Marion, SC Beneteau Plant Sold

RobbieB

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Charleston, SC
Sold out to a pool manufacturer.  Good news for 70 manufacturing people.  Bad news for hopes of it ever reopening as a Beneteau plant....

 

Reference

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So what really drove this?  Just covid, or did the new tax law make it less disadvantageous to import boats?  Or does the luxury goods import  tax just not matter any more from a competitive point of view, now that all the other US manufacturers are out of business?

It just seems unlikely that labor costs in France are lower than South Carolina.

 

Miffy

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So what really drove this?  Just covid, or did the new tax law make it less disadvantageous to import boats?  Or does the luxury goods import  tax just not matter any more from a competitive point of view, now that all the other US manufacturers are out of business?

It just seems unlikely that labor costs in France are lower than South Carolina.
If you make otherwise good employees redundant in most developed countries with strong labor laws, the employer has a bill to take care of. It is far more costly and less of an immediate short term saving to let go French employees than folks in SC. 
 

American southern states have this race to the bottom labor scheme to try and attract multinationals and in the end, when the things change dramatically and ppl need to put together a comprehensive strategy to overcome a hurdle - the southern states suffer the most because well - it treats the ppl as disposable. 

 
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Greyhound37

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Annapolis
Group Beneteau is considering closing four of its 16 sites as it looks to scale back production and cut costs.

As a result of the covid-19 pandemic, the organisation predicts its sailing and inboard motorboat segments could see a similar contraction in volumes to the 2008-2009 financial crisis which would not be offset by dayboating market growth.

An option the Group is consulting on is closing, selling or temporarily shutting down four of its 16 sites – one in the US, one in Slovenia and two in France.

Operations at three sites – Italy, France and Poland - could be scaled down.

For the Boat division globally, the measures would lead to job cuts for staff assigned directly to production, resulting in a reduction in the workforce by 300 to 840 people.

Workforce reduction

With regard to indirect production, product development and support services staff, the cuts being considered would result in a reduction in the workforce by 380 to 460 people for the division.

In August, the Group approved a change to its financial year-end date to December 31 2020.

Financial elements will be published on October 27 2020 that will include information on the end of the Group’s summer season.

The Group has confirmed that business for the period from September 1, 2019 to August 31, 2020, and particularly the last quarter, came in slightly better than it had previously forecast. The same is true for the net cash position at August 31, 2020.

A total of 18 new models have been announced for 2021.

 

Miffy

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There’s also an element of product line consolidation- the new Beneteau group boss has not been shy letting everyone know the moment he took over he didn’t understand the product line and how each product segments relative to the others from the same group. 

 

woodpecker

Member
496
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Maybe it is as simple as that people in the US are not buying as many mid to low end cruising sailboats as the past?  No bother building them is no one is buying.
Even in this mini boom, I don't think that's what people are buying or that's what they want. 
Look at MJM they just built a new factory in NC and I believe there is a multi year backlog on new boats from them.

 

Varan

Super Anarchist
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Sold out to a pool manufacturer.  Good news for 70 manufacturing people.  Bad news for hopes of it ever reopening as a Beneteau plant....
Pool mfg , good call. Easy to fill them this time of year  :ph34r:

 
I have an in-law who's South Carolina company makes canvas and other fabric products for companies who build 15-30 ft motor boats.  They are so busy they are having a hard time finding Sunbrella and other materials .  .  .

 

darth reapius

Super Anarchist
1,076
272
Straya
Time to open a Figaro 3 production line in Santa Cruz, and offer the first 10 hulls at a steep discount to seed the Bay Area fleet.
Call it the FigaroX, install twin wheels aft, raise the cabin-top to give 6'8" headroom and a fridge big enough for 2 cases of bud.

 

loneshark64

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Later dudes
I worked for a number of multinational companies during economic contractions. It is extremely difficult to lay off employees in France and Germany with their laws and works councils. The USA was like, fine, have at it, lay’em off. It was frustrating in those times, 2000, 2008 for example, to see large percentages cut here in the US and the French and German subsidiaries would be largely untouched. So, I have to assume Beneteau feels they need to contract and the US is where they can do it. I would guess that  this is one of the reasons they put the plant here in the first place (along with labor costs and tax incentives) because if they needed to flex their capacity down In a weak market they could. 

 

IStream

Super Anarchist
10,860
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I worked for a number of multinational companies during economic contractions. It is extremely difficult to lay off employees in France and Germany with their laws and works councils. The USA was like, fine, have at it, lay’em off. It was frustrating in those times, 2000, 2008 for example, to see large percentages cut here in the US and the French and German subsidiaries would be largely untouched. So, I have to assume Beneteau feels they need to contract and the US is where they can do it. I would guess that  this is one of the reasons they put the plant here in the first place (along with labor costs and tax incentives) because if they needed to flex their capacity down In a weak market they could. 
Yup. The US has positioned itself as Europe's labor bitch.

 

voodoochile

Anarchist
595
42
Hampton, Va
Group Beneteau is considering closing four of its 16 sites as it looks to scale back production and cut costs.

As a result of the covid-19 pandemic, the organisation predicts its sailing and inboard motorboat segments could see a similar contraction in volumes to the 2008-2009 financial crisis which would not be offset by dayboating market growth.

An option the Group is consulting on is closing, selling or temporarily shutting down four of its 16 sites – one in the US, one in Slovenia and two in France.

Operations at three sites – Italy, France and Poland - could be scaled down.

For the Boat division globally, the measures would lead to job cuts for staff assigned directly to production, resulting in a reduction in the workforce by 300 to 840 people.

Workforce reduction

With regard to indirect production, product development and support services staff, the cuts being considered would result in a reduction in the workforce by 380 to 460 people for the division.

In August, the Group approved a change to its financial year-end date to December 31 2020.

Financial elements will be published on October 27 2020 that will include information on the end of the Group’s summer season.

The Group has confirmed that business for the period from September 1, 2019 to August 31, 2020, and particularly the last quarter, came in slightly better than it had previously forecast. The same is true for the net cash position at August 31, 2020.

A total of 18 new models have been announced for 2021.
Close friend is a Jeanneau dealer and he's selling boats new and used faster than he can get them.  Best market he's seen.  

 

Spin Echo

Anarchist
654
2
Wow, this thread is full of commies, union and labor law lovers. JFC. Let the free market do its work. France and EU is drowing in unemployement. The employment taxes are fng suffocating my business' margins. Low level employees are in a circle of work and unemployment benefits. I've hired multiple ppl that left me for unemployment, knowing full well they might do it again, bc i dont have to train them. Aging population and most importantly complete devaluation of ppl's money by the fed is the reason younger ppl cant afford homes, not to mention boats. Older ppl that caught the historic bull market and have retired are buying powerboats, like mjm, etc.

 

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