Fountain Abandoned, Financial Mismanagement
10-14-2011, 09:25 PM
#11
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the economy started to fail in 2006 when the Dems took control of the house and senate.
bailing out GM did nothing. they got tons of cash and then went bankrupt, then they got tons more cash and the UAW was given a big share in ownership so they could renegotiate their contract so the employees all got $4000 bonuses and yet more than 60% of the cars parts are built in other countries.
as for the boat builders being to blame for the price of boats is misinformed. how many boats have you built? the manufacturer barely makes any thing on the boat. in the last year alone I have seen more than a dozen price increases from resin suppliers. stainless exhaust went up more than 20% in two months at one point. these are costs the manufacturer has to absorb which is why so many are broke right now. I have been around this industry my entire life and while everyone thinks it is glamorous and that the money falls from the sky that is far from the truth. shrinking margins and rapidly increasing regulations and material costs make it a business of passion not profit.
just my 2 cents and probably not worth the keyboard it is typed on but untill life long politicos are ousted and small business is returned to the people the economy will stay stagnet.
bailing out GM did nothing. they got tons of cash and then went bankrupt, then they got tons more cash and the UAW was given a big share in ownership so they could renegotiate their contract so the employees all got $4000 bonuses and yet more than 60% of the cars parts are built in other countries.
as for the boat builders being to blame for the price of boats is misinformed. how many boats have you built? the manufacturer barely makes any thing on the boat. in the last year alone I have seen more than a dozen price increases from resin suppliers. stainless exhaust went up more than 20% in two months at one point. these are costs the manufacturer has to absorb which is why so many are broke right now. I have been around this industry my entire life and while everyone thinks it is glamorous and that the money falls from the sky that is far from the truth. shrinking margins and rapidly increasing regulations and material costs make it a business of passion not profit.
just my 2 cents and probably not worth the keyboard it is typed on but untill life long politicos are ousted and small business is returned to the people the economy will stay stagnet.
10-14-2011, 09:41 PM
#12
Charter Member #1171
Charter Member
10-14-2011, 10:03 PM
#13
the economy started to fail in 2006 when the Dems took control of the house and senate.
bailing out GM did nothing. they got tons of cash and then went bankrupt, then they got tons more cash and the UAW was given a big share in ownership so they could renegotiate their contract so the employees all got $4000 bonuses and yet more than 60% of the cars parts are built in other countries.
as for the boat builders being to blame for the price of boats is misinformed. how many boats have you built? the manufacturer barely makes any thing on the boat. in the last year alone I have seen more than a dozen price increases from resin suppliers. stainless exhaust went up more than 20% in two months at one point. these are costs the manufacturer has to absorb which is why so many are broke right now. I have been around this industry my entire life and while everyone thinks it is glamorous and that the money falls from the sky that is far from the truth. shrinking margins and rapidly increasing regulations and material costs make it a business of passion not profit.
just my 2 cents and probably not worth the keyboard it is typed on but untill life long politicos are ousted and small business is returned to the people the economy will stay stagnet.
bailing out GM did nothing. they got tons of cash and then went bankrupt, then they got tons more cash and the UAW was given a big share in ownership so they could renegotiate their contract so the employees all got $4000 bonuses and yet more than 60% of the cars parts are built in other countries.
as for the boat builders being to blame for the price of boats is misinformed. how many boats have you built? the manufacturer barely makes any thing on the boat. in the last year alone I have seen more than a dozen price increases from resin suppliers. stainless exhaust went up more than 20% in two months at one point. these are costs the manufacturer has to absorb which is why so many are broke right now. I have been around this industry my entire life and while everyone thinks it is glamorous and that the money falls from the sky that is far from the truth. shrinking margins and rapidly increasing regulations and material costs make it a business of passion not profit.
just my 2 cents and probably not worth the keyboard it is typed on but untill life long politicos are ousted and small business is returned to the people the economy will stay stagnet.
No one complained about the constant lowering of interest rates, did you, which made it possible for the public to afford the increasing prices of not only boats but housing as well. But this dangerous lowering of the rates and ballooning debt taken by the buyers which has lead to this overall decline and has caused and will continue to cause the devaluation of the dollar.
In regards to GM,
http://www.autoweek.com/article/2010...NEWS/100429975
Bailing out car companies is not new. There are so many independent businesses which survive on them.
As far as when the economy failed , Sept 2008, what happened to the "Buck Stops Here".
10-14-2011, 10:03 PM
#14
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This is just history repeating itself in a new setting. Thank you very much for the story. This will teach students world wide about business and ethics. Such an amazing lesson. In addition, the economy in the US was failing way before the 2000s even began to show dark signs of dwindling $$.
Hats off to the workers who can ride it out, Fountain for knowing when to split, and Tim for having the guts to start a photo biz and show us all what the inside of shops really look like in high deff.
OSO is a black tie front row seat to something really real...
best of luck to all who are in the marine business!
questions?
YEs costs are high, but what is the public stating or answering to $600,000 38 cigs, $800,000 OLs, $60,000 single engine parker center consoles?
Hats off to the workers who can ride it out, Fountain for knowing when to split, and Tim for having the guts to start a photo biz and show us all what the inside of shops really look like in high deff.
OSO is a black tie front row seat to something really real...
best of luck to all who are in the marine business!
questions?
YEs costs are high, but what is the public stating or answering to $600,000 38 cigs, $800,000 OLs, $60,000 single engine parker center consoles?
