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  Brunswick Changes Course: Leaving Jet-boat Market

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Author Topic:   Brunswick Changes Course: Leaving Jet-boat Market
jimh posted 10-21-2013 12:47 PM ET (US)   Profile for jimh   Send Email to jimh  
Brunswick announced recently that its SeaRay brand of boats has decided to drop plans to enter the jet-boat market. An industry trade paper, quoting Brunswick managers in charge of the SeaRay brand, says problems with the jet-drive propulsion system on prototype boats was offered as an explanation for the decision to end the initiative into the jet-boat market. The jet-drive propulsion was believed to be supplied by German manufacturer Weber. The official line was to say that the prototype boats could not meet the SeaRay brand's requirements for reliability.

Brunswick's announced entry into the jet-boat market was curiously timed, as it came just about two years ago, simultaneously as Bombardier Recreational Products (BRP)--at one time a very important maker of jet-boats with a large market share--was ending their jet-boat building operation.

Cf:

http://blog.boats.com/2012/07/ sea-ray-jets-into-the-jet-boat-market-with-weber-motors/#.UmVaECgd7UQ

http://blog.boats.com/2013/09/ sea-ray-reverses-decision-to-enter-jet-boat-market/#.UmVZyigd7UQ

http://www.brp.com/en-us/company/news/brp-exit-sport-boat-market

ConB posted 10-21-2013 01:28 PM ET (US)     Profile for ConB  Send Email to ConB     
BRP ended their jet boat building operation but not their jet propulsion systems.

http://www.tradeonlytoday.com/home/ 526660-rec-boat-holdings-unveils-scarab-jetboat

We also recognize the name Roch Lambert. Was he not the BRP CEO at one time.

ConB

OMCrobert posted 10-21-2013 02:01 PM ET (US)     Profile for OMCrobert  Send Email to OMCrobert     
The jet boat market is the Bermuda Triangle of the marine industry.

There is a market for jet boats but the product does not last and the durability is just not there. We can even see this with the Boston Whaler Rage series from the 1990s. The long term durability is the issue. It maybe because of the way they are operated but no one has been able to tame the jet boat market.

Bravo to Brunswick for realizing this before selling it to customers.

Buckda posted 10-21-2013 05:09 PM ET (US)     Profile for Buckda  Send Email to Buckda     
I would argue that at least one company has "tamed" the Jet Boat market - Hinckley.
prj posted 10-21-2013 05:11 PM ET (US)     Profile for prj  Send Email to prj     
Money can "tame" just about any market. See the military, space exploration, etc...
sraab928 posted 10-21-2013 05:15 PM ET (US)     Profile for sraab928  Send Email to sraab928     
I think Yamaha has done quite well in the jet-boat market. I see a lot of them running around down here.
OMCrobert posted 10-21-2013 06:01 PM ET (US)     Profile for OMCrobert  Send Email to OMCrobert     
Besides Hinckley, I dont know many organizations that successfully tamed the market profitably. I think BRP and Brunswick leaving the market illustrate the issues with the jet boat market. These are successful companies that would not abandon a profitable market.

I know I would not want to buy a 7 year old Yamaha jetboat. Like jetskis, they are normally used harshly and put away wet.

jimh posted 10-22-2013 12:51 AM ET (US)     Profile for jimh  Send Email to jimh     
The United States Coast Guard Response Boat, Medium, a new 45-foot design has Rolls Royce jet propulsion.

http://www.uscg.mil/acquisition/rbm/

I imagine with a pedigree like Rolls-Royce behind the jet drive there won't be too many problems.

Dave Sutton posted 10-22-2013 06:28 AM ET (US)     Profile for Dave Sutton  Send Email to Dave Sutton     
USN Swiftboats used Jacuzzi's...

See "Apocolypse Now".


Dave


.

Jefecinco posted 10-22-2013 09:59 AM ET (US)     Profile for Jefecinco  Send Email to Jefecinco     
Jets seem to be the only boats used in Alaskan waterways and in other waterways with rapids and rocky shallows. Oars excepted. What brand of jets are they using?

Butch

boatdryver posted 10-22-2013 10:14 AM ET (US)     Profile for boatdryver  Send Email to boatdryver     
There is still a jet boat market along the Northern Pacific Coast from San Francisco to Washington.

There are a few independent fabricators who build stout welded aluminum boats 16-24 feet for fishing, typically for King Salmon in these fast flowing rivers with rapids. Typical power is a marinized GM V6 or V8 with fresh water cooling mated to a jet pump. The gold standard jet pump has been Hamilton out of New Zealand.

