Boat Mfg

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marathon man

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I heard that Silverton "shut down" for 30 -90 days, and has filed for bankruptcy. Can anyone confirm this, and if so, it seems like yet another nail in the boating mfg box?
 
Yes, Luhrs Marine (Luhrs, Silverton and Mainship brands) is out of business. The plant is closed and has been for some weeks. Recently, their Hunter sail boat plant in Florida also closed.

Not quite sure why they issued a release several months ago saying that they were closing in order to build up orders for new boats when that was not their true intention. One can only suppose that they were looking for a buyer.

Bill
 
We've heard in the Owners Club forum that the filing may actually be happening just today. No further information yet on the nature of the filing...

All four websites are down, but we've also heard that Hunter is maybe OK, and that their website is down so they can separate it from the rest of the corporate sites. Some speculation there...

Update: As of a couple minutes ago, just learned the Silverton.com website is back up, theyve posted a new phone number for assistance with parts, and the new parts guy is at the St. Augustine Marine Center in FL (Hunter location).

-Chris
 
I think the boat-building industry is a victim of the economy and their own expertise. Fiberglass lasts a LONG time and there are probably 10 used boats on the market for the price of one new one. And there simply aren't enough "rich" left to keep the new-boat builders in business.

I don't like it any more than anyone else, but I think the party's over.
 
The Party started to die way back in the 80's. We noticed it in Boat Sales, Airplane Sales, and even Shooting sports.

"Stoopid Money" comes from good profits with handelable expenses. If we are behind the 'livlyhood' curve we have no money for sports.
Some say that Insurance payments are the first to go. But I think the "Toy Money" is really the first to go.

Our Travel industry is cycling down quickly because business' don't have the Business to send Salesmen and Buyers out for work.

When we get the Work back in the States, the economy will come back quickly.
 
The inshore fishing boat business is going good, it's the pleasure boat business that is taking a hit.
There are several custom boat businesses along the Texas coast that are booming. Waiting lists for their
boats. Mostly center console fishing boats.
 
Somehow I thought "inshore fishing boats" WERE "pleasure boats"???

That said, they are mostly smaller and mostly trailerable, which cuts the cost of ownership WAY down, compared to a slipped boat.

It's one thing if an unused boat sits in the back yard collecting bird poop, it's another thing entirely if it sits in the marina collecting bills and barnacles. If I had to keep my boat in a marina, I couldn't justify keeping it, period.
 
"Luhrs Group" is officially history as a few days ago. Sad indeed, another American Icon gone bad. This great industrial nation seems to no longer produce what once made this nation great. The USA is falling apart at the seams IMHO.

Walter
 
quote:
Originally posted by stmbtwle

Somehow I thought "inshore fishing boats" WERE "pleasure boats"???

Click to expand...


I call pleasure boats, the type of boats that you run around in, stay out on, race with.
Where I live, people either fish on their boats or run around for pleasure on other boats. Not many are used for both.
 
If we don't get a handle on the spread between the tax rate and the federal spending largess, then start paying down the debt, we are going to go the way of Greece. The GAO says we have about 10 years before we reach the point of no return unless we close the gap. I vote to trim benefits and spending.
 
Jay, if "the world ends in 2012," what are you worried about? Sorry, I couldn't resist. The problem with manufacturers of large, expensive boats is that they manufacture large, expensive boats. The boats are beautiful, but they've reached a level of initial and recurring costs which is unsustainable by the average or even above-average boater. Even boats in the 27'-35' range are not selling. Many used ones are on the market, in many cases because the annual costs have increased so greatly. Some marinas on Long Island are 20% or more vacant each season, as a result. In addition, as was previously mentioned, the boats last much longer than before. They're well-built and well equipped. Many boaters will simply add the new electronics or whatever they need to reach the level of a new boat rather than spend the additional funds for a newer version of what they already have. The laws of supply and demand and budgeting do apply, even if we don't like them. So, stop blaming everything on just the federal governmwnt. there's much more at play than just what's presented in sound-bite answers. Hy
 
Hy,

There is more in play, but the current economic situation is a HUGE part of it. There's just no way around that.

Add to that, the boating industry in general has failed HUGE in keeping ahead of or at least up with advances in science and technology in hull design. Look at the mileage and speed Mixman gets with a cat as opposed to the rest of us. Why is the difference between a gas and diesel model inboard boat so obscene when a the difference between gas and diesel powered car is negligable? There are countless other factors the USA is not doing that is diminishing demand here. I can't speak to the international market.
 
I really think the industry has been digging its own grave, for a variety of reason

One of them is lack of quality control. Why is it reasonable to buy a 20k new car and expect no issues while with a 200k boat comes a punch list of things to address? One of the first reasons to buy a used boat is often "the bugs have been worked out"?

Why do boat buyers have to deal with this?

Then of course you have the lack of value, or bang for the buck, as boat prices have risen a lot faster than everything else. Nowadays, a 40' boat costs what... Close to 500k by the time you include taxes, electronics, and minimum options?

That s a lot of money for what still amounts to "improved camping" which in first year will cost you $150k between depreciation, interest, dockage, insurance and operating costs. If your boating season is 5 months long as it is for half the country, that shiny new boat is costing you 30k a month the first year!

The last new boat i bought was a 98 37' express which cost me around 190 with tax and electronics. I was lucky to have virtually no issues with it except for the infamous velvet vee drives. That was good value but there is no way you can find such any for the buck nowadays. And it s not inflation... If you compare to the auto industry, prices have gone up 20 or 25% instead of 100% or more

And then of course, the housing market crashed, unemployment went thru the roof, along with things like health insurance and taxes

We shouldn't be surprised
 
The pressure on the boating industry is far from over regardless of the "entry fee" of buying a new or used boat.
Boating will become Out Of Reach for most due to fuel costs alone in the coming years.
There's enormous pressure to free up more Petro resources globally. Notice; I didn't say energy resources.

If 5,6 or 7 dollars or more a gallon put a cramp in your lifestyle boating isn't for you unless you like your dock mates or like to sail.
 
quote:
Originally posted by littlebookworm

Jay, if "the world ends in 2012," what are you worried about? Sorry, I couldn't resist. The problem with manufacturers of large, expensive boats is that they manufacture large, expensive boats. The boats are beautiful, but they've reached a level of initial and recurring costs which is unsustainable by the average or even above-average boater. Even boats in the 27'-35' range are not selling. Many used ones are on the market, in many cases because the annual costs have increased so greatly. Some marinas on Long Island are 20% or more vacant each season, as a result. In addition, as was previously mentioned, the boats last much longer than before. They're well-built and well equipped. Many boaters will simply add the new electronics or whatever they need to reach the level of a new boat rather than spend the additional funds for a newer version of what they already have. The laws of supply and demand and budgeting do apply, even if we don't like them. So, stop blaming everything on just the federal governmwnt. there's much more at play than just what's presented in sound-bite answers. Hy

Click to expand...


+1
 
IMHO

Fast and loose credit fueled the expansion of boating and supported an over-supply of manufacturers selling similar models to the same group. Just like easy credit allowed people to buy houses they could not afford, the same is true for boats. People need houses. Sure they can rent but housing is a necessity. Boats are not. First to go was the over abundance of models (just like the auto industry). Now the prolonged economic slump is taking out the primary manufacturers.

I think the industry has a future but built on a different model. The days of walking into a showroom or a boat show, signing some papers and picking up your boat from the delivery center the following week are over. Other than small boats, nobody is going to be building for inventory. You want a boat, you put down a deposit and they build it. You pick it up next spring.

All that said, I hope Silverton and Luhrs find a way to survive in some fashion.
 
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