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-   -   Can The Boat Industry Survive? (https://www.offshoreonly.com/forums/general-boating-discussion/185873-can-boat-industry-survive.html)

TEAMBAJA 05-03-2008 04:14 PM


Originally Posted by crb76 (Post 2546758)

The productions guys like Foutain and Donzi are in real trouble because they count on volume to make a margin (first death was Baja). I also expect for the industry to go more factory direct, just in time ordering model, and less reliable on the dealer caring inventory.

Dont forget Sea Ray isnt doing so hot either.

320es 05-03-2008 05:16 PM


Originally Posted by Michael1 (Post 2546708)
You can hardly compare the construction industry to the oil industry. What R&D does the contruction industry do? About none. What investment in plant and equipment does the construction industry have? They don't even have plants that need to upgraded and replaced. Does the construction industry have to sink millions into a well that could produce nothing? No, they just bid on a job, build it, and collect the money. It's a low risk business. That's why the margins are low. Just about anyone can get a contractors license, and get into construction.

Michael

You are VERY MISTAKEN! You are right just about anyboady can get into construction, but very few are succesful. Maybe the mom and pop homebuilders building 3 houses a year don't spend much on research and development but large firms spend huge amounts of money on r+d.
Sorry for the hijack.:grinser010:

Shanghied Again 05-03-2008 07:53 PM


Originally Posted by crb76 (Post 2546758)
I agree with an earlier post. There will be a consolidation in boating period. The performance market will end up with 3-4 V builders (Cig, Outerlimits, Nortech, Active Thunder) and three or 4 cat builders (Skater, MTI, and Nortech). I pick these builders for 1 of 2 reason, strong international and government contract business, and two great economic models.

The productions guys like Foutain and Donzi are in real trouble because they count on volume to make a margin (first death was Baja). I also expect for the industry to go more factory direct, just in time ordering model, and less reliable on the dealer caring inventory.

As for me, I will keep boating as long as it doesn’t affect my life. I am very blessed and fortunate enough to ware it hasn’t affected me at all, yet.

I don't see Fountain or Donzi going out Fountain just purchased Baja and Donzi has a little more strength to hold out. They just hired Graig Barrie, I see Donzi going more custom on there ZR line

jafo 05-03-2008 08:21 PM


Originally Posted by PARADOX (Post 2546738)
The Construction Ind, leads just about everyting on R&D.

Having been associated with the aerospace industry for over 25 years, I could easily argue with a comment like that......

enticer 05-03-2008 08:45 PM

Can The Boat Industry Survive? What sort of a question is this. Either your very young or naive. Look back as far as yo can.........63, 73, 78, 83, 87, 91 and so on. The boating industry will always survive.....it always has. No it has not shined like a bright bulb in the sky lately, but nothing really has in the dark a gloomy times that are upon us. But the industry has always remained and will.
In times like these it will root out the weak and meak........and the strong will survive

PARADOX 05-03-2008 09:05 PM


Originally Posted by jafo (Post 2546908)
Having been associated with the aerospace industry for over 25 years, I could easily argue with a comment like that......

You are right. Jafo.. I should have been more specific in that comment, but I did say " just about". I should have said "Construction and related/associated industry".
I been incolved with NASA in their shuttle hanger projects. With the Armed forces with their "Construction" activities. Missle silos in Texas. The Epcot Center. Highrises all over. Nuclear Plant with CECo. (Biran, & Braidwood. Ill)
And you are right. There are some industries that do tremendious amount of R&D. Aero... Medical... Bio... Fuel.. Solar.. . etc.. but Construction as a "large picture" is responsible for a lot more then most realize. That is the point I was trying to make.
IE. look at Caterpillar and their R&D.

mccaffertee 05-03-2008 10:21 PM


I don't see Fountain or Donzi going out Fountain just purchased Baja and Donzi has a little more strength to hold out. They just hired Graig Barrie, I see Donzi going more custom on there ZR line
I could be mistaken, but Fountains margins are, or were, VERY weak. I am sure their burn rate is up there, and they would need serious cash reserves to ride this thing out. And as TeamBaja mentioned, SeaRay is struggling, and I believe they are the industry leaders in sales and technology.

AIR TIME 05-03-2008 11:21 PM


Originally Posted by KCHOTBOAT (Post 2546309)
Sounds great but the dollar is going down and oil is traded in dollars. Also I lived 1/2 my life in Germany and people tend to make more money for the same job there than the US. So the euro is worth more and you have more take home.

plus they have free health insurance there, which would save a FAMILY OF 3 ANYWHERE FROM 400 TO 1000 a month in fees, which would free up money for gas. I hope to get out and am lucky that for about a 160 a weekend will get me to the ramp 35 min ride and 15 mins in the boat to a great sandbar in plymouth mass. I MISS THE MARINA rack was 1200 a year from 94 to 99, then went to 1500, by 2002 its was 2000 and climbing a friend is paying about 4500 this year for 24 superboat at the marina but he goes out 5 or 6 times aweek:(,So its cheaper for me to ramp it for the couple of times a month we go out. in 30 mins I can be in either plymouth cape cod bay, boston, fallriver mt hope bay newport area. onset where the marina is buzzards bay other side of cape. but to go on long trips would get expensive 400 for a tank of gas:hitfan: its to bad that your pay check would go up with gas prices,:p

crb76 05-03-2008 11:27 PM

In my opinion if the curent trends continue. Dozi and Fountain will have to go the custome route to stay in business. Mercury/Brunswick did want the Baja business anymore because it didnt make money.

AIR TIME 05-03-2008 11:29 PM

[QUOTE=Michael1;2546321]Actually, I think the boat industry can survive the oil prices, and the credit crunch. The biggest threat is the government taxing boating out of existence. The government looks at boats as a luxury, and think it's OK to slap tax after tax on them. Everytime they add a "luxury tax", the boat industry completely dries up. The Federal government had to repeal the last one. You can bet the states will try again.
Yeah but boats droped in price with that tax, you could buy a 32 or 33 ft boat for 99,999.99:D and as soon as they lifted it boats shot right up to 150,000 to 175,000 for a 33 footer. in 1990 a 27 foot boat was 35,000 to 40,000 with a single after that tax was lifted they doubled in 2 years . AND NOW ARE OVER A 100,000.


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