Allison Boats

[BM]

I was informed a couple of days ago that apparently Allison Boats have gone down.

Their landline number doesn't connect, the fax line says it's been disconnected and an email asking if they were still operating has gone unanswered.

Sadly though this won't be the last to fall before things improve economically in general and then for the marine industry itself.

I would imagine also that the smaller glass builders may be at great risk already.

Banks aren't lending, money is tight and people aren't really spending, particularly on luxuries.

Only those in marine with deep pockets are likely to pull through. Definitely not an industry to be in currently!

[hino310]

I emailed them two weeks ago chasing a part and got a response. It did take a few days to get a response though. I still reckon they should have stuck with their fibreglass boats and maybe just modernised them a bit.

[fisho8]

Just spoke with one of the dealers and they have gone. Shame to see this happen and I do hope any orders do get filled and the owner come out of this ok. Sign of the times unfortunatly.

[Still_Dreamin]

There will be only Chinese imports soon.

[Crunchy]

I'm not passing comment whether its right or wrong but just passing on a comment from another business that is closing down....I was talking to a manufacturer the other day (Not marine industry) and he was saying he was closing down and moving to Indonesia, his comments were that it is simply too bloody hard & too expensive to manufacture here anymore. His gripes were business compliance complexity & cost (Tax, govt departments etc), labour & energy costs. Here labour costs are around $24/Hr per employee, in Indo they will be (Not kidding) $3-$4 / per day per emploee! (But he has to supply food - few dollars a day). Again, not saying its right or wrong just saying it is. Australia is not competitive in manufacturing and our short sighted self serving governments are making it less so every day.

[Giveitacrack]

I'm not passing comment whether its right or wrong but just passing on a comment from another business that is closing down....I was talking to a manufacturer the other day (Not marine industry) and he was saying he was closing down and moving to Indonesia, his comments were that it is simply too bloody hard & too expensive to manufacture here anymore. His gripes were business compliance complexity & cost (Tax, govt departments etc), labour & energy costs. Here labour costs are around $24/Hr per employee, in Indo they will be (Not kidding) $3-$4 / per day per emploee! (But he has to supply food - few dollars a day). Again, not saying its right or wrong just saying it is. Australia is not competitive in manufacturing and our short sighted self serving governments are making it less so every day.


Yep that's right I have spoken to many locals in Bali during my trips there and the basic wage is around $20 AUD per week.

[Si]

thats not good to hear. they made a good boat imo. wonder if northside marine will cut the price of the current allison floor stock.......

[Noelm]

I guess to a point there is a lot of thngs that are leading to the demise of the boating industry in Australia (and please do NOT flame me on this, it is just as I see it) curently the entire industry is doing it tough, why? for a start, people are now shopping much more wisely, and not lashing out on lots of things we once did (boats and motors) the "grey import" that is people getting goods from over seas is getting bigger and bigger by the week, I personally know 3 people that have imported motors, so in effect, my local dealers have not made those sales, then there is the boat import business as well, add to that the electronics side of things, and the retailer is going to suffer, and suffer badly. The manufacturing industry is kind of going the same way, the quality 'family owned" business just can't compete on cheaper imports, regardless of the quality offered, now as I said, I am not saying people shouldn't get their own stuff from the cheapest source, but the long term hurt is going to cut very deep for a very long time to come, I reckon that only a few well run and cashed up boat dealers will survive the next 2 or 3 years, the few that do, will have the entire game sewn up, in my area (from my observation only) there is only perhaps 2 out of 6 dealers that will still be around in the coming couple of years, sad but true, how do we get out of this mess? god only knows.

[Jarrah Jack]

thats not good to hear. they made a good boat imo. wonder if northside marine will cut the price of the current allison floor stock.......

Should do as the warranty would be cactus.

[Noelm]

not 100% sure how the warranty bit stands, I guess it will depend on how the business goes, if they fail and simply "vanish" then maybe warranty could be an issue, if however, they still operate under a diferent model, then perhaps some warranty could be expected, either way, I don't think I would like to be a dealer that had a few in stock, especially if the rumour mill gets working, and people won't go near one.

[fisho8]

thats not good to hear. they made a good boat imo. wonder if northside marine will cut the price of the current allison floor stock.......

They already sold the side console they had there for cost. The other 2 will more than likely go for the same All I know is they want them gone I would say anyone interested make an offer or I would say they will be reposessed and go to auction.

