Why the powerboat industry is sinking.
 

Scary article for the powerboat industry. :eek:
Brunswick's stock, which fell 14 percent last week, is off more than 40 percent since last summer. And the company has taken the rest of the industry down in its wake. :(

ARTICLE

Re: Why the powerboat industry is sinking.
 

Lets see oil headed foer 100 bucks a gallon , ww3 in the middle east hmm
boats use gas hmm .. :D

Re: Why the powerboat industry is sinking.
 

I just look at the local hang-outs on the water and there is about HALF the boats this year compared to years past, it's not going to get any better either.

Re: Why the powerboat industry is sinking.
 

Fuel prices extra high insurance or no insurance and outragous prices for new boats....easy to figure out. Does Brunswick do anything with the marine insurance industry to help loby the prices?

Re: Why the powerboat industry is sinking.
 

look at the economy , the company i work for is off compared to last year and the year before. but listening to the president economy is in good shape :rolleyes: sure it is , if your in the oil buisness :evilb:

Re: Why the powerboat industry is sinking.
 

lobby the insurance industry?????

Re: Why the powerboat industry is sinking.
 

Don't forget higher interest rates...

Re: Why the powerboat industry is sinking.
 

It has been the same around here very few people boating you go out and there are hardly anybody out a few of us still run every week-end and have the water to ourselves. Baoted in Pittsburgh pa over the week-end and there was hardly any boats out

Re: Why the powerboat industry is sinking.
 

just look at all the boats still shrink wrapped

Re: Why the powerboat industry is sinking.
 

Which in hand affects the marina's, restaurant owners, pretty much anyone who is on or near the water.

Re: Why the powerboat industry is sinking.
 

and look at the next boat I'll buy to take off of someones hands...hmmm maybe 46 or 42x? :evilb:

Re: Why the powerboat industry is sinking.
 

well Fred, are you seeing increased, decreased, or consistant volume this year compared to last?

Re: Why the powerboat industry is sinking.
 

On the bright side, there's fewer maroons out on the water :) :)

Re: Why the powerboat industry is sinking.
 

I think part of it is the companies service just plan suxs.People are told well i can get that part to you in 2-3 weeks and guess what 13 weeks later you get it.I've been saying for months that the marine industry has a big whole in it about the size of the gulf of mexico.The differance between a back yard mechanic and one that advertises and that's well known.NOTHING their the same.It makes me want to get out of perf. boating.My words are directed at certain companies that i've done business with and not at ones i havn't.when you spend thousands of $$$ and call that company 12 times and they don't call you back thats where tis is coming from.

Re: Why the powerboat industry is sinking.
 

I heard you say that almost word for word at your shop last month.
Things going better? Everything good now?

Re: Why the powerboat industry is sinking.
 

I can totally relate to what you are saying with the boating industry.

Re: Why the powerboat industry is sinking.
 

Yup I agree with all statements, GAS $$ = less boating Boat Prices $$ = less Boating, Insurance $$ = less Boating, on SML, I see about a third of the boats from 2 years ago. The boating industry is heading for a serious slow down, I would dare call it a a "boating depression" I think it would have already happen if not for the boat insurance claims from hurricanes

WILL

Re: Why the powerboat industry is sinking.
 

Exactly why we build boats for a hobby , I don't do it for a living! It's a pure passion , satisfaction thing for me. Been doing it for 6 years , built a handful of boats , won a few championships , molds paid for , small , no debt. If gas goes to 10 bucks a gallon , we'll still be around!

Re: Why the powerboat industry is sinking.
 

So what's the corrective action? What are they doing about it? (What can be done about it?) Incentives? New partnerships with insurance or lenders??? I wonder if Brunswick could or should consider in-house financing (like GM/FORD)...providing a competitivly lower interest rate than a third party might sway a consumer to finance with the manufacturer. At the same time collecting interest could offset some of the losses or maybe contribute to some sort of incentive. Who knows? Maybe get Boat-U.S. onboard....Boat/Trailer/Financing/Insurance/Tow-assist package deals?
Just thinking aloud.

Because there's nothing that anyone can do about fuel.

Re: Why the powerboat industry is sinking.
 

Yep, serious snowball effect! :( Also, so many stories of ?able dealers and manufacturers scewing customers over! Have had many-a bad dealings myself. People paying unheard of #s for "toys" as opposed to a necessities. You would think the industry as a generalization would role out the red carpet to boat buyers and treat them like kings instead of let me get this note signed and then this buyer is out of here and we have his/her money! Ciao Buddy, don't call back until you want to buy another boat-Sucker!! :mad: Sorry, one of those days, Tracy

Re: Why the powerboat industry is sinking.
 

I plan to spend every bit as much time on the water this year as I did last year and the year before. Rafting up is free, and I'll just be fussier about how how far I go. That won't help Brunswick, though - I don't buy anything they make.....

Re: Why the powerboat industry is sinking.
 

Dustin at whipple has been very good to work with lately.He has gave me more service than anyone in the industry.We'll today if the ecus are better today.

Re: Why the powerboat industry is sinking.
 

This is my 56th year in the boat biz. I have seen the industry as a whole (hole?) tank time after time. For the average American, (especially wives), the need to own a boat is right up there with Faberge eggs and Beluga caviar. Guess who was the biggest loser in the last corporate boat company ownership purge. Yep, Brunswick! When times are good, the Marine Industry is an OK business. When times are tough, there is NO WAY that a large manufacturer can cope. God bless the 'lucky sperm club' and the .com whiz kids for keeping our little lunatic fringe afloat..........

Re: Why the powerboat industry is sinking.
 

