Bladen Composites liquidated - Albin line dead for now

[Mariner]

See the topic titled "A Message from Bo Palmer..." viewtopic.php?f=4&t=2469

I'm going to ask that we refrain from speculating as to why Bladen Composites failed. Unless you have specific, factual information that can be independently verified and speaks directly to the financial picture at Bladen, please keep your thoughts to yourself. Bo Palmer showed himself to be well-intentioned and was excellent about communicating with his customers both here and at the Shamrock owners site. I won't allow this to become a forum for speculation about what he might have done wrong or could have done different. This is a site for Albin owners to share and gain information about Albin boats, not for Monday-morning quarterbacking by people who have no idea what it's like to run a boatbuilding company in the worse financial climate since the great depression.

I'm not saying that's happening; I just want to stop it before it starts. If I think your post is out of line in it's criticisms, I will delete it; end of story. Don't take it personally.

Now, if you want to wish Bo Palmer, Fred Peters, their employees and their families well wishes, or talk about what the future of the boatbuilding industry may hold, this would be an excellent place to do so.

Thank you,

Mariner

[Denis]

I for one, am a great supporter of the used boat market. I know that there are thousands of people who love to own new boats. That in turn gives me and people like me a chance to purchase a good quality boat for thousands less than the price of a new boat. I know it will take a few years but I think there will be a distinct reduction of good quality used boats on the market in the future. The loss of so many boat builders and the demise of credit and the people willing to risk it to buy new will have a direct impact on our hobby for many years to come. I know I did not support the boat builders by buying a new boat, but I still had a place in the market. I have been having discussions with my two grown offspring lately and I think that this economic climate is going to change the way people save and spend money for many years to come. I personally know many older people that were in retirement or were about to retire that have had to change their plans because of the loss of their savings and investments. Who knows, maybe this will create a new opportunity for someone to build a more modern more economical boat manufacturing plant, that will open the boat market to even more people. This is the marvelous USA where incredible things can and do happen. I'll keep a good thought. Denis

[fairtide]

Mariner's requests re posts about the failed attempt to have Bo continue the Albin line is sound, considering the way in which the world economy behaved, even to the surprise of the experts in the financial world. It may be possible for the folks who committed themselves and their investment dollars to the continuation of better-than-average boat building to find a niche in that industry despite the present situation.
Despite losses, there are nevertheless many people out there who either have the money to buy a well-made boat or have the desire to do with fewer other things to support a love of boating. The Big Three auto makers seem poised to consider a government bailout, though Ford may be able to continue without one. There has been little or no publicity about BMW, Porsche, or Daimeler Benz needing help from their national government. Perhaps higher priced cars will sell, like expensive wine, despite economic downturns. Similarly, many of the high-priced watercraft such as Hampton, Marlow, Westport, Hatteras, Viking, Nordhavn, Sunseeker, and others are still being advertised in magazines such as Power & Motor Yacht. These manufacturers hope that their print ads will result in sales, and the emphasis is on the word hope.
Smaller and less expensive craft are advertised in other magazines, so the prospective overall market boats is far from dead. The Albin and Shamrock lines may be revitalized and if they are, there are no more experienced people to help with that revival than those who have recently been forced to give up for the time being.

[jcollins]

Well said. Thank you.

[Mariner]

Different industries behave differently in a recession. Consumer staples like food, household supplies, and these days even automobiles tend to see a shift to the lower cost end of the spectrum. The average person will switch from the Quilted Northern toilet paper to the Kirkland Signature in order to save a few bucks. Each individual purchase doesn't save them very much, but put together, they might shave enough off their expenses to make a noticable difference. Of course, while the impact is small on the average consumer's budget, it is huge on the employees at the Quilted Northern factory.

Boats, in my opinion, behave differently. Boats are not a staple; they are a luxury item. For the average American a boat is something they would like to have, but can easily live without (unlike toilet paper). The average buyer who is feeling flush with cash doesn't buy a Norhavn or a Boston Whaler; they buy Bayliners and Meridians. it is that end of the market that is hit the hardest. Those buyers simply can't afford to buy a boat right now. The Nordhavns, Selenes, and Ocean Alexanders, on the other hand, still sell. Certainly they are not unaffected, but the impact of the recession is less on them than it is on the builders of the inexpensive, mass produced boats. Buyers for these boats tend to be more conservative financially, and are more often cash buyers. The inavailability of credit does not affect them, and while they are certainly not immune to the decline on Wall Street, they're more likely to have diversified, and, thanks to their superior money management skills, may have seen the recession coming and taken appropriate action to preserve their wealth. Whether the reduction in sales causes an individual manufacturer to fail is a completely different issue. The corporate giants like Brunswick (owner of Bayliner, Meridian, Sea Ray, Boston Whaler, and many others), tend to have a little more cash reserves to ride out a market like this. The smaller companies like Albin or Shamrock, even if they are run well, may not have the liquidity to survive.

