30 JUNE–JULY 2019 | International Boat Industry ibinews.com
Markets & Regions
BOATBUILDERS | USA
LABOUR CHALLENGES
As if higher supply chain costs from tariffs
isn’t enough of a concern for US boatbuilders,
manufacturers in many parts of the country have
begun to face additional challenges to the bottom
line in the form of rising wages and increased
competition for skilled labour.
An extremely low unemployment rate – just 3.8%
nationally – has begun to impact not only employee
recruitment rates, but retention rates as well.
“We have been monitoring the low employment
rates across the country for a number of quarters
now,” says Brunswick Boat Group president, Huw
Bower. “In places like northern Indiana, where
unemployment rates are extremely low, finding
and onboarding new employees in a boatbuildingFibreglass boat manufacturer Campion Marine
is building for future growth with a healthy
respect for its rootsSKEPTICISM OFTEN FOLLOWS when boat
companies are acquired by private equity firms- doubly so when the boatbuilder in question
happens to be a family-owned enterprise with
a history of competing on innovation. But the
October 2018 sale of Kelowna, Canada-based
Campion Marine to KV Private Equity is being
widely acknowledged as a positive move that will
position the manufacturer of fibreglass sport boats
for long-term profitability.
Founded in 1974, Campion is Canada’s largest
independent fibreglass boatbuilder, with a lineup
of more than 37 models sold in 30 countries. Yet
the company found itself up for sale last year after
long-time president, Brock Elliott, elected to retire
Huw Bower,
president, Brunswick
Boat GroupBACK TO THE FUTURE
without a successor in the wings. That opened
the door to the company’s sale to KV Private
Equity. “We were attracted to Campion due to the
strength of its brand, its loyal dealer network, and
the dedication of its long-term employees,” says
KV COO Jonathan Herman. “Campion provides an
exciting entry point into the marine market for us.”
Since finalising the purchase, KV has begun
investing heavily in Campion as it repositions the
company for long-term prosperity. It’s doing so
with an eye firmly on Campion’s own roots.
One of its first moves was to recruit Brian
Milligen as Campion’s new director of sales and
marketing. The role is familiar ground for Milligen,
a popular and highly-respected Campion alumni
who returns to the company following career
stops in retail, motorcycle manufacturing and as
director of international sales for marine apparel
manufacturer Mustang Survival.environment can be quite challenging. We don't
see high turnover in our tenured employees, but
we do see turnover in our new employees who have
different expectations about manufacturing jobs and
what boat building might be about.”
Competition for skilled workers doesn’t just
come from other boatbuilders – equally strong
growth in the automotive, RV and commercial
truck sectors has fueled competition for talent and
encouraged poaching in some areas. Workers with
highly transferable skills – welders, electricians, and
gas fitters, for example – are in such high demand
that wages are being driven skyward. “It’s not a
large labour pool to start with, because the reality is
there just aren’t a whole lot of people working with
their hands anymore in the United States,” saysHe’s a busy guy these days. Campion had a
tough go through the recession – trouble began
in 2007, when a surging Canadian dollar began
trading well above par with its US equivalent,
an unusual fluctuation that suddenly made
Campion’s products far more expensive than those
of its competitors both at home and in the US.
When the global downturn hit the following year,
the company lost a number of its key American
dealers. Investment by its new owners couldn’t
have come at a better time. “It's actually perfect
timing for us to get out in the market and revitalise
the dealer network,” says Milligen. “We're pushing
to take back some market share that was once
ours. We're going to push back in the United States
where we lost strength through the recession. Our
European business has also contracted a bit, so
we’ll be back out to build on those opportunities."
Campion also brought back Neil Gilbert
to design its next wave of boats. Like Milligen,
Gilbert has a prior history with the company. He’s
also worked with Cobalt, Malibu, Doral, Vector
Powerboats, C&C Yachts and Kingfisher, as one of
the most prolific boat designers in the industry.
“When my team and I considered Campion’s future
design strategy, we unanimously agreed that Neil
Gilbert had to be our guy,” said Campion CEO
Lorne Nakonechny. “Neil has a legacy of timeless,
relevant designs and he is being tasked to work
with our team to create his best work yet as we
redevelop our entire lineup of boats. Within five
years we anticipate that our full line-up will have
been turned over.” Campion's WS20 Watersports EditionComplete Climate Solutions: Heating, Cooling & Roofs