Albin Factory Shutdown - Part One

[robonurse]

I heard they locked their doors on Friday, 10-20.
I had heard a few weeks ago that they dropped the 26.
Bob J.

[DougSea]

I heard they locked their doors on Friday, 10-20.
I had heard a few weeks ago that they dropped the 26.
Bob J.

Heard where? Any additional information or confirmation? Mariner will be asking (rightfully so...) That's a pretty strong statement.

[JackK]

Sorry to hear -

I just spoke to a source close to Albin and he stated that it is true that Albin closed their doors - "for now". They are not dead yet but things do not look too good.

You never know. Someone may bring in some much needed capital and bring Albin back even stronger.

Jack

[Butch]

WELL, the ALBIN OWNERS GROUP just got stronger!!

[SCHUTZEE]

Am I correct in assuming this is not good for resale values?

[chiefrcd]

Since we didn't have much ( any ) factory support to speak of, I can't imagine it having much of a impact on current owners, at least us older boats. I haven't a clue as to what it does to "resale" or value of our boats but I do know that most of us are very pleased with the boat and it's design. Most of the complaints here have been equipment issues or equipment related issues. I still believe that the Albin is one of the best built boats on the water today. Hopefully future owners will see the same thing. Since the supply is gone, maybe we'll be lucky and the value will increase on exsisting models.

[jcollins]

I spoke with Damon at Albin this morning. Very nice guy. First time I talked to him.
The short story is yes. It is true. He also mentioned that orders are coming in like crazy. I would assume that is a good thing.
He will update either, me, or stop in and post information directly to the board. We all know that companies go through reorganization and given the grumblings I've heard around here it's not a surprise. But, in most cases this is a good thing and can inject new life into a company.
At this point we should wait and see what happens.
Since I already own one of these great boats there is no direct impact on me. As far as resale? I doubt if it would make much difference at all. The resale value of an Albin has always been great. If the company closes permanently it may even help resale as the boats become scarce.

[Mariner]

This is indeed unfortunate news. If it's true that they still have a large number of orders coming in, I can assume that the real problem is just one of profitability, not in market share or low sales. Albin has always struck me as a company that had trouble making boats profitably. They experimented with cheaper overseas production, but were not able to do so while retaining the high level of quality they expected. Who knows, perhaps this gamble contributed to their financial troubles. The boatbuilding industry as a whole is in trouble right now, so it's not really a surprise that some of the smaller, less efficient companies would start to experience problems.

As for what it dos to resale values, it remains to be seen. First off, it sounds likely that someone will see the large backorders and good design of the popular 28' and pick up the line, either under a different name, or through an acquisition. So, as long as the 28' resumes production at some point in the not too distant future, the resale of used boats will remain unaffected. However if this does not happen, it could possibly have a negative impact. Again, though, it's hard to say. Large-run production boats typically depreciate as a function of the cost of a new model. Due to the exponentially increasing prices of new boats, this usually means that used boats either don't depreciate substantially, or actually appreciate slightly. This, of course, doesn't account for inflation, so by no means is a boat a sound investment, not to mention the fact that it will only hold it's value if well maintained at great expense to the owner. However, when a model or entire line of boats is discontinued, the depreciation tends to accellerate. There is no longer a marketing campaign out there informing people about the boats, which means demand for both new and used boats drops off.

Albin, however, has always been a little bit of a different animal in this regard. Maybe it's just because I'm all the way out here on the west coast, but it's always seemed to me that their marketing campaign was not very strong. They are not a large manufacturer turning out thousands of boats like SeaRay or Grand Banks. Their values never seemed to follow the trend of little or no depreciation. They, instead, tended to depreciate on a more normal curve like an automobile. So, the disappearance of the manufacturer likely won't have much impact. It's impossible for it to undermine something that never existed in the first place.

Lastly, it's of little concern to me. Our boat was discontinued years ago, and we knew this when we bought it. Depreciation was expected, which is exactly why we were careful to negotiate aggressively and get the best price possible. It's also why I approach maintenence so meticulously.

I genuinely hope the line is picked up, or Albin is able to resume operation. The designs are unique (at least around here) and very functional, and deserve to continue to be built.

