Halley has been steering the high-performance division since 2018.
By Gregg Mansfield
Four years after taking the reins as the general manager of Mercury Racing, Stuart Halley has seen the company thrive. After successfully managing the division through shutdowns and supply chain difficulties caused by the pandemic over the last two years, the high-performance engine manufacturer is now poised for a significant expansion of its Fond du Lac, Wis., facility.
Halley has been part of Mercury Marine for 29 years, and the last two years have undoubtedly been the most difficult of his career. Originally an aerospace engineer, he designed military aircraft at General Dynamics and Lockheed before being recruited by Mercury Marine.
Mercury Racing unveiled the 300R outboard in 2018, marking Halley’s first year as general manager of the Fond du Lac, Wis., company.
Since Halley assumed the role of general manager at Mercury Racing in 2018, the company has introduced
a range of new outboards and products, with even more venues for launches looming. Mercury Racing has revisited its offshore racing heritage, recently deepening its partnership with Powerboat P1.
We spoke with the genial Halley about the marine industry, with the conversation lightly edited for clarity.
What have been the challenges of managing Mercury Racing during the two years of Covid?
Stuart Halley: Mercury Racing is fortunate to have a devoted, inventive, and skilled team that excels at problem-solving and addressing issues. We invested considerable effort to ensure employee safety and to meet customer demands. We attempted to understand our customers’ business challenges while balancing those with our supply chain limitations.
I want to commend our procurement team, which has done an incredible job overcoming daily hurdles. Without this committed group and our production workforce, we would be significantly further behind in addressing our partners’ and customers’ needs. We’re producing more products this year than we did last year, and we’re hopeful this positive trend will continue. Demand is robust, and we are expanding our factory space by adding 50 percent more floor area to accommodate this demand.
Under Stuart Halley’s leadership as General Manager, Mercury Racing launched the 300R, 200 APX, and 360 APX outboards.
How has Mercury Racing managed to keep up with unprecedented demand in the face of supply chain challenges and labor shortages?
SH: The supply chain issues have affected Mercury Racing just like they have impacted other businesses. Production became – and still is – more challenging and slower than we would prefer. However, we remain dedicated to producing premium, high-performance products and are collaborating closely with our supply chain to ensure we secure quality components for our customers.
What noteworthy accomplishments has Mercury Racing achieved during the past two years?
Mercury Racing launched the 200 APX and 360 APX competition outboards for circuit racing.
SH: Amidst a global pandemic and supply chain interruptions, Mercury Racing adapted and continued to lead in innovation by introducing new products and establishing vital partnerships.
The new 300R with Racing AMS has been incredibly well received. We also rolled out two new circuit racing engines, the 200 APX and the 360 APX, which have begun to be used by prestigious racing series like F1 Powerboat. The sound of these engines, with their race-tuned exhaust, is absolutely exhilarating. As international racing events recover, we anticipate increased usage of these engines.
One significant partnership we established was with the E1 racing series, which is developing a battery-electric-powered hydrofoiling vessel, and we are their official propulsion and propeller partner, with plans to participate in that series next year.
We are proud to be chosen as the long-block assembly and gearcase supplier for Mercury’s 600-hp V12 Verado, as we specialize in high-precision, low-volume manufacturing. All this activity has considerably boosted overall production in our facility, necessitating our plant’s expansion.
What strategies can the industry adopt to sustain long-term growth in new boaters?
SH: While the pandemic altered many aspects of various industries, it also drew people back to the water as a way to connect with family and friends. As they returned to boating, they discovered significant advancements in performance, reliability, and sophistication, making it more accessible for everyone to own and operate a boat.
Boating as a leisure activity is as popular as ever, and social events such as charity poker runs provide excellent venues for owners to display our products among performance aficionados while supporting worthy causes. I believe more people now appreciate the open water as one of the few remaining landscapes where one can enjoy an unobstructed driving experience. Beyond the no-wake zone, it all comes down to one’s skills, confidence, and engine power, which dictate the level of performance achievable and enjoyable.
Can you elaborate on how outboards have transformed the high-performance boating scene?
Mercury Racing 300R outboard.
SH: The rise of outboard power has been fascinating. The R-series outboards excel with the highest power-to-weight ratio and remarkable features developed by our skilled engineering team, which has enabled our high-performance boatbuilder partners to broaden and refine their powerboat offerings.
In the past, achieving over 100 mph on large waters required big sterndrive power. Today, thanks to substantial outboard power, the burgeoning outboard catamaran market has made this attainable. Conversely, if you want to take 15 of your closest friends on an 80- or 90-mph outing, while enjoying the luxury and technology of a high-performance center console equipped with triple, quad, quint, or even six-engine setups, that’s also possible.
How have extended warranties impacted the used-boat market?
SH: Warranty coverage is seen by customers as a reflection of a manufacturer’s confidence in their product. Longer warranties can significantly enhance peace of mind as part of the ownership experience and serve as strong selling points when boaters decide to upgrade or sell their boat.
In the R&D phase of new products, how do you select which boatbuilders to collaborate with?
SH: We are fortunate to have many exceptional boatbuilder partners producing high-performance powerboats. We strive to collaborate with all of them based on the specific types of boats needed to qualify and validate our new products.
A Nor-Tech center-console boat outfitted with quad Mercury Racing 300R outboards.
Do you anticipate the sterndrive market rebounding to previous levels?
SH: The sterndrive market remains a vibrant component of our business. While it’s unlikely to recapture the heights of 2008, we recognize there are customers who favor sterndrive performance products. Despite the remarkable advancements in outboard technology, nothing can compare to the visceral acceleration provided by QC4 sterndrive power. These machines are pure, unapologetic performance tools, appealing to discerning customers who demand excellence.
We continually seek innovative ways to engage enthusiasts with Mercury Racing’s thrilling powerboating experience, especially with QC4 products.
We are exploring partnerships with several luxury automotive consumer and lifestyle brands aimed at introducing performance vehicle enthusiasts to the Mercury Racing brand. Last year, we participated in the Audrain Concours in Newport, R.I., and plan to return this year with an even larger display of Mercury Racing-powered boats for product demonstrations in collaboration with various boatbuilder partners.
Was the significant investment in propellers driven by demand or a new design direction?
SH: A Mercury Racing propeller remains the most cost-effective way to enhance your boat’s performance without a complete repower. Logically, demand for propellers has increased due to the ongoing shift from sterndrive to outboard configurations, with some vessels now featuring up to six engines.
An increase in prop shafts correlates with a greater need for Mercury Racing propellers. Moreover, we are seeing tremendous demand from dealers for repowers and from consumers looking to enhance the performance and handling of their existing boats.
Are there any upcoming product launches that will impress consumers?
SH: Our commitment to pushing boundaries in innovation remains firm, and this is what excites our customers about our offerings.