Irwin Jacobs-CEO of Genmar
 

If I were to mention the name Irwin Jacobs to most boaters, I'm sure I would be on the receiving end of a blank stare. Yet for those in the marine industry he is very well known. Could it be because of his position as CEO of Genmar Holdings Inc. ? Partly. Could it be because he runs sixteen of the top companies in the boating industry? Partly. Could it be his never ending supply of new inventions or unique marketing ideas? Partly. But more than likely it is because of his "damn the torpedoes, full speed ahead" approach that has made him a force to be reckoned with, like it or not. While talking with Mr. Jacobs, I found this disregard for political correctness to be refreshing. Coupled with his healthy sense of humor, my conversation with Mr. Jacobs was definitely one that will be hard to forget!

    Mr. Jacobs is the life blood of Genmar, the parent company of some of the top recreational boat manufacturers  on the market; Crestliner, Lund, Lowe, Carver, Four Winns, Larson, Glastron, Wellcraft, Hydra-sports, Aquasport, Seaswirl, Ranger, Champion, Stratos, Triumph and Windsor Craft. Obviously it has been quite a career acquiring and running all of these brands. I asked how he got his start, assuming that it was his love for the sport that prompted him. Nothing could be further than the truth. "It was another business venture. I saw boating as an industry that had a lot of potential. In 1977 I purchased Larson boats and I've been at it ever since."

   Jacobs never seems to do anything in a small way. One company would be more than enough for most people. In December of 2000, the OMC corporation filed for bankruptcy. Jacobs was ready to pick up the pieces. Four Winns, Hydra Sports, Seaswirl, Stratos and Lowe were grabbed by Jacobs and suddenly on the way to recovery. That would be more than enough for most mortals but not enough for Jacobs so he continued to acquire more companies along the way. I had to ask how he had the time and energy to run so many. "I have good people. I am only involved in promotion and marketing." Still quite a tall order. Genmar has been very progressive in using new ways of promoting not only their brands, but the sport in general. I gave Mr. Jacobs a chance to do a little bragging when I asked him if all these great promo ideas and innovations came from his head. "No definitely not. I don't believe that. I wish they were. We have great R+D teams". Not the answer I was expecting. He then went on to say "I don't work every day. I'm talking to you from my lake house so see I'm not working". I felt obligated to point out that since he was doing an interview he was working. He laughed and admitted "I guess I am". Definitely a type A personality.

    Personally I think that even his toughest critics secretly admire his style. He's the type that voices his opinion. Luckily. A lot of folks in the business may share similar views but are so worried about being politically correct. Jacobs was the only one to publicly object to Bayliner's decision to begin building boats in Mexico. "I'm very much against building offshore and paying $50 a week for labor. I think it's kind of funny building Bayliners in Mexico when the company is named U.S. Marine". (U.S. Marine is the marine division of Brunswick Inc.) He went on to add "We are starting to outsource and I'm not happy about it. We have to do more to stay competitive". Obviously there were many industry insiders that felt that Mr. Jacobs was merely bitter because Bayliner was able to sell boats for less money. Jacobs denied that notion completely. One reason Bayliner should be able to undersell boats built stateside by any of Genmar's brands apart from the labor issue, is the fact that Mercury supplies engines to the Genmar lines. Ironically Mercury is owned by Brunswick. Yet in spite of that fact, Jacobs has been able to produce "entry level" boats that are very competitive in pricing. I was quite surprised that over the years Mr. Jacobs never added any engine companies to his stable as it would allow him to sell his boats for less. Last year Bombardier, builder of Johnson and Evinrude engines was up for sale. I asked Jacobs why he didn't try to pick up those brands, his answer surprised me. "I never wanted to be in the engine business. I want to provide customers the best options available".

