Jacobs Aims to Re-Popularize Boating By Making It Affordable
Genmar Holdings is, by its own description, the world's premiere builder of recreational boats.
From a $12,995 Stratos to a $1,000,000 Carver Yacht, the lines are as diverse as those of General Motors. In reality, the Genmar lines are actually more diverse. Where many General Motors lines' diversity is often little more than cosmetic changes and badges on the same vehicle platforms, Genmar ranges from family runabouts to live-aboard luxury seafaring vessels.
Despite that formidable size, Genmar is not immune to the lagging economy that has other boat companies struggling to stay afloat. But the company's size and diversity of product categories and price ranges does provide an economic footing that differentiates Genmar companies from their struggling competition.
In 2009, for instance, Genmar will offer more new models in a single line (Ranger) than most of the rest of that industry category - combined.
That diversity in itself, however, does not answer the growing problem of financing in an economy that is mired in a recession, a banking collapse and very tight credit markets.
But it is those very real challenges that does provide what Genmar Chairman Irwin L. Jacobs believes is the key to Genmar's "creating their own destiny" ala General Motors.
"I've felt for many years the boat industry was too-reliant on the times" Jacobs told me in a phone conversation last evening, "although the car companies aren't the role models they once were, GM created their own destiny with GMAC financing."
To Jacobs, the current economic situation demands that kind of forward thinking in the boat industry.
"I feel we no longer have the option but to create Genmar Retail Financing," he said, "granted, it's a challenging economic time, but having the ability to offer our detailers the opportunity to offer zero, or one, two or three-percent financing gives us the ability to do promotions our competitors simply can't do."
So, says Jacobs, it's full-speed ahead for Genmar Retail Financing.
Although he declined to put dates on when the service being operative, he did say imminent developments would quickly move the whole project forward.
"It will happen," says Jacobs, "I'm just not going to create an artificial deadline by choosing an arbitrary date."
Affordable financing, says Jacobs, is the key to revitalizing the boat industry - and getting people back on the water. Once people become boaters, they generally stay boaters, he explained. They might move into larger boats, or downsize into smaller ones, but they want to stay on the water. Making boats more affordable, he said, is one key to bringing former boaters back onto the water and, more importantly, getting new people into boating.
With Genmar's diversity he says, "we're the ones to get this going."
And what about those dealers struggling to stay afloat today?
"For twenty years," Jacobs said simply, "I've told floorplanners to know who you're doing business with." Not knowing their customers, he says, has led to the serious problems others companies are facing, including failed dealerships.
"We will never allow one of our boats to be liquidated right across the street from one of our dealers," Jacobs said, "we're going to protect our brand equity and reputation."
From others in the industry, that might seem like bombast, but not from Jacobs. From an ailing brewery acquired in 1975, he has built a hefty - and healthy - portfolio of holdings that includes not only Genmar Holdings and FLW Outdoors (parent organization of the Wal-Mart FLW Tour) but more than a dozen other varied corporations.
Jacobs has proven his willingness to take aggressive and innovative steps to build his boat business in the past. His acceptance of the VEC (Virtual Engineered Composites) process allowed his companies to use a compact, enclosed and computer-controlled manufacturing system to cut the manufacturing time of an eighteen foot fiberglass hull from eight hours to only thirty-five minutes. And tours through Genmar's eight manufacturing centers reveal other innovations from computer guided paint processes to vertical integration that allows Ranger to build and assemble boats and their accompanying trailers in the same manufacturing facilities.
In the near future, Jacobs says, there will be more innovation forthcoming - designed to help new boaters get into fishing - and boating - affordably. Key to that effort, "the most reasonably priced fiberglass boat ever" with a price he says will be two to three thousand dollars lower than an aluminum boat and comprise a completeready -to fish package with boat, motor, trailer, depth finder and trolling motor.
For many in the outdoors, Irwin Jacobs is the smiling moneyman of the FLW Tour. For the past two years, he's gleefully stood on the stage at the Forrest Wood Championship and handed one million-dollar checks to the winners.
If his latest plans hold, however, he may be known as the man who enabled Genmar Holdings to follow the example set by General Motors in its heyday and "create its own destiny".
We'll keep you posted.
Genmar Holdings is, by its own description, the world's premiere builder of recreational boats.
