Cover Story October 2007

Bob Johnson: A Humble Industry Leader …
With Star Power
by Carol Cortright

It’s not surprising that Bob Johnson was born with blue eyes--the sea is in his DNA.

Since 1979, Bob has been at the helm of Island Packet Yachts, the maker of extraordinary cruising vessels known the world over. The awards bestowed upon “America’s Cruising Yacht Leader” are almost too numerous to list, not only for design innovation and value but also among the offshore race circuit crowd. Island Packet Yachts are admired by the marine industry and sailing enthusiasts both, for quality and attention to detail, stability and safety, comfort and ease of use.

Bob Johnson’s story provides valuable perspective based on almost thirty years’ experience creating and nurturing a multimillion dollar company that started out of his home office and today occupies 10 acres and 57,000 square feet of production space. His inspiring business model underscores several key themes:

• Nurture your innate passion—it has the power to set you on a path to professional fulfillment

• Develop a network of collaborators—recognize and cultivate relationships with those who can help fulfill your dream

• Stay true to your ideals and raise the bar with every new effort

Charting the Course

Despite a landlocked childhood in Hartford, CT, Bob’s family spent their vacations on the shore, tooling around in his father’s old runabout. At the tender age of eight, the youngster took out his own subscription to Yachting magazine. He was hooked.

When Bob was 14, the family moved to North Palm Beach, FL—it was a perfect seaside paradise for the emerging boat aficionado. The aquamarine Atlantic waters beckoned. He was one of a handful of teens at Riviera High to forgo the typical powerboat interest in favor of sails. His family indulged his passion, allowing him to lay out full-sized plans for a 12’ sailboat on the living room floor. Bob’s father lent his woodworking skills in the boat’s construction. By the time Bob’s older brother came home from the service, the sailboat was ready for launch.

He clearly understood his calling at an early age: a 9th grade school project was titled “My Career in Naval Architecture.” He later received a bachelor’s degree in mechanical engineering from University of Florida. This was followed by a master’s degree from M.I.T. in Naval Architecture and Marine Engineering— meaning the know-how about “anything that floats,” as he puts it.

During the late 1960s, when Vietnam was at its peak, Bob took a job in California with McDonnell Douglas, the aerospace manufacturer and defense contractor that has since merged with Boeing. While he possessed the critical engineering skills needed to assist with the war effort, he couldn’t keep away from the water, so he designed and patented a removable surfboard fin for a rip-curling buddy of his.

Bob calls this period his “MBA education.” Exercising product diversification, he found another use for aerospace materials by applying them to surfboards and other water sport gear, and even got the attention of a well-known surfing equipment manufacturer, Dewey Weber. But in the long run for Bob, it wasn’t cost effective. “Kids just want to get out on the water,” he says, and they can’t spend a small fortune on high tech surfboards. So while those fins may have been a popular feature, “surfboard alley” was a short but illuminating jaunt for Bob.

Eventually Bob, his wife Jeri and two young children moved back to Florida.

A concentration of boat builders attracted him to the Tampa Bay area and soon he hired on as a designer for Irwin Yachts. In six months, he was running the plant, learning the intricacies of large-scale fiberglass boat production. The designs he worked on weren’t his own, though—they were Irwin’s. By the late 1970s, Bob had moved to Endeavour Yachts where he had the opportunity to put his name on his designs. But he wanted more.

Navigating the Channels

In 1979, when the Bombay Trading Company closed its doors, Bob purchased the molds for a 26’ sloop from them and went to work making it his own. After redesigning several features, he gave it a new name, the Island Packet, a traditional term for coastal vessels carrying passengers and mail. He saw a future in this new product but he lacked the capital to make a large-scale investment in quantity manufacturing. He came up with a creative solution: a friend owned a small yacht building shop in Clearwater so he decided to contract out the boat fabrication to Marine Innovators.

The distinctive ivory color of the Island Packet’s hull was a “pragmatic decision,” according to Bob but has since become a brand identity for his yacht line. It was simply the original color used by the fiberglass manufacturer and since Island Packet boats were their highest volume product, that’s the way they came out. Bob liked the color as it stood apart from other companies so he didn’t see any need to change it.

