Sea Ray supply challenges to be short-lived?

LAKE FOREST, Ill. – The “supply challenges on entry-level Sea Ray boats” noted by RBC Capital Markets analyst Ed Aaron in a report yesterday is due primarily to two reasons, according to a Brunswick spokesperson.

First, in recent years, Sea Ray has placed a renewed emphasis on the smaller boat market, adding such models as the 175, 195 and 205 to its portfolio.

These boats have proven quite popular in the market, according to its parent company. In an effort to meet this demand, Sea Ray has been migrating production of more of these smaller boats to available capacity within its manufacturing system.

Ramp up for that migration, given learning curves and other considerations, has gone slower than anticipated, the boat builder admitted. However, this situation is expected to be short-lived as Sea Ray continues to improve production rates in this segment, it said.

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