    Once again, never one to sit on the sidelines,  Mr. Jacobs made his position very clear during a government investigation as to merit of accusations by Mercury Marine that Yamaha was in violation of anti-dumping laws. Dumping is a trade violation in which a company sells a product in another country at a much lower price than in it's own. Since several of Genmar's lines use engines from Yamaha, if Jacobs felt that there was any merit to the case he would have been all over Yamaha. Ironically, Mercury buys engines from Yamaha and sells them under the Mercury name. "I don't understand that at all, especially when Mercury needs the cylinder heads" said Jacobs." If I were Yamaha I would raise the prices (on the cylinders heads for the engines) or just stop selling them to Mercury. I just don't understand why Brunswick is doing that". I pointed out it seemed as though Brunswick just wasn't being very innovative over the years to which Jacobs replied "I'm glad to hear that someone else feels that way and that it's not just coming out of my mouth".

    Jacobs has always been quick to assume a leadership role in the industry that always seems to result in positive changes, though many refuse to acknowledge this. Personal watercraft and their operators have managed to maintain a rather poor public image. Slowly that has been changing no doubt to Mr. Jacobs speaking out against the industry. In a rather bold move, Jacobs pulled out of the Nation Marine Manufacturers Association (NMMA). The group according to Mr. Jacobs, was not doing anything to change the negative effect that personal watercraft were having on the boating industry. The public would perceive pwcs and boats  as one in the same and as a result powerboats would begin to be banned from bodies of water along with the personal watercraft. Jacobs has since rejoined the NMMA. When I asked what prompted his about face he replied that "luckily the government has stepped in and regulated a little".

    Jacobs has been fighting an uphill  battle trying to get all the boat manufacturers to agree on a common release date for the new model year. To me it seems like a no-brainer. It's been that way for the auto industry for a long, long time. I asked why are so many dealers and builders against it? After a good laugh he replied, "It makes absolutely no sense to me. There are no reasons not to do it. You have to have cooperation and a consensus. A lot of dealers are against it". I'm sure that will change given Mr. Jacobs' clout and persistence.

    If anyone has attended a boat show in the last few years, then you have noticed the amount of money that had to come out of your wallet. Between parking, admission, and food, it is no longer an inexpensive way to take the family out to see the new toys that you are willing to spend your paycheck on. Concerned about the negative impact this was having on the industry, Mr. Jacobs did the unthinkable. He began having one company boat shows. Suddenly Mom and Dad could bring the kids and make a day of it. Free parking, cheap food and drinks, and a trout pond for the kids. And keep in mind you would be able to see sixteen of the largest brands. It was a huge success. How could it not be? But the industry was steaming. Several months back, an editorial appeared in Trailer Boats Magazine that viewed this as a very negative thing to do. When I mentioned the article, Jacobs responded by saying that "They thought it would divide the industry. Everything we (Genmar) do is seen under a microscope. I wasn't born with a silver spoon in my mouth. What people don't see is everything I've done along the way".

    Of course his marketing and promotional ideas don't stop there. Internet sales, regardless of the product have skyrocketed over the past few years. Seeing an untapped market, Jacobs started having clearance sales on leftovers on the internet. It figured if he could turn a profit on it, he wouldn't do it. Well yes he did turn a profit. I admit I was a bit taken aback when he told me that the gross sales exceeded 1/2 a billion dollars! You better believe that will continue and you will see more companies follow suit. I asked about some other marketing ideas he has used successfully over the years focused a lot on off site sales. "Boat sales in parking lots like Wal-Mart, Sam's Club and Boater's world are great because people that might not make a trip to a dealer can see what boating is all about without going out of their way".

    Building quality boats and selling them for a profit is the priority of most companies. Jacobs knew he was not only building quality boats, but turning a nice profit as well. But a question that most other companies weren't concerning themselves with was a simple one. Who was buying those boats. Boating is definitely a  sport dominated by males. But what Jacobs realized is that in many households, women  played a major role in the decision making process. Maybe women weren't driving the boats, but they were buying the boats. Picking up on this simple fact that goes unnoticed my many builders, Jacob's has been instrumental in promoting women' organizations such as Women Making Waves  and Women at the helm. These programs are designed to bring women to the forefront, show them that they are capable of doing anything on a boat that men can and need to be given the respect from dealers and builders alike. "I'm disappointed that people don't jump on opportunities like this more" Jacobs said of the programs. I couldn't agree more.