[JeffM]

I have nothing but respect for guys like Bo Palmer. It takes a lot of guts and belief in yourself to put your own money on the line knowing that if the business fails, you go down with it. Starting or buying a business is something that a lot of people talk about doing, but few do it. Most who try, fail. I imagine in good times, the boat building business is tough. In times this, boat building is probably next to impossible.

Jeff M

[Hav'nFun]

I am grateful for the thoughtful responses to the demise of Bladen Composites. Bo was so excited to acquire the Albin line and continue the great tradition of these boats. Unfortunately the triple whammy of ailing economy, increased flooring costs to his dealers, combined with increased financial requirements to obtain a boat loan all arrived at the same time he was investing in acquiring and reconstituting the Albin line at a huge expense to himself.

GE Capital which has a monopoly on marine flooring increased interest rates to credit card levels while banks won't even look at a boat loan application without a minimum of 20% down and better than a 750 credit score. This killed the retail small boat industry.

Bo went to the Miami boat show hoping to take enough orders to keep the business going but came away with nothing. I can relay that he is crushed by not being able to keep Albin and Shamrock in production as he loves both lines and felt the two companies were a terrific marriage; Inboard powered boats from 22' to 36'. EPA requirements also played a roll as Shamrock was forced to go to diesel power increasing costs as compared to an outboard powered boat. As mentioned before, dozens of boat builders are either going bankrupt or have already ceased production. Fortunately, Bo has accepted the position of general manager of Defiance boats, a company he started but sold to investors in order to purchase Albin. Business is very slow but he believes he will be able to keep the company afloat until the economy turns around.

There is a possibility Albin may resume production under a new owner but I am not at liberty to make any additional comments. Thanks again for the kind posts about Bo's efforts. He did his very best.

Tom

[Mariner]

Tom,

Thank you for sharing all that information. Out of curiosity, where does Defiance build their boats? I was not able to find this on their website, and we've had some conflicting information posted before.

[Hav'nFun]

Defiance boats are built in Port Orchard, Washington.

Tom

[Mariner]

Defiance boats are built in Port Orchard, Washington.

Tom

Is Bo moving to Washington then?

[joreyn]

I believe he has actually lived in Washington all along. Defiance has been built here for quite some time.

[malus]

I have not visited this site since I learned that Albin was going out of business last year. It appears that I missed quite a bit. What had me return was the article in Boat US stating that Albins continued to be manufactured in Connecticut. Just to recap and to see if I understood what has happened : After Albin closed its doors, the business was acquired by Bo Palmer who planned to continue building the full line. However, after an unsuccessful Miami show and under the pressure of the declining economic situation, Bo Palmer has now declared bankruptcy for both Shamrock and Albin. The result is that Albin now will no longer be produced and anyone owning one is the proud owner of a soon to be classic. Have I got that right?

[jack Stone]

When Albin got in trouble on their own, as an owner I was concerned about the value of my boat going south faster than normal aging would do. Then I thought about all of the boats (and cars) I have owned that no longer were being manufactured and relaxed.

Unless you are still under warranty, which my 05 is not, there is nothing I would expect the manufacture to do for me. If the hull and superstructure is soundly designed, built AND they used brand name and high quality components as did Albin, I have nothing to be concerned about. I lost my house water pump this year. I went to West Marine and replaced it. I go to Mack Boring for my Yanmar filters and oil, I go to Garmin for new chart plotter cards. Everything that I would need is from other name brand venders that either can be contacted or an off the shelf replacement can be found.

So when Bladen came along I thought “that’s nice” but it had no real impact on me as a current owner.

All I can say is I have a solid, stable, blue water capable boat that will last many years with care. Do I need the part that Albin or Bladen made? A hull? Nope. Everything else is off the shelf or a local guy can fix it.

I would think that like anything that is of quality, limited in quantity the value will hold. When people who know boats see what is being built these days a used Albin is still a great boat to buy. I look at a “strong” company that makes SeaRay and laugh.
I’ll take an Albin any day.

Jack Stone

[Carl]

I look at a “strong” company that makes SeaRay and laugh.
I’ll take an Albin any day.

Well said!

[RicM]

Jack,
Very well said. Many people think of boats like cars. In truth they are kind of half way between a house and a car. They don't depreciate like cars but they don't appreciate like real estate (used to). There's a lot of great boat names that have gone in and out of production over the years and the well made boats always retain the better part of their value. Albin's classic TE's are a well made boat.