®
INSIDE: With a
turnout of nearly
6,500, organizers
are calling November’s IBEX the best
ever. p. 32-35.
THE BOATING BUSINESS NEWSPAPER VOL. XLIV, NO. 6 DECEMBER 2006
$5.00
www.tradeonlytoday.com
Breaking a mold: Lund
will venture into glass
By Beth Rosenberg / Staff Writer
b.rosenberg@tradeonlytoday.com
Lund Boat Co., an aluminum-boat
builder for more than 50 years, is expanding into fiberglass for the first time
in its history, and at a time when boat
sales in both segments have been flat.
“It wasn’t a snap decision,” said Tom
MacNair, vice president of sales and
marketing. “There was no one day
when the light switch went on; we
evolved into this,” he said. The final decision came as a result of a focus group.
“This is the right thing to do.”
Lund, which is part of Brunswick’s
Freshwater Boat Group, plans to roll
out two fiberglass models in early 2007,
a third in the late spring or early summer and a fourth later next year. They
will range from about 18 to 21 feet,
MacNair said.
The company has more than 50 aluminum models, ranging from 10 to 21 feet.
PHOTO BY FRANK HERHOLD
MacNair said many boaters have migrated to fiberglass throughout the
years, even when prices of the two
began to flatten out.
“When fiberglass was more expensive, the consumer perception was one
of ‘Gee, fiberglass is a whole bunch
more, therefore, it must be so much
better,’ even if it wasn’t the case. It was
simply a different construction material,” MacNair said.
“We saw the market going there.
Now maybe that fiberglass person, who
A sunset on Lake Winnebago in Wisconsin. never considered a Lund, now has the
See Lund, Page 26
Brunswick trims down for a lean ’07
Expecting a flat year, company will cut 645 jobs, close two plants
By Melanie Winters their stockholders,” he added.
and JoAnn W. Goddard / Associate Editors Investment analyst Michael Savner of
plus
Banc of America also gave a nod to the
company’s move.
“We think the move is logical and un- derscores the difficult marine environ- Marinas & Docks
ment,” said Savner, in a statement. “The
announcement is consistent with our A Trade Only special report
thesis that, until there is visibility that
the fundamental marine business is im- n Investors hot on marinas. p. 20
proving, it is hard to be constructive on
BC shares.” n 50 new slips for New Jersey’s
Keeter adds that the timing is right for Meadowlands. p. 37
cutbacks as the marine industry heads
into the winter slow season. He says n A little-known hazard. p. 40
other companies should take note.
“Nobody wants to be pessimistic,” said n All it takes is one lawsuit. p. 46
See Brunswick, Page 42
Brunswick Corp. is eliminating 645
jobs and closing two plants as part of its
efforts to reduce costs and improve general operating efficiencies.
“Given current market conditions, we
have planned for flat-to-declining production volumes in 2007,” said Dustan
McCoy, chairman and CEO, in a statement issued Nov. 9. “With that assumption, we must take appropriate actions to
cut costs and capitalize on the productivity improvements we are realizing.”
McCoy said Brunswick was taking advantage of the more productive work
processes introduced in the past few
years to improve
operations across
the entire organization. The cost-reduction efforts
include consolidating certain boat-manufacturing
plants, sales offices and distribution warehouses.
“That doesn’t surprise me a bit,” said
Phil Keeter, president of the Marine Retailers Association of America.
“Brunswick is able to adjust more quickly than anyone I’ve seen, and they’re
not afraid to take action.”
“As a public company, they owe it to
n Despite its
agile response
to the industry
downturn,
Brunswick saw
a 59-percent
decline in third-quarter profit.
p. 30
‰ OUR VIEW: Adjusting to change has become a fact of business life ..................p. 6
‰ PEOPLE: A new president is named at Fountain Powerboats ......................p. 53
‰ FOR THE RECORD: Boat manufacturers expand dealer networks ..................p. 56
‰ CALENDAR: The New York gala kicks off a busy sho w season . . . . . . . . . . . . . . . . . . . .p. 57
A NEW POLITICAL LANDSCAPE — P. 24
