— Fraser Industries CEO Patrick Kelly projects his company will more than double its gross revenue and add 100 employees by 2025 as the Superior commercial and military shipbuilder expands operations.
Kelly tells WisBusiness.com he’s using his past experience at companies such as Amoco and BP raising capital and then working for private equity firms turning dwindling companies into more profitable ventures. He expects to finalize all the remaining formalities to secure investments needed to expand the shipyard and other operations before the end of the year.
Fraser also projects its headcount in Superior will grow up to 375 from a little more than 200 in 2022 in order to meet demands, according to documents exclusively provided to WisBusiness.com.
“Today, we have over a three-year — up to a four-year — backlog of boats to be built,” Kelly said, using boats to define everything from commercial ships to 30 foot Lake Assault Boats. “And so this [expansion] recognizes that and says, as we build additional floor space, I fill it immediately.”
The 133-year-old private company has a 600-foot drydock and another 800-foot drdock in Superior, facilitating major repairs and shipbuilding projects that might otherwise need to take place on the West Coast or East Coast.
Fraser projects gross revenue to grow to $102.4 million by 2025 from $42.5 million reported in 2022.
Expanding train and rail operations while making Fraser a public port — opening up 7,500 square feet of dock space — are some of the ways Kelly and his partners are bringing in more business.
The company’s Superior shipyard previously only used about 15 acres of the 60-acre property. But that extra land is now generating revenue since Fraser opened up a cargo terminal, looked to add railroad spur lines and started doing rail repair and paint services.
“It’s about serving customers in any way that we can,” Kelly said. “And, you know, business is hard, growth is hard to achieve. It’s not easy, but when you have a customer knocking on the door, saying, ‘Hey, will you do this for me?’ That’s kind of the light bulb goes off and says, ‘Okay, there’s a business there. Let’s go after that.’”
Fraser is proposing to invest $20.7 million in rail-related areas such as cranes, new tooling and equipment, and expanded production lines. The company argues the investments would make it possible to more than double production capacity, improve operation reliability, and save time and costs.
More work for Fraser would also mean more work for all the Wisconsin-based suppliers the company contracts with, Kelly said, noting the company strives to work with local suppliers.
While many details about contractors are confidential to maintain national security, Fraser’s lobbyist John Jacobson told WisBusiness.com the company was able to start installing Fond du Lac-based Mercury Marine motors on some of its boats after other suppliers were unable to provide some engine components due to supply chain issues.
About 85 percent of the company’s revenue comes from commercial and government contracts to build new ships or maintain and repair existing ships. Fraser has contracts with every branch of the U.S. military — save for the U.S. Space Force — as well as the National Park Service, various state agencies, tribal nations and several private companies, among others.
Fraser delivered its 200th aluminum lake assault boat this year and has contracts to build U.S. Navy docking vessels, U.S. Navy dive boats, NATO medium patrol boats, the Madeline Island ferry and a custom ferry boat for the Beausoleil First Nations Tribe in Ontario, Canada, among other work.
Kelly also said he’s been pushing Congress to change federal law to allow the U.S. Navy to bring its smaller ships — not aircraft carriers or larger battleships — through the St. Lawrence Seaway to the Great Lakes for repairs and maintenance. That would boost the workload for Fraser and many other shipyards in the region.
Kelly said the seaway could handle the extra traffic too as it currently only sees about 50 percent of its capacity flowing through the channels. Allowing naval ships to repair on the interior lakes would reduce maintenance turnaround times, increase military readiness and the twin ports of Superior and Duluth could provide more than adequate sailor accommodations while repairs are underway, Kelly said.
“Let’s get a big Navy vessel in and put them up at Barker’s Island,” Kelly said. “I don’t know why we wouldn’t. Many parts of the year it’s available and could be great accommodations for our sailors. I’m sure the Duluth-Superior Harbor would welcome our armed forces with open arms. What a what a great addition to the neighborhood, so to speak.”
— The latest MMAC trends report shows evidence of “solid economic gains” in the Milwaukee area in recent months.
Bret Mayborne, vice president of economic research for the Metropolitan Milwaukee Association of Commerce, notes 16 of the 22 indicators tracked in the report were positive in July. That’s up from 11 positive indicators four months ago, and 14 in the June report.
“Improving job growth across a broad base of major industry sectors, a stable unemployment situation and continuing improvements in the manufacturing sector have led this economic trend,” Mayborne said in a statement.
Seven of the metro area’s 10 major industry sectors added jobs year-over-year in July, the report shows. The strongest growth was seen in leisure and hospitality, with 7.4 percent more jobs; government, up 2.9 percent; and education and health services, 2.2 percent.
Information technology had the largest job losses over the same period, with a 4.8 percent drop.
And while the number of unemployed people in the area rose 2.1 percent over the year, the number of new unemployment compensation claims fell 13.8 percent, MMAC found. The local unemployment rate, 3.6 percent, was unchanged over the year and remains below the national figure of 3.8 percent. But it’s higher than the statewide rate of 2.6 percent for July.
Meanwhile, improvements were seen across all factors related to manufacturing production workers, the report shows. The average length of the work week for these employees increased over the year for the first time in five months, rising 7 percent to 36.9 hours.
At the same time, average weekly earnings for manufacturing workers rose 11.2 percent to $1,098, and average hourly earnings increased 3.9 percent to $29.75.
