Next Wave: Leaving Brunswick's competitors in its wake
On the occasion of its Investor Day 2021, the Brunswick Group, the American leader in the marine industry, presented its 2021-2023 strategic plan, called Next Wave. Its ambition, according to its CEO Dave Foulkes, is to "leave the competition in our wake" by building on the foundations created in 2020 and 2021, following the sale of the fitness business and the recruitment of the new management team. Brunswick has created 2 new divisions during the period, titled Business Acceleration for services and Advanced System Group (ASG) for equipment, while reorganizing its boat production under the Brunswick Boat Group (BBG) banner. It expects strong synergies in the future.
The acronym ACES, for Autonomy, Connectivity, Electrification and Shared access, introduced a few years ago by Brunswick, is at the heart of this strategy for all the group's divisions, whether they are engine manufacturers, carmakers or equipment suppliers. "More than 700 employees have been recruited for its commercialization," says Dave Foulkes.
Electricity for energy on board
The first step towards the electrification of boats, the management of onboard energy and its storage is an area on which Brunswick is already committed in 2019 and 2020. Through ASG and its Mastervolt brand, taken over in 2018 with the rest of the Power Products portfolio, the group has developed new solutions. The Fathom 1 system was unveiled at CES 2020, the global electronics event in Las Vegas. "We will install 15,000 battery-based systems to replace conventional thermal generators by 2023," says the Brunswick executive. He also points to hiring and investments made and to be made to increase battery production capacity. Brett Dibkey, head of ASG, sees great potential in the development of its international brands, such as Mastervolt in the United States, and in the growth of lithium-ion batteries. "A boater spends an average of $2,000 a year on equipment and accessories for his or her boat," he says.
1st Mercury electric outboards in 2023
The next step, to be taken by Mercury and BBG by 2023, is the move to electric propulsion. Chris Drees, head of Mercury Marine, announces the launch of five electric outboard propulsion systems by 2023. The first models are expected in 2022. "We want to be the leader in electric propulsion by 2023," he says.
The engine maker isn't giving up on thermals, however, pointing to the successes of its latest 600-horsepower outboard and the signing of 700 original equipment agreements in 2020. A partnership with BRP's boat brands, which has ceased production of its Evinrude outboards, is underway. "40% of sales are from products launched in the last 3 years," says Chris Drees.
4 types of electric boats by 2023
Also a boat builder, Brunswick will install its new electric drives on its boats. Aine Denari, head of BBG, announces the release of electric boats in 4 market segments by 2023. "These 4 applications will focus on segments where the use cases easily lend themselves to electric propulsion, such as slow speed cruising or shorter durations at higher speeds," explains the executive. It will be based on the new iteration of the Fathom on-board energy system, with a load capacity four times greater than the existing one, compatible with powerful engines.
More widely, BBG will launch 122 new boats in the next 2 years. For this, the industrial investments already launched in the United States, Mexico and Portugal will increase the production capacity by 10% by 2022, leading to more than 600 hires. This growth will be supported by the services strategy and the arrival of a new brand that we will develop in the second part of this article.
