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Old 02-15-2012
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Luhrs Stops Production

Luhrs Marine Group Stops Production

Luhrs Marine Group - the builder of Silverton, Luhrs, Mainship and Ovation boats - went into shutdown mode beginning Monday, the company confirmed to Soundings Trade Only.

The Millville, N.J.-based company said in a message to its dealers that it would shut down production for 60 to 90 days to allow boat orders to accumulate in its pipeline.

“As everyone will agree, we have all been affected in some way or another by these hard economic times the past three years,” the company said. “We have fought hard to avoid this decision, but it is the best solution to the current state of affairs.”

The company told its dealers, “We hope you will continue to promote our products and keep in touch with our sales team so that with your help we can again start producing the excellent products of the Luhrs Marine Group.”

The shutdown does not impact Florida-based Hunter Marine Corp., which is still in production.

From Soundings Trade Only Today
Luhrs Marine Group stops production
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Old 02-15-2012
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Don't they do Mainships down at St Augustine as well?
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Old 02-15-2012
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I'm not sure but from what I gather their power boat production is all in NJ.

Just got done talking with a guy who does work for them occasionally and the word is they let the sales guys go. If that's true it's not a good sign.

Hunter is still going. That may be a good sign for the sailboat market.

I was at the powerboat show in Atlantic City two weekends ago. There was a LOT of talk about fuel prices this summer going up significantly. That's got to effect that market.

I know some folks will chime in that's a good thing and it will clear the water of stinkpots. But ask yourself if your marina can survive without power boats and the fuel sales and maintenance income from them. Here in Jersey they probably outnumber sailboats 5 to 1.

If the powerboat market falls apart we get hurt too...
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Old 02-15-2012
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We certainly do get hurt, and fuel could be over $5 this summer, possibly $6 on the water. Here in New Bern, the marina I'm at is a bit more than half power, but on average, they are a lot longer boats (more $$$). And higher fuel prices don't just matter at the pump, they make everything else cost more.
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Terrible news for the marine industry. I have been debating selling my boat to pay for other necessities but I should probably keep it to live in when it all falls apart. LOL
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Surprise, surprise.

Our team in the White house doesn't think much about working companies. Businesses are all bad, you see.
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Old 02-15-2012
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It's bad for everyone when any boating segment (power or sail) is in decline.

It's bad for the forum when people try to pollute these threads with political comments. Please leave such comments in the politics subforum.
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Old 02-16-2012
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The price of fuel pretty much put an end to powerboats for me (Ok, you could argue that I still have one!). But I typically just sail and can easily afford to take my boat out every weekend.

It's a very hostile environment for independent business right now under the present Oligarchy.

For power boating to come back, it's going to take some type of breakthrough in propulsion technology - most likely electric. I'm not seeing anything in the near future.
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Quote:
Originally Posted by PBzeer View Post
We certainly do get hurt, and fuel could be over $5 this summer, possibly $6 on the water. Here in New Bern, the marina I'm at is a bit more than half power, but on average, they are a lot longer boats (more $$$).
The owner of our marina was joking about the difference in revenue of sailors versus power boaters. The big Silvertons, Sea Rays and fishing boats are burning 18, 20, 25 gallons per hour at cruising speeds. And sailors tend to do most of their own work while the power boat guys tend to have the shop do their work.

When fuel prices go up fuel sales go down and shop work goes down because these guys aren't running their boats. That means marina revenue drops significantly.

Like it or not if the power boat industry collapses we're screwed,


Quote:
Originally Posted by PBzeer View Post
And higher fuel prices don't just matter at the pump, they make everything else cost more.
Agreed, the cost of living is already way up across the board. Add in those kinds of prices and groceries will be up even more. Even the cost of getting to the marina will jump dramatically. I just did a quick calc and at today's prices it's about a $16.50 round trip to the marina. At $6 gallon it jumps to $25.50 round trip. It all adds up and boating is already an expensive passtime.

And lets not forget this puts over 200 people on the street. Let's hope they are able to come back after the break.
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