Nordic Tug furloughs workforce

[Sea Wolf]

At the risk of playing devil's advocate, maybe Wrights are producing the number and mix of boats with which they are comfortable and which gives them the ROCE they want and need. Is the plant at an optimum operating point perhaps?

Had to look it up: (Maybe you needed to, too.)


ROCE
From Wikipedia, the free encyclopedia
ROCE may stand for:

Return on Capital Employed, used in finance as a measure of the returns that a company is realising from its capital employed.

Return on Common Equity, used in finance as a measure for return on invested capital (not the same as Ret. on Cap. Empl.).

RDMA over Converged Ethernet, used in computer science (high-performance computing).

 

[Wandering Sagebrush]

<snip>
Great to hear your experience with the factory was positive! My concern (and I can see where some would consider it a rant): not the quality of the boat, but the marketing savvy of the factory boat to turn your good experience into future boat sales.
<snip>

I don't wish the factory any ill will; quite the opposite. I just don't see them doing much to promote the boat.

I think Jin B has accurately voiced what many of us feel. Great boats, absolutely GREAT BOATS, but the factory team is missing an involved team member who can leverage our love for them.

 

[chimoii]

ROCE
From Wikipedia, the free encyclopedia
ROCE may stand for:

Return on Capital Employed, used in finance as a measure of the returns that a company is realising from its capital employed.

quote]

Very sorry about that! I guess it is a term that I got too used to in business life. My point was that maybe the business is currently "Wright sized". With the economic recovery still a little fragile they may be playing very smart. Production capacity seldom expands linearly but rather in steps. They may be building close to capacity at the moment and to add more may need real investment in moulds, jigs, real estate leasing, employee training etc.. I recall running a plant with a turnover of about $80m. We generally operated at about 120% capacity (using overtime) and achieved 18% ROCE. When there was a short term downturn we could cut back without having to lay off valuable employees and still have a nice return. When we pushed to $150m the capital investment was significant, as were the investments in people and, yes, advertising and promotion. It took 5 years in a good market until we hit 100% plant utilization and 12% ROCE. If I were building boats right now I would want some very solid market numbers on which to base expanded capacity investment. I may prefer to simply buy into the stock market. Returns haven't been bad in 2013 and should be OK in 2014.

Just thoughts

PS: I would still love to straight swap the Venture 23 for a newish Nordic (or Ranger) Tug if anyone wants to downsize.

 

[potter water]

Lots of businesses run because the owners like the business and simply don't care about alternate uses of their capital. I have a friend who nets less than 2% return on his capital in his business year over year when he could liquidate, get that capital out, put it in good mutual funds and have a pile of money coming in every year. But he is one of the good guys who likes to have the employees making their wages and paying for food and orthodontia for their kids. And he just loves operating the business. From my MBA days I recal studies that showed that more than 50% of businesses in the U.S., (perhaps significantly more) were effectively operating at a loss for the owner(s) when considering the alternate use of the owners capital investments.

Thank goodness for those types of business owners.

 

[Levitation]

Lot to be said for loving what you do. I have large dollars invested in my farms and the net cash flow the first three years has been a loss. Hoping to break even next year.
The wife has pointed out that had I used that money to purchase the place she wanted in Punta Gorda she would be more happy

 

[Will-C]

Because lots of people inquire about our boat we have made up cards that give the name and address of the current manufacture, phone number etc. along with the C-Brats website address. We are now on the third version because of the ownership changes. The one thing we try do is to make sure everything is correct on our cards. We have no dog in this hunt. The factory could / should do the same with the website. If they will build a boat anyway you want, say that and along with provide a list of those possible or more popular options. This might be a real plus for them in creating interest so someone would make contact with a dealer. Just like car companies create advertising for car dealers. I just think the least they could do is to have literature on the model that follows along with the website information. What comes standard these days on the different models? What is the complete list of available options. That couldn't cost that much to do. Maybe a free survey asking what the C-Brats think might help them. The model T was a great car but Ford moved along with the times and I think that that's one thing a factory would want to try to accomplish every ten years or so. I think all C-Brats would like to see the brand prosper. A little more involvement with the owner group would not take much in the way of their resources. I wonder what they do to encourage investors? It just looks like they sitting back waiting for the world to come to them. It looks like they don't care much about promoting the brand. I guess I'll check out Nordic Tug line. Nothing much from much from the factory to encourage me to move up in the C-Dory line.
D.D.

