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#539277 - 10/10/12 08:55 AM Bayliner-Big Changes coming  
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Capn Morgan Offline
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News released yesterday about Bayliner. A quote from the release.
Quote:
Brunswick Boat Group announced Tuesday that it will stop building and selling Bayliner cruisers in the United States so the brand can focus on its core bowrider and deckboat models, as well as new categories, such as the jetboat segment.

As a result, Brunswick said it will stop production at its plant near Knoxville, Tenn., where 225 full-time workers are employed, by the end of 2012 and make its Brazil operations the center for its Bayliner cruiser business. It will suspend the brand’s cruiser sales and production outside of South America. “We will continue to maintain our leadership position in the North American cruiser segment with our Sea Ray brand," Andrew E. Graves, president of Brunswick Boat Group, said in a statement.

Over the next several months, Bayliner will introduce a new line of bowriders, a new series of deckboats and will launch “Element,” the company’s break into “affordable boating,” Graves said.

Bayliner will also enter the jetboat segment in 2013 with a new series.



So no more B-liner cruisers in the US, and sadly a loss of many jobs in Knoxville.


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#539278 - 10/10/12 10:13 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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captkevin Online content
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Wow that is quite a jump. Probably the right one except for the job loss.


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#539279 - 10/10/12 10:22 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Another view of that same story....

"Brunswick Corp., which operates the Sea Ray Boats plant at Forks of the River Industrial Park, announced Tuesday that it will cease operations at that plant by the end of the year, ending 225 jobs there.

However, the company's plant in Vonore will remain open as Brunswick pursues a plan to consolidate all production of its Sea Ray brand at that facility and at its plant in Palm Coast, Fla.

The closing will end a prominent presence Sea Ray Boats has had at Forks of the River. In 2009, Sea Ray Boats closed two plants there and cut 540 jobs. That year it also put one of its idled plants up for sale.

In a prepared statement, Brunswick outlined the closing of the Sea Ray plant as part of a strategy to revamp its Bayliner product portfolio and consolidate all its U.S. cruiser production. Brunswick will introduce new Bayliner models, focus production at its Brazil operations and suspend sales and production of Bayliner models outside of South America.

"This strategic repositioning of Bayliner further reduces the need to maintain the Brunswick Boat Group's current cruiser production capacity in the U.S., particularly in view of current market weakness for cruisers," Andrew E. Graves, president of Brunswick Boat Group, said in a statement.

The U.S. boat market has improved, but the recovery has been uneven across brands, Dustan E. McCoy, Brunswick chairman and CEO, said in a statement.

"While sales of smaller boats, such as popular fishing boats and pontoons, have improved, demand for cruisers and larger boats remains weak," McCoy said. "We believe this is due to a number of factors, including continuing economic uncertainty as well as a cautious and evolving consumer."

Brunswick estimates consolidation of its U.S. cruiser production will save the company $10 million to $12 million per year."

taken from this link...
http://www.knoxnews.com/news/2012/oct/09/sea-ray-closing-knoxville-plant/


"Beachcomber" 1995 Sea Ray 550 Sedan Bridge


Anchor's down......Bottoms Up!
#539280 - 10/10/12 10:22 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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And this comes after pulling the plug on the Maxum brand, which was also positioned to be more affordable than Sea Ray. Is Meridian still around?

#539283 - 10/10/12 10:56 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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To quote myself in the BRB thread:

Must lower costs. Must make higher profit. No matter what. rolleyes

Business as usual, can't upset the beancounters...

#539285 - 10/10/12 11:08 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Capn Morgan Offline
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Thanks GFC for the additional info that was posted on CSR.

Kelly, I just talked to our naval architect who several years ago practically lived at the Knoxville plant when he worked for Teinbridge. We still sell alot of product to Sea Ray, and he is in touch with them daily. His contact said that Sea Ray cruiser production is down 80%. He said that Meridian is likely the next to go, but not any time frame is being talked about. I wondered why we are seeing increased orders from Palm Coast, and Sykes Creek..........this explains some of it.


