Boat builder lets go 100 staff!!!

[Sandman]

Heard on the news this morning that Rivera has laid off 100 staff due to slow sales !! Is this global oil shortage or other factors involved.
Feel for those 100 staff now looking for a job in what i would imagine is a tuff market these days.

Mick

[levinge]

Yep, definitely feel for those who have been laid off. Unfortunately these days the boating market is a very competitive place and people buying boats are looking for value for money. While the build of the Rivera boats might be a good one, they may be pricing themselves out of the market and if buyers can pick up a similar boat and save $$$$ in the pocket, they'll go the cheaper option everyday.

Could also be that they may be downsizing and streamlining their operations also..

Guess the only people who know why are the owners!!

[Sandman]

I was also thinking that due to the number of US boats being imported it may have some impact.

[Outsider1]

Actually Riviera sell a lot of their boats into the US. The slowdown in the US economy (read recession) and the exchange rate had to catch to them eventually.

Cheers

Dave

[trueblue]

boat (luxury item) sales going downwards are one of the first indicators of a faltering economy.

going to be some cheap boats on the market soon... and houses

[FNQCairns]

Yeah the domestic economy has been a basket case for a few years now and marching toward some sort of correction, will follow the US and world just like last time only this time we are starting from a crazy overdebt/overvalued position that is hard to get a head around.

Not the time to buy a new boat or house esp a house as the speculators who with tax rule changes drove the bubble, they are now just starting to desert, if this government doesn't give back housing to family's by reinstating the tax rules the last government took away to gift their big portfolio dinner date mates the trick will be timing the purchase to just before the next cashed up feeding frenzy by those that can.

The US has been running down with boat sales this last 3-4 years becoming harder for the manufacturers, lot's to come yet, fuel is not helping the so called luxury market either.

cheers fnq

[LeeannP]

If there is a plus side it's that the employees shouldn't have any dramas getting another job. I know of so many business owners looking for employees with or without qualifications. Good luck to them all.

[TimiBoy]

I'm planning a big boat in 2-3 years, and have looked at the Riviera 45 - it is a magnificent piece of machinery, beautifully designed and put together. It's my pick, but the $$$ kill it.

It uses around 200 lph at 20 knots, where a Bravamarine 45 Sports (Cat) uses a tad over 40 at 19. Half the weight, half the horsepower.

$240 in diesel per hour (at $1.50) cheaper, pretty quickly rack up some good savings there, not to mention the boat being about $200K cheaper optioned up.

[Outsider1]

Gold Coast boat builder sacks 136 workers

http://www.abc.net.au/news/stories/2008/04/29/2229928.htm

One of Australia's biggest boat builders has sacked 136 employees.
Riviera Marine builds more than 200 luxury boats each year at its Gold Coast complex.
A spokesman says it has forward orders to the end of the year but expects turnover to fall next financial year.
He says there are still 950 workers at the Coomera site, including all the company's 200 apprentices, and all dismissed workers will get their full financial entitlements, as well as free employment counselling.

[BaitThrower]

oh well it sounds like the company is not leaving their sacked workers high and dry at least. But if you are one of those workers then that probably doesnt make you feel any better :(

Retail across the baord is slumping. Less cash in the average joe's pocket to throw around on anything but the essentials.

[PinHead]

not good for the staff involved not for the industry but there is sure a lot better boats around in that market..Rampage 45 would be my pick. then there are Luhrs, Cabos etc etc etc

[Noelm]

that's the way, lets buy an Imported model and send them broke, or better still Import own own, and send a dealer or two under as well! sorry, just couldn't help myself, I have not had a whinge for nearly a week now and I was getting all shaky and twitching!!

[bigtez]

Don't worry Noelm. In a few years time the gel coat will degrade and the upholstery will fall apart because the yankee materials aren't manufactured to suit our conditions. So some of us will have an abundance of work. :P

[Noelm]

yeah, I guess there is always hope! I thought I would have had a few replies by now.

[finding_time]

Not me i'll go australian but not one of those riv dogs!!! Give me a deepV/blackwatch 40 any day!! It's all about the fishing

[PinHead]

Don't worry Noelm. In a few years time the gel coat will degrade and the upholstery will fall apart because the yankee materials aren't manufactured to suit our conditions. So some of us will have an abundance of work. :P

LOL..now that is classical

[screaming reels]

hey guy's i feel in 10 - 15 years we will be buying a lot of boats in all sizes from either China or India thats where its all heading look at the manufacturing arms of the Australian economy,now all heading to Asia

[Ocean_Spirit]

Certainly a very unfortunate factor stemming from current global market volatility and the fact that people are reducing spending more locally given the more recent interest rate rises and economic uncertainties.

The strong $AUS makes it very difficult for exporters and very enticing for those importing boats into AUS, particularly from the US. Couple that with the fact that the RBA is, in an attempt to reduce inflation, threatening further interest rate rises, and the domestic economy at home isn't great for local manufacturing businesses in the areas of high-end consumables, etc, as people are reverting to more conservative spending approaches and reducing debt, etc.