[Noelm]

why would they be repossed? I would think they belong to the dealer (or their finance company)

[fisho8]

Just a guess Noelm you never know what finance companies will do these days if Northside can sell them than that would be the better option as they did fit them out there so It would be in the best interests of everyone involved. I would be more worried about any outstanding orders anyway rather than floor stock for dealers. I do hope everyone gets their boats that were under order.

[No Excuses]

Running my own Motor Body Building business i can sympathise with those companies doing it tough or closing down. Most of the time it is certainly not from bad management (though sometimes it is) but the sheer costs of operating. It would make anyones eyes water at the amount of money that a manufacturer has to make to cover costs before he puts a dollar in their pocket. Unfortunately things are not going to improve for many years to come so expect more closures.

[hilta1]

Guys, we are the main cause why the boating industry and many others are on there knees!, Like it or not we as Australians demand the hourly rate we are paid but when it comes to parting with that same money we refuse to pay the amount Australian companies require for ther product, therfore we look at buying parts, motors, boats or whatever from overseas! How many time have we heard on this forum alone that someone is bringing in an outboard or a boat or whatever because the local product is to dear, and yes i have been guilty in the past as well, but recently have had a rethink and make sure that i have been supporting local business, mind you half the stuff we buy local is still made oversea anyway!!! As long as the Australian company isnt blatently ripping us off it is probly time we started supporting them??? As I said weve got guys working in mines and good jobs that are prepared to take big money and its time we are prepared to parse some of the money on so our country can survive at the standard that we expect. Just my thoughts and dont mean to preach to anyone but see what you guys think???

[Andy56]

As far as sending jobs overseas because it only costs $3-4 a day goes, hope your sons and daughters cant get a job here too! As I see it, industry have millions to invest in new factories over seas but nothing to invest here. This is the American desease ie walmart the country!
I don't think we will be sending our boats to indonesia for servicing anytime soon! So there will always be a demand. Motors are generally more refined and less inclined to playup, but when they do. we really need a trained tech to service them.
$300-600 is not totally unreasonable for a service. (oil, filters, water pump/impellors, labour )
The cost of outboards is still an issue when we have parity with the american dollar. The distributors can help a fair bit here, cause I can't see how I can buy cheaper retail in USA than wholesale here. Something amis in the equation!
Hull manufactures have definitely upped the anti in the last year, increasing their prices by 15-20% . So I can see a case for retailers being screwed but I can also see a case of good service centres making money.
So if in the end, we end up with only a few dealers who actually make money, we just have to accept it. Face the facts, not all boat manufactures will make what the market will bare. Increasingly, R&D money has to be spent to keep up. Small operators don't have the resources to keep up ( generally, there are always exceptions).
We need to turn the economy around from being primarily realestate centred to manufacturing centred. But while the whole economy relies on banks that only want your house as collateral, we are all caught in the whirlpool.
As far as its the Governments fault, all I can say is we get what we deserve. Ever since Menzies' time, we have been complacent on all fronts. Liberals with their scorched earth policies that have become mainstream to Labors inability to live up to its ideals, AND US with the middle class welfare, notice all the wankers earning over $100g a year bleating over the carbon price- OMG nothing for me! ( if you hate Gillard, tell me, what is the death adder going to do?) So please stop blaming governments, we got what we deserved on this front.

[BM]

10 or so yrs back the days were numbered for manufacturing in Australia.

China does mass production very well and to the spec required. What they don't do so well is boutique / custom manufacturing.

This IMO is 1 of 2 areas for our future.

1) Custom (low volume) manufacturing.

2) Service. We won't compete globally for product manufacturing but we can excell at servicing products.

[johncar]

I think yes we are drunk on cheaper imports but I also think that there is something seriously wrong with our economy and extreme Taxes we are all paying. We have to earn a lot just to pay the taxes on everything. It seems that the workers, businesses of this country are the milking cows and the milk is just being sqandered on the ever growing welfare dependent and silly government schemes serving the wrong people. Major Govt changes and direction are needed urgently IMHO and Businesses must be strongly supported.
Well on the upside although I don't have a lot of money to waste but glad to say I just ordered a little locally built tinnie and will try and buy local for the whole fitout. I am certainly guilty of importing the odd thing though and I think Australian importers and distributors with the support of our governments probably need to do things differently to try and win our loyalty back.