From a $12,995 Stratos to a $1,000,000 Carver Yacht, the lines are as diverse as those of General Motors. In reality, the Genmar lines are actually more diverse. Where many General Motors lines' diversity is often little more than cosmetic changes and badges on the same vehicle platforms, Genmar ranges from family runabouts to live-aboard luxury seafaring vessels.
Despite that formidable size, Genmar is not immune to the lagging economy that has other boat companies struggling to stay afloat. But the company's size and diversity of product categories and price ranges does provide an economic footing that differentiates Genmar companies from their struggling competition.
In 2009, for instance, Genmar will offer more new models in a single line (Ranger) than most of the rest of that industry category - combined.
That diversity in itself, however, does not answer the growing problem of financing in an economy that is mired in a recession, a banking collapse and very tight credit markets.
But it is those very real challenges that does provide what Genmar Chairman Irwin L. Jacobs believes is the key to Genmar's "creating their own destiny" ala General Motors.
"I've felt for many years the boat industry was too-reliant on the times" Jacobs told me in a phone conversation last evening, "although the car companies aren't the role models they once were, GM created their own destiny with GMAC financing."
To Jacobs, the current economic situation demands that kind of forward thinking in the boat industry.
"I feel we no longer have the option but to create Genmar Retail Financing," he said, "granted, it's a challenging economic time, but having the ability to offer our detailers the opportunity to offer zero, or one, two or three-percent financing gives us the ability to do promotions our competitors simply can't do."
Genmar's Irwin L. Jacobs looks to use affordable financing from Genmar Retail Financing to bring boaters back onto the water - in Genmar brands.
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So, says Jacobs, it's full-speed ahead for Genmar Retail Financing.
Although he declined to put dates on when the service being operative, he did say imminent developments would quickly move the whole project forward.
"It will happen," says Jacobs, "I'm just not going to create an artificial deadline by choosing an arbitrary date."
Affordable financing, says Jacobs, is the key to revitalizing the boat industry - and getting people back on the water. Once people become boaters, they generally stay boaters, he explained. They might move into larger boats, or downsize into smaller ones, but they want to stay on the water. Making boats more affordable, he said, is one key to bringing former boaters back onto the water and, more importantly, getting new people into boating.
With Genmar's diversity he says, "we're the ones to get this going."
And what about those dealers struggling to stay afloat today?
"For twenty years," Jacobs said simply, "I've told floorplanners to know who you're doing business with." Not knowing their customers, he says, has led to the serious problems others companies are facing, including failed dealerships.
"We will never allow one of our boats to be liquidated right across the street from one of our dealers," Jacobs said, "we're going to protect our brand equity and reputation."
From others in the industry, that might seem like bombast, but not from Jacobs. From an ailing brewery acquired in 1975, he has built a hefty - and healthy - portfolio of holdings that includes not only Genmar Holdings and FLW Outdoors (parent organization of the Wal-Mart FLW Tour) but more than a dozen other varied corporations.
Jacobs has proven his willingness to take aggressive and innovative steps to build his boat business in the past. His acceptance of the VEC (Virtual Engineered Composites) process allowed his companies to use a compact, enclosed and computer-controlled manufacturing system to cut the manufacturing time of an eighteen foot fiberglass hull from eight hours to only thirty-five minutes. And tours through Genmar's eight manufacturing centers reveal other innovations from computer guided paint processes to vertical integration that allows Ranger to build and assemble boats and their accompanying trailers in the same manufacturing facilities.
In the near future, Jacobs says, there will be more innovation forthcoming - designed to help new boaters get into fishing - and boating - affordably. Key to that effort, "the most reasonably priced fiberglass boat ever" with a price he says will be two to three thousand dollars lower than an aluminum boat and comprise a completeready -to fish package with boat, motor, trailer, depth finder and trolling motor.
For many in the outdoors, Irwin Jacobs is the smiling moneyman of the FLW Tour. For the past two years, he's gleefully stood on the stage at the Forrest Wood Championship and handed one million-dollar checks to the winners.
If his latest plans hold, however, he may be known as the man who enabled Genmar Holdings to follow the example set by General Motors in its heyday and "create its own destiny".
We'll keep you posted.
--Jim Shepherd