It isn't all doom and gloom, and I think Australia is fairing very well on a global scale, a factor we can thank many of our entrepreneurs and solid Australian businesses for, like Riviera. If anything, the current 'slump' in spending will encourage some innovation on behalf of Australian manufacturer's as they tackle the importers 'head on' with world class product.

It is very unfortunate for these worker's, who are probably very well skilled. I'm sure that given the huge sales over the past 15Yrs though, that there would be a heap of work on for tradesmen in the areas of re-fits, maintenance, fitting extras, etc right across Australia, let alone in the building and construction industries. It would be a real shame though to see good people lost from the industry.

[tunaticer]

It's odd how downturn in sales is the blame.........what is the waiting list like at the moment??? I know who installs and services major equipment in the factory and he hears tones that remarkably differ from what is hitting the media.

Jack.

[tin can marlin]

Unfortantly this is what happens ever time we get a fed labour goverment big business shuts down due to being scared of unions etc. And this has a rub of affect to us workers because if the big end of town is doing no good we are not going good either. Lets just hope this is a small down turn for a short time. But i think i'am only hopeing. Regards mark

[BrewGuru]

I'm planning a big boat in 2-3 years, and have looked at the Riviera 45 - it is a magnificent piece of machinery, beautifully designed and put together. It's my pick, but the $$$ kill it.

It uses around 200 lph at 20 knots, where a Bravamarine 45 Sports (Cat) uses a tad over 40 at 19. Half the weight, half the horsepower.

$240 in diesel per hour (at $1.50) cheaper, pretty quickly rack up some good savings there, not to mention the boat being about $200K cheaper optioned up.

Go the old classics instead of the new plastic, "Waiben" 46' 8LPH and 23 tonne Norman Wright and cruises at an honest 8 knots, running a single screw 120 hp Ford Lees, Cost me $150,000 spent $50,000 on it and it has been fully refurbished, a fantastic boat in comparison, currently setting her up for a Lord Howe Cruise in August 2010

[BM]

I think you will find as mentioned before by Outsider that the root cause of the issue for Riviera is the rising Aussie dollar and the recession in the US. Both are a double whammy for exporters from Australia. Riv's were a lot more affordable in the US when our dollars was around 75US. But on todays money around 93US we are priced out of the market to some extent and then the subprime mortgage collapse and recession just kills off the majority of the US demand for the Riv product (and others of course).

No doubt Riv are still very busy but they are probably gearing for a downturn and slimming down in order to cope with that expectation.

At the end of the day business is about generating profit. That involves risk and if theres not a profit then why bother sticking ones neck out? Unfortunately (for employees), the business survival and profit comes before the employees because without the profitability there would be no business and the jobs would not exist.

It seems to me that employees should be thankful that they have a job rather than expectant. Someone stuck their neck out and "had a crack" and as a result of that someone else (or more) has a job working for that business. Now that employee didn't risk anything, just replied to an ad for a worker wanted.

Cheers

[Blackened]

It seems to me that employees should be thankful that they have a job rather than expectant.

G'day

I think you've hit the nail on the head nick, a little gratitude goes a looooong way

Dave

[on-one]

BM, the worker didn't risk anything but they don't share the potential gain either, employment is like any other business transaction if both parties aren't getting a fair deal there's unlikely to be much repeat business - if your employees are thankful you're probably paying them too much.

I think the other big problem apart from the us recession and high dollar is riviera's tend to appeal to first big boat new money so they'd be particularly vulnerable to a slow down.

[BM]

BM, the worker didn't risk anything but they don't share the potential gain either, employment is like any other business transaction if both parties aren't getting a fair deal there's unlikely to be much repeat business - if your employees are thankful you're probably paying them too much.

I think the other big problem apart from the us recession and high dollar is riviera's tend to appeal to first big boat new money so they'd be particularly vulnerable to a slow down.

Many businesses offer a performance bonus structure and a number of large companies offer shares as part of the deal so in effect in some cases workers are sharing the profits.

But hang on a tick, why should a worker share in the profits of the business??? They haven't put their house etc on the line to make a business successful. All the unpaid hours that are put in with the hope that it pays off and makes good money.

The worker does his job and gets his weekly pay. No risk and quite often low performance too. Lets face it, no-one works as hard for a boss as they would for themselves.

I like the idea of performance bonuses because the worker is then responsible for their own potential to earn a bit more. Work harder, earn a bonus. Good setup in my book. Slack off, no bonuses and in short time no job either. Can't afford to carry someone who is only a leach. And in any case why should they expect to get paid for being slack??

Personally, I reckon all workers should be on a performance contract basis. For example, Its worked for real estate agents and other sales staff for a very long time.