I agree with hilta1 too, it is largely our own fault as a community to demand high wages and great living conditions but want to buy from struggling and developing countries. It will be our downfall if some balance isn't restored soon I think. Unfortunately most of us are pretty selfish and save a buck where we can, it is only natural so things need to be done to change out attitudes and support our own.
Very sad to hear about Allison Boats..just another major indicator of how poor shape we are in, and those down in canberra will still collect their fat payroll and super cheques for the rest of their days good job or bad. Just make another gigantic balls up and create a tax to cover the immense cost of their lack of foresight >:( so it seems.

[hellfish]

Sad to hear but must say i am not surprised. Their ally boats were well built but very generic and basic in their layouts. Buyers looking in their price range for plate boats soon discover they are better off going with a custom build. This is what i have found while looking for a new hull anyway. I would imagine others would too.

[Dan5]

Sad to hear but must say i am not surprised. Their ally boats were well built but very generic and basic in their layouts. Buyers looking in their price range for plate boats soon discover they are better off going with a custom build. This is what i have found while looking for a new hull anyway. I would imagine others would too.

I found the same thing when looking at them at a boat show,fairly well built but not much imagination with the fitout very basic and seemed overpriced compared to others.........the hull was not a revolution fairly moderate deadrise.......they were just another tinny like a Tabs etc.

It's still not good to see another Aussie company go down though but BM has eluded to what will happen with the alloy boat market............Big manufacturers like Telwater will survive all be it more than likely down size and limit model range and be very budget boating concience............the few custom builders that survive will be where we turn to for something outside the mainstream for those who can afford it.

Dan

[TopBhoy]

How can I be sure that if I bought local then the money I used will not find its way back out of the country to buy more imports; I can't. I'm still at a loss to understand how, despite these times of having a strong $AUD, many imported items can cost double in Australia than in say USA or UK.....these are hardly sweatshop economies (despite their current problems).

[PinHead]

How can I be sure that if I bought local then the money I used will not find its way back out of the country to buy more imports; I can't. I'm still at a loss to understand how, despite these times of having a strong $AUD, many imported items can cost double in Australia than in say USA or UK.....these are hardly sweatshop economies (despite their current problems).

pretty simple..supply and demand..USA - about 300 mill people. UK about 60mill. Aus..about 22 mill and in the middle of nowhere for shipping etc. Hence, our per unit costs for shipping and handling are much higher than other places hence a higher retail price. Not good but it is reality.

As for manufacturing in Aus..it is over. Nothing left here now and I doubt any manufacturer will move back here regardless of what any Govt. does.

'Tis a shame to see anothe boat builder disappear.

[Homer_Jay]

pretty simple..supply and demand..USA - about 300 mill people. UK about 60mill. Aus..about 22 mill and in the middle of nowhere for shipping etc. Hence, our per unit costs for shipping and handling are much higher than other places hence a higher retail price. Not good but it is reality.

As for manufacturing in Aus..it is over. Nothing left here now and I doubt any manufacturer will move back here regardless of what any Govt. does.

'Tis a shame to see anothe boat builder disappear.

Still doesn't explain why certain items manufactured in Australia or New Zealand and be purchased so much cheaper from the US??
How can something be made in Brisbane, shipped around the world and back and still be cheaper than me just driving down the road to to pick it up?

[PinHead]

Still doesn't explain why certain items manufactured in Australia or New Zealand and be purchased so much cheaper from the US??
How can something be made in Brisbane, shipped around the world and back and still be cheaper than me just driving down the road to to pick it up?


quantities..if you are a manufacturer and one customer wants 10000 of your product and another wants 1000..which one will you give the better price to?

[Jarrah Jack]

quantities..if you are a manufacturer and one customer wants 10000 of your product and another wants 1000..which one will you give the better price to?

Shouldn't make that much difference or the lesser customer will either go elsewhere or out of business. Then the bigger customer will have a monopoly and start screwing you. Then you have to make up the shortfall on the next small customer........and so it goes.