    Windsor Craft!! The first major innovation to hit the pontoon market since I can remember. Forgetting my manners for a moment, I pointed out that I felt that traditional pontoon boats were "wiener" boats and I had no use for them-until now. But Mr. Jacobs can take it just as well as he can dish it out, and we went on to talk about the new brand Windsor Craft. These are definitely not your grandpa's boat. Built out of Roplene, a polyethylene based material that is almost indestructible, is naturally buoyant and is not affected by salt water. Mr. Jacobs clearly loves this boat. "It's designed so it could be  used in salt water. There are features unique to the Windsor Craft; the cabana, the captains seat-we want you to feel like you're sitting in your living room. The sides are higher for safety". But the most important question? How does it handle? "I took it out in the ocean and it sliced through the waves like a hot knife through butter". He went on to add that "We will be coming out with a larger one and a fishing model. If you can get a chance take one out for a drive". Will do!!

    Building hulls out of something other than fiberglass or aluminum? The Windsor Craft is not the only line in Genmar's stable to use Roplene. The brand Logic, that Genmar acquired a few years back was renamed Triumph uses the same technology. The construction is totally different. A polyethylene powder is poured into a mold which is baked in an oven while it is being rotated. The result? A boat that comes out of the mold in one piece, and does not suffer from the inherent draw backs of fiberglass or aluminum. Unfortunately the early Triumph boats didn't quite live up to expectations. "Unfortunately we brought it out too soon" Jacobs confessed. "We definitely made a mistake. We're not perfect, but if you don't make mistakes you're not trying". The future? "Roplene is going to be huge in the marketplace". Ironically Mr. Jacobs has just finalized the sale of Crestliner, Lund and Lowe to Brunswick. These were the three lines that were building aluminum hulls. Why? Two reasons. Focus on Roplene construction and expand the Vec and Vec Shield technologies.

    VEC (short for Virtual Engineered Composites), is a closed mold building process. Instead of laying up fiberglass in an open mold. Without going into specifics, the end results speak for themselves. Faster production of boats, more uniform fiberglass and resin application and less pollution normally given off in an open mold process. VEC Shield is a protective covering similar to gel coat but far stronger. With Genmar no longer in the aluminum boat business, it's obvious the shift will be to start using VEC across the board. According to Mr. Jacobs "Most models 26ft on down will be built with VEC. This was a huge risk for us. We've been working on it for five plus years. Vec shield is about one year away". Interestingly enough, in 2002 Genmar filed suit against Brunswick and Bayliner for their claims to have developed VEC in the 1940's and publicly downplaying it's merits. Jacobs responded to my questions about the case by saying that "Brunswick retracted that. Apparently it was some marketing person that got a little too carried away, but they ended up retracting it". VEC and VEC shield have just recently been spun off into separate companies. Don't be surprised if you start to see more and more household items being built with the technology.

    So where do we go from here? In the words of the man that seems to be pretty good at seeing what the future holds, it looks good. "The business will continue to grow with more big dealers, though there will always be a need for smaller ones. The environment will play a very important part in the future of boating. The elimination of styrene, which nobody else seems to care about, will play a big part. (Styrene is given off in the open mold process. The EPA has mandated the industry adhere to certain level. This is one of the major issues that VEC address and reduces emissions substantially).

    There are dozens of people that make boating the great sport that it is but there are few that can  match the contributions that Mr. Jacobs has made over the last twenty five years. The good news? He isn't done yet! Definitely take a few moments and go to www.genmar.com to learn more about the lineup of boats and the man that makes it happen.

We have to put in the legal stuff.               

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