I owned a 22 foot version of one of these 2003-2007. I loved the simplicity and performance of the thing. Its an exciting type of boating: you never take your eye off of the water for one second and at 25 mph the depth can change from 20 feet to 2 feet in the blink of an eye.

jimL

PeteB88 posted 10-22-2013 11:02 AM ET (US)     Profile for PeteB88  Send Email to PeteB88     
That's right. This is one of my favorite subjects and I've often thought of cutting some Whaler inventory and getting a small Wooldridge boat to run the bigger rivers close to me - Muskegon for sure.

The boys in the Pacific Northwest have had jet pumps down for decades. One reason - because their a%sses are on the line running whitewater through rock gardens, big waves and gravel bars. That's the big difference between running water like the Grand Canyon and the Rogue, Deschutes and other streams. You gotta know what you're doing. Grand Canyon or big water - point down stream and ride the waves - PNW point at obstacles and pull back, pass one, spin and same or know the lines through w/ power boats. Takes years.

I have never understood why boat companies have screwed around with flatlander components only to have long histories of failures and expensive repairs.

I don't know much about New Zealand boat manufacturers but know that outboard and inboard river jet manufacturers are doing well and some make incredible boats. Top on my list is Wooldridge now out of Seattle but born on the Rogue River, South Oregon Coast. Grandson of the founder runs the company and they build awesome river jets and offshore boats for AK. Glenn Wooldridge as I understand it, ran the Rogue way back in the day with outboards on wooden modified drift boats. He have an oarsman on board (Bob??) usually so when he shredded a prop or stalled in a wave oarsman would take over and spin them out of the abyss. Outboard was mounted on what they called a "Jackass Up Lifter" (invented it) with a big lever handle so if he needed to raise it immediately he shoved down on the handle and saved the lower unit or cleared the rocks or bar.

As the story goes, Glen worked with an engineer from Cali Dick Stallman to develop the first outboard jet.

Others who know what they are doing and hatched by real rivermen are Alumaweld, Duckworth (Hell's Canyon), Willie and Fish Rite. (check the websites for interesting history)

From their advertising -
"Wooldridge offers Chevrolet V-8 inboard jet power. The actual jet pump is mounted inside the boat, with the water intake through the bottom. Wooldridge Boats prefers Hamilton jets for their V-8 inboard jet models.
Hamilton inboard jet pumps come with different pitch impellers to match up correctly with boater needs and the motor selected.

Pump selection is critical for optimum jet boat performance and Wooldridge specializes in coordinating boat, motor & pump combinations to suit individual customer needs. In most instances, the Hamilton 212 is the unit of choice, as it offers a broad range of performance benefits in big rapids and extreme shallows, in glacial, sandy and challenging rocky river conditions.
These pumps will offer optimum handling and control through the RPM range, a better reverse than other pumps and use the most durable impellers of stainless steel. Two Stroke Inboard Jet: Wooldridge offers the Mercury Sport Jet for the sportsmen who want a smaller, lighter inboard jet package."

Whalrman posted 10-22-2013 01:07 PM ET (US)     Profile for Whalrman  Send Email to Whalrman     
BIG difference in recreational and commercial jet drives. Rolls Royce, Hamilton, Jacuzzi vs American Turbin and the like, no comparison in durability and reliability.
jimh posted 10-22-2013 01:38 PM ET (US)     Profile for jimh  Send Email to jimh     
A rather simple explanation for Brunswick deciding to leave the jet-boat market (before it actually even got into the market) is that jet-boats did not offer a means to sell Mercury-brand outboard engines or Mercruiser-brand stern drive units.
OMCrobert posted 10-22-2013 07:08 PM ET (US)     Profile for OMCrobert  Send Email to OMCrobert     
Why did BRP get out of the market then? I feel that Brunswick would rather sell a hull in that market vs selling nothing. A 24 ft boat has to have more profit vs a stern drive package.

There is a reason that BRP and Brunswick pulled out of the recreational fiberglass jet boat market.

jimh posted 10-23-2013 08:50 AM ET (US)     Profile for jimh  Send Email to jimh     
Many thanks to ConB for the interesting pointer to the use of BRP's Rotax jet-propulsion system. Here is more information on that product:

BRP OFFERS AN INBOARD JET PROPULSION SYSTEM FOR BOAT BUILDERS

Valcourt, Qubec, March 19, 2013--BRP expands its marine engines portfolio by offering an in-board jet propulsion system, using its proven Rotax 4-TEC 1503 engine. BRP's Marine Propulsion Systems division in Sturtevant, Wisconsin, formerly the Outboard Engine division, will now assemble Rotax inboard propulsion systems in addition to Evinrude outboard engines.

The heart of the jet propulsion system is the proven Rotax 4-TEC 1503 engine that is currently used in Sea-Doo watercraft. This jet system provides an energetic, thrill-seeking driving experience not available with other propulsion systems, and is a viable alternative to stern drive. The Rotax 1503 power pack is available exclusively to boat builders and includes the 4-TEC 1503 engine, controls, fuel and jet pumps, along with the exhaust, electrical, propulsion and cooling systems.

