SAFE Boats was founded in 1997 to produce a new kind of boat

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• SAFE Boats was founded in 1997 to produce a new
  kind of boat
• All aluminum construction with a patented solid
  foam collar for increased stability and
  non-deflating flotation.
• The increased flotation provided by SAFE Boats
  patented collar system creates a vessel that can
  handle the additional weight of modern day motors
  while keeping safety the number one priority.

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• In 2000 SAFE Boats opened a state of the art
  64,000 ft2 facility in the Port of Bremerton
  Industrial Park in Port Orchard and began
  manufacturing in-house

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• SAFE Boats Facility

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• Initially, SAFE Boats produced custom boats on an
  as-ordered basis
• Products included custom yacht tenders, high
  speed fishing vessels, and boats for various
  military and law enforcement agencies
• During this time SAFE Boats grew to become the
  largest supplier of non-standard boats to the US
  Coast Guard

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• After the attacks of Sept. 11, 2001, the Coast
  Guard developed a specification for a fast and
  highly maneuverable port security vessel capable
  of being transported in a C-130 cargo aircraft.
• Based on their prior experience, SAFE Boats was
  asked to develop and launch a prototype in only
  12 weeks
• The result was a letter contract awarded to SAFE
  Boats for up to 100 25 RB-HS (Response Boat
  Homeland Security).

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• In the meantime, after many years of defining
  requirements and input from industry, the Coast
  Guard began the most intensive and comprehensive
  procurement process in their history.
• SAFE Boats competed with over 50 manufacturers
  around the world and was awarded the contract for
  the RB-S (Response Boat Small)
• It is the largest military fleet of one
  particular vessel in the world and is growing at
  the rate of two boats per week.

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• Following the USCG contract, SAFE Boats began
  receiving contracts from the US Navy, Marine
  Corps, and numerous other military and law
  enforcement agencies around the world
• Foreign sales included Nigeria, Kazakhstan,
  Yemen, Israel, Kenya and Iraq.
• And the rest is history

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• All SAFE Boats feature these common design
  features
• All welded aluminum construction
• Special herringbone hull stiffeners
• Aggressive performance fins and lifting strakes
  on hulls
• Patented closed cell foam stability collars
• Abundant horsepower
• In combination these features provide outstanding
  speed and maneuverability

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• 25 USCG RBS

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• 39 US Marine Corp. SURC

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• 31 Seattle Police Vessel

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• 33 US Customs Vessel

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• 25 Nigerian Navy RB-S

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• 42 Archangel

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• We recently signed an agreement to build 50 foot
  boats designed by Docksta Varvet of Sweden
• Other new, larger boats are on the drawing board
• A new 40,000 ft2 facility addition is planned to
  handle the larger boats
• Headcount anticipated to continue growing

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• Docksta Varvet CB-90

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• Today SAFE Boats employs over 200 workers on
  three shifts
• We are non-Union and enjoy a close relationship
  between the employees and Management
• Employees receive full benefits, regular pay
  raises, and amenities such as quarterly profit
  sharing and Friday barbeques
• Our motto is God, Country and Fast Boats

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• SAFE Boats shop floor

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• We are transitioning from a small custom boat
  shop to a medium-sized company
• This growth has challenged our Management team to
  reevaluate traditional methods and procedures
• With growth comes increased scrutiny by
  government agencies WISHA, OSHA, OFCCP, EEOC,
  GSA, ISO, LI, DSHS, etc.

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• Nationally, about 90 of new small companies
  either fail or are acquired
• We are determined to remain a successful
  independent company while retaining our informal,
  family-oriented culture.
• Investing in infrastructure
• Computer systems and software
• Professional specialists in Accounting,
  Engineering, Quality, Human Resources,
  Manufacturing, Materials, etc.
• Building additions and upgrades

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• The majority of our employees are in direct labor
  production jobs
• Aluminum Welders
• Riggers
• Collar Fabricators
• Marine Finishers

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• Some jobs require technical skills
• Aluminum welding
• 12v electronics
• Automotive mechanics
• Paint spraying
• Many jobs are entry-level, requiring only basic
  work ethic, problem solving, interpersonal
  relations and communications skills
• Most of our employees do not have a
  boating-related background

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• Like most modern manufacturing companies, our
  jobs are structured to be relatively easy to
  learn
• Employees learn through on-the-job training and
  advance as fast as their skills, abilities and
  interests permit
• We place a high value on employees who are
  reliable, eager to learn, have a strong work
  ethic, and good communication and interpersonal
  relationship skills

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• We have been successful hiring new employees
  through partnership with local vocational
  schools
• Olympic College
• West Sound Technical Skills Center
• These schools do a great job providing basic
  technical skills such as aluminum welding

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• However, we have difficulty finding entry level
  employees who have the basic skills and attitudes
  required to be successful in the workplace
• Reliability and dependability (including
  attendance)
• Work ethic
• Communication skills (including basic English
  reading and writing)
• Interpersonal relationship skills

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• Others have expressed the same difficulty
• 2004 Washington State Employer Survey ...85 of
  employers surveyed had difficulty finding
  applicants with problem-solving skills,
  communication skills, or positive work habits and
  attitudes.
• 2005 survey by US Chamber of Commerce found one
  of three biggest needs the ability to hire
  qualified entry-level workers
• 2006 Marine Industry conference held at Olympic
  College No.1 need is reliable employees who will
  come to work every day

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• What can the State do to help growing
  manufacturers like SAFE Boats succeed?

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• Encourage schools to better prepare students to
  enter the workforce
• Structure education to develop work ethic,
  responsibility, problem-solving, relationship,
  communications skills
• Encourage closer collaboration between schools
  and industry to help students understand what is
  expected in the workplace
• Coops, job shadowing, internships, site visits,
  etc
• Industry advisory committees

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• Encourage schools to better prepare students to
  enter the workforce (Contd)
• Require schools to provide Life Skills training
• Managing personal finances
• Health and nutrition
• Continue efforts to improve basic academic skills
  through the WASL program
• Reduce obstacles to hiring younger workers for
  coops, internships, etc

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• Support efforts to develop a Work Readiness
  Certificate
• Certificates attest to the job seekers work
  readiness in terms of soft skills and basic
  English and math.
• Washington is one of several states participating
  in development
• It has been piloted and field tested in Spokane,
  Snohomish and Yakima
• Scheduled to launch next year

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• Continue supporting the Workforce Development
  councils
• Additional hours or new facilities for WorkSource
  centers
• More funds for job search, resume preparation,
  etc.
• Funding to improve job posting software
• Encourage more companies to post jobs

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• Provide additional assistance to small companies
  to help them grow and become successful
• LI and WISHA currently provide such assistance
• Consider small business consultation in other
  areas
• Lean Manufacturing
• Finance
• Quality, etc.
• All assistance should be voluntary and no risk to
  the employer

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• Improve the Unemployment Insurance Program
• Washington has the highest per capita cost in the
  nation approx 724 per employee vs. 239
  national avg.
• Applicants often receive compensation before
  eligibility is determined
• Past employers may share responsibility for cost

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• Reform Workers Compensation
• The system is costly, complicated and rampant
  with fraud
• Lost time duration continues to increase
• Recent legislative efforts at reform have failed
• Providers are largely held unaccountable
• Washington one of 5 states that do not deny or
  reduce claims where drug use has been proved
• COHE Program appears promising

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• Thank You!