Last edited by TOASTY; 10-14-2011 at 10:06 PM.
10-14-2011, 10:09 PM
#15
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Compedgemarine, that is about as good a summary of the industry as I have heard. Don't blame the suppliers or the vendors, the g.d. career politicians have us by the nut sac.
10-14-2011, 10:18 PM
#16
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that is a great story on GM, unfortunatly it is just that-a story.
they paid back the loan by using the slush fund that the government set up for operating expenses. basically they used the taxpayers funds to pay back taxpayer funds. when they "payed back" the funds they put out a TV commercial telling everyone what a great thing they had done. days later they were hit with an investigation from the FCC for violating the truth in advertising laws because they stole from peter to pay paul. the commercials dissapeared overnight. had the govenment not stuck their nose in they would have gone bankrupt- like they did anyway- and reorganized with out the union and without all the former employee overhead ( the big three pay life, health insurance and other benefits to nearly three times the number of active employees) and the free enterprise market would decide if they should survive or not. I pay my bills, I make or lose money and I eat or starve on my own. I dont expect everyone else to come out of pocket to pay my way and I dont feel that I should be forced to come out of pocket for the mismanagement deeds of others. that is what free enterprise and free markets are about.
they paid back the loan by using the slush fund that the government set up for operating expenses. basically they used the taxpayers funds to pay back taxpayer funds. when they "payed back" the funds they put out a TV commercial telling everyone what a great thing they had done. days later they were hit with an investigation from the FCC for violating the truth in advertising laws because they stole from peter to pay paul. the commercials dissapeared overnight. had the govenment not stuck their nose in they would have gone bankrupt- like they did anyway- and reorganized with out the union and without all the former employee overhead ( the big three pay life, health insurance and other benefits to nearly three times the number of active employees) and the free enterprise market would decide if they should survive or not. I pay my bills, I make or lose money and I eat or starve on my own. I dont expect everyone else to come out of pocket to pay my way and I dont feel that I should be forced to come out of pocket for the mismanagement deeds of others. that is what free enterprise and free markets are about.
10-14-2011, 10:25 PM
#17
OSO Content Provider
Commercial Member
Crude Oil Prices in April 1995 $18.20
Crude Oil Prices in April 2011 $102.15
Crude is tied to all plastics.
Source:
http://www.ioga.com/Special/crudeoil_Hist.htm
I used to be able to buy Vinyl Ester Resin for about $700 per 55 Gal Drum. I can't even imagine what it is today.....
Outerlimits is one of the few companies to look at ways to reduce resin usage in how they manufacture their boats these days.
Crude Oil Prices in April 2011 $102.15
Crude is tied to all plastics.
Source:
http://www.ioga.com/Special/crudeoil_Hist.htm
I used to be able to buy Vinyl Ester Resin for about $700 per 55 Gal Drum. I can't even imagine what it is today.....
Outerlimits is one of the few companies to look at ways to reduce resin usage in how they manufacture their boats these days.
10-14-2011, 10:42 PM
#18
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Sharkey,
that was my point concerning all the price increases. gelcoat, resin, fiberglass cloth, foam, seat vynal, etc, etc. are all based on crude oil. prices go up .10-.20 cents a pound every few months but never go down. add up all those pennies times the weight of the boat and suddenly your build cost went up thousands. that cost goes into the building of plugs and molds as well. it is even worse for production builders where the public expects you to update your line every year or so. makes it tough to amortize out $300,000 worth of molds
that was my point concerning all the price increases. gelcoat, resin, fiberglass cloth, foam, seat vynal, etc, etc. are all based on crude oil. prices go up .10-.20 cents a pound every few months but never go down. add up all those pennies times the weight of the boat and suddenly your build cost went up thousands. that cost goes into the building of plugs and molds as well. it is even worse for production builders where the public expects you to update your line every year or so. makes it tough to amortize out $300,000 worth of molds
10-15-2011, 12:43 AM
#19
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Location: Beautiful Fort Lauderdale www.cheetahcat.com
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As an example, 13 years ago you could buy a good brand 22ft sport boat with a 5.7 for around 23K to 25K now they are asking near 40K and this is with a 5.0. Now you get a 18ft V6 for around 23K to 25K and you tell me this is not the reason for the decline of the industry? When would you eventually say the cost of a new boat is no longer reasonable? I would not even consider a new boat anymore and would stay with the used market like many are.
No one complained about the constant lowering of interest rates, did you, which made it possible for the public to afford the increasing prices of not only boats but housing as well. But this dangerous lowering of the rates and ballooning debt taken by the buyers which has lead to this overall decline and has caused and will continue to cause the devaluation of the dollar.
In regards to GM,
http://www.autoweek.com/article/2010...NEWS/100429975
Bailing out car companies is not new. There are so many independent businesses which survive on them.
As far as when the economy failed , Sept 2008, what happened to the "Buck Stops Here".
No one complained about the constant lowering of interest rates, did you, which made it possible for the public to afford the increasing prices of not only boats but housing as well. But this dangerous lowering of the rates and ballooning debt taken by the buyers which has lead to this overall decline and has caused and will continue to cause the devaluation of the dollar.
In regards to GM,
http://www.autoweek.com/article/2010...NEWS/100429975
Bailing out car companies is not new. There are so many independent businesses which survive on them.
As far as when the economy failed , Sept 2008, what happened to the "Buck Stops Here".
