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Brunswick CEO Remarks from METS 2017

Posted: Wed Nov 15, 2017 2:00 pm
by jimh
Mark Schwabero, the CEO of Brunswick, delivered the keynote speech at the 30th Anniversary of the METS tradeshow yesterday in Amsterdam. There is a recording of the speed available at ... 119HtUjnBs

A very interesting moment in the speech occurs about ten minutes in.

For outboard engine sales, Mr. Schwabero shows that the outboard market has recovered to about ten percent greater sales than it had at the pre-downturn level. He says:

If you look at the two-hundred-plus horsepower category, it is now the largest category, and it's also the one that is well beyond what it was pre-recession. And the second bullet point...the fact that almost 20-percent of the [outboard] dollar market today is three-hundred-plus horsepower engines--which didn't even exist in 2006.

That outboard engines of 300-HP or more have become such a factor in the market is quite surprising. There is one qualifier in the statement, however, that can explain the observation. The 20-percent share is the dollar share, not the unit share. Since engine sales price is directly proportional to horsepower, we can be certain that 300-HP or higher engines are much more expensive than engines of less horsepower. So even if the unit sales of 300-HP or higher engines were at a much smaller fraction of total unit sales than 20-percent, their dollar-share of total sales could easily be 20-percent of the the outboard total market dollar figure.

Re: Brunswick CEO Remarks from METS 2017

Posted: Fri Nov 17, 2017 6:27 am
by Don SSDD
I would also guess that the profit margin on a 300-HP and higher outboard is higher than on the smaller motors, so it likely contributes more than 20-percent of the profit, especially for Brunswick when a Merc is "sold" on a new Whaler.

Re: Brunswick CEO Remarks from METS 2017

Posted: Fri Nov 17, 2017 8:11 pm
by jimh
Later in the speech, Mr. Schwabero notes that Brunswick has provided Massachusetts Institute of Technology (MIT) with a Boston Whaler 250 OUTRAGE boat with engines to facilitate the their research into autonomous boat operation. This mention occurs around the 25-minutes mark.

In addition to the recording of the Keynote address, an interview with Mr. Scwabero was recorded. That interview can be viewed at

Mr. Schwabero talks about:

--acquisitions by Brunswick of marine related companies

--efforts to make the company sales less cyclical by reducing reliance on new boat sales

--increasing emphasis on parts, consumables, and loose engine re-power sales

--future of sterndrives compared to outboard engines

--decline in sales of large boats 40 to 65-feet

--boat segments that are doing well: aluminum fishing boats, pontoon boats, larger center console boats

Mr. Schwabero says:

"Somebody would probably argue with me, but BOSTON WHALER might one of THE best brands in the world."

No argument from me about that statement.