Costs Are Sinking The Boating Industry

Implications: High Fuel cost are keeping many boats tied to their slips or not being launched at all. Coupled with higher cost for storage, towing, moorage at destinations, and lower free income, the 2008 boating season will be very flat. New boat sales are at the lowest point in years and even used boats are flooding the market. Here in the North East we are seeing high numbers of people leaving boating for good.  At my marina - one of the largest in Ct. - we are seeing  a 20-25% vacancy rate. That is the worst in 20 years.

Analysis: Boat manufacture are seeing reduced sales, having to reduce workforces, cut all sorts of frills out of the products like teak wood and leather trim and cuts in inventory.  Marinas are going to see more and more open slips coupled with reduced fuel sales.
Maintenance spending is dropping fast and not expected to come back any time soon. Boating destinations are already see slowdowns in summer reservations. This then means that spending at these places for food, drinks, supplies will also drop.