Market expansion
In the late nineteenth century, business expanded in the Western United States, as did the company's catalog. It grew to include typewriters, hand trucks, railway velocipedes, pumps, tractors, and a variety of warehouse and bulk shipping tools. The company became an industrial supplier distributing complete "turn-key" systems: tools, plumbing, gauges, gaskets, parts, valves, and pipe. Its 1910 catalog contained over 800 pages.
The Fairbanks Morse Company began producing oil and naptha engines in the 1890s with the purchase of the Charter line of engines (the first commercially available gas engine). They had the idea that an engine could be used as backup power for when one of their Eclipse windmills wasn't getting wind. The Fairbanks Morse gas engine became a success with farmers. Electricity generation and oilfield work also used these engines. Small lighting plants built by the company were also popular. Fairbanks Morse power plants evolved by burning kerosene in 1893, coal gas in 1905, then to semi-diesel engines in 1913 and to full diesel engines in 1924. The Model N was popular in stationary industrial applications.
In 1934, Fairbanks-Morse entered the radio business by acquiring the Audiola Radio Co. After a 1939 factory fire FM decided to exit the radio business. Fairbanks-Morse radios are well known for their colorfulness. The company also had brief forays into building automobiles, tractors, corn shellers, hammermills, cranes, televisions, and refrigerators, but output was small in these fields.
After the expiration of Rudolf Diesel's American license in 1912, Fairbanks Morse (FM) entered the large engine business. The company's larger Model Y semi-diesel became a standard workhorse, and sugar, rice, timber, and mine mills used the engine. The model Y was available in sizes from one through six cylinders, or 10 to 200 horsepower (150 kW). The Y-VA engine was the first high-compression, cold-start, full diesel developed by Fairbanks Morse without the acquisition of any foreign patent. This machine was developed in Beloit and introduced in 1924. The company expanded its line to the marine CO engine (Many 100 H.P. CO marine engines were used in the Philippine Islands to power ferry boats) as well as the mill model E, a modernized Y diesel. From this, Fairbanks-Morse became a major engine manufacturer and developed plants for railway and marine applications. The development of the diesel locomotive, tug, and ship in the 1930s fostered the expansion of the company.
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Post-war power products
Fairbanks Morse continued to build diesel and gas engines, as it had been doing for the first half of the twentieth century. This is in addition to the pump and engine division, which produced Canadian Fairbanks Morse-branded products for farms, factories and mines.
Export offices were established in Rio de Janeiro and Buenos Aires; a factory was opened in Mexico, where model Z engines were built well into the 1980s. An Australian branch factory, similar to the Canadian Branch operation, was opened; remote sheep stations benefited from their products. It dated from 1902, when Cooper Sheep Shearing Machinery Ltd was set up in Sydney, and became an agent for Fairbanks Morse in that hemisphere.
The company sold and updated the Eclipse model of windmill pumps in North America until they became obsolete with widespread rural electrification in the 1940s. Low-cost electricity from the grid also eliminated the need for local power production by small and medium diesel plants. While many Fairbanks Morse engines dutifully served into the late twentieth century, they could not compete with modernization, regional plant closures, and grid electricity.
An inter-family feud for control of the company in 1956 between the sons of Charles Morse weakened the company. Consequently, Fairbanks-Morse was merged with Penn-Western in 1958. The downhill slide continued for the next few decades, with assets being sold off, and branches of the company closed. Regional sales offices were closed, and the one-shop model no longer appealed to buyers in the new consumer age. Automakers, tractor makers, and locomotive builders made inroads into Fairbanks-Morse's market share. Thus the company spiraled down, and was sold.