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

People & Company News

Liberian Registry Appoints Catsiba Manager in Dubai

Fay Catsiba has joined the Liberian International Ship & Corporate Registry (LISCR) as Business Development Manager based in Dubai, U.A.E. Greece-born Fay, who

Cook Joins Horizon Shipbuilding as Operations VP

Horizon Shipbuilding, Inc. announced that Mickey Cook has joined the corporation as the Vice President of Operations for the Bayou La Batre shipyard. Cook, one of the founders of C & G Boatworks,

Mercury Marine Launches Repower Financing

Mercury Marine launched a new repower finance program that aims to make it easier for consumers to get the engine performance they want with flexible financing for a broad range of buyers.

Workboats

MN 100: Ingram Barge Company

4400 Harding Road Nashville, TN 37205-2290 Tel: (615) 298-8200   Email: Elizabeth@tsgnashville.com Website: www.ingrambarge.com CEO: Orrin H. Ingram The

Smith Brothers to Christen Newbuild Tug

On October 10, 2014, Kenneth Smith, 99, the last of the original Smith Brothers, will christen the tug Captain Kenneth. The vessel was designed by the late Oliver

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Navy

Today in U.S. Naval History: September 16

Today in U.S. Naval History - September 16 1854 - Cdr. David G. Farragut takes possession of Mare Island, the first U.S. Navy Yard on the Pacific. 1917 -

Austal Delivers Fourth JHSV to the US Navy

The U.S. Navy accepted delivery of USNS Fall River (JHSV 4) from Austal USA yesterday, a week shy of six months from the date they took delivery of JHSV 3. This

Washington Navy Yard Remembers Shooting One Year Later

It was a day no one who worked on the Washington Navy Yard will ever forget. Shortly after 8 a.m., on Sept. 16, 2013, Navy contractor Aaron Alexis entered the Naval

Vessels

Austal Delivers Fourth JHSV to the US Navy

The U.S. Navy accepted delivery of USNS Fall River (JHSV 4) from Austal USA yesterday, a week shy of six months from the date they took delivery of JHSV 3. This

Gladding-Hearn Delivers Third NYPD Boat

With more than a dozen patrol boats and a fireboat built by Gladding-Hearn Shipbuilding, Duclos Corporation, operating in New York Harbor, the Somerset, Mass.,

Survey Vessel Delivered to Fugro N.V.

Fugro Pioneer is the second of three vessels to be delivered to Fugro in 2014. Fugro has taken delivery of the second of the three Fugro Offshore Coastal Survey

People in the News

China, Sri Lanka to Launch FTA Talks

Chinese President Xi Jinping began a visit to Sri Lanka on Tuesday agreeing to open bilateral negotiations for a free trade pact as Beijing tightened its embrace

Video: Former Captives Discuss Iceberg 1 Hijacking

Piracy: Not a Thing of the Past Think Somali piracy is a thing of the past? That “past” haunts thousands of seafarers today; but the reports from individual seafarers mostly go unnoticed,

Maersk Sells Ven Drilling Barges

Danish shipping conglomerate A.P. Moller-Maersk said on Tuesday its offshore oil and gas drilling unit has sold its Venezuelan barge activities. Maersk Drilling

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Salvage 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: 0.3142 sec (3 req/sec)