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Merrill Stevens Closes Friday December 18

Discussion in 'General Yachting Discussion' started by HONGKONG, Dec 17, 2009.

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  1. HONGKONG

    HONGKONG Senior Member

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    I reprint the notice received today from the super;

    "I write with sad news to validate the decision of the company to lay off the remaining work force earlier this week. The current owners will continue to work finance deals with banks and seek outside investors. We are currently finishing up the last of our ship repair projects and the last vessel was launched from the rail lift yesterday afternoon. The work force and core management will finish work tomorrow evening Friday December 18th 2009.



    The shipyard will maintain security staff and a few boats remain on dockage at this stage. Further inquiries to use of the property can be directed to Matthew Westbrook (current president) mattheww@merrillstevens.com 305-409-2389. Matthew has informed me he will entertain all possibilities.



    History:



    Merrill-Stevens is the oldest continually operating business in the state of Florida. Over the years it has had many periods of business expansion and contraction having had yards located in Jacksonville, Miami, Dinner Key and Ft Lauderdale. In recent years, plans were drawn up and underway to level the current facility and re-build with the intention of catering to yachts up to 240ft. This was to include Syncro lifts able to hoist in excess of 2000 T, transfer systems, paint sheds, waterfront dockage and more. Although the tangible investment was not apparent in the Miami facility, the company did manage to further expand its real estate boundaries and obtain permitting from its plans.



    Additional to shipyard expansion the company engaged in business expansion in yacht brokerage, charter, yacht management and crew placement. The company went about securing some of the best talent in the industry in all these fields and opened offices in Ft Lauderdale, Mallorca, Mexico City, Miami, San Diego and Singapore. After a quiet summer in 2008 the company made a succession of cuts due to the 2009 economic outlook. Merrill-Stevens changed gears and also began to retract from all business outside of ship repair. All offices were eventually closed down with the owners focusing their intentions on the shipyard.



    We have been fighting this year at the shipyard for our share of the slim market. We have seen a steady flow of work throughout 2009 but business is down from recent years. While the company employed an employee base of 250 at its height in 2008 (170 at the shipyard) we have operated this year with a team around the 60 person mark. Speculation of closure or financial troubles along with competition from new and improved facilities has made it increasingly difficult to compete in today’s market. It has however been the full intention of our entire team to continue and trade out of the recession and push on forward into 2010. Unfortunately the clock has run out at this stage.



    Merrill-Stevens over the years has been the home to some very loyal employees. A number in which have had careers that extend over 30 years. Additionally a great deal of Captains and yacht crew along with small business owners have been associated with the shipyard at some point in there careers.We can all only hope that the yard re-opens once again in the long run with new investment. Investors who desire to update the facilities. Merrill-Stevens will then not only be a part of our pasts but maybe part of our future. Time will tell.

    Sad news indeed.................
  2. CaptTom

    CaptTom Senior Member

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    What economic recovery? Jobs continue to be lost amid speculation of an improving economy. Even though the yachting industry is typically the last to see the upswing, it's sad to see an institution such as Merrill succumb after all these years. And around the holidays, that just sucks.

    We need to keep things in perspective. I hope these workers and staff members can support themselves and families as they venture off to the job market.

    Good luck.
  3. Pascal

    Pascal Senior Member

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    it's very sad indeed, for the people employed there and also since MS is one of the oldest and most respected yards.

    but let's face it. no employer is going to hire anyone unless they really have to, or expand or even try to borrow to stay afloat, without knowing what's going to happen with Card Check, Cap and Trade and health care reform, which will all cause labor costs to escalate our of control.
  4. Jorge Lang

    Jorge Lang Senior Member

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    It's sad to see a yard go. Besides the economy, I think it's mostly because the majority of the yachts go to Fort Lauderdale and West Palm. While there are not as many boats in the yards as before, I think there is work to go around. It's a tough decision to spend money to modernize a yard that will bring in business, but it has paid off for Rybovich and LMC. I think the other yards need to consider offering the boats and crew something more than just a bill for a haul out and work. Your thoughts?
  5. Pascal

    Pascal Senior Member

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    i certainly can see how yards in FTL or WPB can be more attractive considering the neighborhood MS is in (you dont' want to walk there after dark...) and the hassle of going up the miami river... the pool of services is also much larger in FTL and WPB for whatever has to be contracted outside the yard.
  6. Marmot

    Marmot Senior Member

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    What any yard has to deliver first is quality work performed on time at a reasonably competitive price.

    I don't want to kick a corpse but yards die when they don't deliver.
  7. Loren Schweizer

    Loren Schweizer YF Associate Writer

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    +1

    As far as quality, Mr. Forbes' Highlander was a regular for maintenance and he had the HP to go anywhere.
    Lotta big iron was made to look pretty again there over the years, but...it's still a shame.
  8. Henning

    Henning Senior Member

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    The real problem Merrill Stevens faced there was the neighborhood. It's not the greatest neighborhood anymore, no crew really wants to be there and there is little top notch ancillary services available. Ft Lauderdale is also where all the ancillary industry that services these refits is, and that's an ugly commute to down there and back on a daily basis.
  9. Henning

    Henning Senior Member

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    That of course is the primary issue, but I don't think that was MS's real problem, they were capable of and have produced quality work. What sank them is location. As for extra service from the yard, concierge service is also a big plus. Help in locating local resources is high on my list of value when looking for a yard to do a refit in.
  10. CaptTom

    CaptTom Senior Member

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    Jorge, looking at how Rybo revamped their yard and marina, I have to give hats off to them for the effort. I've never had repair work done there, but captains and crew I've spoken to do like the yard service they get, and it has become a favorite destination for crew when stopping in the area. With the new lounge, workout room, pool, upgraded facility and regular crew parties and functions, why not go there. I've also heard from a few owners that they believe that a happy crew makes for a happy yacht, so why not treat the crew once in a while?

    I also realize that Rybovich's owners have deep pockets, but it still was a heck of a risk to undertake the changes. BTW, the day after FLIBS closed, 22 yachts headed to Rybo for either work or to relax a bit, and more came in later that week. That Friday night crew party was hopping.
  11. Pascal

    Pascal Senior Member

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    Rybo has as large marina... MS doens't, they have a few sheds and yard space, a few hundred feet of dockage on the river, very different. as i mentieond in my first reply, the neighborhood is jsut awful. it has to impact a captain and/or owner decision in picking the yard for a project.
  12. Henning

    Henning Senior Member

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    It's kept me out of there for 3 large projects in the last 6 years.
  13. Marmot

    Marmot Senior Member

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    Like I wrote earlier, I don't like to kick a corpse but the the wounds were self inflicted and severe.

    At least one boat got pulled from there this summer and most of the work had to be redone in Lauderdale. To add insult to injury, the bottom paint applied at MS fell off on the ship to Europe - six months late and the paint literally fell off. That European owner said he will never, repeat never, bring a boat to Florida again. This is not rumor, it is first hand knowledge.

    That boat was not the first to be pulled from the yard this year and I Just learned today (second hand) that it was not the only one to have bottom paint fall off.

    We can't afford that level of quality.
  14. coastaldrifter

    coastaldrifter New Member

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    Marlow Marine Just announced that they Bought Merrill Stevens

    Marlow Marine Just announced they Bought Merrill Stevens...