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Sometimes even the best companies need a little help to survive. Larson Boats has been producing classic American boats for nearly a century, but the recession put a damper on consumer spending of items like the boats Larson manufactures. The company restructured, however, and found the financial resources it needed to push forward.

“Our company right now has about 250 employees, which is down considerably from where it was a few years ago,” CEO Al Kuebelbeck explains. “But we’re survivors, and we will move forward and generate the business we need. The last year and a half, we’ve set out to acquire new dealers in, which are key in growing our business.” 

In fact, Larson’s expansion of its dealer network has greatly helped the company adjust to a market that has changed greatly during the recession. Kuebelbeck says the company added about 170 dealers to its dealer network in the last 18 months, and the company now has a significantly larger network of financially strong dealers that can help end users with purchases, servicing, boat components and replacement parts.

Whatever it Takes

Larson Boats has spent the last century becoming a well-known brand in the American boating landscape. Headquartered in Little Falls, Minn., the company began a century ago by manufacturing small wooden, recreational boats. In the 1960s, the company introduced a pioneering lapline hull, but it hasn’t spent the last few decades resting on past accomplishments. Its 2012 model lineup has been redesigned and reengineered to help the modern American family get the most out of the boating experience. 

Larson’s product lines include the LX series, the LXi series, the Cabrio series and the FX series. The entry-level LX series include outboard, inboard outboard, sport fish and ski models in a range of sizes. The LXi series are designed to be larger and more luxurious inboard outboard models with a deep, wide beam and an array of features and enhancements.

As for the Cabrio series, they are large and stylish day cruisers. The FX series are designed for serious fishermen. New for 2012, the Tiller, Side Console and Dual Console FX series boats include wide-open layouts, extensive room for storage, variable seating, and a raised front and aft deck.

“This last year, we have introduced 10 new models that fit the market better,” Kuebelbeck says. “We just introduced the FX fishing series in the fiberglass line of boats. We’ve positioned ourselves fairly well and are anxious for the New Year. We constantly look at the market and what it is calling for, and we’ve adjusted our product lines to suit what today’s buyers are requesting.” 

One key step in securing Larson’s future was downsizing its work force. It then received financial support from four central Minnesota lenders and the Minnesota Department of Employment and Economic Development in 2010. 

The financing package provided to J&D Acquisitions – the parent company of Larson, Striper, Triumph, Marquis and Carver boat companies – allowed Larson to keep its Little Falls manufacturing facility up and running. Ever since, Larson has been taking a strategic approach focused on numerous goals: increasing production, seeking additional contracting opportunities with external manufacturers, ramping up international sales and expanding its dealer network.

“We learned a lot through the downturn, and we know we have to take less time with new product development and be more flexible from a manufacturing standpoint,” Kuebelbeck says. “We’ve reinvented ourselves in the last two years particularly by acquiring new dealers and structuring our product lines to better suit the different markets.”

Technology to Envy

One of the aspects of Larson Boats that gives the company a competitive edge is its VEC technology process. VEC, which stands for virtual engineered composite, produces lighter and stronger fiberglass boats. is a patented, computer-controlled manufacturing process used in the production of the Larson hull. Larson Boats are the only brand that exclusively uses VEC technology. 

VEC production includes a closed-molded composite lamination process, which creates one-piece hulls with integrated composite stringer systems that are stronger, lighter and more robust. The result is a more durable and reliable boat. It is also a green process, as the computer-controlled manufacturing process reduces styrene emissions by as much as 90 percent. VEC technology has earned the Environmental Protection Agency’s Clean Air Excellence Award.

“VEC was developed a number of years ago, and it was a considerable investment,” Kuebelbeck says. “It affords us with repeatability and exactness in the product as well as some real efficiencies with labor. We developed and own the process, and it gives us some real opportunities on the competitive side of things. It allows us to compete with the aluminum boat market, for instance. There is no other process like it.”In addition to the VEC process, Larson’s connection with Triumph Boats gives it access to Triumph’s rotomolding process. Kuebelbeck thinks the VEC and rotomolding processes will allow the entire organization to diversify its operations, perhaps even beyond boats. 

“I have learned over the years that for a company to be successful, it takes good, strong, dedicated people,” Kuebelbeck says. “All the new technology and systems in place don’t produce results without a strong and dedicated work force, and at Larson we have the best.”

 In the end, Larson Boats tries to create connections with customers by building stylish boats with innovative hull technology, more standard features, fuel-efficiency and better resale value, he says. The proof of the company’s value proposition lies in its ongoing ability to stand the test of time. In 2012, Larson is looking forward to celebrating its 100th anniversary in style and cutting through the waves toward another successful century in business.

“We’re looking at a 100th anniversary boat that we can add to our model lineup,” Kuebelbeck explains. “There is a lot of uncertainty about the economy, and I expect our growth to be slow and deliberate, and we are cautiously optimistic that our business will prosper as we move forward.”