marine industry professionals
July boat sales decline sharply
Overall sales of fiberglass boats, including personal watercraft, fell 26 percent on a year-over-year basis in 30 early reporting states that represent about 65 percent of the national market. The preliminary results help identify the prevailing retail trends in the 30-foot-and-under marine market segments for states that are able to report either monthly or weekly.
Sailboats were the only bright spot in the fiberglass market, as sales rose 4.9 percent. Sales of personal watercraft fell 21 percent.
Aluminum boat sales slipped only 0.1 percent. The aluminum pontoon boat segment continued to buoy the market, however, as sales rose 7 percent.
The documented vessels file was not available for July because of data entry delays. Declines for boats over 30 feet could be slightly overstated as a result.
— Aarn D. Rosen
National Marine Sales Manager
Statistical Surveys Inc.
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Excellent observation "Still Sailing." Americans work longer hours than any other industrialized nation in the "Western" world. No European would consider putting in the hours we do. I recently turned down a position in Hawaii where the employee was required to travel 120 days a year to remote locales, and work 12-13 hour days while doing so. And the people making the offer thought this was nothing out of the ordinary. If this is the reality of today's workplace its no wonder there are lots of boats for sale and few takers.
Of course, this a a social and economic matter beyond the control of our tiny industry. The middle class buys most of the boats we build and maintain yet has been compressed and stressed for decades. Purchasing power and income in real terms has been stagnant or declined for most. We work longer hours to buy more possessions and then don't have the time to enjoy them. It is as though the drive to acquire for its own sake has far exceeded the desire to live a rewarding healthy life. Is it any wonder most marriages end in divorce and too many of our children are being raised by surrogates? Perhaps Shakespeare was right - "The fault, dear Brutus, is not in our stars but in ourselves."
Plus, as I inferred in a prior posting, when boating becomes more maintenance hassle and financial drain than it is worth, people will look elsewhere for places to spend their shrinking leisure time and dollar. Boatbuilders might want to consider a fresh approach to a shrinking market - sell quality, simplicity, healthy lifestyle, and fun. Engineer and produce packages that deliver lots of fun times and leisure for the buck and then drive a marketing program built around that concept. The US has changed my friends. We had best change with it lest we be a victim of it.
I ran into an old friend the other day - he has been a yacht broker for years and told me he was now un-employeed. He had not sold a new boat in over a year and was finally looking for a new job. No boating for him this year (he is usually and active boater) because looking for work was it's own full time occupation.
Our loacl yacht club has seen almost zero cruising traffic this season.
Hmm, see a connection? NO FREE TIME. people don't need boats because they dont have any time to use them. The "economy" is part of the problem for builders - sure, but so is the fact that boating (in all it;s forms) represents free time and generally, people have very little of that anymore.
blame who ever you want - build what ever you like, but don't expect the industry to bounce or even crawl back to the levels seen in the last decade, it simply isnt going to happen because people dont have time, money, desire to leverage their homes any further, etc
still sailing (because the wind is still free)
There are boat buyers out there if the price is right. The problem is, that price is 70-80 cents on the dollar. So many are upside down and can't afford to sell, let along buy a new one.
So, until that problem works itself out of the system, sales will be soft and economy will drag.
I should have put more blame on our CONGRESS, which has been in democrat hands for over 3 years. It's more their fault than OBAMA's, but he sure isn't helping.
I understand the economy stinks and I blame Obama as much as the next right wing nut. I also know that we built more boats than we should have from 2004 through 2008 and that we loaded up our dealers with more floor planning and financing than was realistic (knowing that boat sales have been on a decline since the spring of 2005). But do the words self-fulfilling prophesy meaning anything to anyone? Why should things improve if you continue to do the things you do?
If you don't like GE, find another way to get financing. Otherwise, work together as a group to get GE or the government to lower its rates (or another bank).
How many people go to a car dealership and order a car that isn't on the lot? Probably not many. Well, most boat dealers haven't ordered product and it isn't on their lots. So, no buyers are coming in to look at no product.
Most manufacturers have not invested in enough R&D. No new product, no new coverage or excitement for the dealer or the consumer. No new boat sales.
The manufacturers have stopped advertising. No advertising, no brand awareness, no excitement to go out and buy a boat.
Ask the companies that are still building new product, finding creative ways for financing, and still marketing if they are off 31% from last July. I believe the answer is no.
So here is your kick in the tail to suck it up and get out there and do what you've got to do. Don't let Obama and socialism win. Show them that you and your capitalistic company will fight back and win this battle. You can do it!
I agree with you Arch....!
Just wait.....With the damage that has been done by the government its going to get alot worse.
A big THANK YOU to the OBAMA Administration. You are doing such a great job. Everything you have promised has come true. All the spending, all the bailouts, all the wealth redistribution policies have spurred strong economic growth, just as you said it would. Sure.....Bush lead the way but you REALLY put it into high gear and showed him and the rest of us how to do it right and do it BIG. The banks and the corporations are very appreciative too since they are enjoying strong earnings and fat balance sheets. And people thought you interfering with the free market capitalist system we have create problems. I bet they are eating their words right now.