Recession hits the Boating Industry
The $40 billion/year boating industry is struggling to stay afloat during what appears more and more to be the beginning (or middle?!) of an economic recession. Between rising fuel prices and lacksidasical sales that have been dropping almost every month since 2004, the boating industry has been hit early with manufacturing layoffs, plant closures, and abruptly falling profits. Already, the nations largest recreational boat retailer, MarineMax, has laid off 10% of their workforce as they saw their profits dwindle by an amazing 50% this last year.
Not to say this isn’t anything new, however. In a time of recession, service industries are likely the first to get hit and the last to economically recover. The powerboat segment (no surprise) seems to be hardest hit with gas prices making that daytrip even more expensive. Illinois-based Brunswick Corporation, responsible for manufacturing over a dozen boat brands including Bayliner, has laid off 1,300 workers and cut its boat production by more than 10% after posting an $81.4 million loss this last year.
The Northwest has largely been insulated from the national economic downturn, but is showing signs of joining the general malaise as the Seattle housing market posted its first year-to-year price decline since 1991. As consumer confidence continues its decline and housing worries persist, how will our area’s boating and charter industries be affected?
How has our economic situation impacted your plans for getting out on the water?
I live in Massachusetts and keep my 30 foot sailboat in Rhode Island. For the past 3 years, everything has gone up—mooring fee, boat maintenance, etc. I am feeling the financial squeeze in other areas in my life too, so I can understand why people are slow to buy a NEW boat.