Brunswick has released its 2019 summary and strategy overview for the coming year outlining the company’s plans for growth in both its traditional and new markets.
Through its subsidiary, Mercury Marine, the company powers half of all boats, serving 170 markets in 24 countries. In the US alone its market comprises 140 million boaters, 10 million registered recreational boats and 50 million fishermen and anglers. Two hundred thousand new boats are sold annually.
2019 was a pivotal year for the company with a new operating model of two divisions focusing on business acceleration and opportunities, an enhanced environmental, social and corporate governance structure which saw the chairman and chief executive roles become discrete and new products, technologies and digital initiatives.
The company will push to become more agile in 2020 with a 9% reduction in salaried staff and a target of US$50 million structured savings. It hopes to achieve strong margins and earnings in a challenging market whilst continuing to make investments, reduce debt and increase dividends.
The company has eight key areas of focus in the coming year geared towards growing its share price from US$4.33 to up to US$7.25 by 2022. To achieve this it plans to extend its propulsion leadership to 45% share of the US outboard engine market, enhancing the boating experience to a 70+ net promotor score. In the parts & accessories sector the plan is to grow to more than US$400 million in incremental revenue with mergers and acquisitions and become an acknowledged leader in ACES and innovative marine technology.
Brunswick also aims to maximise boat profitability to an 11% earnings margin by 2022 and lead in e-commerce and digital marketing. Finally, it will expand boating participation into 325 freedom locations by 2022 and create ‘One Brunswick’ – a fully integrated marine culture and organisation.
Content extracted from https://www.boatingbusiness.com/news101/industry-news/brunswick-outlines-vision-for-2020