Twin Vee to downsize amid economic challenges

Florida-based Twin Vee PowerCats Co, a manufacturer, distributor and marketer of power sport boats, has announced ‘organisational realignment initiatives’ to reduce overheads as it heads into the 2025 model year.

The measures are intended to streamline the company’s size and complexity while leveraging its resources to design and build new boat models and grow its dealer base. As a result of these initiatives, the company says it expects to reduce overhead costs and ‘rightsize its operations’ based on demand into next year.

Twin Vee’s cost-saving initiatives have previously included laying off staff, operational restructuring to become more streamlined, and cutting unnecessary expenses related to its inventory and manufacturing processes.

The company says it is committed to growth by increasing its market share through new boat models that diversify its product offering and appeal to more consumers.

“We are continuing to aggressively drive our business toward growth by introducing innovating new products to the market,” says Joseph C. Visconti, CEO and president of Twin Vee PowerCats Co.

In mid-2023, Twin Vee purchased the Aquasport brand and 150,000-square-foot manufacturing facility in White Bluff, Tennessee, and merged its LFG Marine monohull brand into the new subsidiary.

In December, Twin Vee launched three new boat models: the 2024 400 GFX, 280 GFX Dual Console, and Aquasport 2400 Center Console. Twin Vee anticipates that updates to current boat models and all-new boats will debut up to and during the 2025 model year, which begins this summer.

The company says also plans to develop its product awareness outside Florida by introducing new dealers to the Twin Vee and Aquasport brands.

“The company is always seeking boat dealers in markets where customers share our passion for recreational boating,” states Visconti. “We believe our boats can attract first-time boat buyers, freshwater boaters, and other water recreation enthusiasts because Twin Vee and Aquasport offer such a variety of products that cater to multiple needs.

“And given current economic conditions, there’s a significant opportunity to partner with dealerships in new territories and increase our market share by focusing on our 22-foot and 24-foot models since the vast majority of registered powerboats in the country are under 26 feet in length.”

Visconti says he believes that these initiatives will allow the company to remain agile in addressing potential economic challenges Twin Vee may encounter this year.

“Based on the state of the marine industry, we believe now is the right time to resize our company while reducing our overhead,” he adds. “While this is never easy, it is important for Twin Vee’s future. The potential savings are important as we work hard to increase our revenue and further develop a strong dealership network to support our customers and brand across the country.”

In November, Twin Vee confirmed it is moving the manufacturing of Aquasport products from Tennessee to its Fort Pierce, Florida facility.

“We believe by bringing production for both the Twin Vee and Aquasport brands under one roof, we can not only reduce our overall costs, but also enhance the quality and speed of our boat production,” said Visconti at the time.

Twin Vee Power Cat’s financial statement for its first nine months of the 2023 financial year show an 8 per cent year-on-year gain (consolidated revenues of US$24.9m vs $23.2m the year before). However, the Twin Vee operating loss grew to $512,000, an increase on the $341,000 loss reported the year before.

MIN has contacted Twin Vee for a comment about the number of layoffs anticipated on Monday (29 January) and has not yet received a response.