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#539286 - 10/10/12 11:23 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Yikes, this has been quite a contraction for Brunswick!

#539287 - 10/10/12 11:28 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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It will be sad to see Bayliner and Meridian go away. A lot of people put those two brands down but those two brands have allowed a LOT of families to get on the water who didn't want to pay up for other brands.


"Beachcomber" 1995 Sea Ray 550 Sedan Bridge


Anchor's down......Bottoms Up!
#539288 - 10/10/12 11:29 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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It will be sad to see Bayliner and Meridian go away. A lot of people put those two brands down but those two brands have allowed a LOT of families to get on the water who didn't want to pay up for other brands.


"Beachcomber" 1995 Sea Ray 550 Sedan Bridge


Anchor's down......Bottoms Up!
#539289 - 10/10/12 11:32 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Capn Morgan Offline
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So true GFC. And when they were building both of them in the PNW, they were selling alot of them.

Over simplified, it's typical SOP for Brunswick to try and cram 10 lbs. of crap into a 5lb. bag. It just does not work, and eventually you have to change what you do, where you do it, and how much of it you do. And despite what many of the CSR honks keep saying, it's not ALL our president's fault, Brunswick management made these moves in the past, and they are now. A change at the top level executive this November's election is not going to be the saviour like they think it would be.


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#539302 - 10/10/12 02:37 PM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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I recall Brunswick coming into a town in SW Michigan several years ago, then closing a big manufacturing plant. Capn, can you refresh my memory on that one? Was it a bowling equipment plant that closed?


"Beachcomber" 1995 Sea Ray 550 Sedan Bridge


Anchor's down......Bottoms Up!
#539304 - 10/10/12 02:40 PM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Capn Morgan Offline
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Yes, Brunswick bowling & billiards here in my hometown of Muskegon. Several of my good high school buddies lost their jobs there. The facility is still open, but they just do the electronic scoring machines for the bowling lanes now. Huge office with only a dozen or so people in the cubicles.


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#539337 - 10/11/12 07:31 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Al Offline
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If the boating industry continues to decline, perhaps SeaRay will eventually return to making fiberglass caskets in Detroit. At least there is a "renewable" market for those things.


President and CEO - Napmoor and Doolittle.


2004 Mercury 270 Dinghy.
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#539340 - 10/11/12 07:47 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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captkevin Online content
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Searay seems lost & without focus to me. As Bayliner is getting out of cruisers. Searay should get out of the small bowrider market & leave that for Bayliner. Stick to what they do well - big high end cruisers.


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#539341 - 10/11/12 09:20 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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BToran Offline
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wow is all i can say. guess anyone who wants a bayliner cruiser will just have to move to south america.

does this leave brunswick with an entry level brand for cruisers? if not, i'd love to see what happens in a few years when the economy turns around for this segment of the market.


Bruce Toran
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#539347 - 10/11/12 11:19 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Capn Morgan Offline
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"A Brunswick Corp. official says the decision to close its Sea Ray plant in Knoxville, Tenn., was a difficult but critical one.
Sea Ray president Robert Parmentier made that statement in a letter that was sent to employees in conjunction with the news that the plant where they worked will stop production in December. The need to make the move became clear as the company gained new insight into the marine retail environment, Parmentier wrote.
The most recently released numbers from Statistical Surveys Inc., a Michigan company that tracks boat sales, show August sales of fiberglass cruisers 31-40 feet plummeting 28.8 percent year over year and tracking a 6.7 percent dip for the year.
"

Also......

Quote:
Seven Sea Ray Sundancer models currently built in Knoxville will start to be built in other plants. Three will move to Brunswick’s Palm Coast, Fla., plant and the other four will move to Vonore, Tenn.

