the end of an era for Ocean Yachts

I agree it is a good thing Viking is doing so well but do see it as kind of monopoly. It used to be the big 3, Bertram, Hatteras, Viking. Now you only have Hatteras and Viking and from appearances it seems Viking is spitting out about 10 SF for every 1 Hatteras. But those really are the only 2 production builders. But so many other production built competitors went by the wasteside, that really those are the only 2 left......Gone: Bertram, Post, Egg Harbor, Ocean, Cabo, Davis, Buddy Davis, and on and on. Sure you have all the Carolina builders.....but most of them are spitting out 1-4 a year, MAX. The Carolina custom builders....but customs are in a different league.

Yes, that's correct that I don't know whether that's a good thing.

If Viking sustains the Billfish and Express as rumored, it is. If no one fills Oceans void, then it's bad.

Viking is awesome. I'd kill for one. But Ocean catered to a different crowd/clientele for 30 years.

Viking is "semi-custom" in name only. They're no more or less custom than the Wanchese builders, who use molds and build the same Applied Concepts hulls over and over again.

There's not much left but the used market for anyone who wants an affordable sportfish.

Every time we see a shut down like Ocean we here a lot of how they'll be missed. The reality is if they were doing enough business to be missed they wouldn't be leaving. They've been missed since their volume declined. Is there a void left in the marketplace? I believe so. But then part of the reason for that void is buyers haven't been buying in the niche.

IMO, not only is it about having a solid boat design, but business acumen. How the heck did Post, which was really a contract builder not a floor plan manufacture, go upside down 5 to 1? I know, everyone will blame it on the gelcoat issue, but Viking survived the same issue on a larger scale. Cash reserves? Insure the risk or create a sinking fund? Wonder what executive comp was?

Spend more than they had coming in. Probably a combination of business debt, still have the property/building/factory overhead, employee overhead, a failure to update models, a lot of money sunk into I think it was a new 56' SF that handled horribly and that they couldn't sell. Just because they were'nt building spec boats, doesn't mean the expenses didn't go on. Also it's really hard as a business owner when you have long term employees, that care, and that do a good job, and then the bottom falls out, you try to hang onto them too long rather than laying them off, adding to your expenses.

Here is the long and short of Ocean - Daddy Leek didn't want to produce boats anymore. Leek Jr wanted to carry on the family legacy but Daddy Leek didn't want to fund it. Daddy Leek wanted out and has since retired with a huge nest egg. The property is worth more money than they could make producing boats. Manufacture Margin on production boats is not what it used to be. There were only two remaining dealers for Ocean as well, one of which tied up the Makaira project. Not naming names here, but all of you can try to come up with scenarios as to why it didn't work. My explanation is simple - And true.

Thanks for the clarity and lack of speculation - quite refreshing for a change.

I'll buy that, for sure.

And junior still hangs on and gets to start building boats again, albeit for the former competition. Probably better off for him.

I hope Tom hangs on too. He was always exceptionally helpful whenever I had questions about older Oceans we were looking at.

I wish them all the best, it's still just a little sad that yet another NJ builder went tits up.

Not the first business to find their property was worth more to someone else than it was in operating their business.

We have very close friends in Myrtle Beach, like parents to us. Their small family run hotel property has for a while now been worth more to major hotel and resort chains than to them. It gets harder every year for them to resist selling. Much like the Leek family, running it is all they've done for decades. It's a difficult decision when you've given your heart and soul to the business.

I just saw the other day that the Egg Harbour group bought the name and most of the molds from Ocean Yachts.

It appears so. Now whether they'll do anything with it or not, who knows. Not like they're setting the market on fire themselves. I think something indicative of their market role is that if you go to their website and click on "What's New at Egg Harbor" you get that they broke ground on their factory expansion on August 18, 2004. So, I guess only time will tell if this is any different than the purchase of the Post name and molds.

I agree, it will be interesting to see where it goes. It seems that the mid-size production sportfisherman market has been replaced by outboard powered cc and express style boats and larger 60 ft plus sf's.

So, far EHG has built only a few Silvertons. From memory, I think two 36Cs, two 42Cs (renamed 43C), a 410 or 430 Sport bridge (can't remember which), and more recently a 4100 Coupe (hardtop express boat, built on a stretched 36C hull).

-Chris

The good Dr just collects Fiberglass Boat molds. I doubt he'll ever build a Ocean or Egg

Just like Worton Creek did with Post.