Founded In Wisconsin - Racine's Twin Disc Manufacturing

The Founding (1918–1920s)

Twin Disc was founded in September 1918 in Racine, Wisconsin, by P.H. Batten, Arthur B. Modine, and inventor Thomas Fawick. They developed a dual-disc clutch for farm tractors, solving the common issue of clutch failure and offering the durability needed in American agriculture. This innovation attracted major clients like the Wallis Tractor Company and Minneapolis Steel & Machinery. The "Twin Disc" clutch effectively replaced unreliable "cone clutches" and "band clutches" that often slipped, overheated, and needed constant adjustments, addressing mechanical challenges in heavy industry and farming during the late 1910s.

Thomas Fawick and P.H. Batten revolutionized clutch technology with their dry-plate, multiple-disc clutch, featuring dual friction surfaces and toggle-action engagement. This design efficiently dissipated heat, handled high-torque engines, and allowed easy manual adjustments. Originating in Racine, its modularity and local expertise facilitated industrial adoption and mass production. The clutch's durability ensured smooth power transfer, protecting engines under demanding conditions.

The Twin Disc clutch was crucial in industrial modernization. By 1918, it became essential for tractors, replacing animal power, and was adopted by companies like Wallis Tractor and Massey-Harris. In the 1920s, as the U.S. expanded its highway systems, the clutch's robustness supported construction machinery transitioning to gas and diesel engines. Its patented mechanism created a "Cornered Resource," compelling OEMs like Caterpillar and Waukesha Engines to use Twin Disc components, establishing high switching costs that continue to benefit the company.

The original clutch design's adaptability was its most notable legacy. In the 1930s, P.H. Batten developed the Marine Reverse and Reduction Gear by incorporating "Twin Disc" friction technology into an oil-cooled housing. This innovation, based on the 1918 clutch patent, enabled Twin Disc to dominate the marine market, powering essential WWII vessels like the Higgins Boats. Anticipating agricultural market fluctuations, the company diversified into roadbuilding and oil field equipment in the 1920s and entered the marine market in the 1930s. During WWII, Twin Disc manufactured over 100,000 marine transmissions for Allied landing craft, earning the Army-Navy "E" Award. After the war, the company focused on global expansion, forming a long-term partnership with Japan's Niigata Converter Co. and evolving into a systems provider by acquiring brands like Arneson Surface Drives and Veth Propulsion, solidifying its leadership in high-end marine propulsion.

Thomas L. Fawick | 1st President (1918–1919)

The Fawick Flyer with Teddy Roosevelt riding along

Thomas L. Fawick, an American inventor and industrialist, developed the "twin disc" clutch, a key innovation for the company he co-founded. Though briefly serving as president, he focused on innovation, leaving business operations to partners like P.H. Batten. Born in Sioux Falls, Fawick left school at 15, believing it stifled creativity. By 20, he designed the "Fawick Flyer," America's first four-door touring car, which gained attention when Theodore Roosevelt rode in it during a parade.

After financial challenges, Fawick moved to Racine, introducing his clutch design to Arthur Modine and P.H. Batten, forming Twin Disc. Preferring innovation over executive roles, he sold his interest in 1936 to focus on pneumatics and elastomers. He founded the Fawick Clutch Company and developed the "Airflex" clutch, vital for Navy vessels in World War II. With over 250 patents, Fawick's expertise spanned machinery to the arts, producing "Fawick Violins," creating the first all-rubber golf grip with "Golf Pride," and donating a bronze replica of Michelangelo's David to Sioux Falls.

Fawick emphasized Counter-Positioning, seeking new solutions rather than enhancing existing technologies. He transitioned from mechanical linkages to air pressure systems and from leather to rubber materials. His departure from Twin Disc allowed the company to focus on heavy-metal transmissions, while he continued innovating in industrial rubber.

Percy Haight (P.H.) Batten | 2nd President & Chairman (1919–1960)

Percy Haight Batten, known as P.H. Batten, transformed Twin Disc into a leading global industrial entity. A Purdue mechanical engineering graduate, Batten gained valuable insights into tractor clutches as a works manager at Wallis Tractor Company, which became crucial to Twin Disc's success. As president from 1919, he guided the company through economic challenges by expanding into industrial clutches and marine transmissions during agricultural downturns. His leadership during the Great Depression and World War II ensured Twin Disc's resilience, notably with the X8708 marine gear for Higgins Boats. Batten's financial management and commitment to quality earned numerous Army-Navy "E" Awards. Known for his formal yet fair leadership, he was engaged in the Racine community, viewing Twin Disc as a vital stakeholder. His foresight positioned the company for success in high-margin drivetrain markets. Even after passing leadership to his son, John H. Batten, he remained influential until his death in 1960, leaving a lasting legacy in Racine's industrial strength.