 

[Sasscom]

I wonder if others have made the mistake I have in reading this thread and thought the news about the Nordic Tug furlough was "new" news. The furlough story was published in 2010, but I believe the company is still alive and building boats. It is also building the hulls and decks for the line of Aspen Power Cats, which are supposedly selling quite well. Nordic's problems continue, however, and it is the same for other builders who have focused on the "middle" of the market. This segment was devastated mostly because of the poor housing and financial markets. Too many people saw the values of their homes and retirement funds drastically slashed, making the purchase of a boat in the $250-$800k price range impossible or ill advised. Even as these markets have recovered, most of us have become much more cautious and wise with our money. Also, borrowing money on your home to buy a boat is now a real no, no. Based on the most recent activity at the major boat shows, the high end (over $1million) boats are selling well along with much more affordable, economical models. (Ranger Tugs) Everything in between is practically dead. For example, the $800k to $1.2 million Sabres are selling, but not the factory's $250k Back Coves. Great Harbour hasn't built a new trawler since the housing market crashed, but is now working on a trailerable 32-footer that may very well compete with Ranger Tugs as well as provide a sensible step-up from the C-Dory 25.

With regards to the lack of support from the current C-Dory factory, I couldn't agree more. Their outdated website is a reflection of their lack of interest in communicating and engaging with their customer base. If they want to sell new boats they have to build NEW boats, which means they have to give current owners a good reason to trade up and new owners a reason to join the C-Dory family. Then they have to tell us what they're doing via a new website. It shouldn't be fancy or ultra high tech, it just has to be informative, and it has to promote the C-Dory lifestyle. As a retired marketing professional who over a span of many years helped build the Grand Banks, Nordhavn, Pearson True North, Great Harbour and other brands, I am amazed at what I see as a lost opportunity by the current C-Dory brand. This is a segment of the market that has tremendous growth potential (again, Ranger Tug). Since downsizing from my 45-footer to my 2009 TomCat, I have had dozens of serious inquiries about my boat, but these folks have often commented that after trying to find a dealer or get up-to-date information on what's new at C-Dory, they give up. What a shame. I did, however, recently show my boat to a potential buyer while I was cruising in Ontario, and at my suggestion he then contacted Marc at Wefings. The last I heard is that Marc is now working with the factory to have a new TomCat built for this buyer to the same level of finish that I have on my boat. While this is just one small example that there is a market for new C-Dories, I truly believe there is a significant potential for renewed interest in the C-Dory brand especially considering the "new" times most of us find ourselves in. Whether the builder understands or wants to do what is necessary to take advantage of this opportunity is the big question.

 

[JamesTXSD]

I've been singing that song for years. Each time a new factory entity comes along, I think, "Maybe these folks will understand what a special boat the C-Dory is?"

The lack of updating leads me to believe that they are just building another "product" (as in: well, we have to build something, might as well be a boat).

The C-Dory line isn't just a collection of boats in incremental sizes... it is a magic carpet, an escape pod, an adventure vessel. It fishes and cruises. it can cross large land masses that stops bigger boats. It is a cabin on the water. It builds memories.

In my pre-retired life, I did seminars on customer service for professional organizations and their members. I have never seen a going concern be successful while ignoring their customer base. I can see where they may be building all they care to handle... right now. Where will that put them tomorrow? Or, next year? Bigger isn't always better, but having a steady line of customers with cash in hand is job security.

I mentioned earlier that "double edge sword" and the fact that buying used is often suggested. Innovation, excitement, and passion brings in new buyers, encourages current owners to step up, and gets more people talking about your product line.