[stevej]

simply put they price to what the market will pay

a porsche from europe when you add in luxury car tax,import costs, gst, overheads, here is still 30-40k dearer then buying in europe or the usa

shortsighted greed, not realising i things were cheaper they would sell more units and make more in servicing
this would apply to any mechanical product

[Homer_Jay]

Retailers need to wake up and realize that times have changed,
Once apon a time, I would go down the road to see "bob". Now Bob would look after me, he knew me by name, he sold a good product and gave great service, he would spend time and explain all I needed to know about the product. If I went home and there was any problem, I would go back and see Bob, and he would fix it/replace it or whatever. In fact Bob may even call into my place on his way home just to see that I was using it correct.
Now I am happy to pay Bob top dollar for something. He is a good bloke, and he comes and spends some money in my business so some of the money I spend comes back anyway.

Now days, the local "Fred" still charges me top dollar, he tries to take my money as quickly as possible and get me out of his shop. I call back to see fred because i have a bit of a problem, and before I can even get a word out, he is telling me that the warrantee doesn't cover this or that and that he can't help and if I don't get out of his shop he will call the "boys" from the workshop (how many threads have we read on here about the "great" service on offer now days). Fred doesn't shop at my shop, because he buys off the Internet, and he doesn't like to show his face around town too much anyway.

This is why we buy on price now days.

Why would I pay double just to get treated like crap?

Australian businesses need to either compete on price competitively, or give fantastic service.

Don't treat me (the consumer) like an idiot.
I have seen the buying power of the AU $ almost double over the last few years, why has the price on products from the US retailed in Australia not moved at all? Actually most things still increased.

As Stevej said above, Shortsighted greed sums up many local businesses. It's just a shame for the honest businesses still out there.

[FisHard]

Nicely put homer j.

[Noelm]

up to a point homer you are right, however, most internet shoppers only go and see "Bob" to get information, they pick his brain, gather all the glossy brochures, then go "google shopping" poor old Bob has just given you an hour of his time for jack shit! I see it all the time, and then the google purchase arrives and is either a dud, or missing something, where do you go? straight to Bob to get him to sort you out. I have nothing against shopping anywhere for the best price, but don't blame Bob for being too dear, 90% of the time, he can't buy the goods at the price you can from the US, not too sure where this global shopping thing will lead long term. Lets just put a slightly different slant on it, would you buy from Bob if he had no shop, no stock, but was much cheaper than he used to be, you email him, he sends the goods to you, no warranty, no after sales backup, nothing, would you still buy from Bob???

[myusernam]

Economics 101. It's our job as consumers to shop around and try and get the best deal. It's the manufacturers job to try and make the item and sell for the most money. The end. It all balances out into a market. It's not up to consumers to subsidise or prop up uncompetitive or unsustainable businesses. It's not helpful and makes no difference in the end.

[Crunchy]

Well Nolem that Bob is more like a Fred than you realise, the new Bob's have a shop & an internet shopping portal. You can touch / feel / try / learn about their product offering at the store and purchase it online if you want....new Bob even have kiosks in the store where once you have tried the product you can go to the kiosk and order it online while still at the store. In fact they even have different pricing structures, you can buy the product from the store there and then for a "premium" or you can go to the store, check it and buy online at a discount if you are prepared to wait. This is the trend of the new Bob's which we are seeing O/S. Successful new Bob must understand the paradigm shift of retailing and work with the trends, not against them. How could this concept work with boat building? I can picture a few ideas......

[Noelm]

Yep, I can see that too, but I am not 100% sure on the go to the store and look at the goods, then order online in the store that you are in right now, but maybe it will come to that, lets be 100% honest here, I am not trying to tell anyone not to shop around (even globaly) I am just sort of "thinking" where this will lead us to in the future, with all sorts of dealers closing doors left right and centre, we maybe left with no option but to "virtual shop" with a faceless terminal on the other side of the world, if I was positive of the direction, I would be setting up my new business right now. Whether this is the root cause of the demise of dealers I think is open to conjecture, but I am pretty sure it is not hyelping, I have seen the amount of boats on the docks that are imprted evry day from the US, and that MUST have a huge impact on the local dealers, maybe they should start importing themselves and setting up an import boat yard, selling boats here, with all the hassel taken out of it, and buyers can see and hop in their potential purchase.

[Crunchy]

Was in a boating retail store chain yesterday looking at LED lights, priced from about $60 - $140, two blokes behind the counter didn't lift a finger to see if I needed any help or advice, in fact they were just standing there talking about how quiet it was and that was pretty cool....will make my purchase on the net at half the price AND perversly enough will probably get better service and advice from the shop on the net!