John H. Batten | President & CEO (1948–1983)

John H. Batten, a Yale graduate and son of P.H. Batten, transformed Twin Disc into a global leader in transmission systems. As president from 1948, he led international expansion, establishing a plant in Belgium and partnering with Niigata in Japan. Under his leadership, R&D focused on power transmission systems, including hydraulic torque converters and the "Total Marine" concept. His passion for aviation contributed to the development of Racine's airport, now named after him. Batten's tenure marked a "Golden Age of Expansion," characterized by strategic foresight and modernization, culminating in his retirement in 1983 and leaving a lasting legacy until his passing in 1989.

Twin Disc evolved from a family-held partnership to a publicly traded corporation, transforming from a clutch company to a global systems provider. Under John H. Batten (Sr.), the company rebranded to Twin Disc, Incorporated in 1967, reflecting its expanded product line. By 1969, Twin Disc went public on NASDAQ under the ticker TWIN, providing capital for international expansion in the 1970s and 1980s, fostering European manufacturing growth and Asian partnerships.

Michael E. Batten | Chairman & CEO (1983–2013)

Michael E. Batten, an alumnus of Yale and holder of an MBA from Harvard, led Twin Disc for three decades, transforming it from a producer of mechanical components into a provider of advanced propulsion systems. Renowned for his dedication to Racine, he managed significant acquisitions such as Arneson Surface Drives and Rolla Propellers, which enhanced the company's capabilities in high-speed marine propulsion. Batten introduced pioneering technologies like QuickShift and the Express Joystick System, integrating electronics to enhance control and reliability. Under his leadership, Twin Disc's brand became synonymous with unparalleled reliability, creating strategic advantages such as engineering "lock-in." As a civic leader, he supported local initiatives and cultural institutions, leaving a lasting legacy in Racine. He retired as CEO in 2013, succeeded by his son, John H. Batten, and remained Chairman until his passing in 2015, marking the end of an era that bridged Twin Disc's transition to high-tech systems amidst the de-industrialization of the Midwest.

John H. Batten | Current President & CEO (2013–Present)

Since 2013, John H. Batten has led Twin Disc, Inc. towards electrification, hybrid propulsion, and digital integration to stay competitive in a decarbonizing market. With degrees in History from Yale and Mechanical Engineering from the University of Colorado-Boulder, Batten combines critical thinking with technical expertise. He began as an Applications Engineer in 1996 and became CEO, overseeing "The Green Pivot," highlighted by the 2018 acquisition of Veth Propulsion to enhance hybrid and electric marine capabilities. Acquisitions of Katsa Oy and Kobelt in 2024-2025 further emphasized Twin Disc's focus on autonomous vessel controls and hybrid-electric powertrains. Under his leadership, the company transformed from a "gearbox maker" to a systems provider, boosting customer loyalty through proprietary controls and digital monitoring systems. By late 2025, Twin Disc's financial strength was evident with a $150.5 million backlog, driven by defense and hybrid marine demand. Batten remains committed to Racine, Wisconsin, valuing its industrial heritage, and actively engages in community initiatives, earning the 2025 Distinguished Citizen Award from the Three Harbors Council.

Twin Disc, Inc.'s Innovative Marine and Industrial Power Solutions for 2026

In early 2026, Twin Disc, Inc. offers products combining traditional mechanical power transmission with digital and electric technologies, divided into On-Water (Marine) and On-Land (Industrial/Off-Highway) segments. The marine segment includes Marine Transmissions with QuickShift® for seamless shifting and MGE/MGH series for electric and hybrid use. Veth Propulsion provides 360-degree maneuverability with Z-drives, L-drives, and Veth Jet thrusters. High-Speed Propulsion features Arneson Surface Drives and Rolla™ Propellers. Katsa Marine Gearboxes cater to heavy-duty needs. Twin Disc supports "green" solutions and emissions compliance with Hybrid Systems and Full Electric Systems, and offers California CORE Approved electric conversion kits.

Twin Disc develops drivetrain management software and hardware, including the Express Joystick System® (EJS) for docking, Express Positioning® for GPS positioning, and the Power Commander® (EC300) for engine control. In the terrestrial sector, the company provides Power-Shift Transmissions for ARFF vehicles and military trucks, Power Take-Offs (PTOs) for industrial use, Hydraulic Torque Converters for oil, gas, and locomotives, Pump Drives for hydraulic pumps, and Defense & Autonomous Systems for unmanned vessels and NATO projects. Strategic acquisitions of Katsa & Kobelt enhance their capabilities.

Navigating Competitive Pressures: Twin Disc's Strategic Position in a Challenging Market

Twin Disc experiences high competition from global leaders like ZF Friedrichshafen, Caterpillar, and Volvo Penta, driven by fuel efficiency and digital controls. OEMs have moderate to high bargaining power due to high switching costs once a Twin Disc transmission is integrated. Suppliers hold moderate power, with reliance on specialized alloys and semiconductors. The threat of substitutes is moderate, with a shift towards fully electric systems, which Twin Disc addresses by developing hybrid/electric solutions. New entrants face low threat due to the capital-intensive nature of manufacturing and Twin Disc's proprietary knowledge.

