FIRE(wire) SALE!

TURBULENT economic times have hit Queensland’s biggest surfboard maker, which has closed its Gold Coast plant and moved production offshore.

http://www.news.com.au/story/0,23599,24061768-462,00.html

Firewire Surfboards, which received Queensland government funding to set up its robotic surfboard-making factory at Burleigh Heads and won a Premier’s Export Award last year, says it has been impacted by the “double whammy” of a board glut and slump in demand in the key US market.

The company, whose investors included former Billabong Surfwear CEO Matthew Perrin and golfer Adam Scott, will open a new retail showroom at Currumbin this weekend.

But it has closed its Burleigh manufacturing facility - which employed about 50 people and churned out up to 400 surfboards a week - and shifted production to its low-cost factory in Thailand.

Director Nev Hyman said the US surfboard market, which accounted for 70 per cent of the group’s sales, was suffering “its worst slump ever” as a result of the international credit crunch and soaring living costs.

Mr Hyman said manufacturers had over-produced following predictions of an undersupply.

“We’ve been hit by the double whammy of a huge glut of surfboards and the economy taking a dive,” he said.

The tough times have not stopped Firewire from some corporate philanthropy: it is donating up to $100,000 worth of factory seconds surfboards to indigenous surfers in the Northern Territory and Papua New Guinea.

I was waiting for someone to post this here.

Quote:

it is donating up to $100,000 worth of factory seconds surfboards to indigenous surfers in the Northern Territory and Papua New Guinea.

on a side note

Speedy just informed me that he and Bert have gone seperate ways and he’s no longer with Sunova.

Change is the only constant you can count on these days.

Nothing like seeing 1000’s of naked natives surfing on $1,000.00 2nd surfboards to bring a smile to the ol face. Vision all these little pigmys learning to snake, cut off, and run over their buddies. Factory second boards with 5" twists, and huge delams blowing up in the mid day tropic sun…hey Kamallia Wattasu Talfofo whats that hissing sound. What hisss?.. “KA BOOM!!!”

Kind of like giving free cigarettes to the kids in Russia.

…“We’ve been hit by the double whammy of a huge glut of surfboards and the economy taking a dive,” he said. "

Bulls++t

nothing more than that

this happens when rich guys, business men, yuppie wannabes, etc think that there s money in surfboards and fall in the fallacy (delivery to your door by the mags) to believe that this industry is somewhat big…

and more outsourcing to non surfers labors, etc

business men, theres no real money in surfboards, get back with your clothes

sorry for these heavy words

but Im very tired of those people

man, 40 or 50 employees!

theres nuthin (and we suppose that this factory is huge)

may be in the future there s a light for the real boardbuilder (no matter what type of board)

when all the Chinese and outsourcers wake up that there s tons of boards done and no sale

I don’t understand the problem you people are seeing, they are factory seconds. Who gives a shit. These people will now have boards to surf on, that they wouldn’t have in the first place. If it delams, oh well. If there is a twist (5"??? please) oh well. At least these boards are not getting tossed in a dump and totally wasted. Good on you Firewire for donating some boards and sharing the stoke.

Dave

actually seen them retail here for $1000.i have no doubt that theres a 100 rejects not salesworthy that could be given away but not sold to average surfers. when you have marketing and financial characters that outstrip the average board industry professional in corporate experiance and intellect, you would use the timing of your story to highlight the opening of your new currumbin store. i seem to remember ex firewire staff coming and looking for work 2-3 months ago when the operation here was closed. when over $20,000,000 (thats right 20 million) has been sunk into something im sure a tax deductable donation of a $100,000 retail worth of boards to a non influential surfing locale is a good idea…better than making more landfill. what ever did happen to the full container of rejects from the first batch made in china before thailand production got into full swing? lets hope some other underprivledged group is benifiting from them!

I just bought a factory second board from firewire in cali and the reason why it was a second was because of some minor blemishes.The board rides great as well.Its to bad that people like to see other fail.Oh well pray for waves bitches.

its difficult isnt it… i think if the firewire crew had stuck to really hands on to grass roots making better boards like the first couple hundred they would have made slower stronger inroads into the board industry. im sure Berts initial vision is a lot different to the final outcome of his tech.

i have really enjoyed the journey that board making has gone over the last few years. i just hope that as many of us, swaylockians come up with new and innovative ways of making boards (eg Coil) that the world wont be turned off from previous experiances with new tech prophets. long live backyard experiments…

Nothing like seeing 1000’s of naked natives surfing on $1,000.00 2nd surfboards to bring a smile to the ol face.

Hey Madagascar’s got waves too…why not give these poor fellars some boards?

http://www.youtube.com/watch?v=O_r2psdrQkM

"Firewire Surfboards, which received Queensland government funding to set up its robotic surfboard-making factory at Burleigh Heads "

And they still had to move to thailand??? You all complain about china factories being subsidized and this crap happens in Australia all the time.