"The Rotax power pack is a quality jet system superior to competitive engines, with more than 450,000 engines in the market," said Jos Boisjoli, president and CEO. "Though we've exited the sport boat business, there is demand from boat manufacturers seeking an alternative to stern drive."

In 2012, BRP completed a $15 million renovation to its Evinrude facility. The addition of the Rotax 1503 power pack assembly underscores BRPs commitment to product development and assembly of propulsions systems.

http://www.brp.com/en-us/company/news/ brp-offers-inboard-jet-propulsion-system-boat-builders

March 19, 2013

BRP to assemble inboard engines in Sturtevant

by Jeff Engel, Reporter--The Business Journal

Bombardier Recreational Products Inc. on Tuesday said it is expanding its marine engines portfolio and has renamed its division based in Sturtevant.

Valcourt, Quebec-based BRP, a privately held motorized recreational vehicles manufacturer that employs about 6,800 worldwide, will now offer an inboard jet propulsion system using its Rotax 4-TEC 1503 engine.

The Sturtevant location will now assemble Rotax inboard propulsion systems in addition to building Evinrude outboard engines, the company said. The outboard engine division is now called BRPs marine propulsion systems division.

The Rotax engine is currently used in Sea-Doo watercraft. BRP said the new jet system promises an energetic, thrill-seeking driving experience not available with other propulsion systems.

BRP views the jet propulsion system as an alternative to a stern drive engine, which is a hybrid between an outboard engine and jet propulsion engine, said BRP spokeswoman Laurie Duffy.

The Rotax 1503 power pack is being sold exclusively to boat builders and includes the 4-TEC 1503 engine, controls, fuel and jet pumps, as well as exhaust, electrical, propulsion and cooling systems, BRP said.

Though weve exited the sport boat business, there is demand from boat manufacturers seeking an alternative to stern drive, said Jos Boisjoli, BRP president and CEO, in a written statement.

BRP completed a $15 million renovation to its Sturtevant facility last year, which resulted in 137 new employees at the facility.

There are no immediate plans to add more jobs, but BRP is evaluating the facilitys work load with the new assembly work and could add additional resources if its unable to cover the new production requirements with existing staff, Duffy said.

There will be a dedicated space for assembly of the jet propulsion systems, but this shouldnt have an impact on our current outboard engine production areas, Duffy said in an email to The Business Journal.

http://www.bizjournals.com/milwaukee/news/2013/03/19/ bombardier-recreational-products-to.html

And, yes, it is a bit interesting that one of the first boat builders to begin using the BRP jet propulsion system is headed by Roch Lambert, who was formerly vice-president and general manager of BRP's Evinrude operation in Wisconsin.

Here is a good interview with Roch Lambert in which he explains quite a bit about why BRP left the boat building business--it was not a core business for them--and why the Scarab line was revived to enter the jet boat segment:

http://www.boatingindustry.com/top-stories/2013/05/03/ roch-lambert-on-rec-boat-holdings-jet-boat-move/

Mr Lambert is now heading the Recreational Boat Group, bringing it out of bankruptcy. His background is in business and he holds a degree in Aerospace Engineering. It is interesting to see a company headed by someone with an engineering background.

Having an engineer like Mr. Lambert in charge reminds me of the time when George Buckley, a Ph.D. in engineering, was head of Brunswick. In that era Brunswick brought out the innovative VERADO engine and acquired a number of high-technology companies like NAVMAN and MOTOTRON. After Mr. Buckley left, Brunswick was taken over by a lawyer and went on a spree of buying boat builders. It was a strategy that made instant multi-millionaires out of the owners of a number of boat brands that were acquired, and then made stockholders scratch their heads when a few years later all of those brands were either scrapped or sold off for ten cents on the dollar and hundreds of millions of dollars had to be written off as bad investments.

This recent 180-degree course change, first announcing entry into jet-drive boats and then, a year later announcing leaving jet-drive boats reminds me of the sort of inconsistency seen with the CABO and HATTERAS brands. Last December Brunswick was touting their premium boat brands and listing CABO and HATTERAS at the top of the list, and talking about the stability of their business plan and vision. Then four weeks later they announce they have sold CABO and HATTERAS, and the sale price was so cheap they won't even disclose it. Well, a sharp reader of the annual report will probably be able to figure out how much write-off they had to take on those deals. If a fellow had just one-percent of all the millions that Brunswick has written off on bad boat builder deals he'd be quite comfortable--maybe even be able to afford a nice new Boston Whaler boat. Paying $27.4-million for Boston Whaler in 1996 has to be one of the best deals Brunswick ever made. I wonder what it would cost today to buy Boston Whaler back from Brunswick?

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