I completely agree with that "middle of the market" segment not buying. There are a lot of boomers out there who CAN afford the C-Dory dream... without some marketing, they don't know where to start. Not to fear for them, though... there will always be savvy endeavors willing to help people achieve those dreams. They might have to reach a bit more for a Ranger. Or buy a comfortable RV that will take them anywhere and everywhere. Or go cruising on big ships because no one showed them how special it is to explore on their own.

These boats have been compared to Jeeps and VW campers. The generation that is retiring RIGHT NOW had those Jeeps... and VWs... and motorcycles. They skied and surfed. They stopped to raise families and build careers, but they now have the time to do those grand adventures.

Someone is going to help them fulfill those desires.

Jim B.

 

[Sunbeam]

I mentioned earlier that "double edge sword" and the fact that buying used is often suggested. Innovation, excitement, and passion brings in new buyers, encourages current owners to step up, and gets more people talking about your product line.

I've thought about that: The idea that there are used C-Dorys out there that are basically just as good as new ones, but less expensive, and that that kills new business. And I suppose there are some new sales lost to that. But.... I have to wonder if it is (or would be) a real problem. Reason I say that is this: There are always folks who would prefer to buy new. I mean, why does anyone buy a new car? (Even new ones where there are used ones that are nearly the same - people don't only buy new cars when they are re-designed; they buy them all the time, even mid-cycle). Because some people just want new. That's great! (And Jim, I just used your quote to establish context; not because I think you necessarily disagree.)

And too, I think of the "Antique shops on all four corners" idea. That is that rather than being competition when more move in, it brings in more action/money/interest for all four of them than if there were only one. That makes me think that having both a vibrant/active used and new market would only be better for all ("better" presuming everyone wants more boats, more sales, and more enthusiasm).

When you think of how much companies pay for market surveys and how they practically beg you to take ten minutes to fill out a (free) survey... well, having the gang here is like free money/advertising/market information that's not really being utilized.

As someone else mentioned though, if the folks now building the C-Dory have all the business they want and need, then maybe more interest and more sales would be the opposite of what they want. It could just lead to stress and missed due-dates. And in a small operation, oftentimes smaller boat builders (who are boat people not business or marketing people) have their hands full just building boats.

On the other hand, if they are interested in more market "action," then an updated website and participation in the enthusiasm and culture here could be a really good thing, I think - even if the boats did not change at all (not that I'm saying they shouldn't).

The gang here, and the perception (and reality!) that C-Dory folks are people who get out and DO things, were big, big points in the "pro" column when I was boat shopping :thup

 

[dotnmarty]

The C-Dory line isn't just a collection of boats in incremental sizes... it is a magic carpet, an escape pod, an adventure vessel. It fishes and cruises. it can cross large land masses that stops bigger boats. It is a cabin on the water. It builds memories.

Jim B.

Somebody should nail that to the factory door......

 

[My IRA]

Slow the roll on this one. I think that some of us are becoming to enamored with our own words and thoughts. Yes, we are customers and loyal supporters of the c-dory line but I venture to say that none of us has actually contacted the Wrights to discuss our noble ideas on how to grow the C-Dory line or to gain some knowledge of their business plan.

Maybe the Wrights are not interested in loading up dealers with zillions of flooring stock of unsalable C-dory units (as the Reynolds family did). I don't know their business plan for C-Dory but I do know that their boats are well made and they're building them better (that is their goal for sure).

Let's remember that we're not taking the financial risk.

 

[thataway]

The idea of building new boats, upgrades, mass production, speculation builds and a better web site, getting boats in boat shows etc--all happened during the Reynold's Era. That did not turn out well. The economy was still good in 2006, and early 2007, when many of us bought boats from them. Was it the recession that killed that group? I don't believe that was entirely it. Today a new C Dory 22 can cost in the neighborhood of $70,000. The 25 can be pushed over $100,000 and the 255 can go up to $150,000. The Ranger is going to start with the 27 at close to $200,000--on up to the 31 at base factory base price (18 months ago) at $280,000--and with taxes, trailer and a few options could be even pushing $350,000! No wonder a C Dory 22 at $25,000 seems like a real bargain You get a boat which is almost like the new model at what it cost to build 20 years ago, and 1/3 the cost of a new boat.