Randy French looks like an angel compared to these guys. He never took money from any major Gov’t to start his buisiness. This is laughable and sad on so many levels it is hard to know where to start.

Ah yes the ole bait and switch…

can the tax payers get a refund?

(btw, your avatar is laughable on so many levels its hard to know where to start)

Man those guys are smart. Normally when business is slow, I’ll just lay off a few employees and trim other costs. I never thought of packing up the factory and moving it to Asia. Seems like a reasonable move eh?

Quote:

I don’t understand the problem you people are seeing, they are factory seconds. Who gives a shit. These people will now have boards to surf on, that they wouldn’t have in the first place. If it delams, oh well. If there is a twist (5"??? please) oh well. At least these boards are not getting tossed in a dump and totally wasted. Good on you Firewire for donating some boards and sharing the stoke.

Dave

My point was, besides just making fun of the whole situation in general, and having a few buddies burned by firewire in SD, I have no tears for them. funny how the SD operation shut down and moved over sea too? But I digress… I see it like this:

We already have a huge glut of cheap surfboards on the market, so many that it “supposedly took firewire out of being competitive”, so instead of trying to sell the seconds or better yet put them in a land fill, they flood the Pigmy Surf Market with free crappy boards. They aren’t the cure, they are the cancer. Support your local shaper! Drop in on a Pigmy Kook!!

They will probably evolve into a OEM- something like the business model of ST and GSI.

a major aus fin system company got mega bucks for advertising help from aus too. So do you think the price for a firewire will come down by moving to thailand???

Do you think the Aus gov’t will get reimbursed for the for the domo atagago sister roboto arm?

Blemished board freebie kindness?. Well kind of if you don’t let the accounts know.

The only gov’t help we get in the usa with surfboards is taxing our profits.

R french is the hands down most honest manufacture of the biggies out there.

( I stole the avatar from atomized who was mocking me by it. It’s me at any level.)

Curious if FWs financial woes would effect Sunovas licensing relationship with FW.


Article in Transworld Business dated 12/6/2007:

Parabolic Rail Pioneer Bert Burger Launches New Surfboard Brand

http://business.transworld.net/2007/12/06/parabolic-rail-pioneer-bert-burger-launches-new-surfboard-brand/

Bert Burger—the originator of the parabolic, balsa-rail design that became Firewire Surfboards—put the finishing touches on a new factory in Bangkok, Thailand in late November.

Since splitting with Firewire in March 2007, Burger has relaunched Sunova Surfboards, the label he began as Sunova Beach in 1989 in Rockingham, Western Australia. Sunova is producing wooden-railed, epoxy-sandwiched shortboards, Firewire’s boards are based on similar designs, and teamrider Taj Burrow won two World Championship Tour events on them in 2007.

“Pushing for quality systems and materials at Firewire exasperated my partners to the point where they felt I was being disruptive to the well-being of the business,” Burger explains. “In the end, starting Sunova again was a forced decision. But if I wanted to make money, then I wouldn’t make surfboards.”

Firewire’s Nev Hyman recruited Burger from Western Australia three years ago to start Firewire. Since Burger departed, Chuy Reyna, Firewire’s marketing manager, says Firewire now licenses its technologies to Burger, and they signed a non-competition agreement. In part because of Sunova’s smaller size, Reyna says Burger’s new business is consistent with the agreement. “We’re trying to support him as much as we possibly can, and we wish him the best,” Reyna says.

Sunova opened a R&D facility in Currumbin, Australia in May 2007, and opened a seventeen-employee surfboard factory in Bangkok in late November. Burger built the Thai plant from the ground up, and plans to make 100 boards in December. A typical shortboard will retail in the United States from 750 to 850 dollars, depending on features.

Sunova has plans to grow at a deliberate pace, and in three years it’s shooting to make up to 20,000 boards annually. Distribution is focused on Australia and the U.S., and distributors have expressed interest in Western Europe, Norway, Indonesia, and New Zealand, among other places.

Director Josh Dowling says Sunova decided to build the factory in Thailand because of the high cost of starting a business in Australia. A shaper and artist from Torquay, Australia, Dowling also says that because of the nearby Cobra factory—which makes all of Surftech and Global Surf Industries boards and employs several thousand board builders—Sunova hasn’t had trouble finding employees with surfboard experience. “They’re a bunch of bright guys, at times easier to train than a similar bunch of Aussies, despite the language difference,” Dowling says.

According to Burger, the fruits of being in business for himself outweigh the challenges of living and working in Thailand. “Being in control of your own future and direction is so much more rewarding, even if you don’t make money,” he says. “Never sell your soul—I didn’t and I won’t, but I came close enough to know I need it for myself.”

good to see you yanks supporting nev 70%

id rather see 400 shapers selling 4 boards

than 1 gredy git doing 400

feels like a lifetime since Bert has posted on here. Would be good to hear his POV.

Steve