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From Canada to the U.S. In 2007, MetalCraft Marine U.S. Inc. began op- erations in Clayton, NY, a move facilitated by its desire to pursue and win Jones Act and U.S. Gov- ernment work. ?We had to get a site in the United States because the boats (for the Coast Guard) have to be built in the U.S.,? Clark said. Though it was established in New York to attract government work, the first contract signed for the New York fa- cility was for the Whirlpool Jet Boat Tours operat- ing in Niagara. The company has built many boats in New York, with the latest being eight specialty towboats for the U.S. Navy and a 36-ft. pilot boat for the State Pilots Association. In addition, MetalCraft Marine U.S. Inc. is build- ing boats for the U.S. Coast Guard, and have re- cently commenced building a pilot boat for Key West, Fla. While the move to New York was strate- gic, it soon became evident that the facility in Clay- ton was too small, with a 3,500 sq. ft. shop and literally no room to grow. ?it was right on the water, an old factory with multiple levels,? Clark said. ?It?s hard to build boats on multiple levels.? The answer is a short drive up the road, 11 miles to Cape Vincent, that had two beautiful buildings that simply needed updates and a few custom up- grades. In addition, there is a 10,000 sq. ft. build- ing on the Cape Vincent site, which the company has started renovation for future work. The expan- sion to Cape Vincent means an expansion in hir- ing, as well, with the addition of skilled craftsmansuch as aluminum welders, marine mechanical andelectrical systems technicians and metal fitters and finishers. Even with the new facility MetalCraft is seemingly busting at the seams, but the company is cautious of too much too soon, eyeing the cycli- cal nature of the boatbuilding business and the car- casses of boat builders who have bitten off more than they could chew. When asked his thoughts on what might trigger further expansion, Clark said, ?It would probably be one of the multi-year contracts that we have out on bid. We have two Navy contracts out there that are not awarded yet; there?s a Middle Eastern con- tract; if we win one of the multi-year contracts, thatwould likely trigger the construction of additional buildings in New York.? Government RulesWhile prospects are generally bright, there are afew storm clouds being eyed by MetalCraft and the entire marine industry, namely the result of the U.S. election and the direction of government spending in the U.S. ?We are very concerned right now that you can?t see any reality on (U.S.) government spending for 2014-15,? said Clark. ?The Canadian government spending on marine is miniscule, and the government rules to work with are much harder than the U.S. rules. Canadian rules are very con- fusing. I?ve asked plenty of U.S. competitors to come and bid here, but when they read a spec, they simply say ?garbage.?? While the Canadian rules are onerous accordingto Clark, with its insistence on low-price evalua- tion ?that has effectively killed the ability to build boats profitably for the Canadian government,? he said that the situation looks to be changing with thecurrent conservative administration. ?They had a report written by Price Waterhouse last year called the Jenkins Report, it was a report on R&D spending for the government, and it es- sentially said that the government wasn?t getting its full bang for the buck,? Clark said. ?In this re- port they specifically cited that our government purchasing is not supporting new technology, be- cause it is so insistent on low price.? Business in HandTo date MetalCraft Marine has delivered 564 boats, and with 18 under construction (about 60%of them fireboats, as well as several crewboats for Panama), it is on course to deliver its 600th boat next year. While quality boats with minimal war- ranty items are crucial, Clark believes that cus- tomer service ? specifically treating customers better than anyone else ? is ultimately the pivotal point in gaining, building and retaining a loyal cus- tomer base over the long run. ?I remember in the early years that we received 12 inquiries, and I closed on seven of them. And I remember thinking ?Wow, we received a lead a month,?? Clark said. ?Today, the phone literally doesn?t stop ringing. Last year at the Workboat Show I walked away with eight solid leads, and your first inclination when you return is to get your package out to everyone. The week after the show, we received an additional $35m in business leads that were in no way related to the show; they had- n?t even been to the boat show; they didn?t even know about the boat show. It was unbelievable.? ?(Right now our business is) about 60% fire; we have the crew boat project for Panama; we have a pilot boat project and the LRI project on in New York; and we have a couple of small patrol boats building for Nigeria, and we are just closing a nice deal in Kuwait for fire and workboats,? Clark said. The latest addition to the MetalCraft line-up isthe 70-ft. fireboats; large, fast boats with high pumping capacity. Currently there are five in oper- ation with three under construction. ?The 70 footers, each one of them has been aworld record holder,? Clark said. ?As a planing boat, there are very few fireboats that size that are MetalCraft Marine US Inc. (MCM) andpartner Brunswick Commercial and Gov- ernment Products (BCGP) won a contract for the design and production of the new generation LRI II for the USCG, a five year contract is valued at $10.1m. LRI II is powered by twin Cummins Tier III 6.7L 480 hp diesel engines and Ultra 305 water jets, through ZF 280 PL Transmissions with electronic joystick controls. The en- gines are JP-5 or alternative Bio-Fuel op- tional and have a five-minute run dry feature. All systems are designed for equatorialand arctic conditions, and each patrol boathas a fully integrated standard Coast Guard Furuno electronics package. The high speed LRI II patrol boat has a rangeof 236 nautical miles on plane and canreach 42 knots. The boats have the ability to operate up to Sea State 5 and can carry15 crew or passengers in ergonomic sus- pension seating from Shoxs and Bostrom.The hull structure is designed to ABS High Speed Naval Craft standards, and all systems are designed to ABYC and CFR 46 standards.MCM, BCGPWin USCG High Speed Patrol Boat ContractWorkboats54Maritime Reporter & Engineering News MR#11 (50-57):MR Template 11/4/2012 10:47 AM Page 54