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Boat Shows Must Go On, Despite a Dismal Economy

March 17, 2009 - PORTLAND — Attendance was down by about 30 percent last weekend at the Augusta Boat Show.

Still, there is optimism in the sea air, said the show's director, Robert Cole, who is putting on this weekend's Maine Boat Show at the Cumberland County Civic Center.

"The attendance was down, but the buying was good. Not strong, but good," said Cole, who directs boat shows in Augusta and Portland each year. "We've had three other shows this spring. They've all been off (in attendance) by about 30 percent. That is the norm right now."

That's also what national trends are showing. But despite the downturn in the national economy, there is hope for the boat-selling season, dealers say.

Ellen Hopkins, communications director at the National Marine Manufacturers Association in Chicago, said the crowd at boat shows does not always indicate how boaters will buy. And Maine dealers say this year, boaters are buying differently.

The fact that sales are happening this year is a good sign, dealers say.

"We produce 23 boat shows around the country. In an informal survey of dealers, we heard a lot of dealers were really pleased they were having sales," Hopkins said.

For most of the past decade, powerboat sales nationally hovered around 300,000, Hopkins said. In 2007, as the country slid into a recession, powerboat sales dropped about 8 percent – from 292,900 to 267,300 – followed by about a whopping 30 percent decline in 2008.

In Maine, Cole says, people are still buying boats, but in niche markets. For example, he said, powerboats sized 24 feet and up are selling, as are smaller starter sets – aluminum boats that come with a trailer and motor.

Those larger boats start at about $32,000, while the 16-foot aluminum boats with trailer and motor can start as low as $7,000, Cole said.

"There is no question the upper end is doing well. Not fantastic, but they are enjoying sales," Cole said. "Unless something dramatic happens, I expect it to be a tough year for the consumer and the boat dealer, but there is strength in the market, and there is interest in the market."

Some dealers are actually excited.

At the Yarmouth Boatyard, Steve Arnold is preparing for the Maine Boat Show – Portland's second this winter after the Portland Boat Show at the Portland Sports Center last weekend.

On March 20-22, the Maine Boatbuilders Show will be held at Portland Yacht Services, 58 Fore St., Portland.

"We're excited this year," Arnold said. "At the Boston show (in February), it was quality over quantity."

Arnold said at the three boat shows he has traveled to this winter, he has made sales – just not in areas in which he did well in the past.

This winter, Arnold said, boaters coming to his boatyard have mostly spent money on repowering rather than replacing a boat. It's not the big-money sale of the past, but it's still a sale.

A new engine can cost anywhere from $8,000 to $22,000, Arnold said. That's a significant expense, even though a new powerboat can cost $40,000 and up.

For Arnold, repowering jobs have increased 50 percent to 60 percent in the past year.

"By repowering with a new engine, that will (give the boat) another five years," he said. "It's good for us. If they are happy, there is the chance they will come back to buy a boat from us (later)."

Some areas of the boating industry are more aware of the slowdown in spending.

At Sawyer & Whitten Marine in Portland, where the focus is on electronics, the 10-year-old company has seen boaters pulling back on expenses.

"We're getting people coming in and upgrading their old equipment. But we also do business with boatyards and boat builders. If boat sales are down, then our business is down," said co-owner Mike Whitten.

However, Whitten, who will be at the Maine Boat Show this weekend, is encouraged after going to the Boston Boat Show.

"Attendance was up at the Boston show. I was pleasantly surprised at the optimism from all the customers that were there. Although things weren't flying off the shelves, we did make some sales," Whitten said. "There was a lot of optimism and a buzz from the crowd. It was not all doom and gloom."

Whitten said 2008 was expected to be a slow year because of high fuel costs last winter.

Now that fuel costs have dropped, he is hopeful traffic will return to the waterways, despite the recession.

"If people are not out boating, they don't tend to upgrade. Things don't break if they don't leave the dock," he said.

By DEIRDRE FLEMING, Staff Writer, Portland Press Herald, March 12, 2009


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Regions: Sebago, Belgrade, Sanford, Mid Coast


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