Exporting globally from the bottom of New Zealand

From New Zealand’s southernmost city, Invercargill, we at Stabicraft have created a global brand of “pontoon” boats up to about 10m long. We have continually innovated not only our products but our supply chain approaches so as to navigate the challenges of diverse markets. Our current push deeper into the US illustrates especially well how we flex to different supply chain demands.

Paul Adams, CEO till 2020, founded Stabicraft in 1987 from a Kiwi Do-It-Yourself innovation for the demanding needs of professional fishers working the waters of Foveaux Strait between Invercargill and Stewart Island, which are lashed by the Roaring Forties westerly winds. Paul’s pioneering design set “Stabis” apart. It encircled their hull with sealed aluminium pontoons (tubes), providing exceptional buoyancy, safety, quality and durability – and the stability which is literally in the name. It has transformed us from a local solution for New Zealand's southern fishermen into a global brand sought out by fishermen, families, and adventurers alike.

Today Stabicraft supplies boats ranging from compact inshore fishing models to larger offshore adventure vessels. We have a strong customer base of fishers, families, and adventurers in both fresh and salt waters, mostly in New Zealand and Australia, but increasingly also in Europe, Asia, and the Pacific Islands. Besides over 40 dealerships, our global supply chain includes niftier exporting arrangements. This especially holds for the US market. There we’ve had to adapt to considerable challenges – well beyond just remembering to say “aloominum”.

Stabicraft’s very first exports had gone to British Columbia in Canada in 1988. Our US focus has so far likewise been on the Pacific Northwest states: Washington, Oregon and Alaska, with their existing market demand for rough water or “heavy-gauge” aluminium boats. Far down and across the country, North Carolina, with our latest dealership, marks new territory.

We market on quality and safety, and one key US supply chain innovation has been inserting a disassembly/reassembly link to make sure boats reach our highly engaged American customers in immaculate condition, right down to the precision welds and detailed finishing touches. So, since 2022, we’ve shipped containers of partially disassembled Stabicraft into the Port of Seattle, Washington. Containers then go to Port Angeles, a small town on the Washington Peninsula known for its maritime industry and history, where staff at our Stabicraft site devann the containers, lovingly reassemble the boats, and perform quality checks before trucking them to dealers.

As we angle for what looks like untapped US demand in the Great Lakes region, new logistical challenges arise. Transporting boats overland from Seattle is costly and risks damage. We’re therefore exploring a strategic shift into shipping our containers through much-closer East Coast ports and then utilising intermodal options to reach inland freight hubs for distribution.

Another complexity is that American dealers, unlike their Australasian counterparts, prefer a turnkey "BMT" (Boat, Motor, Trailer) package. We therefore collaborate with suppliers to either ship these complementary products to Port Angeles for consolidation with the boats or we dropship, sending trailers and motors directly from supplier distribution centres to dealers when it proves more efficient.

Seasonality adds yet another challenge. High latitude markets like Alaska only fish from May to September, with slow-to-no boat sales off season. Coupled with long shipping lead times, this necessitates early order placements and strict adherence to shipping schedules. Miss a window and you may miss the season.

Overall, Stabicraft shows how a tiny, innovation-driven exporter from New Zealand’s deep south can grow into a big fish and thrive even far from its small home pond. As we adapt and innovate our logistics and supply chain strategies for new territories like the Great Lakes, we continue the company’s and the country’s pioneering spirit.

Simon Chisholm, GM Operations & Strategy, Stabicraft  Simon.Chisholm@Stabicraft.com