The Finnish boating industry is currently facing various challenges that force it to rethink the traditional way of working. Growing manufacturing costs, competition from low labor cost countries as well as new regulations regarding styrene emissions are one of the major factors imposing a change on boat manufacturers. The article focuses on the analysis of Finnish boating industry situation and identification of possible development opportunities. The particular attention is put on lean manufacturing principles and its application in small and medium-sized companies that dominate the market. The aim is to propose a concept factory for boating industry-a factory that would put the lean thinking into practice. Only the most appropriate and promising concepts are proposed. The method for concepts selection is based on the analysis of the industry’s current situation examined with the help of in-depth interviews conducted in boating and rotational molding companies in Finland.