[Pitou]

When searching for my Albin I searched for what I thought would be the best value in a 28 with the comforts and ride I was looking for. I looked at Grady, Carolina, Fortier (26) and Cape Dory (which though out of business have a great cult following in the Northeast) too name just a few in that mix. Now you have BackCove, SurfHunter and others. For the fit, finish and price the Albin was a no brainer for me. I wondered then how they could do it / now I know. The margin seems as if it was just too skinny.

I was talking with my marina owner a couple of weeks ago and he mentioned a couple of long time Maine boatbuilders that recently closed their doors. Their names escape me at the moment, but he mentioned / no orders. Beautiful downeast boats though. At least with orders in the pipeline Albin may have a chance at reorganization or I hate to say "where is GenMar"?

[Elizabeth Ann]

It seemed to me that Albin was always a 'big' custom boat builder. Maybe they'll just cut back their production to a a few boats a year and scale back their crew.

It's very unfortunate that more Americans may be losing their jobs....especially as the holidays approach.

I wonder if we can resurrect Andy for his thoughts?

[Elizabeth Ann]

WELL, the ALBIN OWNERS GROUP just got stronger!!

Do we have money to invest to buy the 28's mold???? lol

[Mariner]

I always thought that Albin was not charing enough money for their boats. It seemed to me as though their commitment to provide a good value to the consumer had blinded them to the fact that they could conceivably charge substantially more than they were, without impacting sales. But then, this was based only on the impression I got as a consumer, not on any hard evidence, so I could be totally off-base.

But the one thing I saw was that when we were in the market for a 36', the barely used boats we were looking at were in the mid-200's, while the competitor's boats were in the 350-450k price range. Sure, Albin's fit and finish wasn't quite what Saberline's was, but the layout and design was better and perhaps for an extra 100k a copy, they could improve that fit and finish and still make a profit.

[RicM]

Any boat more than 3 years old has shed most of depreciation at that point. My observation is that 28TE's tend to sell remarkably close to what that particular boat actually cost new (not adjusted for inflation). I would be really surprised if no one picked up production of the 28TE, they have produced close to a thousand of them, which is a lot for a boat at this end of the market. I never saw much in the two 26's. I think it most likely that Albin will return as a smaller, leaner company with fewer models. Fortiers cost a bundle for what they are, but they are a small family run company that can probably adjust more quickly than Albin.
A lot of this probably has to do with the credit crunch in the housing market. When we ran the numbers a year ago the no brainer was to pull the equity out of our house to buy Time After Time. Interest is deductable (and we did get a great FIXED rate, about 6.5%). That option seems pretty much gone for the moment, and I bet the interest rate on a boat loan has gone up. I do feel bad for the Albin employees though, it's a tough time of year to be facing that scenario.

[gerygarcia]

It would be interesting to hear what Fred Peters (Albin's President) has to say about the state of Albin's Corporate financial problems.

What led to this?

They introduced the Albin 30 and the Albin 26 CC and Albin 26TE in the past two years.
Did they take too many risks launching these models? Or did they introduce these new models in desparation to revive their failing company?

Perhaps their marketing research (If they did any) was flawed. I know economic conditions have killed boat companies in the past even if they were achieving their sales goals.

Will they attempt a reorganization to continue building? I definately hope so!

I hope Albin corporate will chime in here, even if it is just to say they are aware of our concerns.

In any case, I hope the Albin Owners Group will still continue to grow.

John, I know you created this forum in hopes to catch the attention of Albin brass in the attempt to improve customer relations and service. I believe it has done so in many regards. Perhaps the AOG might be the best thing Albin has going for it now at this time.

Regards to all the members of the Albin Owners Group. As they say, we are all in the same boat

[Maye Marie]

Albin,
Sorry to hear you have closed the doors. I am in hopes that there will be an opportunity for you people to work out of what brought you to this decision. I would like to offer my condolence to all of you at the Albin Company. I understand this has to be an extremely difficult time for all. Hopes, dreams sweat and lots of hard work go into a company, buy many. When it comes to an end the dreams are dashed instantly and you question if your hard work was worth all the effort.

What ever the future brings keep in mind you have built a very fine boat. They are sound strong and efficient. Albin boats have brought many fun times and will continue bring joy and safety for many families. Stay proud of what you have achieved and done for us Albin owners. Unless we run in your shoes it is impossible for us to imagine how difficult it is to run a company of your type. You and we will weather the storm like a good Albin boat.

Wish you all at Albin the best!
A proud Albin owner