“The Sea Ray and Knoxville leadership teams will be working diligently to transfer as many employees between various Sea Ray and other Boat Group locations as possible and practical,” he wrote. “Every effort will be made to preserve the unique Sport Cruiser manufacturing experience and overall production excellence embodied in the Knoxville organization.”


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#539351 - 10/11/12 02:34 PM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Al Offline
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Vagabond Wanderer from Mich.
Are they perhaps going to import Bayliner cruisers to the US from Brazil; and just not make them here anymore?


President and CEO - Napmoor and Doolittle.


2004 Mercury 270 Dinghy.
2016 Grand Design Reflection 29RS 5th Wheel
2016 GMC Sierra 2500HD SLT 6.6L Diesel

previous boats:
1995 Carver 325
1999 Four Winns 268
1999 Four Winns 225
1996 Rinker 180
#539353 - 10/11/12 02:50 PM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Capn Morgan Offline
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Nope. No longer will sell B-Liner cruiser's in the United States.


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#539357 - 10/11/12 03:58 PM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Frantically Relaxing Online content
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"The most recently released numbers...show August sales of fiberglass cruisers 31-40 feet plummeting 28.8 percent year over year and tracking a 6.7 percent dip for the year. "

Now, I believe I understand what I think I read, but I think that what they said that I thought I understood may not be what they meant...
ouch

( wink )

So, how many years does "year over year" equal, and how is a 28.8% plummeting of "August sales" related to a 6.7% dip in yearly sales? If both are true, then there must be other months that are taking up August's slack...

Or-- am I doing it wrong?

Regardless, I can't help but wonder why something less drastic isn't considered, like simply 'adjusting' to the market? If sales are down 30%, and you're building say, 21 boats a year with your 225 people, how about MAYBE giving thought to cutting the workforce down by 67 people and build 14 boats? Aside from some fixed costs like building rent, nearly all other expenses should decrease proportionally, and there MUST be some steep costs associated with closing down and moving out. Just seems that actual profit margins should be close to the same. And should (WHEN) good boat sales return, everything is in place, you just hire some people and start using the other 1/3 of the building again.

Of course, just making a profit isn't enough these days.

#539459 - 10/15/12 06:44 AM Re: Bayliner-Big Changes coming [Re: Capn Morgan]  
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Capn Morgan Offline
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Some interesting comments from Bayliner dealers:

Quote:
In talking with dealers, the consensus was that it was the right business decision, with the only criticism that it could have come earlier.“It didn’t surprise me in the least,” said Jim Rautio, president of Traverse Bay Marine in Traverse City, Mich. Rautio said the market for cruisers began to decline even before the recession. Today, he still holds a Bayliner cruiser he bought in 2010.
“The boat is priced unbelievably well, and there is nothing wrong with the product, but there just isn’t a demand for that style of boat,” Rautio said.
Although lack of demand spans the entire segment, some dealers say that the value-conscious reputation of Bayliner does not fit well in the cruiser segment.
Scott Brundle, managing partner at Lakefield, Ontario-based Town & Country Marine, said buyers of cruisers are already spending around $100,000 on a model; therefore, spending $15,000 more on a luxury brand like Regal or Sea Ray is justifiable.
“It is like if I was going to spend $45,000 on a Hyundai, I would probably spend another $10,000 to $15,000 to get an Audi or BMW,” Brundle said. Rautio said the issue extends beyond Bayliner and into a segment that seems to be falling out of fashion with boaters. “The consumer has chosen not to have a need for that type of vessel at this time, and it isn’t just dollars,” he said.


http://www.boatingindustry.com/top-stori...p;utm_campaign=

The comment about not having a need for that type of boat is how I feel. We could have easily kept our cruiser. It was affordable and enjoyable. But, as time went on, we felt we could make better use of our money, have the flexibility to explore other lakes, and not have the associated costs that a cruiser brings. It's unlikely we will ever go back to a cruiser, no matter what the economy does.


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