finance & finance + insurance - navigator yachts

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FINANCE + HOW TO SCORE A HARD-TO- GET LOAN AND THE BEST COVERAGE www.seamagazine.com MARCH 2010 $4.95 USA and Canada NAVIGATORS AND CALIFORNIANS: STILL WEST COAST CREATIONS p. 48 5 TIPS TO AVOID ELECTRONICS FAILURE p. 18 ENGINE ROOM BAILOUT BAG NEW BOATS MARITIMO 550, PARAGON 94 DUFFY 22 CUDDY, NEWPORT CLASSIC 22 1,000s OF NEW & USED BOATS FOR SALE INSIDE 10 MUST- HAVE ITEMS FINANCE & INSURANCE: HOW TO SCORE A HARD-TO- GET LOAN AND THE BEST COVERAGE

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Page 1: FINANCE & FINANCE + INSURANCE - Navigator Yachts

FINANCE +INSURANCE:HOW TO SCORE A HARD-TO-GET LOAN AND THE BEST COVERAGE

0 74470 48430 1

0 3

$4.95

www.seamagazine.com MARCH 2010

$4.95 USA and Canada

NAVIGATORS AND CALIFORNIANS:STILL WEST COAST CREATIONS p. 48 5TIPS TO AVOID

ELECTRONICS FAILURE p. 18

ENGINE ROOMBAILOUT BAG

NEW BOATSMARITIMO 550, PARAGON 94DUFFY 22 CUDDY, NEWPORT CLASSIC 22

1,000s OF NEW & USED BOATS FOR SALE INSIDE

10MUST-HAVEITEMS

FINANCE &INSURANCE:HOW TO SCORE A HARD-TO-GET LOAN ANDTHE BEST COVERAGE

++Sea Oct. OFC CMYK 2/3/10 7:43 AM Page 2

Page 2: FINANCE & FINANCE + INSURANCE - Navigator Yachts

The Marshall family is still building Navigators and Californians in the U.S.

BY ROGER MCAFEE

HomeGrownGreen&

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Page 3: FINANCE & FINANCE + INSURANCE - Navigator Yachts

WWhy would a boat builder delib-

erately choose to build boats in theUnited States when conventional wis-dom says it’s less expensive to makethem in Asia?

An even more interesting questionis, having decided to build in the U.S.,why choose a jurisdiction that has,arguably, the most stringent air qual-ity controls in North America?

If you’re the Marshall family,builder of Navigators and Californians,the answer to both questions is easy.“We can build boats efficiently in theU.S. and sell them at prices less thanthe imports,” Gil Marshall said.

The family-owned manufacturingplant is located in Perris, CA. “We’rein the Southern California Air QualityManagement District,” Marshall said.“We’ve been building boats on theWest Coast for half a century now, andwe didn’t want to pull up stakes likea lot of other manufacturers. Also, ourfamily and all of our employees haveroots in the area.”

About 10 years ago, the companydecided to invest about $750,000 in Thermal Oxidizer Technology.Basically, this technology decomposeshazardous gases at a high temperatureand releases them into the atmosphere,ultimately controlling air pollution.

“While the ongoing operational

expense of such a system is notinsignificant, it’s manageable and asan industrial builder we are proud tobe able to produce in a green way,”Marshall said.

With 10 years of “green” buildingunder their belt, they would do thesame thing all over again. “We madethe right decision at the time and itcontinues to be the right decision tothis day,” Marshall said.

Marshall’s father, Jule, began build-ing boats in the 1950s and eventual-ly Californians by the 1960s. Both Giland his brother, Steve, began work-ing in the family business right after

high school. Withina decade the builderexpanded its lineof trawlers and long-range cruisers from30 to 52 feet.

In 1982, Well-craft purchased the company and theline was updated. Marshall repur-chased the company in 1987 and soldit again the same year, this time toCarver, which moved production toNorth Carolina. In 1991, GenmarIndustries purchased Carver andstopped making Californians.

After the Californian name was sold

Navigator’sCalifornia-based fac-tory turns outapproximately 25boats per year —both Navigators andCalifornians — withabout 40 employees.

Californian 55 LRCThe new 55-foot long-range cruiser, with a cruising speed of 10-11 mph,is designed with fuel efficiency and elegant comfort in mind.

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Feature-Navigator factory 2/2/10 1:23 PM Page 49

Page 4: FINANCE & FINANCE + INSURANCE - Navigator Yachts

in the late 1990s, Jule continued(along with his sons) to build underthe Navigator name and reacquiredthe rights to the Californian name.This is when they began buildingCalifornians in the Navigator plant.

By the late 1990s, the builder wasproducing about 60 boats a year withan employee base of about 200. By2006, as the economy started itsdownturn, production dropped toabout 40 boats a year; now the com-pany turns out about 25 boats a yearwith an employee base of 40.

Gil Marshall said the family is goingto continue to focus on the produc-tion of boats tailored to the West Coast.“We’ve been a West Coast builder ofWest Coast boats and we’re going tocontinue along those lines,” he said.

“Our new Californian 55 LRC hasbeen tested independently, and wecompared the results of that test tothe test of another similar-sized boatwith twin engines producing muchmore power. Our boat, with a singleengine, was 5 miles per hour fasterthan the other vessel at wide-openthrottle. At cruising speed, between10 and 11 mph, our 55 burned threegallons per hour less.

“What we have in our new 55 LRCis an American-designed boat, builtby Americans in the U.S., that per-forms at least as well as an import,made in a green factory and that costsabout $500,000 less. The more expen-sive boat is a good boat, in fact a greatboat, but we figure ours offers bettervalue for the money and a U.S. buyercan easily reach us if there’s a prob-lem,” Marshall said.

In response to current market con-ditions, the company has justlaunched its new Californian 33.“This new 33-footer is powered bytwin diesels giving a top speed of 28mph. At 20 mph the vessel gets 1.5miles per gallon. It comfortably sleepsfour and will sell for less than$200,000.

“We are confident the marineindustry will recover, but it won’t bethe same as it has been in the recentpast. New buyers will be looking forvalue and for products that are madetaking the environment into account,”Marshall said.

50 SEA / MARCH 2010

Inside the FactoryThe Marshall family and its 40 employees build West Coast boats fromthe bottom up on the West Coast. They do it in a green factory and sellthe boats for less than many imports.

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