Strategic Expansion and Innovation in Global Marine and Defense Sectors

The focus spans global marine, military/defense, and energy sectors, with vehicles driven by a blend of organic R&D in electrification and strategic acquisitions, including Katsa Oy and Kobelt Manufacturing. The hallmark is "Horsepower made to work," excelling in extreme reliability and custom solutions that surpass standard offerings. Operations are optimized by relocating high-volume assembly to free-trade zones like Lufkin, TX, to counter tariff impacts, while R&D remains in Racine. The economic strategy hinges on high-margin specialized hardware and a "razor-and-blade" model, leveraging a vast installed base for sustained aftermarket parts and service revenue.

Twin Disc faces high switching costs, as replacing their systems in Navy vessels or luxury yachts is expensive. They hold over 990 patents and possess unique engineering expertise in high-torque "surface drives," making these resources rare. The company leverages its longstanding reputation to counter newer electric startups by offering robust hybrid systems that combine diesel and electric power. With 108 years of reliability in the marine industry, Twin Disc's brand is well-established.

Twin Disc: A Pillar of Racine's Industrial Legacy and Community Support

Twin Disc is a fundamental pillar of Racine's industrial legacy, having maintained its headquarters on Racine Street for more than a century. While many manufacturers have departed the Rust Belt, Twin Disc continues to be an integral part of the community, providing high-skilled employment opportunities in engineering and machining. The Batten family has significantly impacted Racine by consistently supporting local health, education, and social services. In 2025, their ESG initiatives focused on educational partnerships in Racine, with the goal of cultivating future "hybrid" engineers.

Sources:

Corporate Histories & Official Records

• Modine Manufacturing Company. "Modine Manufacturing Company History." Company-Histories.com. International Directory of Company Histories, Vol. 8. St. James Press.

• Twin Disc, Inc. "Twin Disc Celebrates 100 Years of Making Horsepower Work." TwinDisc.com. April 26, 2018.

• Twin Disc, Inc. "Twin Disc, Inc. | Encyclopedia.com." International Directory of Company Histories.

• Matrix BCG. "Brief History of Modine Manufacturing Co." MatrixBCG.com. November 2025.

• PESTEL Analysis. "Brief History of Twin Disc Company." PESTEL-analysis.com. December 2025.

• Zippia. "Modine Manufacturing History: Founding, Timeline, and Milestones." Zippia.com. July 2023.

Biographies & Historical Archives

• Archival Resources in Wisconsin. "Twin Disc, Inc. Collection, 1919-1989 (bulk 1949-1989)." University of Wisconsin-Parkside, Archives and Area Research Center. Finding Aid: UWPKS Manuscript Collection 15.

• FamilySearch. "Arthur Bernard Modine (1885–1981) • Person Details." FamilySearch.org. Includes references to obituaries from the Racine Journal Times.

• Wikipedia. "Percy H. Batten." Wikipedia, The Free Encyclopedia. Last modified 2025.

• Wikipedia. "Modine Manufacturing." Wikipedia, The Free Encyclopedia.

• Transportation History. "1916: The Origins of an Automotive Technology Pioneer." TransportationHistory.org. June 23, 2023.

Industrial & Regional History

• U.S. Auto Industry in World War Two. "Twin Disc in World War Two: Marine Transmissions for Landing Craft." USAutoIndustryWorldWarTwo.com.

• Racine Journal Times. "Founder of Twin Disc, Percy H. Batten, Dies." April 8, 1960. (Archived news record).

• Modine HVAC. "Modine Products have been made in America since 1916." ModineHVAC.com. January 10, 2018.

• Twin Disc, Inc. (2025). Annual Report for the Fiscal Year Ended June 30, 2025. Securities and Exchange Commission Filing.

• Twin Disc, Inc. (2026, February 4). Q2 2026 Earnings Call Transcript. Investor Relations.

• Racine Heritage Museum. (2018). We Put Horsepower To Work: The 100-Year History of Twin Disc.(Commemorative Publication).

Business & Strategy

• Helmer, H. (2016). 7 Powers: The Foundations of Business Strategy. Deep Strategy.

• Hambrick, D. C., & Fredrickson, J. W. (2001). Are you sure you have a strategy? Academy of Management Executive.

• Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review.

Historical & Local Context

• Encyclopedia.com. (n.d.). Twin Disc, Inc. Business History. * Wikipedia. (2026). Twin Disc. [Accessed Feb 20, 2026].

• Racine County Economic Development Corp (RCEDC). (2025). Industrial History of Racine County: Case, Modine, and Twin Disc.