In anticipation of future growth, WaterMark will consolidate its warehousing and distribution of boats and gear with Patterson Warehousing in Memphis, Tennessee. Memphis, Tennessee is the largest air hub in the world for shipping cargo. It is also the second largest rail center in the United States, with five rail heads. In addition, Memphis is home to the headquarters of Federal Express.

Shipping from Patterson's warehouses will begin in September 2004. This move will enable WaterMark and its customers to track shipments on line, from door to door, as well as improve the accuracy, timeliness and fill rate of orders shipped. As part of this consolidation, the company will close its two distribution operations in Piedmont, South Carolina and Otay, California in early fall of this year.

“We have been systematically analyzing the steps we need to take to handle our anticipated growth. Improved distribution capabilities and distribution-related IT upgrades were high on our list,” said WaterMark VP Operations, Ron Barlow.

Barlow continued, “Working with Patterson, we gain the benefits of their advanced, web-based tracking system and we can handle whatever level of growth each quarter and year will bring, without expanding or relocating our distribution facilities, as we would have needed to do had we remained in our current two facilities. And Memphis is an ideal location to operate from.”

The Otay distribution center has handled gear distribution, including Yakima, Harmony and Sospenders. The Piedmont location handles both gear and boats. Warehousing and distribution of both gear and boats will be handled at the Patterson Warehousing facility in Memphis. WaterMark customer service employees will still process all orders and manage the scheduling of deliveries, so retailers will see little change, apart from anticipated improvements in the accuracy and fill rate of orders.

There are approximately 30 employees at each WaterMark distribution facility. More than half of the employees at the Piedmont location will receive offers for new positions in Easley, South Carolina, where WaterMark boats are manufactured. Employees at the Otay distribution center will receive severance packages. WaterMark currently employs approximately 850 people, mainly in Easley and in Arcata, California, where the company is headquartered.