Dustan E. McCoy
Analyst · RBC Capital Markets.
If the industry increases -- with all the investments we've made in aluminum, fish, pontoon and investment we're making in saltwater, we can participate enormously. In the bigger boat -- let's do smaller fiberglass, sterndrive boats, we're fine. In the bigger stuff, it feels like we're capacity-constrained right now because we're in ramp-up mode with all these new product. And what we try to convey, and I don't think I do a very good job in explaining this, is we introduce a new model, we know how many weeks, months, et cetera, it will take us to get to full run rate, and it's fairly complex actually. So let's take our new 650 Sea Ray. You think of everything that goes into that boat, we've got to coordinate the supply chain to have it all there and we've got to train ourselves as we move that product from product development over to the plant floor on actually how to build it. And that's a fairly complicated dance with hundreds of people involved. So as we start to ramp up we say, I'm going to make this up because I don't want to give anything away competitively. It'll take us 6 boats over 7 months. And again I'm making these numbers up to go from a standing start to normal run rate. Once we're at run rate, then we can increase run rate very easily because it's just then a matter of turning it over, if you will. But as we go through the learning process, we can't do much faster than the ramp up process we designed, and we're in ramp-up mode, for instance, with the 650. We're sort of coming out in ramp-up mode for the 51. I think we're at a ramp up mode for the 35, the 350 SLX. But we've got 2 58s coming. And when we throw those in, it'll feel slow as we get started. So our dealer network and a couple of people of reference, perhaps, the Marine Max call, and I'll need to go read the transcript, but I can understand where the dealer networks has said man [ph] I got to ramp up [ph] off-boat, I can sell, you can maybe give me more. And our answer always is we'll get there but we've got to get this model integrated and ramped up before we can begin to increase production rates.