Bayliner Boats - Layoffs at Four Winns Boats

Hi gang, Rick Ostler here from North American Waterway bringing you Bayliner Boats along with news and views from the boating industry. Unfortunately more doom and gloom to report.

Slow boating industry leads to layoffs at Four Winns

CADILLAC - Tough economic times are hitting the boating industry hard.

In Cadillac, tough times led Four Winns to layoff a portion its workforce last week. Four Winns President Jeff Olson said Monday he didn’t have specific numbers but layoffs were across the board. The hope is to bring people back in a few weeks, he said.

"We’re trying to develop some sort of backlog so we can bring these people back," Olson said.

What’s hitting Four Winns now has been hitting the boating industry since last fall. Olson calls it the perfect storm of home mortgage problems in the U.S. because people often finance boats through a second mortgage loan, fuel prices and a "general malaise" among consumers.

"Everyone wants to feel down about something," Olson said.

In the last 90 days - and about the time gas hit $4 per gallon - Olson said retail sales fell off. At Four Winns boat show in Cadillac recently, the turnout wasn’t as great as it had been in previous years, partly prompted by bad weather, Olson said.

As an example of what’s happened elsewhere in the industry, Brunswick has announced plans to reduce its cost structure by $300 million. The move means permanent layoffs and factory closings at Brunswick. Suppliers too, like engine companies, are facing the same downturn in the market, ¨ Olson said.

"We’ve fortunately been able to dodge the bullet a little longer," Olson said. "We have a lot of new product where other people didn’t invest in new product."

Lines are still running for the Wellcraft boats and Four Winns’ 45-foot model.

The company is working to strengthen its Wellcraft lines while continuing an emphasis on a strong international market as dealers across the globe are re-stocking with new model year boats, Olson said.

Job layoffs

• Who: Four Winns

• Where: The company has laid off a portion of its workforce in Cadillac

• Extent: Specific numbers are not available, the company hopes to have people back to work soon but it depends on getting a backlog of orders first

• What’s happening in the boating industry? Four Winns President Jeff Olson calls it the perfect storm:

1) The mortgage crisis has taken away a common funding mechanism for people interested in buying boats because they may be unable to secure a second mortgage

2) Gas prices

3) A general malaise among consumers

Thanks to Matt Whetstone, cadillacnews.com