From Suburban Lawns to Bankruptcy: How a Small Engine Giant Fueled an American Revolution—Then Stalled

Briggs & Stratton’s story is a defining chapter in American industrial history, tracing a century-long journey from pioneering automotive components to dominating the small gasoline engine market. Founded in 1908 by inventor Stephen F. Briggs and businessman Harold M. Stratton in Milwaukee, the company initially pursued automobile manufacturing but pivoted to producing essential auto parts after early financial struggles. Their breakthrough came in 1919 with the acquisition of the 'Motor Wheel,' which evolved into the Type 'P' engine—the first mass-produced, air-cooled, two-stroke engine that brought portable power to everyday tasks like washing clothes and tending gardens. This innovation laid the foundation for their dominance in outdoor power equipment. The 1953 introduction of the lightweight aluminum engine revolutionized lawn care, aligning perfectly with post-WWII suburban expansion and cementing Briggs & Stratton as a household name. At its peak, the company powered eight out of ten garden machines and earned a Fortune 500 ranking in 1981. However, mounting pressures began to erode its stability. The 1970s oil crisis heightened demand for fuel efficiency, while rising environmental concerns pushed for stricter emissions standards, challenging the company’s reliance on gasoline engines. Intensifying competition from Japanese manufacturers, who offered high-quality, lower-cost alternatives, further strained its market position. Internal decisions, including aggressive labor negotiations in 1983 under CEO Fred Stratton—such as a two-tier wage system and benefit cuts—damaged employee morale and fueled criticism of union-busting tactics. Despite efforts to diversify into generators, pressure washers, and commercial products like the Vanguard engine line, financial performance weakened in the years leading up to 2020. The final blow came with the onset of the COVID-19 pandemic, which caused an 18% sales drop and triggered a liquidity crisis. On July 20, 2020, the company filed for Chapter 11 bankruptcy. The circumstances surrounding the filing drew widespread condemnation: just days prior, executives awarded themselves $5 million in retention bonuses, with CEO Todd Teske receiving $1.2 million, while simultaneously voting to terminate retiree health and life insurance benefits. Workers facing layoffs received minimal severance, underscoring a stark disparity in accountability and care. In September 2020, KPS Capital Partners acquired Briggs & Stratton’s assets for $550 million, allowing the brand to continue operations free of over $900 million in prior liabilities. Under new ownership, the company has pursued growth through acquisitions and expanded into lithium-ion batteries and energy storage, signaling a shift toward electrification. While the Briggs & Stratton name endures and its engines remain synonymous with reliability and ease of use—featuring innovations like 'ReadyStart' technology—the company’s collapse serves as a cautionary tale about the vulnerabilities of legacy manufacturers in the face of economic disruption, global competition, and leadership decisions that prioritize short-term survival over long-term loyalty. The legacy of Briggs & Stratton is not just one of mechanical ingenuity, but of the complex interplay between innovation, labor, corporate governance, and societal change—reminding us that even the most iconic brands are shaped by the human forces behind them.

There are no comments yet.

Please log in to write the first comment.