|This was posted on Tigeowners some time ago. But with all the gloom and doom talk on here as of late, about which manufacturer would go under first; I figured it was time for something good on this forum. |
Ben Pigeon -
"After reading the threads on this web site, I felt it necessary to prevent any rumors and clear up all misconceptions about Tigé’s status.
Tige Boats, Inc. is 100% debt free with the exception of 30-day payables for boats currently in production. We have exceptional relationship with our vendors as a result of our prompt record of payment. We do not build speculative inventory – we build boats that are pre-sold. Due to the great acceptance of the 2009 Tigé, incredible styling which includes the Alpha Z tower powered by the award-winning PCM engine, we are building 2009 Tigé’s currently and have a strong back-order in-line to be built.
We, like many companies across the nation, have had to make adjustments in the way we conduct business compared to last year. We have been able to maintain our healthy balance sheet due to smart business decisions made by my dad, Charlie Pigeon. Charlie is the original owner of Tigé and is passionate about building the highest-quality product for you to enjoy for many years to come.
Charlie prides himself on his risk-management abilities and structured a deal with the City of Abilene that is planned for the cyclical nature with down periods predicted in the boat building business. The new factory is a joint project with the City of Abilene economic development office to help create new jobs in the Abilene area. Tigé’s monthly rent payment is based on production - we pay $100 per boat manufactured. Because of pre-planning, in this slow period our fixed costs are probably the smallest in our industry.
While it has been reported that nationwide ski boat sales are on the decline in 2009, Tigé is currently showing January 2009 new retail sales are equal to the number of retails sales in January 2008.
Tige Boats, Inc. is positioned and poised for this recession. We truly believe we will come out of this cycle stronger with considerable market share gains. "
|Its all good unless you work there. Last week they laid off 49 assembly workers in addition to the layoffs late last year. This totals over a hundred workers laid off at Tige. I am glad they are doing so well financially, however, I pray for the families of those who have lost their jobs. It seems kind of crappy that a company would post how well they are doing and how they are positioned to gain market share after just laying off workers. Just my .02....feel free to flame away and tell me how bad of a person I am.|
|Some things are better off not being posted because there are always people who will spin it to look the way they want it to. The text above was for the Tigé Dealer network and not for the local evening news. Tigé expressed their confidence in their current financial position. This was done in a way to communicate w/ the dealers to let them know that they will still be there for the Tigé dealers and most importantly the customers, even though there is strong speculation in the market. Yes people are being laid off everywhere, but the companies that are set up to rebound best will be able to get the laid off worker back to work first. I speak for www.tntige.com and not Tigé Boats Inc.|
|Tanner that is not a slam on you. I get your intentions. Thanks for helping spread the positivity.|
|I don't take that as a slam Billy. Ben posted that up publicly a while back. It's been there for some time and was not "taken" from dealer network. So at that point I say it's open game. |
Spin it how you want Mike. You are correct about the layoffs. And yes, last year, they got an early start on cutting production during slow months. Unfortunately some manufacturers are just NOW doing that, when they should have been looking ahead.
That being said... layoffs are inevitable at this day and time. BUT at least you won't have the dirty rumors about them going under.
I feel for each and every one of the family's that get laid off. However, if you are working in an industry that is tanking... ANY INDUSTRY... and your a newer employee or close to retiring age you should be prepared that it could be coming.
People in the boating industry should have been ready for layoff's last year. I would say that layoff's from a company like Tige, Skiers Choice, and other manufacterers that are ran by the founder are extremely tough for management. Company's like that are usually a close nit family. I've been in there position and it sucks! You act as if they didn't lose a wink of sleep over it.
Fact is, either layoff employees, position yourself to keep your business alive so that you can keep the other X number of employees you have. OR close shop and put EVERYBODY out in the cold! Which would you rather happen?
You say it's wrong for Tige to reassure their dealers and owners that they are in a decent position. I say if that group is worried about you, your not gonna be able to provide jobs for the remainder of employees you have. Kudos to Tige for taking a pro-active step.
Heck you've yet to see any M/C reps squash any rumors, and I already know of 2 dealers that are about to ditch M/C due to their fear of what could be happening.
|I stand correctedWhen I first posted I thought that it was an email we (dealers) all got. Now that you said that I do recall reading it on www.tigeowners.com I still made my point though. |
clipart is stupid!
|LOL.... Billy you were like the second or third to post in that thread ;)|
|As I said two months ago in one of the other gloom and doom threads. Tige will be fine because they have no overhead towards their facility. They own it free and clear. They can scale back as much as needed and still make money. |
I was born in Abilene (lived there until I was 10) so even though I am a Correct Craft guy, I like to hear good news from Tige because that company is great for Abilene. Tige was also very smart to partner with Wetsounds. Wish Nautique would do that.
(Message edited by aarond0083 on March 13, 2009)
What did I spin? I said clearly that I THINK IT IS CRAPPY. Just my opinion. Great for Tige. Who cares, my point is, that people are still out of a job, so all is not good in Abilene. And if the above is true that sales were on point with last year, why get rid of people? The point is, all are hurting, people lost jobs and it is not cool to gloat about picking up market share when someone might not be able to feed their family tonight.
Additionally, if this was not intended for public consumption, then Tige's dealer network should be a little more careful about what gets out. Again, great for Tige for weathering the storm, heck, it might be the only one left when it is all said and done, who knows.
|As an owner of a bussiness I can assure you that we would never gloat about our positioning in the market place , what Tige was posting was a positive spin instead of all the doom and gloom that our press seams to like. |
No manufacture wants to lay off employees because that would be less profitable because your not making as much product, but if the manufacture positions themselfs correctly when the market comes back , and it will, they will be set to higher back those employees and hopefully more.
|Man... that Tige Kool-Aid is some strong stuff!!|
|I get so pissed when Macy's hires all those workers, for the Holiday season, and then they just lay them off after they don't need them anymore. Who cares if customers aren't buying that much after Christmas. People need a job and it's Macy's responsibility to give them one, even if it means not bring profitible. PFFT.|
|I am curious how does this |
"While it has been reported that nationwide ski boat sales are on the decline in 2009, Tigé is currently showing January 2009 new retail sales are equal to the number of retails sales in January 2008."
