The US boatbuilding industry continues to lay off workers as demand for new boats falls. Tiara Yachts, Cobalt and Beneteau USA have all announced worker layoffs in the last week.

With companies continuing to hold stocks of boats worth millions and millions, it is likely that this phenomenon will bear it’s ugly head in the future also. It is being rumoured that there are more than 20,000 units of boats of various sizes stocked in the USA. At the same time, many manufacturers continue to dump them in other countries prompting some of the other developed nations to ban imports on grounds of ‘anti-dumping’ regulations. Such a reaction would help sustain sales for these other nations’ own boat manufacturers.

Holland, Michigan-based Tiara Yachts is temporarily laying off 300 workers of its 400-strong workforce for at least a month. “This is not permanent, but it is a 30-day layoff or it possibly might go longer,” said Dave Walsh of Tiara. “We will call people back as things change.”

Walsh said that, like the rest of the marine industry, demand has fallen off for its products. Two years ago, Tiara employed about 800 workers. Last year, as new boat sales continued to slump, the company laid off several hundred workers.

Cobalt Boats in Neodesha, Kansas, has laid off 30 of its workers, according to a company statement. Cobalt CEO Paxson St. Clair said that company sales were off about 18 per cent at retail, compared to most competitors, who are down by 35 to 40 per cent. “It is very difficult to see fellow associates leave our company,” St. Clair said in the statement. “But to be clear, our intention and expectation is to not only weather these challenging times, but to position our company to take advantage of a market rebound when it does occur.”

The statement said Cobalt continues to “build boats each week and maintain appropriate staffing” to support dealers and customers. The company said it had adjusted production to “conservative levels” early last year. “We do not have any factory stock boats and, as a result, continue to build ordered boats every day here in Neodesha,” said Cobalt president Sean Callan in the statement. “Our experience tells us that the logistics of shutting down a boat building operation and restarting weeks or months later can make it very challenging to maintain your boat’s quality and seamless communication with your dealers and customers.” Callan said he expects 2009 to be soft, though there will be a “slow rebound” in 2010.

Beneteau USA, located in Marion, South Carolina, has also laid off 30 workers out of a previous workforce of about 180. Wayne L. Burdick, president of Beneteau’s US division, told SCNow.com that “continued challenges” in the economy have caused new boat sales to decline. The company has been producing Beneteau boats in Marion for 23 years.

“We are confident that with our modest production plans for the balance of 2009 and a strong team of about 150 associates remaining at our Marion facility, Beneteau USA will be poised for the needed rebound of boat buying confidence which should lead to a return of normal demand,” Burdick told the website. Burdick not reply to a request seeking comment by presstime.

(Source)

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.