From here it looks like a big bell curve that started in 1920, peaked in the 80s and will end about 2030.
So this would be the backside of the historically short-lived phenomenon called recreational power boating.

Re: Why the powerboat industry is sinking.
 

High end performance boat sales are still doing very, very well. When you spend $200k++ on a boat gas is not a large factor. It is not all doom and gloom out there.

Re: Why the powerboat industry is sinking.
 

Gee that never happens. It is NOT WORTH the aggravation. Boat manufactures and part manufactures can not identify who the worthwhile customers really are. As a result they alienate these customers and we lose interest.

Re: Why the powerboat industry is sinking.
 

Brad while i agree with you, a mfg cannot live on a few sale sa year unless their $$ go into to the atmosphere, lets face it the masses, Boats between 15K-150K help sustain our hobby and that is where they really make their money, that market is going to fall flat. Someone who spends 30K on a boat is not going to do it if it costs them $400 a weekend in gas,

Gas used to be an expense like the eletric bill or water, now its more like a house payment if you boat every weekend :eek:

WILL

Re: Why the powerboat industry is sinking.
 

It was cool while it lasted. Glad that I got to experience it. Not expecting the roar of hp boats when I am an old man. Still expecting the slap of rigging against masts though.

People are finding new hobbies that are not a second job and a huge expense.

Looking forward to my second weekend boatless.

Never knew that I would have free time and spare cash again.

It's actually very nice.

Re: Why the powerboat industry is sinking.
 

Bite your tongue!

They can take my boat when they pry my cold dead fingers off the throttles. :)

The only reason I like spare cash is to spend it on boats, and all my spare time, I'd rather be farting around with, or driving a boat.

I have always loved boats as long as I can remember. I used to dam up the road gutter when it rained, so I could pull my plastic boat on a string through the lakes I made.

When my obsession with boats goes away, they can go ahead and start shoveling dirt on my face. I don't want a casket when I go, just set me adrift in an old hull.

Re: Why the powerboat industry is sinking.
 

Hmmm...

Gas prices are a concern, but, I think most just won't travel as far and still have fun. As someone already said-"rafting is free".

Rising interest rates are affecting not only financing a boat, but ,also, NOW, home equity loan payments are going up, mortgage payments are going up. Of course, that affects the real estate market, which alot of people are invested in. Now, the values are rising at a much slower pace (if not declining), which puts quite a bit of uncertainty in the economic outlook in general (not to mention the conflict in the Middle East!).

Insurance costs are rediculous, too.

Last, prices of boats are going up every year.

Re: Why the powerboat industry is sinking.
 

Were any of you folks boating in 1973?
<<<<15% and NO gas>>>>

Re: Why the powerboat industry is sinking.
 

Regarding what Brad posted. People with money, not just a couple of million, those with HEAVY portfolios, are still spending money. The high end boat companies, ie. OL, MTI, Nortech, Skater, Cig, are as busy as ever. There is more wealth in this country right now than ever before. Sure there are areas where the economy is stalled, but for the most part people are still spending money.

I am sure there are boat companies struggling now. But it is obvious, with the new boats on this board alone, that the heavy hitters are still hitting home runs.

It does make the 2-4 year old boat market very attractive though.

Sam

Re: Why the powerboat industry is sinking.
 

Mine started when I tied bleach bottles to wooden planks at age 6 and started heading down the creek toward the river.

I also pulled a plastic boat on a string.

I am not saying that I will never have a boat again, just that there is a certain undeniable freedom involved in being boatless.

Remember, up here we do all of the same work and more (winterizing etc.) just to use it for 3 or 4 months. Looking forward to calling the storage guy and telling him not to look for me. Already called the insurance agent and dropped the insurances on boat and trailer.
Payments stopped coming out of checking account.

List of things needing fixed is more than cut in half.

Have started saving money and it's only been ten days. :D

Maybe looking for a little car. No need to drive the truck everywhere.
No need to drive the truck at all.

Figure there will be plenty of room in the garage when I pack up all the boat stuff.

Re: Why the powerboat industry is sinking.
 

Well said!

With gas prices up to $400 a tank, I just spend a little less time on the sticks and more time on the sun pad.

Just being on the water beats anything else I can do with my time.

Re: Why the powerboat industry is sinking.
 

Yep. And I remember having to paddle the little runabout up at the lake because it was the only way to leave the dock.

BTW... we had one of those round Scotch coolers. :D
It matched the interior of the boat. ;)

Re: Why the powerboat industry is sinking.
 

Fred, you have great business sense and a great business plan. With that, you will continue to grow and prosper.

I think when the economy tightens up, all it does is weed out the weak, and the strong get stronger.

My company was growing double digits in a bad economy and we have been in business 32 years!

Re: Why the powerboat industry is sinking.
 

You'll change your mind after 2 summers hanging out
with the boring neighbors in the backyard. Believe me,
I did when my wife was preg. Worst 2 years of my life!

Re: Why the powerboat industry is sinking.
 

Spoke to a marina owner this week who just retired. His father and
grandfather was in the same biz since 1910. He said it was difficult
but still substainable during the 73/74 oil embargo. His grandfather
said the same thing happened in the depression. His grandfather
said "people will work 50 weeks a year,just so they can spend 2
weeks on their boat".

Re: Why the powerboat industry is sinking.
 

Epeek, what specie is your wife?

Re: Why the powerboat industry is sinking.
 

Maybe, but until then I will chill in my hammock and watch the used market bottom out.

If the EPA still lets people who can afford gas burn gas for recreational use in a few years, that might be a good time to get back in. By then used boats will be almost free.