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| Title: |
Boat Sales |
| Date: |
1/10/2003 |
| Location: |
San Diego, California |
| PWC
ID: |
57 |
Local - San Diego Daily Transcript
Boat Sales
Mon Jan 6, 8:56 PM ET
Local boat retailers contend their sales are the best they've had in years, while the rest of the nation reports declines and forecasts a flat 2003.
The San Diego Boat Show opens this week with 20 percent more boats, gear and accessories than in previous years, said Jeff Hancock, show manager. He expects nearly 30,000 people to attend the four-day trade expo at the San Diego Convention Center and the Marriott Marina. It's one of the largest indoor and outdoor boat shows on the West Coast."We seem to have a stronger boat economy than other parts of the country," he said. "We have a longer sailing season."Still, national boat sales were down 7.4 percent in third quarter 2002 and 5.5 percent for the first nine months of last year, said Dick DuMont, an analyst with Statistical Surveys Inc. The Grand Rapids, Mich.-based company compiles sales data on the boating and recreational vehicle industries for the National Marine Manufacturers Association."Things aren't going all that well and haven't for a couple of years," DuMont said. "The 30-foot and up market is down 21.8 percent through the first nine months of 2002. That's a reflection of the economy and the stock market. People don't have discretionary income and they're not making a lot of money." Further, a dip in the Consumer Confidence Index (news - web sites) in December could mean flat boat sales in 2003, said Thom Dammrich, president of the NMMA.
The nonprofit member-based group is made up of companies that make products for recreational boaters. They look at consumer confidence, interest rates and RV sales in trying to forecast the industry's short-term future, according to Boating Industry International Magazine. While RV sales are up and interest rates are at 41-year lows, uncertainly over Iraq, North Korea (news - web sites) and increasing oil prices is dragging down consumer's confidence, Dammrich said. As the boating industry is a lagging indicator, it will be among the last sectors to pick up once consumer confidence strengthens, according to Boating Industry International.
Still, local retailer Roy Gaertig of Sundance Marine in Mission Bay said end-of-the-year sales far exceeded his projections.Gaertig, who just opened his outlet in September, said every type of craft from wakeboard boats to fishing boats to performance cruisers is selling well. Prices range from $15,000 for an 18-foot family runabout to $1 million for a 47-foot performance cruiser, he said.And with the bulk of his sales in the $150,000 to $250,000 range and monthly sales of between 16 and 20 boats, Gaertig said San Diegans aren't deterred by the weak national economy or cutting back on discretionary spending."I haven't seen much of a downturn. People are optimistic," he said. "San Diegans are back in the buying mode. It's the best climate in the world."Sundance Marine will have three booths at the San Diego Boat Show and Gaertig said he expects to sell 60 percent of his yearly volume over the four days.As of 2001, the most recent data available from the Department of Motor Vehicle, there were 70,000 boats registered in San Diego County. More than 80,000 were registered in Orange County and 132,000 in Los Angeles County.California, with 961,000 registered boats, ranks No. 2 behind Michigan as the state with the most boats. Florida is third.Hancock, the San Diego Boat Show organizer, has put on the event for 15 years and said Southern California isn't as hard hit as other places. "I don't know why. Sure, it's getter harder to sell boats, but a few dealers are saying they had their best year," he said.Additionally, 40 percent of all new boats are sold at boat shows, he said. People will come to look and may end up buying because of low interest rates and the no-hassle environment of the show, he said. Powerboats make up 80 percent of the show and sailboats 20 percent. Also on display will be personal watercraft and kayaks along with fishing accessories, electronics, diving and water skiing equipment and boating accessories.But if the recent boat show in New York is any indicator, attendance could be down from previous years. The New York Boat Show ended its eight-day exhibition with 73,082 in attendance, down 26 percent compared to last year. Exhibitors reported mixed sales results and blamed the lagging attendance on a change in the dates and football playoff games.
Dammrich of the NMMA said despite the weak economy and lagging consumer confidence, the boating industry is in good shape. Dealer inventories are low, manufacturers are lean and Americans have a stronger priority for family, he said. As a result, the industry will weather this better than previous downturns, Dammrich said.The San Diego Boat Show runs from Thursday to Sunday at the San Diego Convention Center and Marriott Marina. The cost is $8 for adults, $4 for children ages 6-12 and free for children 5 and younger. For more information, log on to www.discoverboating.com.
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