More job cuts ahead at Stabicraft

The Stabicraft factory on the outskirts of Invercargill. PHOTO: STEPHEN JAQUIERY
The Stabicraft factory on the outskirts of Invercargill. PHOTO: STEPHEN JAQUIERY
More jobs are set to go at Stabicraft Marine in Invercargill.

Stabicraft Marine said in a statement yesterday it had this week met staff and announced proposed changes to staffing levels due to deteriorating market conditions for new boats.

"We are now consulting with staff about those proposed changes that involves ways to reduce production costs, including reducing staffing levels across the business."

This follows an earlier consultation process in February which led to Stabicraft Auckland closings and jobs lost at the Invercargill facility. It was believed more than 30 jobs had gone in February.

Stabicraft Marine chief executive Aaron Greene said changes already made this year had not been enough to meet the dramatic decline in sales.

Economic conditions in New Zealand had caused a significant slowdown in the demand for luxury goods, which had directly affected Stabicraft.

"We continue to explore ways to reduce costs across the business and consider all options before we look at reducing staff, but the reality is we are not able to keep up the current level of production and need to respond in a way that’s sustainable for the business."

This was a tough time for Stabicraft, as it was for many in the wider marine industry, "and this is not the position we want to be in, to make the difficult decision to downsize our workforce".

Stabicraft opened a factory in Seattle in 2022 but the company did not say yesterday whether it was still operating.

"We recognise the impact these changes will have on our Southland community and we are doing the best we can to support our people.

"Over the past couple of months we have been engaging in positive discussions with local businesses and industry partners about outplacement opportunities."

He was confident in the future of Stabicraft and was taking steps to ensure it was well-positioned to respond when growth returns to the market, Mr Greene said.

Other boat makers are feeling the pinch as discretionary spending takes a hit.

Sales volume is also much lower over winter.