When Merrill-Stevens shut down its yacht-sales and yacht-charter divisions last November, then ceased all operations prior to Christmas, things looked bleak for the renowned superyacht refit and repair yard. Thanks to the determination of one former employee, however, yachts are being hauled and painted on site as you read this. Equally important, he’s hired nearly two dozen other former co-workers to perform the work.
That resolute individual is John Spencer, a superintendent at Merrill-Stevens for the last five years who has an overall two decades’ worth of experience working at shipyards. Spencer says he knew the yard’s financial situation was tenuous as the end of the year approached. “It was in the back of my mind that I might need a contingency plan,” he explains. Still, he admits, “I wasn’t 100 percent prepared” when the business did close. From Christmas to New Year’s, Spencer began formulating a business plan in earnest to lease the facilities, continuing to refine it for about a month. “It was a shame to see the team disbanded,” he says. “Everybody worked so well together.” Upon presenting the proposal to Hugh Westbrook, chairman of Merrill-Stevens, Spencer says he received “immediate support as far as sitting and listening to my plan was concerned.” Merrill-Stevens’ ownership did have additional questions, so “we worked together on the business plan from that point forward,” he explains. Spencer declined to go into specifics, citing some of the details as being financially sensitive. However, he sums up the process of working out insurance and other matters by stating, “They wanted to make sure everyone was covered, me included.”
The agreement allows Spencer to operate Spencer Boat Company as a lease holder on the land and its facilities. (The yard name and ownership remains unchanged.) As soon as the paperwork was signed in January, Spencer hired back 15 employees who had been laid off when Merrill-Stevens shut down. That number is now up to 20. “I’m really proud of the guys,” he says, adding that he hopes to hire more in the coming months. In particular, he anticipates hiring carpenters to complement the mostly paint-oriented staff, since he’s been in negotiations for joinery jobs.
Just as hiring has risen, so, too, has the number of bookings. Soon after getting word out about operations, Spencer Boat Company had work booked through July. Now, Spencer says, “We have work booked through Labor Day.” Deniki, the 171-foot Amels, has been on site for a few weeks, for example, and will remain there through early April. An unnamed 165-foot Benetti is on site, too, and a few other yachts whose captains and owners wish to keep anonymous are expected in the coming weeks. One that doesn’t mind the publicity, though: Argyll. The 153-footer will be hauled out and repainted, Spencer says.
Spencer is currently fielding inquiries for the autumn as well. “I’m nothing but optimistic,” he says.
If you’re a captain, project manager, or owner interested in learning more, Spencer can be reached via e-mail or at (305) 394-7849.
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