[PropWash]

This is a sad story. I'm really tired of hearing about these things while nothing gets done in DC to rectify it....

325 people laid off from Hatteras Yachts

More at: http://www.newbernsunjournal.com

NEW BERN, N.C. More than 300 people have lost their jobs at Hatteras Yachts' boat-building plants in New Bern and Edenton.

The Sun Journal of New Bern reported that employees learned Thursday of the terminations, which were effective immediately. It was unclear how the 325 lost jobs were divided among the plants.

The layoffs were announced by Hatteras Yachts' parent company, Lake Forest, Ill.-based Brunswick Corp. Brunswick spokesman Dan Kubera said the company began reacting to the domestic market in June by finding ways to cut $300 million in costs.

The last major cutback at Hatteras Yachts was in January 2003, when 250 jobs were eliminated in New Bern.

According to market research data, sales of new boats have been slipping nationwide virtually every month since mid-2004."
© AP 2008

[Loren Schweizer]

"This is a sad story. I'm really tired of hearing about these things while nothing gets done in DC to rectify it...."

You are suggesting that some government mandate be brought to bear against the markets which only follow supply-demand dictates?
Puh-leaze.

[NYCAP123]

It's not supply-demand. It's the overall economy. P.S. I hope everyone understands that america cannot afford to lose another marine manufacturer, especially a name like Hatteras. The solution to that is for better brains than mine.

[Arniev]

Yes, this is indeed a sad story.

Moreso because it involves a legendary name in the marine industry such as Hatteras. I do hope that the employees being let go will quickly recover from this crisis and find jobs right away.

It is extremely difficult for government to mandate reforms for specific market segments, i.e. the marine industry, that will produce an "immediate effect" on the supply-and-demand cycle.
However, an extensive and significant Financial Reform Initiative may improve local economic conditions and restore fiscal confidence in business, and the marine industry in particular.

IMHO

[Loren Schweizer]

When there is an oversupply of new product and a dearth of demand by new boat buyers--yes, this is a supply/demand issue.

Been there, done that, bought the tee-shirt.
The good news, however, is that the boat-building business--like multitudes of others--is cyclical in nature and will return even stronger... as it always has.

The Brand H dealer network has probably heaved a sigh of relief: no undue pressure to stock more boats in an environment where the prices of late-model used boats are fetching numbers substantially less than the sticker on an '09.

Like water, how apropos, boat markets always find their proper levels.