GE survey shows industry seeing signs of recovery

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According to survey results released today by GE Capital, Commercial Distribution Finance from the Miami International Boat Show, more than one-third of respondents (38 percent) expect sales to increase as much as 5 percent in 2011, and 54 percent said that the best time for dealers to increase inventory levels is now.

“The marine industry is starting to see signs of recovery as we move past the recession,” Jeff Malehorn, president and CEO of CDF, said in a statement. “Through our 40 years in the marine industry we’ve seen many cycles, and we’re optimistic about the years ahead.”

Forty percent of survey respondents expect growth to be led by sales of aluminum boats, followed by recreation boats (17 percent). By contrast, boats of 30 feet or more were the strongest-selling segment during the market’s peak in 2007.

“Dealers are beginning to order new inventory, but they continue to be cautious,” Bruce Van Wagoner, president of the CDF Marine Group, said in a statement. “At the same time, manufacturers want to be sure their dealers have the right product mix so everyone is focused on smart growth. They’re all paying close attention to remaining aged product, dealer credit availability and inventory turns, among other metrics.”

Nearly 70 percent of the responding marine dealers and manufacturers believe that the biggest hurdle facing the boating industry this year is consumer demand. Forty percent said a reduced level of showroom and field inventory is the trend that will have the largest impact on the industry this year.

The survey of 53 marine dealers and manufacturers was conducted on Feb. 16 at the Access GE Industry Roundtable event at the Miami International Boat Show. Respondents included marine dealers and manufacturers.

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Comments

7 comments on “GE survey shows industry seeing signs of recovery

  1. Carlm

    What a difference a week can make.
    I think the optomism of last week would be a bit muted this week. Lybia & other middle east unrest, oil at $100.00 a barrel now a reality, gas at the pump to be $4.00 & going up well in advance of reported summer estimates. 
    These are very real killers of a recovery. As stated OEM & dealer inventories are rising but retail registrations are not tracking in like percentages. 
    Caution is still the word of the day….  

  2. Curtis

    So GE was able to forsee the future by polling 53 dealers and manufactures that were at the Maimi boat show. Now that is impressive. Lets see the dealers are saying yes sales are increasing (not) and the manufactures say they are selling more boats than last year, only because last year they sold one boat and this year they sold two, holy mackerl its a 50% increase in sales, the whole world is changing.
    Lets be real, boat registrations continue to be down across the nation, gas prices are going to be $4.00 plus per gal and the foreclosure rate on houses continues to rise which is driving down home prices, sorry for the bad news.
    We are in for another slow year and anybody who loads up on new boat inventory will probably be out of business by the end of the year. Guys and girls you can not afford to sell boats at slim margins and pay GE the amount of interest on your floorplan and expect to stay in business.
    I have a great idea. The manufactures can get financing from GE and then the manufacture can put the boat on our lots and we take a commision and send them the rest. If they do ot sell it is up to the manufacture to either move it to another dealer or lower the price. Either way the dealer does not get hurt. Now thats a plan and I am sticking to it

  3. Dj

    “more than one-third of respondents (38 percent) expect sales to increase”
    Did they expect fuel prices to skyrocket?

  4. compact45

    That 38% that said sales will increase are fools. Theres an idea..load on inventory and set yourself up for going out of business. We will see how many shaky manufactures start defaulting on their interest payments to GE during any freeflooring to the dealer and then GE comes to the dealer to collect… No thanks. I would hate to be starting a boat show with the good news we are getting lately…Sales will be….oh yea what sales.

  5. Florida Patriot

    “I have a great idea. The manufactures can get financing from GE and then the manufacture can put the boat on our lots and we take a commision and send them the rest. If they do not sell it is up to the manufacture to either move it to another dealer or lower the price. Either way the dealer does not get hurt. Now thats a plan and I am sticking to it”
    Curtis,
    Your a genius. I have been saying this for over two years and everyone in the industry looks at me like I have three heads.

  6. Doug

    Now with all income being used for heating oil ,gas,prices climbing on every thing will only hurt boating.I rememeber with gas on the water hitting$4.50 ,the impact it had.Two steps forward and one step back.Here we go again.

  7. Time1865

    Just this last week I received e-mails from marina’s at Tuckerton, NJ that they were reducing their slip fees. One was going from $1,700 to $800 for the season. Any guess why? lol Maybe I can use my boat as a large planter on the front lawn. Gas around my way has risen over 30 cents in less than 3 weeks. I saw regular at one station at $3.59.

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