IBEX 2009: Boating trending toward a turnaround?

Posted on 14 October 2009

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MIAMI BEACH - There's no doubt it's been a very difficult 12 to 18 months in the boating business, but there's evidence suggesting the industry is poised for a comeback.

That was the message this morning from National Marine Manufacturers Association president Thom Dammrich at the IBEX industry breakfast and awards presentation.

A recent Discover Boating advertising contest asked boaters for their photos and videos showing what they love about their pastime. The NMMA expected about 40 entries; it received around 400.

Dammrich played four of the winning videos this morning, all of which show boaters having fun and spending quality time with friends and family on the water. Participation in boating peaked in 1997, he said, with about 32 percent of the adult U.S. population saying they had been on a boat.

Since Discover Boating was launched in 2006, participation rates have started climbing again and were back at about 32 percent in 2008. And once people get on the water and enjoy the boating lifestyle, Dammrich noted, they are more likely to buy a boat.

There are other signs the industry will soon begin to see a turnaround.

Boat sales tend to follow consumer confidence, which has been declining. However, Dammrich said he expects that will begin to rise by the end of the year.

"When that turns positive, historically, boat sales turn positive," he said.

Other good news cited was the bottoming of the housing market and signs of growth in the RV industry.

About 135,000 new boats will be sold this year, Dammrich said. That number should remain relatively flat or increase slightly in 2010, but by 2011 he predicts 150,000 to 175,000 new boats will be sold.

Also, while around 52,000 new units will be built this year, that number should climb to 135,000 in 2010 as inventory levels continue to drop.

There are "green shoots" in the industry and overall economy, Dammrich said. The boating business is beginning to come back to life.

— Beth Rosenberg

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Comments

2 Thursday, 15 October 2009 18:19

Yes we have been selling boats. The only problem is to get them sold we are selling at cost or below. Oboy that will keep me in business. I do not think there is a dealer in the US that made money on boats in 08 or 09 unless they sold distressed boats from dealers that went out of business and got them at huge discounts and then sold them at a profit at others expense.

Stop trying to sugar coat the what is going on. 2010 will be another slow year especially if you have 2010 boats at normal margins. Good luck. The consumer will need to come up with a bunch of money down and if they do not have a 700 score they will need to come up with even more money which they either will not have or will not want to do. I am not being a pesimist, just reality.

Have a good day

1 Thursday, 15 October 2009 00:42

I am not a fan of the doomsayers. Indeed, I've been astounded these past 18 or so months by the almost giddy willingness of the marine industry press to jump on every bad news story, since in the past, we in the industry have always put a rosier-than-reality spin on news about the state of business. However, now that we've had more than a year of doominess, let's not swing to the silly side in desperate reaction. So Dammrich points to receiving some 400 responses to a contest in which they expected to receive 40. Does that forecast an uptrend in sales? Hardly. It can just as well mean that there are that many more people out of work with nothing else to do. Or that there are that many more people hoping to eke out a prize that they cannot in these times afford to buy. A balanced, realistic view is what we need now from all, the marketers, the promoters, the industry spokespeople.

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