Seeking to capitalize on the growing popularity of stand-up paddleboarding think of an oversized surfboard powered with a long-handled paddle Reno-Sparks entrepreneurs have launched two paddleboard companies in the area in recent years.
The companies, though small, are providing a boost to efforts to create a diversified manufacturing base for the region's economy.
Three years ago Nate Brouwer was on a business trip in Laguna Beach, Calif. when he saw guys standing on surfboards and using paddles to catch waves. He thought paddleboards would catch on around the Lake Tahoe area, and he began adapting designs for lake use.
Brouwer, 33, founded Tahoe Board Works in January of 2009 with partners Doug Erwin, the company's chief executive officer; Allison Wren, its vice president; and Ernie Brassard, its sales manager.
Despite weakened consumer spending in the recession, Brouwer expects Tahoe Board Works' revenues to grow by as much as 500 percent in 2010 as recreational and sport paddleboarding gains exposure.
Mike Tessier, president of Lakeshore Paddleboard Company in Sparks, founded his company in December of 2008 with a prototype board and now offers six different models. Tessier started with three partners: Sean Adlao, chief executive officer; Aytan Litwin, chief international officer; and Joel Barber, legal counsel.
Lakeshore Paddleboard Company distributes to 10 retail locations in California, Washington, Idaho Florida, Colorado and Canada, and also is pursuing a retail location in Puerto Rico.
But the feather in Lakeshore's cap easily is its placement in the Scheels store at The Legends at Sparks Marina. Lakeshore has added some of its retailers through the strength of occupying floor space at Scheels.
"We are exclusive with Scheels and looking to expand with them throughout the West Coast, Tessier says. "This is their test market for the United States, which is pretty exciting for us they carry only the best companies, and it has helped us grow."
Tahoe Board Works distributes its three models of paddleboards to Lake Tahoe-area retailers such as Adrift in Kings Beach, Tahoe City Kayak, Cycle Paths in Truckee and Tahoe City and Reno Mountain Sports. The company distributes to about 55 dealers throughout the United States and has eight sales reps that cover North America.
"We will seek international sales next year," Brouwer says. "We are spread out all across the United States and are adding new ones weekly."
Initially, Brouwer needed to modify surf designs for lake use. Surf paddleboards are designed to ride waves, but lake designs need more stability and surface contact to slice through the water like a boat or kayak.
Tahoe Board Works has offices on Skyline Boulevard in Reno and outsources manufacturing to a Washington-based kayak manufacturer and a well-known surfboard maker in Thailand.
Last year the company made its boards at a shop in Costa Mesa, Calif., but Brouwer says managing manufacturing, marketing and sales proved too much for the small staff.
"What we found was that it was so hard to tool up and train people and manage the production and building that it was probably more beneficial for us to do all the marketing and sales in-house and outsource all manufacturing," Brouwer says.
Lakeshore Paddleboard Company outsources its manufacturing to the same Asian manufacturer that makes the popular Hobie line of standup paddleboards, but Tessier and Adlao design the board shapes and create the graphics. Eventually he'd like to bring manufacturing closer to home, but costs are prohibitive for now, Tessier says.
Mike Skaggs, executive director of the Nevada Commission on Economic Development, says the addition of manufacturing jobs to the region is always a plus, and even more so for recreational manufacturers.
"With the variety of lakes we have available Tahoe certainly is the prime one but there are so many lakes in this area that it makes a lot of sense.
"Manufacturing jobs are what we pursue the most," Skaggs adds. "They have a higher wage structure, and any manufacturer that buys supplies and locally adds sales to other companies and creates additional jobs at the companies that supply them."
Lakeshore Paddleboard Company is a self-funded venture, but the four partners seek private capital.
"We wanted to get established and have at least 10 retailers under our belt before pursuing more money," Tessier says. "Hopefully we can do that and begin leapfrogging this year."
Brouwer and his business partners initially self-funded Tahoe Board Works, but have sought additional seed money through private investors.
"Cash flow is pretty difficult to finance through banks, so we are having to go externally," Brouwer says.
And despite higher price points for Tahoe Board Works paddleboards $1,385 and $1,685 more retailers are picking up the boards, Brouwer says. "When the economy turns around we are going to be in a good spot."
Pricing for Lakeshore's boards ranges from $750 to $1,400.
Tessier says that although the market for surf paddleboards is heavily saturated with independent manufacturers, entrepreneurs have just begun entering the market for flatwater-style paddleboards.
"We are not trying to compete with the surf industries," he says. "We're making our own industry by going inland and concentrating on the flat-water standup paddling market.
"The standup market is just on the cusp of really taking off," he says. "We believe this will be a promising year."
