Brunswick Corporation on February 2 announced that it will consolidate a portion of its aluminum boat production within its current manufacturing footprint as part of its ongoing efforts to be more agile and responsive to marine market demand.
"For the past several years, we have worked hard to institute more flexibility into our boat-making capabilities," said Brunswick chairman and chief executive officer Dustan E. McCoy. "We have been steadily moving toward 'category'-type production that focuses more on models and segments, rather than the traditional approach of having manufacturing facilities dedicated to a particular brand. Pursuing such a strategy, we have been better able to size capacity to anticipated market demand, utilize our available capacity, improve quality and productivity and significantly lower our fixed costs. As a result, we are more competitive, offering better value and quality products for boaters."
Over the next several months, Brunswick will transfer production of its Crestliner and Triton aluminum boats, now made in Little Falls, Minn., to three other manufacturing plants. As a result, the Little Falls manufacturing facility will phase down production and close sometime this fall.
Production of Crestliner and Triton fishboats and pontoons will be integrated into Brunswick manufacturing plants in New York Mills, Minn., Lebanon, Mo., and Fort Wayne, Ind. Both the Crestliner and Triton brands and dealer networks will remain intact, and this change is expected to be transparent to the dealer network.
The Little Falls facility will begin to ramp down production in May, and is expected to complete that process in the fall. During that time, as many as 50 percent of Little Falls' current jobs could be transferred to the New York Mills or Lebanon facilities. The company said that it will work with local community leaders and government organizations to help with the transition of affected employees.
"While consistent with our manufacturing strategy, such decisions are always difficult," McCoy said. "This decision does not reflect upon the Little Falls workforce or product, but it is the result of our overarching need to develop a more efficient manufacturing footprint that is appropriate to the marine marketplace, which has been under pressure for several years.
"Since 2007, when the global marine market began to enter into an extended downturn, Brunswick has done much to make our global manufacturing footprint more in line with anticipated demand. This was done to not only mitigate the persistent difficult conditions in the global marine market and economy, but also to ensure that Brunswick can both effectively meet current demand and have sufficient capacity to accommodate increased volume as the opportunity arises," McCoy concluded.
Despite U.S. marine retail sales hitting their lowest level in nearly 40 years, Brunswick made significant progress during 2009 in reducing its inventory pipeline to historically low levels, and improving its overall financial structure.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and Benrock parts and accessories distributors; Arvor, Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Lowe, Lund, Meridian, Ornvik, Princecraft, Quicksilver, Rayglass, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Life Fitness and Hammer Strength fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables and foosball tables.