When asked about the success of their company, the employees at Malibu Boats launch into a story about the people behind the product. Whether the story teller is an employee, Malibu boat owner, dealer or industry partner, you will walk away from the conversation knowing that Malibu is not just about the boats. There is much more to the No. 1 selling water sports boat manufacturer in the world. The difference is the people.
Robert Alkema, President and founder of Malibu Boats, or “Big Dog” as he is known in Malibu circles, started the company in 1982. Initially Alkema’s goal was to “…build the best boat for a fair price and have fun doing it.” That simple sentence remains Malibu Boats’ mission today. Even then, at the age of 25, Alkema was a strong enough leader to know that the key to his company’s success would be the people working along side him as well as those buying the boats. That is why the words “fun” and “fair” are strategically placed in the Malibu Boats mission. Even in the beginning it was about people.
Alkema’s decision to value people over product has not only netted the World’s most successful water sports boat company in the world, it has produced a line of award-winning products. In fact Malibu recently earned their seventh consecutive Boat of the Year Award and raised their total BOTY award count to 18, this year. Alkema gives all of the credit to the people of Malibu. According to him they are the Malibu Difference.
The significance Alkema places on the employees of Malibu Boats was made abundantly clear in 1986. He introduced an Employee Stock Ownership Program (ESOP) designed to give employees a vested interest in the success of the company. The first of its kind in the ski boat industry, this program eliminated employee turnover, created a higher quality of craftsmanship and hurled, already high moral, through the roof. Today Malibu has approximately 500 employees, 20% of which have been with the company for more than 10 years and 10% who have reached their 20-year mark and beyond. The original five individuals that began working for Malibu in 1982 are still pillars of the company today.
Paul Singer, Malibu Boats Vice President of Sales & Marketing, describes these unique statistics in one sentence. “This isn’t just a job for each of us, it is a personal mission.”
Dealers play an active role in the success of Malibu Boats. “They are Malibu Boats to the buyer.” Singer explains. For this reason, Malibu is extremely discriminating when it comes to dealer relationships. They are not as much interested in dealers who can record big sales as they are in the dealers who have awesome service. When Alkema made the decision to use independent dealers rather than distributors, it was because he wanted to have close relationships with those individuals who are in direct contact with the buyer. He wanted them to understand and practice the Malibu Difference and he knew boat owners would benefit from these strong ties.
The first dealer to join the Malibu Boats family was Tilly’s Marine, in 1983. When asked what they think of Malibu Boats, they had this to say, “We are family. There is no other manufacturer dealer relationship like the one we share with Malibu Boats. And it is this kind of close partnership that enables us to do the best job we can for our customers.” Bruce Hower, General Manager for Tilly’s Marine.
The exceptional people that make Malibu Boats are not limited to employees, dealers and boat owners. Professional athletes have also played an instrumental role in the success of the product and in turn the company. In 1987 professional athletes began to look to Malibu Boats for a competitive advantage on the slalom course. With the introduction of the Malibu Skier came another form of recognition for Malibu Boats. Malibu was being recognized by the World’s top skiers and barefooters as a water sports powerhouse. By the time the Malibu Response LX came along in 1995, the first open bow approved for competition, Malibu was a staple for serious water sports athletes. It was then that the records began to fall. Fourteen World records have been set behind Malibu boats, not to mention countless national and tournament records. These achievements were made possible by the partnerships Malibu shares with its team of athletes.
The people Alkema has entrusted to take his company to the next level have helped Malibu make history in the industry and helped further the overall Malibu mission. In November of 1992, Malibu Boats became the first and only towboat manufacturer to operate multiple production facilities. The Loudon, Tennessee plant was built to ease transportation costs and at the same time make Malibu Boats more accessible to the east coast. Led by the Vice President of Tennessee Operations, John Sisson, Malibu Boats Tennessee has expanded twice since the first Echelon rolled off the line 16 years ago and now they are working on a third explosion in size. But Tennessee isn’t the only land where Malibu broke new ground.
In 1995 Malibu made another industry-leading move by partnering with an established boat manufacturer to build Malibu boats in Australia. This agreement brought the design efforts and technology of Malibu to a growing market with unlimited potential, while creating a shorter delivery route to other growing international markets. Headed by Xavier West, this company is young and energetic and very closely mirrors the entrepreneurial spirit that drives Malibu Boats stateside. Today Malibu Boats Australia is the largest custom ski boat manufacturer down under with control of more than 30% of the tow boat market.
Relationships don’t end with those people building, selling or buying Malibu boats. Malibu partners with industry suppliers like Chuck Rowe and Indmar Marine Engines, to build and install the highest performing, most reliable engines out there. Strong vendor ties improve research and development to help Malibu deliver exceptional product. “Bob and company treat customers and vendors with respect, making each of us feel as if we are part of the Malibu family. Some organizations talk about building partnerships. Malibu does so as second nature, ensuring the well being of all parties,” explains Chuck Rowe, CEO of Indmar Marine Engines.
Design is a never-ending process at Malibu Boats. It is the Malibu people who keep pushing their own limits, the limits of technology and the industry to build the best boat. Malibu engineers have introduced the first on-board computer system, the patented swivel head pylon, the patented Fiberglass Engine Chassis System (FibECS), Patented Power Wedge, water sport-specific hull designs, standard Precisions Pro Speed Control, vented windshields, an adjustable rudder, an in-dash graphical LCD screen, Rider Presets, Shift-by-wire Throttle System and the list goes on. This year the people of Malibu have pushed past the confines of convention with three new ground-breaking 23-foot models as well as a Corvette that runs on water. And as impressive as these accomplishments are, at Malibu they still insist, “It’s not about the boats. We are who we are because of our investment in people and relationships.”