By Dave Berman | FLORIDA TODAY
May 9, 2012
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Bertram Yacht's decision to move its manufacturing operations from Miami to Merritt Island already has started a stream of other boating-related companies planning to open new operations or expand existing ones along the Space Coast.
Bertram executives on Wednesday made their long-anticipated decision official, announcing that they will move their headquarters and manufacturing to a former Sea Ray Boats facility on a 37-acre site on Merritt Island. The combined headquarters and production plant will ramp up to employ 221 people within two years, up from the 125 people Bertram employs in Miami, the company said.
Company President Alton Herndon said several of his Miami suppliers already are making plans to open facilities on or near Merritt Island so they can retain their contracts with Bertram.
In addition, Bertram Vice President of Manufacturing Ken Beauregard expects local suppliers of boating equipment and services to expand because of new business from the Bertram plant.
"A lot of our supply base is going to come here, and we're going to need a lot of local suppliers" for everything from mirrors to upholstery, Beauregard said.
The new Bertram facility will manufacture 50- to 80-foot deep-sea sport fishing boats ranging in price from $2 million to $7 million, building 15 to 25 boats a year. Ten to 12 will be on the assembly line at any one time.
Adjacent to the Bertram plant, Vectorworks Merritt Island is opening a 35- to 40-employee facility that will use an environmentally friendly, low-emission process for producing composite parts for Bertram boats, according to Jeff Gray, who co-owns the company that runs Vectorworks Merritt Island and a 100-employee sister company in Titusville.
Another economic spinoff, Beauregard said, will be the visits to the area by Bertram's customers, as they visit the factory during the six- to nine-month assembly process of their boats, generating business for local hotels, restaurants and retailers. In the past, some customers have even sent their captains to Miami for six months or more to watch the entire process, to assure that everything is perfect.
Bertram's customers, Beauregard said, are "the ultra-wealthy," with net worths of at least $50 million, and most employ captains to pilot their boats.
"It's the Rolls-Royce of boats. It's top-of-the-line," said boating aficionado Frank Sullivan, a citrus-industry executive and Canaveral Port Authority commissioner, who attended Bertram's announcement and reception for community leaders at the company's new production building. "I think it's exciting."
"You can't find a better class of company than Bertram," Gray said.
Bertram's announcement is the culmination of a four-year process by company officials seeking a new home because of the company's cramped quarters in Miami. Herndon said he considered more than 30 sites from Virginia to Florida before choosing Merritt Island.
Brevard County provided Bertram with tax savings totaling more than $1.9 million over 10 years. Based on the new Florida jobs created, the company also will receive up to $240,000 in state tax refunds, for locating in a designated brownfield area, as well as an undisclosed Florida Qualified Target Industry incentive.
Herndon said that economic incentive package played a role in his company's decision, but added that some other communities offered more financially.
What the other candidates didn't have and Merritt Island did, Herndon said, was the combination of a location with easy access to the ocean; a large, tall building that can accommodate the manufacture of Bertram's largest boats; a strong, dedicated labor pool, including laid-off space shuttle workers and former Sea Ray workers; and proximity to a major airport such as Orlando International to provide easy access for the company's customers who want to visit the plant.
He also complimented state and county officials and the Economic Development Commission of Florida's Space Coast for their efforts to streamline the process that led to Wednesday's announcement.
"It's just like the Merritt Island community," Herndon said. "These are the best of the best."
Brevard County Commission Chairman Chuck Nelson, whose district includes Merritt Island, tried to make Bertram officials feel at home right away, telling them during his comments, that, while he couldn't afford one, "I've always been drawn to the classic Bertram style."
He also gave the company another honor: The county renamed the entrance road to the plant as "Bertram Way."
Economic Development Commission Chairman Robert Whelen, a Harris Corp. vice president, called Bertram's decision "a positive step in mitigating the job losses from the shuttle program," adding that he looked forward to the spinoff impact as well.
Initial estimates by the Economic Development Commission show that Bertram's 221 jobs will lead to 197 spinoff jobs, with a combined payroll of $18.4 million a year, as well as a projected annual economic impact of more than $26.3 million.
Company officials said the move to larger, more efficient facilities in Brevard will help the company boost its annual revenue by 47 percent -- rising from $34 million this year to $50 million in 2015.
Choosing to relocate on Merritt Island "is a very good solution," said Norberto Ferretti, founder and chairman of the Ferretti Group, which acquired Bertram is 1998. "We are very, very happy to find this incredible factory."
Ferretti said he wanted Bertram to remain in Florida and felt the Brevard offered less distractions than Miami. The company was founded there in 1961.
"Florida is our homeland," Herndon said. In all, the combined Bertram/Vectorworks complex will total about 147,000 square feet, including a still-to-be-built warehouse and supply area, Beauregard said.