We all have trouble factoring in inflation, and costs of product materials--and there is a price to be paid by the company to do the advertising, excellent web site and sponsor boats in a dozen or more major boat shows.

 

[colobear]

I contacted the Wrights the day before yesterday sending them clips from this thread. Got an answer within hours, Sent them another clip this AM. I doubt if they can invest in many changes to the C-Dory line right now but they sure ought to be able to look at implementing some of the almost cost-free marketing suggestions made here. I agree that they build a good boat. The new C-Dorys are, from all accounts , much superior to some from earlier years. But, Personally I don't think their heart is with C-Dory at all. IMHO they bought C-Dory as a way to stay afloat during the worst of the recession until their first love, SeaSport, recovers.

 

[Pat Anderson]

They wouldn't get it if you did...

The C-Dory line isn't just a collection of boats in incremental sizes... it is a magic carpet, an escape pod, an adventure vessel. It fishes and cruises. it can cross large land masses that stops bigger boats. It is a cabin on the water. It builds memories.

Jim B.

Somebody should nail that to the factory door......

 

[Leo Smith]

The fact that the C-Dory has remained in continuous production through several recessions and changes of ownership speaks volumes for the timeless design concept for this iconic boat. If someone with some marketing savvy was on board with the current ownership, the boat would be getting the recognition it deserves.

 

[joefish]

Just found my next boat! A Skagit Orca 27 XLC......
D'oh, owned by C-Dory and not sure if it's made anymore. :shock:

 

[slowtrot]

I confess that I am generally wrong about things of which I have little first hand experience. Mere opinion is not worth much. Boat building is not in my portfolio.

I have managed declining industries as well as expanding businesses. I know that when demand structurally declines , the best thing is to ride the curve down and consolidate the remaining segments. Sometimes the last man standing can make good returns with old equipment and old designs.

It seems to me that C Dory is a niche of a niche serving a group of potential purchasers with declining capacity to buy. The feed stock of fairly well to do baby boomers is tapering off and most of their money stashes are no where near projections of 6 years ago. Every industry serving the middle class discretionary recreational market has been either destroyed or damaged. The last thing an investor wants to do is over capitalize in a declining market.

They are making fine boats and surviving. That is a real accomplishment. My guess is that if they expend funds to try and expand demand, it would kill them. The potential demand may not be there no matter what they do. Very careful detailed management may make it survive. Perhaps.

Their past production has made a large supply of hulls that seem to be handed down to the next group which puts a new motor on them and keeps on going. Not many get junked out. That longevity is coming back to bite them.


I hope they make it. Their designs fit me and my ability to buy.

Slowtrot

 

[patrick and linda]

I still consider myself a c-brat. Linda and i enjoyed our c-dory and my pictures show i certainly enjoyed modifying those thing that drew my attention. When push came to shove we simply wanted more amenities. We certainly weren't looking to spend 100k on another boat. Newly retired, jobless and zero earned income, but damn, there she was in all her glory and pasted on the window of this Nordic tug 26, was "for sale". We bought her, added much and have a lot more changes planned, had a custom trailer made, and have already taken some nice trips. Her range is about 500 miles on 80 gals of diesel. What makes me a c-brat is the spirit I share with you guys for boating and improving our boats for our own satisfaction. Continual promoting our passion, boating education and seamanship. Setting the example for others to follow. Not just on the water but in all walks of life. I am honored to still be a member here. Thanks for having linda and I aboard!

 

[Pat Anderson]

"C-Brat" is a state of mind! Whether you own a C-Dory, a Ranger Tug or a Nordic Tug does not really matter. When we cruise, we are all C-Brats!

 

[c-ness]

Agreed. We cruise on a Grand Banks now, but the first thing I do every morning is check C-brats. Maybe two or three times more per day as well. It's home.