by Broosta » Fri Dec 16, 2005 1:01 pm
Hey peeps just saw this post on another forum from my local shaper regarding the Clark Foam closure, thought it might throw a bit more light on it...
Hi All
I have just recieved a letter from Seabase, Regarding the closure of Clark foam in the US.
Copy of letter follows:
Dear Seabeast
I assume that you already know about the closure of Clark Foam. There is no doubt that Black Friday, as Clark Foams demise is being called in the USA, will have major repercussions in the industry. It already has.
The sudden void in surfboard production will not be easily filled. Some industry pundits predict the shortfall in blank, and therefore surfboard supply could top 500,000 in the short term. Many major players are making moves worldwide to secure supplies of blanks to head off their pre-season orders, which many say can simply not be fulfilled, let alone the huge spring and summer dealer orders that will leave shops desperately short of supplies. Australian manufacturers, already committed to supplying Asian and to a lesser extent, European demand, cannot ramp production to anywhere near the required levels.
Sooner or later, with such a huge void, market forces will move to take up the slack, but any attempt to do this quickly in the USA is subject to huge expense, planning delays-, and the logistics of getting a business to work as efficiently as Clark Foam has in the past: A consortium of manufacturers are rumored to be setting up a plant in Tijuana, Mexico. This will take time. The smaller producers will not have the manpower, money or time to move quickly enough to make foam.
The growing Chinese market, still dependent on Australian foam for their boards, may ramp production briefly, but again, blanks for which a premium will be paid by richer countries, will not be freely available. There is no doubt the Chinese will step in and produce foam as quickly as possible, free from the regulatory constraints that became a burden for Clark. (By the way - this is exactly the reasoning the USA has put forward for their disinterest in the Kyoto Agreement. The more pressure and regulation they apply in response to world-wide environmental pressures, the greater the exodus of manufacturing to countries where regulations are non-existent. The economy is harmed in the USA, China gets to build 500,000 blanks using whatever poisons they like with no regulation, and the world is 500,000 times worse off environmentally. What a dichotomy!)
Surfboard prices are rising quickly. In the USA, prices went up $100 - $200 overnight, and surfboard sales have spurted. We suspect the same will happen in Europe.
Since Seabase learned of the problem, at the same time as every other major distributor and user, we have moved quickly to limit our exposure. We believe we have secured some supplies of reasonable quality foam, and will distribute this on a priority basis to the most loyal customers in the next few months.
We do, however, predict that the shortage of foam, but not surfboards, may be short lived. Production ramping, new plants and desperate measures may well mean a glut of blanks after this summer. In the short term blank prices will rise by around 20-30%. However, this may well be offset by the huge glut of surfboard resin and fiberglass expected as a result.
Seabase however sees this current situation as a major opportunity, and not the disaster many predict. For some time we have been monitoring new technology, restrained by the higher prices but now convinced the market is at a watershed. We believe epoxy may well be the future, but not in pop-outs. Epoxy is safe, clean, (relatively), non-toxic (relatively) and best of all, solvent free. The blanks have been the problem, with air expansion, irregularities and weight being the problem.
Seabase has moved to secure the rights to the latest technology out of the USA, and will shortly be offering licensing agreements for new EPS/Epoxy technology refined to a point out of recognition to most previous EPS users. It will be cheap and for production purposes no more difficult to use than current PU/Polyester fabrication. The blanks, pre-shaped and pre-strung, can be used as a normal blank: It can be sprayed with graphics and glassed with epoxy and the usual fin systems fitted as normal.
We will continue to offer PU foam. We do believe its future is now limited. In addition to EPS, which is the fastest growing sector in the USA, other new foams that are 100% waterproof, and could probably be shaped and surfed, are beginning to appear. We have some and are experimenting this winter with this amazing material.
Murray K Steward.
Sadly it is not viable to work with epoxy as a temperature controlled enviroment is required and with Board prices set to rise here in the UK and cheap imports from China to compete with I feel it is not practical to continue with Board building. I will however continue with repairs as long as i still have materials.
Thanks to everyone who has bought a Seabeast over the years a total of 160 boards. I hope they served you well.
Many Thanks
Paul.
Seabeast Surfboards.
Hi
For me it is Going to be a problem over cost, Cheap imports from China and South Africa mean that I can't buy the raw materials as cheap as they can do a finished board. China has no legislation for health and safety so they can do as they wish keeping thier already low costs even lower.
Regarding Homeblown blanks I have used them in the past and they have been ok but they are not as close tolerence as Clark foam and require a lot more work to finish also they are a different structure to Clark they tend to have a very crystal like grain which tends to wear your tools out a lot quicker again adding to costs.
I have never made much profit from a board and with increases of 30% for blanks that just about wipes that out, I don't think People will be prepared to pay the higher price for a backyard Board when the bigger Factories like Custard point, Nigel Semmens, Gulfstream, Seaglass. ect. already have temperature controled enviroments to work in and can switch over to Epoxy with out much hassel.
PU Foam is on it's way out, Soon most manufactures will switch to EPS and I can't compete with that.
As for other Shapers/Builders I can't speak for them. Some will carry on as they are and increase costs but I also think that a lot will throw in the towel like I am doing.
Living here on the East Coast and making just a few boards a year is a lot different to living in Newquay and just popping out to get a blank from your supplier, I can't browse the racks to find something that is right for the build I am doing I have to work from a catalouge or take advice from someone on the end of the phone which is not always easy, Though I must say that the Guys at Seabase have never let me down and have always given me a top service.
Please don't think that I only made Boards for the profit, My main reson for starting in the first place was I got fed up paying out big bucks for a Board.
Boards are cheaper now than they have ever been relative to your wages, When I first started Surfing Boards were about £100-£120 pounds for a shortboard which was about a months wages back then Now with boards around £300-£375 on the racks in Newquay they are only a weeks money for most.
I have enjoyed Shaping and Board building since 1996 and I think I have learnt a lot about boards in that time.
But for me it's time to call it a day.
Cheers
Paul
Seabeast Surboards 1996-2005