Boat Builder Says High Costs Forcing Him Out of State

Advantage Boats Inc., a small powerboat manufacturer, said it is weighing anchor in Orange County and sailing off to Arizona next year.

Harry Christensen, president of the Anaheim company, said that rising operating costs and stringent air-quality regulations have made it too expensive to operate here.

“The city government has been really good to us, but we foresee environmental laws changing in the future that will make it next to impossible to operate my business profitably,” he said Thursday.

Advantage builds about 100 boats annually, with models ranging from 18 to 30 feet long and priced between $20,000 and $90,000. Its customers are mostly in Iowa, Missouri, Utah and New Mexico.

“By moving to Arizona, we’ll be cutting costs by about 20%, which will really make us more competitive in the market,” he said.

The company now pays monthly rent of $6,500 for its 12,000-square-foot facility in Anaheim. In Arizona, the company borrowed money to purchase a 30,000-square-foot property in Lake Havasu and will make monthly loan payments of $5,000, Christensen said.

He added that 10 of the company’s 13 employees plan to move to Lake Havasu. Advantage will build a new factory on the property it has purchased.

Advantage, founded in 1982, had sales of $2.5 million last year.

“We’re just tired of crowded freeways and crowded lines,” Christensen said. “I really think that we’re just ready to get out of the big city.”