twin engines were built in Japan by Diahatsu (a subsidiary of Toyota).

https://en.wikipedia.org/wiki/Briggs_%26_Stratton

[ddub]

Remember this rush to the bottom is driven by us consumers who consistently value low price over quality.

[Milaca]

One issue I had with Briggs & Stratton is that they stuck with their outdated flathead engines for too long while the foreign competition was offering overhead valve and also overhead cam engines. For too long, Briggs & Stratton engines were the Model Ts of the small engine market.

[556063]

Kohler does not own Briggs, or visa versa. Kohler has made a serious effort to grow their engine business in the up to 25 HP gasoline range in recent years, and Kohler purchased Lombardini (Italy) and is in the process of rebranding Lombardini Diesels as Kohler. Kohler also makes water faucets, gensets, etc. etc. and is diversified beyond small engines.

[556063]

Since the Wiki stories don't mention it, here is the details on the Kohler/Lombardini deal. Lombardini had very spotty product support in the US previous to the Kohler deal, and Kohler has kept everything on the down-low, hoping the Diesel engines would come to market interpreted as strictly Kohler. Just for those who may be skeptical. It's been a decade now:

https://www.rermag.com/news-analysis/supply-side/article/20945305/kohler-to-acquire-lombardini-engine-companies

[Colgate Studebaker]

I remember reading an article in the Milwaukee Sentinel Journal several years ago that covered Briggs purchase plans of the Kohler engine division. Whether that really happened I don't know. I presumed it did occur and I didn't follow it. Sorry for any confusion. My brother-in-law worked for Kohler for 30+ years in their power generator division. Kohler plumbing fixtures are excellent pieces, their faucets are so-so. Kohler has a couple fantastic golf courses and a hotel/restaurant too. Bill

[showbizkid]

Remember this rush to the bottom is driven by us consumers who consistently value low price over quality.

Blame the manufacturers for this. My years in advertising have taught me that manufacturers did this to themselves, with continual, never-ending sales, discounts, coupons, etc. Factory list price means nothing. We conditioned the buyers to expect the discount, to wait for the low price, and if your preferred brand won't give it, well then, you'll buy a cheap knock off knowing you can replace it cheaply when it breaks and still have money in your pocket vs. shelling out for the premium brand. We literally trained our customers to seek the lowest ground at the expense of our own offerings.

You can't sell quality merchandise on a 10% margin without either very high continuous volume or very low manufacturing costs. People say they value American-made, but when the bottom line hits their wallet they will go with an offshore brand at low cost every time.