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Kalama, Washington Auto Repair Shops

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Kalama, WA Car Consumer Discussions

Re: And in the local yacht building business......... [lemko]
by fintail on Tue Sep 18 11:30:17 PDT 2007
Not to mention a little burg like Kalama needs every single job it has. SW WA is an economic wasteland compared to many other areas of the state. And it has the social ills to prove it. One can easily hope these people end up with a leaky ship. It would match their mentality.
And in the local yacht building business.........
by euphonium on Tue Sep 18 10:06:16 PDT 2007
A year ago, Kalama-based NorthStar Yachts owner Jerry Clark sat on the dock at the Fort Lauderdale International Boat Show in Florida and realized his business needed to change to survive. Potential customers were touring a nearly identical 80-foot yacht in a neighboring slip, but they were ignoring NorthStar's boat because the Chinese-built competitor was selling for $2 million less, said Clark, chief operating officer of NorthStar. "The consumer has become more price-driven," said Clark, 46. "They are willing to accept it being built offshore." So Clark, a Longview resident, started thinking about moving his operations to Zhuhai, China's boat-manufacturing region. He said he made 10 trips to Zhuhai in the past year and "was really surprised at the growth there. It was the opposite of what I imagined." Clark, who worked through translators in China, settled on a pre-built spec factory and laid off the firm's 60 employees in January after NorthStar's plant at the Port of Kalama finished its last U.S.-made yacht. "I've been working with some of these guys for 20 years. We have a family-type relationship," Clark said. "This was a tough decision, but it was either this or close the doors." This is the first major Cowlitz County firm to pull anchor and move oversees, said Ted Sprague, president of the Cowlitz Economic Development Council. However, he said, it is unlikely more will follow suit and outsource production to China, the world's most populous country. "Often times it depends on the capital investments here," he said. "There's a lot of risk moving oversees. Typically, either the capital investment for a company here is so large or the investment is so large that companies won't move." From its Kalama plant, NorthStar made 80-foot to 125-foot long yachts costing between $6 million and $13 million. In China, the luxury boats can be manufactured for about $2 million less with the same number of workers and allow NorthStar to offer more boat options, said Clark, who has been in the boat-building business 28 years. Clark said he had no alternative for keeping the company afloat. Clark followed his father and grandfather into the boat building profession. All three worked for Tollycraft Yachts in Kelso. In 1997, Tollycraft shut down after more than 60 years making boats. Clark bought the company and moved it to Kalama in 1998. The Daily News, 18 Sep 07

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