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Fuel Prices, Economy Cause Mainers to Change Their Boat-Buying and Cruising Behaviors

July 02, 2008 - PORTLAND -- High fuel prices and worries about the economy are dragging down boat sales in Maine, particularly midpriced powerboats. The luxury market, though, appears to be holding its own, and there is strong demand for sailboats.

It appears that many boaters are also making changes to save fuel, taking fewer long cruises and traveling at slower speeds. Also, an increasing number of Maine boaters are trading their powerboats for sailboats, said Stanley Russell, who sells new and used sailboats in Stockton Springs.

"We have a lot of people coming in who own big powerboats that are looking to sail," he said. "The only problem they are running into is what to do with their gas-guzzling powerboats."

A 42-foot powerboat burns one gallon of diesel fuel per mile when traveling at 20 knots, said Chris DiMillo, who runs DiMillo's Yacht Sales in Portland. At 28 knots, the mileage drops by half, he said.

But for the wealthy, fuel use is not a big concern. "The high-end, more expensive boats are still continuing to sell," DiMillo said. "The less expensive boats are struggling a little."

The trends in Maine mirror what's going on nationally. The number of powerboats sold wholesale in 2007 declined 13 percent from 2006, and the dollar value declined 8 percent, according to the National Marine Manufacturers Association.

The declines were not a surprise because they reflect what's going on in the U.S. economy, said the association's president, Thom Dammrich.

The downturn is manageable, said Robert Soucy, president of Port Harbor Marine Inc., the state's largest boat dealer with locations in South Portland, Raymond, Rockport, Holden and Kittery. He said sales are down somewhat from last year, which was a record-high year for his company, but volumes are still fairly close to projections.

"There is a lot of gloom and doom out there, but it's not as bad as everyone wants to make it," Soucy said.

He said it's been easier finding buyers for boats that cost from $25,000 to $50,000. Boats costing from $50,000 to $250,000 are a "tougher sell," he said.

At Sabre Yachts, which manufactures high-end, semi-custom powerboats that cost from $400,000 to $1.5 million, sales are healthy, particularly for the more expensive models, said Bentley Collins, vice president of marketing.

Collins said demand is soft for the middle-range models, which sell for around $500,000.

Many of his potential customers are couples who are on the verge of retirement and have been affected by a slumping stock market, and they are delaying purchases, he said.

Lots of people these days seem hesitant about spending money, Russell said. Rather than downsize, many are buying used boats. As a result, although he has sold significantly more sailboats this year, the total dollar value of those sales has not increased much.

Rick Dieffenbach, co-owner of BoatMaine.us, a Web site devoted to boating and sailing on the Maine coast, said high fuel prices are causing more boaters to switch from powerboats to sailboats.

Dieffenbach owns a MacGregor 26X, which he said is akin to a hybrid car.

The boat under power can reach speeds of 24 knots, and it also can be transformed into a sailboat. Opening a valve allows 1,400 pounds of water to enter a tank that runs along the bottom of the hull, creating enough ballast to keep the boat from tipping over when under sail.

The boat is inexpensive to operate, said Dieffenbach, who lives in Topsham. "I'm telling you, I have two six-gallon tanks. I just went out on a weekend, and I used a third of one tank," he said.

At Back Cove Yachts in Rockland, which is owned by Sabre Yachts of Raymond and manufactures powerboats that sell for $150,000 to $350,000, sales have been robust, said Collins, the vice president. He said that's partly because Back Cove is one of the few yards producing boats in this class that have single engines rather than twin engines.

The single engines are far more fuel-efficient, he said, and Back Cove sales this year are on pace to set records for the company. Collins said a 29-foot Back Cove boat burns about $50 in fuel a day. In contrast, a 45-foot twin-engine Sea Ray could burn as much as $500 a day in fuel.

But Soucy said that kind of fuel consumption would require a boater to operate at a high speed for 10 hours straight. Boating isn't like driving a car, he said. Boaters turn off their engines to anchor for swimming, fishing or socializing with friends and fellow boaters.

Soucy said the typical boater in Maine runs the engines 75 to 100 hours for an entire season. He said fuel is still a relatively small expense compared with other costs, such as boat payments, maintenance, storage and docking fees.

Still, higher fuel prices appear to be affecting boaters' behavior, Soucy said. Many are slowing down, traveling 15 knots instead of 25, and taking fewer long-distance trips. Also, rather than cruising in tandem with friends in another boat, the friends may decide to ride together and leave one boat tied up at the dock.

Soucy said fuel costs are not going to keep people from using their boats on a hot summer day.

"That difference is not great enough for them to say, 'I am not going to leave the dock,' " he said.

Staff Writer Tom Bell, July 1, 2008, Portland Press Herald


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