Boat manufacturing is still a volume based business no matter who the brand. Outerlimits builds 24-30 expensive boats per year, Cigarette builds about double that, Fountain builds probably 100 race/ SKA fish boats alone...... No matter what company, if the production gets cut into 1/3 of what they were doing it will separate the men from the boys in a matter of one season. Overhead is a monthly expense, payroll is a weekly expense and without sales they become a huge drain on any business.

The only performance company that is trying to combat the drop in sales is Sunsation with their S Line of boats: http://www.offshoreonly.com/forums/s...d.php?t=183177

Not completely true go look at Pat's business at Active Thunder. He can produce 12 boats a year. He and I have talked about it many times. In late 1999 to 2000 he produced 40 boats a year and lost money. Today at his production rate he makes money. The reason is his business model.

The S model will be interesting because there is no low end market any more so marketing a product to that market is risky in my opinion (i.e. Baja). The people making the money or at least handing in are the guys who build boats where price is not an issue.

12 boats is nice but making money may be an overstatement, earning a paycheck is one thing but making money is something totally different.
Sunsation is produciing a new boat for the guys that don't have over 100K to spend on anything new or used and they have the F4 for the guy with the big wallet (currently one being built with 1075's for a current F4 owner wanting to go faster than 100). They are going to build 70-80 boats this year for buyers of all levels from 100K to over 500K. This is rare in a performance market.

Does AT have a brand new boat under 100K for sale for the guy that doesn't have 300K to spend on a new boat?

I agree the companies that can adapt will survive ,in the long term that might mean moving away from gasoline to alternate fuels like hydrogen. there will always be a market for people who want to go fast on the water

No, that is not Active Thunder’s market. They build boats for people that want a truly custom boat with the ultimate ride. That was Baja's market and again, they are gone. They built many boats under 100K.

I not saying it won’t work for Sunsation but as a business man, I would not invest in building a high performance boat for the middle class buyer in a contracting market. Hi-Performance boats are also a luxury good. As a luxury good business your best bet is to stay focus on recession proof buyers. For example, take a look at the difference between Gucci and Louis Vuitton right now. Gucci tried to target the middle class buyer and Lois stayed dedicated to the millionaire. Care to guess who is in trouble and who is not?

I do think this time is different than before.

This time is diff

Look at Ford and GM...nobody mentioned the cost of doing business in America as the reason for current prices and lack of sales. The fuel is 1 issue, what about health care, insurance and legal fee's !!

Boating is a passion for many, an expensive hobby for others..

While your at it could you tell me who is going to win the World Series this year, I'm thinking about stepping up to a Skater.

the dollar has gone down very significantly against the euro and most other currencies, seems like a huge opportunity for companies with vision.