Make any sense in light of this
|Pretty easy Kevin....just read it. Your quote is your answer! That article was 2008! Notice the statement above said their sales were equal from January 09' to January 08'! That means they aren't slipping, but holding steady! That's all that means. While other manufacturers are slipping, they were stating they were holding steady from last year. |
Numbers were down last year industry wide, but nothinggggg like they are this year. Most manufacturers would give anything to just have the same number of sales they did last year. Most will have substantially less.
|So just so I understand everyone's sales are down except Tige |
Lets just say I am a little skeptical
Having said that I believe that companies like
Tige are in a good position to ride out the rough times
(Message edited by krbaugh on March 14, 2009)
|I don't see where they say everyone's but theirs are down. The way I take it is sales are down for the industry as a whole. I doubt there's any manufacturer selling more than last year (but it's possible I guess), but I'm sure there's a few holding steady and not losing sales. |
All that being said..... That statement addressed January. March, April, and May will tell the true story of things!
|When the new sales figures come out we will know what is rumor,spin,BS and what is the truth |
I don't want any of them to fail!!!
|I hate to see layoffs anywhere, but I won't go so far as to demonize companies for not over employing when times are slow. These companies exist to make money. If their owners did not believe they could make money building boats, they would have never founded the companies in the first place. Which, in turn, means the people they have employed would not have had jobs either. In my opinion, it appears that manufacturers are doing whatever it takes to stay in business for the long haul. Sure, they could maintain their pre downturn staffing for a short period of time and go under. At that point, none of their employees will have jobs. They will probably have also racked up huge debts that they won't be able to repay to their suppliers, which in turn can impose huge burdens on suppliers and could possibly drive one or more of them under. Or, they can cut back during the lean times and at least maintain some jobs and hopefully return to predownturn levels after the economy rebounds. Sorry about the rant, but it seems like people are bashing these companies for trying to keep their heads above water.|
|how do you pay employees if you dont make the money to pay them? you have to layoff. i have been watching some logger show on discovery channel. they get 2 weeks of rain and think about laying off till the weather gets better....|
|I agree SS, I wasn't trying to demonize them at all. My point is, why put out an ad stating how well you are doing, when you just had to let go 100 peeps. I guess no one sees my point.|
|Mike I see your point, but I think your reading into a different way than most of us. Well... I can't say that, b/c I don't know how the others are reading it. But I'm reading it a different way than you. |
Your perceiving it as them bragging.... at least If I understand you correctly, that's how it seems your reading it.
I'm perceiving it as them taking a pro-active measure to reassure their dealers, customers, and suppliers that they have positioned themselves correctly to survive a tough market.
I guess it's all about perception. You consider it a snub in the face to those who were laid off. I consider it an act to maintain future jobs.
|The inboard ski boat market , in a good market is about 2 to 3 percent of all boats types. |
Now think about a dealers territory, if it was a 70 boat market divided by 6 brands , thats about 12 boats per dealer, now that doesnt sound to bad , but what does it drop to in a bad economy, and of those that might buy how many will buy new or maybe consider used. As a dealer its nice to have a manufacturer not shoving product done your throat.
And if a manufacturer does force you to take to much product the odds are that the dealer wont survive and then less of their boats being sold, which is how some of the manufacturers positioned themselfs, which created a back log of 08 inventory which the dealers have to move before they can get more 09s.
Im sure everybody out there knows this ,I was just trying show a numbers type of situation to let you see how its a visous circle right now.
|As another Tige dealer we are very happy that Tige wasn't stuffing boats down our throats. Charlie Pigeon told us if you need boats order them and if you don't, don't worry about it.|
|Dom, I think that is the reason why my dealer is closing their doors. They ordered a lot of 2007 and 2008 Tige's and the owner has been running in the red for a long time. Hope that Tige gets another Tige boat store in Sacramento soon. In 2006, the dealer sold approximately 110 Tige's.|
|if business is normal and they arent slipping and sales are the "same" why did they have to lay off workers? |
i think thats the real question and why people are questioning the press release..if things are business as usual then they cut 100 workers for no reeason other then to boost bottom line?
|Most the cuts were way back in 2008. 2008 numbers were down.... which is far from business as usual. Tige tried to maintain it's employees for as long as they could.... but eventually they were forced to let people go. Like I said.... that was back in 08.... other manufacturers are just now doing it... Tige did it in March of last year. The layoffs Mike brought up above were actually from last year as well. At least as far as I know... but I'm not exactly in the know! |
Your reading it as we're doing great and selling tons of boats. It's supposed to be read as we're prepared for the long haul and we're sitting in a good position. Sales are holding and not slipping below last year (which is a major feat in this day and time)
(Message edited by Tanner on March 15, 2009)
|Maybe they heard about Obamas tax increase on everybody making over 250000.00 , and desided to cut back to avoid the tax, ya thats it, ha ha .|
|I wouldn't take it as gloating. Everyone keeps talking about "who's going to fail first." I've seen in some posts where people assume some of the non big three would likely be the first to go. Tige likely just put that out there to assuage some fears. I can understand why a brand would want to let consumers know why they aren't likely to fold sometime soon. From reading that release, I'd say Tige acknowledged that the market was tough and stated that they had made the necessary adjustments to weather the storm. Just my interpretation.|