Sea Ray Boat Manufacturing Plant To Close
By Space Coast Daily // March 6, 2013
More Than 200 Employees To Lose Jobs By June
BREVARD COUNTY • MERRITT ISLAND, FLORIDA – About 205 employees of the Sea Ray boat manufacturing facility on Merritt Island will lose their jobs by the end of June as its parent company consolidates operations.
In a press release, Brunswick Corporation of Illinois detailed plans to consolidate its yacht and motor yacht production at its Palm Coast and Merritt Island production facilities.
The Brunswick Boat Group’s Product Development and Engineering center, located adjacent to the Merritt Island Sykes Creek manufacturing plant, will remain in operation.
In addition, the company will continue to use existing customer reception facilities, sales and customer service offices, and wet slips located on the Merritt Island campus.
The Merritt Island Sykes Creek plant, which currently manufactures Sea Ray and Meridian yachts and motor yachts from 51 to 61 feet in length, currently employs some 205 people in manufacturing.
The press release says the company is evaluating job opportunities for Sykes Creek personnel to help transition production to Palm Coast or at other Brunswick manufacturing facilities for those employees who are interested and able to relocate or commute.
“This action allows us to reduce production costs and shorten production cycle times of yachts. Further, the transition is planned so that we can take full advantage of initial retail demand for our new yacht models that we are bringing to the marketplace over the next two years,” said Brunswick Boat group president Andy Graves. “Concurrent with the transition, comprehensive marketing materials will be provided to our dealer network to support the pre-sale of the new yacht models under development.
“ We can still support significant sales growth in these segments, as our post-consolidation manufacturing footprint will retain capacity to compete in a market in excess of 2.5 times current worldwide demand for yachts and motor yachts,” Graves said.
Company officials say the decision to close the Merritt Island manufacturing plant was tough.
“Difficult as it was, this action was a necessary step to match capacity with market demand, position Sea Ray for success with new yacht product development programs, and work toward our near-term operational and financial objectives,” said Brunswick Chairman and Chief Executive Officer Dusty McCoy.
According to the press release, when the entire consolidation is completed, Brunswick estimates that this action will result in annual savings of $3 to $5 million beginning in 2014. Restructuring and impairment charges of $6 to $8 million are expected to be recognized as a result of this action this year.