Celebrated High Performance Offshore Sport / Work Boat Manufacturer!

New management may take this legendary company, which is the epitome of a mom-and-pop lifestyle business, in any number of directions to realize its significant growth potential. To begin, the company has operated at near capacity for its entire existence. In fact, customers anticipate a 1-2 year waitlist, and know they can only order limited units at a time due to customer demand coupled with the production yard’s limitations. Historically, they can only accommodate 12 to 24 boats per year based on order sizes (they can do 2-20’ boats per month, but a 40’ unit may take over a year). With a new conversion facility, supply can not only be streamlined, but significantly expanded at a reduced cost. Also, each craft is custom made, which necessarily impacts efficiencies and costs. New operators may wish to continue in this tradition, but they may also carry an inventory the most popular ‘staple’ models or they may choose to outsource their unique fiberglass hull production component – where an estimated 25% cost savings may be realized if the hulls, which constitute 40% of the cost (at 50% of the man hours), are created via vacuum infusion injection molding instead of a manual method. Additional savings may be realized by purchasing key materials, resin and components in bulk. From a sales perspective, the company hasn’t truly actively promote its vessels as they have lacked the capacity to meet demand. If they had a larger production facility and could carry inventory they could attend professional and personal craft trade shows, establish a retail presence by opening a showroom or establishing a dealer network. If they were capitalized, they could not only stock ready-made units, but they also could self-finance orders (rather than rely on progress payments or commercial loans) which local municipality and government contracts require. Being capitalized or having a sufficient credit facility, coupled with the ability to scale production, also opens the door for local and federal agencies (e.g. harbor patrol, fish and wildlife, the coast guard, etc.). that approach them to purchase several units at a time, without progress payments. Commercial fishing, diving, harbor patrol and other clients have expressed an interest in leasing units, however, the company does not have the conversion facility or capital to cover construction costs, let alone have the bandwidth to set-up and manage a lease program. New management may launch a specific division to focus on this. For some of these clients whose needs are harbor, bay or coastal based, new operators may also consider developing a lighter, less formidable bay boat hull design. Finally, since mass production hasn’t been possible, no efforts have been made to become an approved vendor for federal, military or Department of Defense contracts. If the company were an approved vendor, or if were owned by a qualifying party favored in such contracts (female, minority, veteran) additional avenues for growth may exist.