See more from the report: https://www.wisbusiness.com/2023/metropolitan-milwaukee-association-of-commerce-july-economic-trends-report-for-metro-milwaukee-2/
— Versiti President and CEO Chris Miskel is the recipient of the Wisconsin Biohealth Business Achievement Award, which recognizes achievements in the state’s biohealth industry.
BioForward Wisconsin on Friday announced the ninth annual Wisconsin Biohealth Awards, which will be formally presented Oct. 17 at the Wisconsin Biohealth Summit in Madison.
The group’s CEO, Lisa Johnson, praised Miskel’s “exceptional leadership and unwavering commitment” to the team at Versiti, a blood health organization headquartered in Milwaukee.
BioForward is also recognizing Dr. Thomas Grist, a professor and chair of the Department of Radiology at the UW School of Medicine and Public Health, in this year’s awards. He will be presented with the Hector F. DeLuca Scientific Achievement Award next month for his work in the field of medical imaging.
“It’s an honor to recognize these remarkable individuals for their outstanding achievements for innovation within Wisconsin’s biohealth sector but also underscores Wisconsin’s position as a hub of excellence in both scientific innovation and business leadership,” Johnson said in a statement.
See more in the release: https://www.wisbusiness.com/2023/bioforward-2023-wisconsin-biohealth-award-recipients-announced/
See a recent story on Versiti featuring comments from Miskel: https://www.wisbusiness.com/2023/versiti-expansion-expected-to-bring-more-than-100-jobs-to-the-state/
Listen to an earlier podcast with Johnson: https://www.wisbusiness.com/2023/wisbusiness-the-podcast-with-lisa-johnson-bioforward-wisconsin-3/
<br><b><i>Top headlines from the Health Care Report…</b></i>
— A Marquette University researcher is getting $1.68 million in federal funding to study processes that lead to cancer and degenerative diseases.
<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i>
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— The Water Council is now taking applications for its fall Tech Challenge, which is seeking innovative ideas related to PFAS and pressurized pipes.
This semi-annual competition is open to entrepreneurs, startup companies, established businesses, researchers and anyone else with a solution for one of three selected topics.
For the Milwaukee group’s latest Tech Challenge, these include: destruction and treatment of PFAS in drinking water; detecting PFAS in drinking water; and non-destructive structural analysis of pressurized pipes.
PFAS, or per- and polyfluoroalkyl substances, are harmful man-made chemicals that have been found in the environment since being used in a wide range of household products for decades. They’ve been dubbed “forever chemicals” because they don’t break down easily, and have been linked to numerous human health issues including cancers.
Participants in the challenge are competing for a $10,000 prize as well as getting their solution in front of water technology companies sponsoring the contest. Finalists have the chance to present to members of their research and development divisions, according to a release.
Applications are being accepted through Nov. 5.
See the release: https://www.wisbusiness.com/2023/the-water-council-tech-challenge-seeks-solutions-for-contaminants-pipe-issues/
See more: https://thewatercouncil.com/programs/tech-challenge/
#TOP STORIES#
# Sweat equity leads to private equity
# AI, childhood obesity and chronic student absenteeism will be focus of new legislative task forces
# Regal Rexnord becomes latest outstate company to move HQ to Milwaukee
#TOPICS#
# AGRIBUSINESS
– Wisconsin Farm Bureau hiring District 7 coordinator
http://wisconsinagconnection.com/story-state.php?Id=832&yr=2023
# CONSTRUCTION
– With Lake Michigan water pipeline complete, Waukesha celebrates
# EDUCATION
– US Department of Education Deputy Secretary visits Milwaukee Public Schools to highlight STEM achievements
– Republican Rep. Dave Murphy questions whether UW-Madison complying with affirmative action admissions ban
– Madison’s investment in education lauded by U.S. education secretary
– New bar at Sherman Phoenix will have frozen drinks and bartending classes
# ENVIRONMENT
– After a wet spring, dry conditions kept water levels from rising much on the Great Lakes this summer
# FOOD AND BEVERAGE
– Stuffed Olive bar heads downtown along with retro club and ‘beercade’
# LABOR
– Labor organizations, elected officials paint diverse picture of future infrastructure workforce
# LEGAL
– Wisconsin sawmill operator agrees to follow federal child labor laws after teen accident death
# MANAGEMENT
– Baird makes its mark on Milwaukee
– Q&A: Bradley Corp. leadership on the decision to sell the family business
# MEDIA
– ‘Top Chef’ host, judge continue sharing Milwaukee food adventures on Instagram
# POLITICS
– Budget negotiations could cause Farm Bill to hit familiar cliff
http://wisconsinagconnection.com/story-state.php?Id=830&yr=2023
# REAL ESTATE
– Regal Rexnord shifting corporate HQ from Beloit to downtown Milwaukee
# RETAIL
– Roundy’s Supermarket’s Mariano’s brand, some of its stores to be sold
# SPORTS
– Ironman Wisconsin competitor, 55, recalls days as Badger, Packer
– Sussex indoor golf bar to open second location, in Waukesha
# PRESS RELEASES
<i>See these and other press releases:
http://wisbusiness.com/index.iml?Content=82 </i>
St. Norbert College: To hold Annual SNC Day on Saturday, Sept. 16
BioForward: 2023 Wisconsin Biohealth Award recipients announced
