By Mike Marturello, Greater Fort Wayne Business Weekly
news@fwbusiness.com
The Memorial Day holiday brings lower prices for hamburger and beer, but gas prices tend to go up, and that could be a make or break factor in how well marinas do this year.
Overall, the industry is down due to the lagging national economy. However, those who sell boats in northeast Indiana contacted for this story said the industry seems to be doing better. Gasoline prices could be a deciding factor in whether 2009 is a good year or down like 2008.
"As long as fuel doesn't skyrocket - we're at 2 1/2 (dollars a gallon) right now - as long as it stays below $3 we'll be alright," said Bryan Reynolds, general manager at West Lakes Boat Mart at Sylvan Lake, Rome City. "That will be a big thing for this year. If the fuel stays down, we should have a good year."
According to recent data from the Marina Retailers Association of America, overall sales for the industry were down 29 percent year to date. The segment of the industry that's taken the biggest hit is jet-powered boats, small watercraft. Personal watercraft are off 32 percent.
"Actually, we have had a pretty good spring so far. Sales are down a little bit, but it's not that bad," said Jeff Bireley of Clark's Landing Marina, Hamilton Lake.
"I have to agree with Jeff. I think we're a little ahead of the curve, especially from what I've seen in the last three weeks. A month ago, I wouldn't have said that," Reynolds said.
The turnaround comes in a year in which the economy is flagging, and it follows 2008, when the marine industry was down 15 percent from the previous year, Bireley said.
Thom Dammrich, president of the National Marine Manufacturers Association, told the Associated Press he expects a boom in boating and fishing this summer, citing improving economic signs and consumer confidence. And he noted that national average gasoline prices, which soared to close to $4 a gallon for most of last summer, are back down to above $2 a gallon.
Dammrich estimated new boat sales in 2008 were about $9.5 billion, or a little more than 200,000 boats. Dollar sales of used boats were about the same, but at roughly 600,000 units. The association estimates employment at boat and engine manufacturers is down 50 percent industrywide.
Fred Homan, of Clear Lake Marina, said many of the lakeside property owners who own boats aren't as sensitive to gas prices as are people who haul their boats from lake to lake and, therefore, are paying even more on gas.
"I don't think gas is a factor. We're only talking three months out of the year," Homan said.
One segment of the industry that hasn't declined as much as others, nationally and locally, is sales of outboard motors. The sales of outboard motors is down about 18 percent, the MRAA said. Locally, sales are strong because people are getting rid of two-stroke engines in favor of four-stroke engines, which are cleaner, quieter and more fuel efficient.
"We're actually repowering a lot more boats than we have in the past," Homan said.
Homan and Bireley said sales of used boats are very strong.
"They're actually bringing more than they're worth," Bireley said.
"Pontoons, in our market here, are staying relatively stable," Homan said. "And used, late models are doing exceptionally well."
An added complication this year has been the weather. It has been cold much of the spring, and some lakes, particularly in the western part of northeast Indiana's lakes area, have been closed due to high water. This has tended to slow traffic in showrooms.
"I'd say the season's running a couple of weeks behind," Reynolds said.
Good weather, along with favorable gas prices, should mean a decent year for the local marine industry, Reynolds said.