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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

2 Americans Rescued North of Cuba

A Coast Guard MH-60 helicopter crew rescued two American sailors whose vessel ran aground approximately 25 miles north of Gibara, Cuba, Friday. Watchstanders

Shell CEO Backs Fossil Fuels, Climate Change Warnings

The world's fossil fuel reserves cannot be burned unless some way is found to capture their carbon emissions, Royal Dutch Shell Plc Chief Executive Officer Ben van Beurden said on Friday.

Severe Flooding Cuts Off Lone Road to Alaska's Oilfield

Alaska's lone road to North Slope oil field operations remains closed for the third time in two months while emergency crews continue to redirect flooding from an adjacent river,

Workboats

MPC Honors Crowley for Tank Vessel Safety

Crowley Maritime Corporation’s petroleum services division has once again been honored by Marathon Petroleum Company (MPC) with its annual Elite Vessel Award, which

Indonesia Sinks Boats from China

According to The China People's Daily, Indonesia has just sank a large Chinese vessel and 40 other foreign ships caught fishing in The South China Sea.    The

Laborde Repowers Much of Stone Oil Fleet

In January 2014, Laborde Products sold its first Mitsubishi engine to John W. Stone Oil for the vessel John W. Stone. Since then, Laborde has supplied the Gretna,

Navy

Russian, Azerbaijani Navy to Hold First Ever Joint Drills in Caspian Sea

About 10 Russian and Azerbaijani ships will take part in a joint naval exercise in the Caspian Sea for the first time; RIA Novosti cited the statement of Russia’s Southern Military District.

India-ASEAN Naval Cooperation On

The Indian Navy's indigenous offshore patrol vessel, INS Saryu, will participate in a week-long ASEAN Regional Forum (ARF) Disaster Relief Exercise (DiREx).   According to an official statement,

DMW Marine Takes the Lead in Military Cranes

DMW Marine Group, LLC. has completed a number of projects for the U.S. Navy and foreign Navies in recent years, claiming a place as a go-to supplier for Navy departments globally.

Vessels

Seaway to Receive Prestigious OECD Award

The St. Lawrence Seaway Management Corporation (SLSMC) announced today that it will receive a prestigious award from the Organization for Economic Cooperation

Oil Leak Contained at MV Miner Site

On-site workers acted quickly to contain an oil leak during the final stages of removing the wreck of the MV Miner off Scaterie Island, says the government of Canada’s Nova Scotia province.

Yemen-bound Aid Ship Docks in Djibouti

An Iranian ship carrying humanitarian aid for war-ravaged Yemenis has arrived in Djibouti. It will be inspected by the United Nations so its cargo can be shipped to conflict-torn Yemen.

People in the News

2 Americans Rescued North of Cuba

A Coast Guard MH-60 helicopter crew rescued two American sailors whose vessel ran aground approximately 25 miles north of Gibara, Cuba, Friday. Watchstanders

U.S. Senators Urge Obama to Block Arctic Oil Drilling

A group of 18 mostly Democratic U.S. senators on Friday urged the Obama administration to stop Royal Dutch Shell's preparations for oil exploration in the Arctic,

Mayor Garcetti on Ratification of Port Labor Contract

International Longshore and Warehouse Union members have ratified a five-year contract governing pay and work rules at 29 West Coast ports, including those of Los Angeles and Long Beach.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.2316 sec (4 req/sec)