From the beginning, Jeri Johnson played an integral part in the company, serving as correspondence secretary, bookkeeper and sales manager, among other roles. Bob can’t stress enough what his wife’s involvement has meant to the success of Island Packet Yachts. He calls her “more than an equal” in their business venture. “She did everything in those early days, from accounting to handling personnel.”

Jeri also insisted that the family make time for themselves. Bob sees “overwork” as one of the fastest ways to burn out, even if it’s a job that you love. “Time is the most important element any of us can have, and we can’t buy more of it,” Bob says. The family had dinner together every night. Jeri also came up with the idea to close the business over the week of July 4, ensuring that her family as well as their employees would enjoy some time to relax.

These days, Jeri still contributes to the company in many ways. She remains corporate secretary and treasurer as well as co-owner of Island Packet Yachts. “She’s gained considerable sailing experience over the years,” Bob adds, “which has been of great benefit to me, as a designer, to have her ‘woman’s perspective’ on many aspects of new designs.”

Speaking of family ties, today Bob and Jeri’s son Karsten serves as the company’s marketing manager and newsletter coordinator, keeping the Island Packet brand polished and professional, from overseeing the coordination of boat show displays to handling public relations and more. Since prospective buyers want the scoop on how their boats are built, Karsten also gives tours of the manufacturing plant.

Early sales exceeded expectations and the production department soon needed bigger digs. The 1980s brought amazing expansion as Island Packet started acquiring parcel after parcel on Wild Acres Road in Largo to accommodate its growing needs.

It wasn’t all smooth sailing however. A rough economic climate in the 1980s blew inflation out of the water—so much so that the cost of materials increased by 1% every month. Then, the institution of a luxury tax in 1992 hit the marine industry hard. “It took many first-rate companies to their knees,” Bob said.

While it was a devastating period for many industries, IPY stayed afloat thanks to a creative combination of careful buying, hard negotiating with vendors, and raising the price of the product when it was absolutely necessary. Island Packet prevailed and by the late 1990s, there was even a two-year backlog on yacht orders.

Port of Call: International Success & Beyond

As Island Packet Yachts quickly gained ground with dealers in the United States, the international trade was more of a “ten year overnight success story,” Bob says. They asked themselves if it was all worth it—the travel and marketing, the crazy logistics needed to make a presence at major boat shows. However, with a mix of planning and serendipity, they broke through in a big way.

After a decade of monitoring the European market, Island Packet sent Bill Bolin, Vice President of Sales and Marketing, on a trade mission with some others in the marine industry to scope out possibilities abroad. While he was gone, opportunity came knocking stateside in the form of an Englishman who was interested in representing Island Packet. Soon, the largest dealer in the United Kingdom put Island Packet Yachts in a premier position at the boat shows. “Our profile was elevated to their level and it made all the difference,” says Bob. “Within a year, we had a significant presence in the European market.”

Bob never wants to feel like he’s “made it.” He’ll keep looking for ways to improve the Island Packet line and he “thrives on designing new product.” Case in point: the new SP Cruiser which adds more comfort and more versatility to the owner’s experience. The 41’ motorsailer received recognition this year with SAIL magazine’s “Editor’s Choice Award for Innovation” and the National Marine Manufacturers Association “Innovation Award for Sailboats.”

This naval architect still coaxes his latest designs into being at a drafting table using a T-square and a triangle. While these original plans are eventually turned over to staffers in his engineering department for computer modeling and implementation, Bob insists that he’s still involved in all respects of the process, “maybe a little more than they’d like at times,” he admits with a smile.

After all these years of being intimately involved with boat building, what does Bob Johnson do for fun? He visits boat shows and boat yards, of course. And he keeps a “rather crowded dock” at home with a variety of his own watercraft—a couple of sailboats, an inboard powerboat, a pontoon party boat and even some kayaks. “I’ve never lost my enthusiasm for boating,” he says.

Besides a perfect climate for year ‘round outdoor activities, what else does Bob like best about living in the Tampa Bay area?

“The business infrastructure is fabulous, between banking and support services,” he says. He also likes the “ease of travel” to and from the region and calls Tampa International Airport a “star in the crown.” Although his business and family matters take him around the globe (his daughter lives in Holland), he’s always happy to return to “Old Florida” and pick up his paddle for a kayak run down one of its crystal clear, quiet rivers.

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