SeaArk Marine: Temporarily Discontinues Accepting New Orders

(Press Release)
Tuesday, August 30, 2011
The Navy’s 34-ft RAM built by SeaArk.

Military and industrial aluminum boat manufacturer SeaArk Marine, Inc. of Monticello, Arkansas said it will temporarily suspend acceptance of new boat orders until further notice. Due to very sporadic and extremely low (new construction) sales figures for nearly 24 straight months, the company announced that it would begin an overhead reduction plan in an attempt to “ride out” the effects of the current market until substantial improvement in the government & industrial marine sector appeared more apparent.
SeaArk Marine, Inc. is not completely shutting down its operations. The company currently has several boats on order that will continue in construction until those are completed and delivered with factory support and full warranty coverage. The company will also continue fulfilling spare parts orders indefinitely. New orders for repair/refurbish work with short turnaround cycles will continue to be accepted until January 1st, 2012.
“Obviously, this is a very emotional decision for everyone concerned” commented John McClendon, President and CEO of the company. “We have recently worked our way down to the minimum amount of fixed overhead we could and still properly serve the market that we compete in. Typical construction time for our products can be fairly long – up to a year or more for some of the larger vessels. This means that very small contracts and ones that continue to be stretched far apart have the potential to keep pushing cash consumption further and further out; eventually beyond financially sound limits.”
McClendon went on to disclose the logic behind the decision: “The situation is that SeaArk Marine, Inc. is currently in a positive cash position, no debt whatsoever, and has the ability to keep our employees and vendors paid rapidly. “
“We wanted to be able to continue that position and control those elements long before it became any sort of crisis to manage. Company ownership has struggled with this decision for some time, but this sales downturn is the most severe experienced in the company’s 52 year history, and despite our sales team’s monumental efforts, the increasing uncertainty of various opportunities developing recently created serious doubts that it will reverse significantly within the next year.”
“We would not accept a situation where we couldn’t live up to our obligations to our customers or our vendors.”
McClendon continued, “Financially this is clearly the best option and I would rather “hunker down” now under a well controlled plan - with the real possibility of coming back strong in the future - than to just keep rolling the dice that things are going to improve quickly enough to make remaining 100% operational right now a good business decision.”
SeaArk Marine, Inc. (formerly MonArk Boat Co.) has been in continuous operation in Monticello, AR since 1959. The company has delivered boats to all 50 states, every U.S. held territory, and over 70 countries around the world.
SeaArk Boats, the recreational aluminum boat builder also located in Monticello and operated by Robin McClendon (John McClendon’s sister) currently enjoys steady sales and is unaffected by SeaArk Marine’s decision. Each company serves distinctly different product markets with completely separate sales and distribution methods.
Zach McClendon, original founder of both companies, concluded the announcement with a reflective comment on the decision: “The current business environment in America seems to be getting more and more difficult by the day. Sometimes long term survival requires making extremely tough decisions. This was certainly the hardest we’ve ever had to make.”
 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Jee to Host Subsea Installation Analysis Webinar

Webinar to focus on optimizing subsea installation analysis, helping companies minimize offshore time and costs. Jee Ltd., an independent subsea engineering and training company,

Harris Secures Certification for its Multi-channel Manpack Radio

Harris Corporation (NYSE:HRS) has received Type-1 National Security Agency (NSA) certification for its Falcon III® RF-340M multi-channel manpack radio. The certification

Lithuania Inks First Statoil LNG Deal

Lithuania seeks to cut dependence on Russia; Statoil to supply 0.54 bcm of gas per year. This will cover about 20 pct of Lithuania's demand. Lithuania signed

Workboats

First Two Mooring Boats Launched for Port of Ras Laffan

Nakilat has celebrated the delivery of two 16-meter mooring boats built by shipbuilder Nakilat Damen Shipyards Qatar for towage operator Nakilat Svitzer Wijsmuller.

Great North River Tugboat Race and Competition

More than 15 tugboats are expected to participate in the Working Harbor Committee’s annual Great North River Tugboat Race and Competition Sunday, August 31 from 10 a.

Search Suspended for Man Overboard near Cedar Bayou

The U.S. Coast Guard suspended its search Tuesday for a man who went missing after his shrimp boat overturned Monday near Cedar Bayou on the Houston Ship Channel.

Navy

Today in U.S. Naval History: August 21

Today in U.S. Naval History - August 21 1800 - U.S. Marine Corps Band gave its first concert in Washington, D.C. 1883 - Installation of the first electric

DSME Gets UK Shipyard Consulting Contract

S. Korea's DSME says it is to provide naval vessel production and management consulting services for British defense company BAE. Under the terms of the agreement,

Northrop Grumman Awarded Navy IT Contract

Grumman Corporation informs it has been selected by the US Navy as one of five contractors for the Consolidated Afloat Networks and Enterprise Services (CANES)

Vessels

Update to Fire Damage to Australian Patrol Boat

Armidale Class Patrol Boat HMAS Bundaberg suffered significant damage due to a fire which occurred on Monday, August 11, 2014 in Brisbane. The boat was undergoing

Containership Cleared of Ebola Risk

Containership Hammonia Pacificum has been cleared of Ebola risk at the Port of Ricahrd Bay after being stopped previously at several West African ports, according

Tanker Carrying Kurdish Oil Reappears Unladen off Israel

A tanker carrying crude oil from Iraqi Kurdistan reappeared unladen on Aug. 19 about 30 kilometres off the coast of Israel, ship tracking data on Reuters showed.

People in the News

Lithuania Inks First Statoil LNG Deal

Lithuania seeks to cut dependence on Russia; Statoil to supply 0.54 bcm of gas per year. This will cover about 20 pct of Lithuania's demand. Lithuania signed

DNO Eyes First Kurdistan Crude Shipment

Norwegian firm DNO expects its first shipment of oil from Kurdistan to be sold on the international market by the end of the year and said it was committed to its

Second Tanker Awaits Lifting Opportunity at Libya Port

A second tanker is waiting to load oil at Libya's Es Sider port, state-run National Oil Corp (NOC) said on Thursday, as the country's biggest crude export terminal

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2526 sec (4 req/sec)