ADELANTO, Calif. — Cabo Yachts, laid off 49 employees last week citing poor consumer confidence in the boating industry, the Victorville Daily Press reported in a recent story on its Web site.
About 300 positions remain at the company, Austin Rothbard, president of Cabo Yachts, told the newspaper.
“A combination of high fuel costs, a housing slump and an uncertain economy has effected consumer confidence and eroded discretionary spending,” Rothbard said. “We must conservatively manage the organization. My thoughts go out to affected employees and families.”
The retail demand from the boating industry has gone down double digits since the fourth quarter of 2005, Rothbard told the newspaper.
“The marine business has been undergoing downturn unprecedented in a few decades,” he said. “There are parts of the world doing better than others so international sales are going well, but our U.S. business is hit hard.”
In the past 12 months, Rothbard said the company has dramatically increased investment in new boat models and engineering for the company.
“We’re expanding the business so when the U.S. economy improves we can grow with it,” he told the Daily Press.
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