Fountain CEO believes layoffs are short term

Author:
Updated:
Original:

Fountain Powerboat Industries recently laid off 70 workers at its Washington, N.C., plant, but chairman and CEO Reggie Fountain says he believes the layoffs will be temporary.

“I think by February we can put them back on the job,” Fountain told Soundings Trade Only this morning.

Fountain blamed the cutbacks on the economic downturn and the continuing slump in marine sales. He said the company, which still employs 270 workers, is building only the number of boats it can sell to avoid inventory buildup and to conserve cash.

“It keeps getting tougher out there,” he said.

However, Fountain is optimistic that markets conditions will improve by early next year. He points for four key ingredients: the election is over, along with all the negative campaign ads; the Wall Street crisis is “semi-over,” as the federal government takes steps to reinvigorate the economy; gas prices are lower; and interest rates are down.

“I think starting today it’s getting better, and it’s going to continue to get better,” said Fountain. “I think by the Miami show we’ll see things turn around.”

Related

Patrick Industries Acquires Taco Metals

The components manufacturer had been family-owned for 60 years.

Consumers Say E15 Warning Labels Are Ineffective

A new poll shows that current branding efforts do not adequately warn consumers to the risk and legality of using the blended fuel with certain engines.

Silent-Yachts’ New Project

The Austrian solar yacht outfit will use VW’s electric drive system on a vessel to be drawn by Spanish car brand Cupra.

Industry Mourns Christopher Ramirez

A regional sales manager at Garmin, Ramirez died suddenly at age 35 last month.

Quick Hits: December 1, 2020

Freedom Boat Club announces 250th location; ShoreMaster/Hydrohoist acquires Neptune Boat Lifts; MarineMax names brand manager; and Arkansas scientists study fishing license increase.

Our Great Lakes Are Battered and Need Help

The eight-state region that accounts for one-third of annual boat sales has seen unprecedented damage from high waters. A bipartisan legislative effort looks to protect the region and its small businesses.

Boat Demand Remains Strong, But Inventory Shortages Prevail

Dealers worry that the absence of new boats is driving up prices.

Electric Boat Company Completes IPO Process

Canada-based e-mobility outfit Vision Marine raises $27.6 million to reinvest in its line of electric vessels and 180-hp, E-Motion outboard.

Besenzoni Introduces Electric-Powered Gangways

The company says it will introduce electric power across its line of ladders, tender lifts and more.