Boatbuilder Brunswick Corp. plans to close its Eastern Shore plant that manufactures Bayliner and Maxum cruisers in favor of expanding operations in North Carolina, where a newer facility and incentives worth almost $4.4 million beckon.
About 180 employees will lose their jobs when the Salisbury plant shuts down next year. The Lake Forest, Ill.-based Brunswick said the marine consumer market has shifted toward bigger boats -- 45 feet and above -- and the new location in Navassa, N.C., near Wilmington, can better accommodate production.
"It's no reflection on Salisbury or the skill of the work force," said Brunswick spokesman Dan Kubera.. "The North Carolina facility, for what we need, is a better fit."
Brunswick has 30 brands in the U.S. and ships boats around the world. The Bayliner is a recreational boat that ranges from 17 feet to 35 feet. The Maxum is a similarly sized recreational boat, ranging from 17 feet to 42 feet.
The company had been looking for an East Coast facility to manufacture its higher-end Meridian brand of motor yachts, which can exceed 60 feet and retail for $1 million. They are now manufactured exclusively in Arlington, Wash., and Brunswick needed a plant that is closer to retailers on the East Coast and in the Midwest.
The 336,000-square-foot North Carolina facility, which Brunswick purchased from an existing boat manufacturer, is six years old and boasts high ceilings, deep water access for testing and 60 acres for expansion. And it has a work force of 250 that is ready to go, Kubera said.
In contrast, the Salisbury plant is older and half the size, and would be costly to expand, he said. Closing the plant will cost the company about $11 million in operating earnings over the next 12 months.
"Frankly, it's a very competitive market, and we needed to bring our costs down," Kubera said.
Within five years, Brunswick hopes to employ more than 850 in North Carolina and produce more boats there than any plant in the world, the company said. Manufacturing three types of boats -- the Meridian and the two cruisers made in Salisbury -- should provide a more stable environment for workers during the ebbs and flows of the typically cyclical business, Kubera said.
The Salisbury plant has produced boats for 20 years, and the move is a loss for the community, said David Ryan, executive director of Salisbury-Wicomico Economic Development Inc. While about two dozen employees have requested transfers to North Carolina, the others will likely have to find work in industries other than boat building, which he likened to an "art."
Last year, Brunswick shuttered a manufacturing plant in Cumberland, which employed 115. However, the company kept open a nearby plant, which employs 130 and manufactures the Trophy sport fishing boat.
On the upside, Salisbury's unemployment rate is low, Ryan said, and two companies recently announced that they would add a significant number of jobs: Harvard Custom Manufacturing Inc., which assembles electronic components for the aerospace and defense industries, is looking to hire 200 while MaTech Machining Technologies Inc., which makes machined parts for the defense industry, is adding 100 jobs.
And, he is confident that a new tenant will replace Brunswick and those jobs. "We do have a fairly resilient and diverse economy," Ryan said.
allison.connolly@baltsun.com