Recreational boat manufacturers have found it tough going as they seek to navigate through choppy economic waters. Some are simply doing the best they can to keep afloat even if it means having to jettison under-performing brands.
A case in point is Brunswick Corporation, which announced it would cease production of its Bluewater Marine saltwater fishing boat brands (Laguna, Palmetto, Sea Boss and Sea Pro) and close its production facility in Newberry, S.C., by the end of next month. A total of 175 people will lose their jobs with the plant's closing.
"The U.S. marine industry has been in a prolonged slowdown since late 2005, driven by an uncertain economy, high fuel prices, the housing slump and other economic factors that have affected consumers' confidence and eroded their discretionary spending," said Dustan McCoy, chairman and chief executive officer of Brunswick, in a recent press release.
"With this action, we believe we will solidify our presence in the highly fragmented saltwater segment by concentrating our efforts and leveraging our resources on such brands as Boston Whaler, Triton, Trophy, and our sport fishing offerings from Hatteras, Cabo and Albemarle, while sharpening our market focus and providing necessary cost reductions," he added.
Brunswick acquired the Sea Boss and Sea Pro brands in 2004 followed by Palmetto in 2005. The company established the Laguna brand of 18- to 24-foot saltwater fishing boats in 2006.
According to the National Sporting Goods Association, the number of people seven years of age and older who participated in all motor/power boating increased 8.9 percent in 2007. Interestingly, the number of people engaged in fishing dropped by 13 percent at the same time.
A study by the Recreational Boating and Fishing Foundation (RBFF) found that the primary reason that nearly 68 percent of "boating anglers" bought a boat was to fish.
Discussion Questions: Are there lessons for Brunswick and others in the recreational boating space to learn from brands in other discretionary spending categories? Can the recreational boating category find a way to thrive without a drastic reduction in fuel costs?
- Brunswick Bluewater Brands to Cease Production at Newberry, S.C., Facility - Brunswick Corporation/PRNewswire-FirstCall
- 2007 Participation by Sport - National Sporting Goods Association
- Market Research to Better Understand the Directional Relationship Between Recreational Boating and Fishing Participation - Recreational Boating and Fishing Foundation