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Can The Boat Industry Survive?

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Can The Boat Industry Survive?

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Old 05-05-2008 | 07:56 PM
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Originally Posted by MIlander
the dollar has gone down very significantly against the euro and most other currencies, seems like a huge opportunity for companies with vision.
I agree here completely. The biggest growth area for luxury goods is overseas. I feel that Cig, Outerlimits and Nortech are doing a great penetrating those growth markets. They should help them with stability given the contracting US market.
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Old 05-06-2008 | 09:05 AM
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crb76, good point. It has been said in the auto industry that they must go overseas to remain competitive, or even stay in business. Is this a new reality for the boat builders too? Can the boat guys stay in business with the US market alone? Or have the smart ones gone overseas?
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Old 05-06-2008 | 09:31 AM
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Originally Posted by BL6
I think of it this way: a few yrs ago a buddy took his family to DisneyWorld for a week, flew down, stayed in their hotels, tickets, meals, etc, etc. spent $5,000 for 1 wk.

What if I spend that much over an entire summer of boating and family gets to enjoy lots of great weekends, and fun together.

When its hot they "aint no better place to be"
spot on, no matter the price of gas it's what I like to do on weekends in the summer.
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Old 05-06-2008 | 10:05 AM
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legend700 yes i know this is true for most, but I am interested in the industry perspective and how, or if, they can survive this next down cycle. To me, it is much different than past ups and downs.
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Old 05-06-2008 | 10:23 AM
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It will have a BIG effect on ALOT of manufacturers, I can't see how it won't.
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Old 05-06-2008 | 10:32 AM
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In the early 80s didn't boat manufacures adapt with 4 cyls light hulls, and more efficient bottom designs. That is what put bayliner on the map. May not be high performace, but bayliner was selling alot of boat when others were not. Might just have to step away from 35' boats and 1000+hp to modern direct injected small cube v8 or I6 and get some more wieght out out of the hull. If boat A gets 4 mpg with small ci and boat B gets 1.5 mpg with standard big blocks If both run 70mph I bet boat A is going to sell first.
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Old 05-06-2008 | 11:39 AM
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The industry will take a hit. smaller companies will be flushed out. Some bigger companies will be flushed out.

A few will remain with no problem

My guess in the performance market is Cig, OuterLimits, Formula, Fountain, and MTI are the strongest players.

Regular boats usually see power players that cut back but don't go under... so Sea Ray and Bayliner are fine along with a few more like pro line.

Big sportfishing boats will continue with Hatteras, Viking, and Ocean Yachts leading the way.


My honest educated guess is we'll lose a couple mainstream companies (or they will get bought out, absorbed etc.). I think the shockers to a lot of people will be Donzi and Bertram. Pure speculation at this point, but I have good reason behind it.
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Old 05-06-2008 | 11:56 AM
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Everyone keeps commenting on the brands that will survive this economic squeeze by thinking only of their market share. Does anyone think that company's with the most market share are the ones that have the most to lose? Do you know what happens to new boat sales when the number of 2nd hand boats of the same brand are being liquidated ? People that paid top dollar for new boats are now liquidating them thus making it very hard for the next guy to pay top dollar...The only way for those companies to survive is to close down until all 2nd hand inventory is gone...then they can go back to selling at their normal prices...
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Old 05-06-2008 | 12:08 PM
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Everyone keeps commenting on the brands that will survive this economic squeeze by thinking only of their market share. Does anyone think that company's with the most market share are the ones that have the most to lose? Do you know what happens to new boat sales when the number of 2nd hand boats of the same brand are being liquidated ? People that paid top dollar for new boats are now liquidating them thus making it very hard for the next guy to pay top dollar...The only way for those companies to survive is to close down until all 2nd hand inventory is gone...then they can go back to selling at their normal prices...
You make some very strong points. A slightly used, almost new boat for .50 on the dollar is going to be very attractive.
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Old 05-06-2008 | 12:17 PM
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I think Donzi will make it through. And, thats from as VERY good source.
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