Growing up in New York, Randy Borges loved racing sailboats – he was even nicknamed “Dunes” – but he never imagined he’d end up running a company that built them.
Now, as president of Waterline Systems LLC in Portsmouth, he’s not only working with what he loves; he’s also enjoying the thrill of watching the business thrive as demand for its products grows rapidly, especially in Europe.
In the last year and a half, Waterline has more than tripled its yearly production of the most expensive boat it builds: the 40-foot Farr 40, a $350,000 racing yacht marketed by Annapolis-based Stagg Yachts Inc.
Since August 2006, Waterline has produced 16 of the boats, Borges said, up from five in the previous year. Many – Borges estimated 80 percent – were sold to European customers.
“Based on the value of the dollar, it’s a pretty good bargain for them to be buying boats over here,” Borges said. He doesn’t have estimates yet for next year, but he said that “realistically, we’re looking at doing at least another 10 Farr 40s next year,” he said, plus about 34 other types of yachts.
Waterline also produces the J/22, J/24 and, as of last year, the E/33 models for J/Boats Inc. The company is also about to start building another model, the J/80, a 26-footer, Borges said. And for Stagg, Waterline also manufactures the Mumm 30.
But it’s the increase in Farr 40 sales that has made the biggest impact on the company, leading it to increase its manufacturing labor force from 12 to 50 people. (Another 15 people work in other functions.)
Production of the Farr 40 involves about 3,000 hours of labor, Borges said, while the J/22 tops out at about 350 hours. Manufacturing hours are echoed in prices, with the J/22 selling for about $35,500, about a tenth of the Farr 40.
But both types of boats have helped grow the business. And Waterline does other kinds of work as well. It’s also a racing-boat optimization specialist and recently began making Carolina Cockpits, stand-up steering cabins for ships and tug boats.
The rapid growth of late comes after nearly two decades in business. Borges founded the company in 1988 with two partners, but it was a “hobby shop,” he said; he had another full-time job. Much of their original business was in service – optimizing racing sailboats, repainting hulls and storing boats. Although the company still offers those services, it’s grown so that they are a much smaller portion of Waterline’s daily operations.
Borges said his love of racing has helped the business evolve to this point. After his partners left the company, he didn’t know where it would lead, but his brother, Gordon, joined him and helped him grow it over the last eight years.
Waterline, which started in Middletown and was in Bristol for several years as well, now occupies a 33,000-square-foot manufacturing facility with an additional 6,000 square feet of service and storage area.
Last year, Waterline picked up the contract for production of hulls for RibCraft boats – producers of inflatable boats with fiberglass hulls. Waterline manufactured about 60 hulls for RibCraft’s 4.8-foot and 5.85-foot models and, in 2008, Borges said, the company should be ordering more of those models.
“That’s another nice thing that’s been consistent,” he said. “And I think they’re doing a nice job to grow their business as well, so we might have another opportunity to take on more business from them.”
Overall, too, Borges expects Waterline Systems to grow further during 2008.
“We’re focusing on being the go-to builder for people looking for the high-end builder of race-pedigree boats,” he said. •
