Page 12: of Marine News Magazine (April 2011)

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Photos courtesy Marine Group Boat Works 12 MN April 2011

INSIGHTS budget. We’re also beginning construction on a 180-ft barge and wrapping up a two barrier tugboat contract.

What does the market look like right now?

Rough economic times haven’t eliminated the need for boats to undergo maintenance. However, we’ve seen a dip in aesthetic refits and owners and companies are pushing back the repair schedule as far out as they possibly can.

Fortunately for us, our pie is split into three pieces — pri- vate work, commercial/government work and new con- struction. By servicing all three, we’ve been able to main- tain a consistent work force during a challenging time. We also insulate ourselves from market forces by offering a great consistent product, being in constant communica- tion with our customers and always looking at it from the perspective of the customer.

How is Marine Group Boat Works investing?

We opened a new location in San Jose del Cabo so we can offer a network of marine services over a broader geo- graphic range. Marine Group Boat Works de Los Cabos is the largest haul-out facility in Baja California capable of lifting and servicing boats up to 150 tons (115 ft). We offer drystack storage for boats up to 33 ft, Prop Scan technology for digital balance and alignments of props and an on-site marine store with products in-stock that used to take several weeks to import.

Also, we’re canvassing the different technologies and pro- grams out there to improve the efficiency of our services and reduce our carbon footprint. In partnering with the

Port of San Diego to implement green initiatives, we’re researching various lighting controls, automation systems, recycling options and taking a more proactive approach to do our part to create a bluer waterfront.

What do you see as the most important legislative issues right now?

There are a couple legislative issues that affect our business operations: workers comp/USLH insurance and tort reform; and state requirements for clearance on private, foreign-flagged yachts. Fraudulent workers comp claims and tort reform are costly issues that affect a broad audi- ence — not just employers. We’d like to see California pass similar legislative actions that other states have enact- ed to ensure parties that are truly injured receive benefits.

We also need to instill more limitations to reduce frivolous claims. Another issue that affects our cost of doing busi- ness is the requirements for private yachts to be cleared for entry. Currently, large private luxury vessels must abide by the same requirements that were drafted for commercial vessels. We’re talking about yachts that hold 4,000 gallons of diesel fuel versus an oil tanker holding 40,000 tons of fuel.

An aerial view of Marine Group Boat Works in Chula Vista, Calif.