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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Hanjin Shipping May Get OK for Restructuring

South Korea’s largest container operator by capacity Hanjin Shipping's creditors are expected to approve a corporate rehabilitation program for the struggling container line,

Allcargo Groups Subsidiaries as ECU Worldwide

ECU Line, Econocaribe and China Consolidators undergoes rebranding to build a Global Brand Connect   India’s integrated logistics solution provider Allcargo Logistics

Damen Opens US Office

Damen Shipyards Group has announced the opening of a new branch office in Houston, Texas. This expansion, under the name of Damen North America, meets the increasing

Workboats

Mercury Marine Expands Manufacturing Capacity

Mercury Marine is adding a 53,000 square foot manufacturing capacity expansion to its global headquarters in Fond du Lac, Wisc. The expansion will consist of 45,

Englishman: 11th Humber Tug Bears the Name

Humber tugboat operator SMS Towage has drawn on an old name for the latest addition to its fleet. The new Englishman is the 11th Humber tug to bear the title, in

Ulstein Verft's First Wind Service Vessel Launched

Shipbuilder Ulstein Verft has launched its first vessel within the renewable energy segment, and also the first with the newly-developed X-STERN hull line design.

Navy

BAE Systems Bags USN Award for Submarine Propulsors

BAE Systems has received a $72 million contract from the U.S. Navy to produce and deliver propulsor systems for Block IV Virginia-class (SSN 774) submarines. The

This Day In Naval History: May 2

1863 - During the Civil War, the steam screw sloop Sacramento, commanded by Captain Charles S. Boggs, seizes the British blockade-runner Wanderer off Murrells Inlet, N.

VDRs Refit on UK Royal Fleet Auxiliary Ships

Danelec Marine informs it has supplied new-generation Voyage Data Recorders (VDRs) for three U.K. Royal Fleet Auxiliary (RFA) Bay-Class Landing Ship Dock (LSD) vessels.

Vessels

Hueneme Port Expands Ship Pollution Reduction Program

The Port of Hueneme launched the second phase of its Grid-Connected Shore Power System, celebrating another next step forward in reducing air emissions and minimizing environmental impact.

VDRs Refit on UK Royal Fleet Auxiliary Ships

Danelec Marine informs it has supplied new-generation Voyage Data Recorders (VDRs) for three U.K. Royal Fleet Auxiliary (RFA) Bay-Class Landing Ship Dock (LSD) vessels.

Saga Shipholding’s Optimarin Experience Drives BWT Orders

Ballast water treatment (BWT) specialist Optimarin has signed a contract with Saga Shipholding for the provision of three of its Optimarin Ballast Systems (OBS).

People in the News

TOTE LNG Bunker Barge : Crew Training Program

GTT subsidiaries, GTT North America, Inc. and GTT Training Ltd, announce the award of the first contract of its kind for the development and implementation of a

Crowley Acquires Ace Fuels Assets in Anchorage

Anchorage-based Crowley Fuels yesterday completed an asset acquisition of the aviation fuels business of Ace Fuels, LLC, a fixed base operator (FBO) headquartered

MOL's LNG Carrier KUMUL Delivered

Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) announced the delivery of the LNG carrier KUMUL at Hudong-Zhonghua Shipbuilding (Group) Co.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1311 sec (8 req/sec)