Be a great way to improve the productivity in Australia. Do your job well, keep your job. Slacker? - out the door.... Sink or swim.

Cheers

[TimiBoy]

I got sick of the expectations in the big end of town with no reward, so I started my own business. I proved in one review how I'd put $1m on the bottom line over and above plan, and they offered me 2.7%, the highest increase offered to anyone (that was in 2002). I told them to stick it, and bought a bobcat and a truck!

Now we have 5 staff, all on performance bonuses, weekly, monthly, and annually. We treat them very well, and guess what? They take care of my clients, my machinery, their fuel usage, everything. They put pressure on each other to perform, even though they are almost never on the same site as each other.

We get the best work, for the best money, because of the quality we provide, and all the guys love to talk about the business, and are happy working in it.

Funny how treating people well makes you money.

[Noelm]

I guess another way to look at all this, is if you have enough Money to truely be able to afford to buy, maintain and run a BIG Boat, then there is a benefit to a downturn and interest rate rises, simply because you have Money, and Interest rate rise gives you a better return, but if you have no cash (most of us) then the Interest rise is bad, because we pay more, so our loss is the "rich man's" gain, that being the case, the real Manufacturers that will suffer are the "mum and dad" types of Boats, they may think long and hard before going into debt for something because their old Boat will do just fine, but if you are really "cashed up" it becomes a "who cares" event and you go and buy what you want, because you can, perhaps the only exception may be those that are borderline on a purchase, they may not take the plunge, but some may and suffer because of it, lets face it, these days you and the Bank can own almost anything (well not exactly own, but be paying off) in some ways I think the Money lenders have a lot to answer for by being so free with loans, I see a real problem in a year or two with People in way over their head, because they over borrowed to buy a big House and Car and Boat and who knows what else, there was a time when to borrow Money from a bank was a real ordeal, now it is more or less a case of "how much?" ahh that feels good, Wednesday and I have had a good rant!

[BM]

I got sick of the expectations in the big end of town with no reward, so I started my own business. I proved in one review how I'd put $1m on the bottom line over and above plan, and they offered me 2.7%, the highest increase offered to anyone (that was in 2002). I told them to stick it, and bought a bobcat and a truck!

Now we have 5 staff, all on performance bonuses, weekly, monthly, and annually. We treat them very well, and guess what? They take care of my clients, my machinery, their fuel usage, everything. They put pressure on each other to perform, even though they are almost never on the same site as each other.

We get the best work, for the best money, because of the quality we provide, and all the guys love to talk about the business, and are happy working in it.

Funny how treating people well makes you money.

I agree totally with your approach. Although others suggest you must be paying too much :(

Its always interesting to examine a business and see that atitudinal issues typically start at the top and work down. Owner/manager has a shit attitude and it flows right through the business. Upbeat, positive owner and staff tend to respond accordingly.

Cheers and well done (success stories are always good to hear)

[BaitThrower]

Unfortantly this is what happens ever time we get a fed labour goverment big business shuts down due to being scared of unions etc. And this has a rub of affect to us workers because if the big end of town is doing no good we are not going good either. Lets just hope this is a small down turn for a short time. But i think i'am only hopeing. Regards mark

**yawn** I'm sure this is the absolute 100% reason for it all too. ::)
I seem to recall this downturn started quite a way before any recent government changes.

[bar raider]

yep i work there and 136 direct personnel was the figure, with another 64 on-site contractors for a grand total of 200 people!:o .

at the "meeting" the Aussie dollar was stated as the no 1 reason given.( as others have stated)

the yanks are our biggest market and years ago our boats were cheap to them but not anymore due to the dollar and recession etc.

the number of boats being built are declining caus of 2 reasons number 1 already stated and number 2 is because the boats are getting bigger (caus of small cheap imports) and therefore take longer to build and sell for more, so the low number thing is not as dire as it sounds.

over and out.

[PinHead]

yep i work there and 136 direct personnel was the figure, with another 64 on-site contractors for a grand total of 200 people!:o .

at the "meeting" the Aussie dollar was stated as the no 1 reason given.( as others have stated)

the yanks are our biggest market and years ago our boats were cheap to them but not anymore due to the dollar and recession etc.

the number of boats being built are declining caus of 2 reasons number 1 already stated and number 2 is because the boats are getting bigger (caus of small cheap imports) and therefore take longer to build and sell for more, so the low number thing is not as dire as it sounds.

over and out.

that is what Rivs are in the USA from what you stated.

[Quobba]

Took a QANTAS flight from BrisVegas to Cairns today.... thumbing through the in-flight magazine was an article on the (get this!) Boyancy (no pun intended) of the medium to large boat building market.

Riveria figured prominently in this aticle, highlighting their successes $$.

...wonder if the Riveria Management are happy about the timing of this article given the recent retrenchments....strange!

:-[

[bar raider]

update:

50 more got sacked last wed 4th june and word round the factory is for another small one in the new financial year.