Boating Industry Bouncing Back...

Philster · Mar 10, 2012

Read a few company blogs this morning:

Mercury Marine is up to eight weeks behind on fulfilling orders on many engines!

A number of builders are 6-8 weeks deep on orders and if they weren't so busy, they'd still be unable to deliver some boats because of Mercury's backlog.

A few builders are reporting that if new customers have hopes of boating this summer, they need to pull the trigger immediately, because the backlogs from the next wave of orders might increase delays and push things into the summer.

While the industry is busy indeed, they are also caught somewhat flatfooted, as their staffing and inventory were scaled back to the reduced demands of the past several years.

Happy Boating.

BillP · Mar 10, 2012

Re: Boating Industry Bouncing Back...

I guess Mercury has finally sold their 6 yr old inventory and parts of "no model date" engines and have to start making them again. The new motors people bought in 2011 may have been manufactured in 2006.

tpenfield · Mar 10, 2012

Re: Boating Industry Bouncing Back...

Yes, probably things are starting to move forward again. I used to find U.S. boat production stats on the Internet, but I have not looked for them in a while. Any body know where the latest boat industry production stats can be found on the web?

OutOfControl · Mar 10, 2012

Re: Boating Industry Bouncing Back...

"Any body know where the latest boat industry production stats can be found on the web?"

tpenfield,
latest boat industry production stats

5150abf · Mar 11, 2012

Re: Boating Industry Bouncing Back...

I know we are going crazy at Bennington, so far it is our biggest year ever, the reps are reporting record sales at boat shows and I am really scrambling to find welders to build all of them.

I redid my shop over the Christmas shut down and doubled or trippled some of my stations, we are building just the tubes in twice the space we started building the entire boats in 15 years ago and went from 12-14 people at the depth of 2008 to 60 now and looking for more and that is just on my tube line.

I know other sectors, like Philsters boat, haven't had nearly the come back that pontoons have had but it does seem to be picking up across the industry.

Now we get to see what $5 gas does to us.

spoilsofwar · Mar 11, 2012

Re: Boating Industry Bouncing Back...

Good news for those who work in the industry, and the economy in general.

Hopefully, the new boat I have on order from Stingray doesn't fall into the "not gonna get done this summer" category! Good thing I went with Volvo power

dingbat · Mar 11, 2012

Re: Boating Industry Bouncing Back...

If you would read our press releases you would figure that the world is going gang busters. Back orders are up. Profits are up and sales are up.

In reality, back orders are up becouse we laid everyone off. Sales are up becouse we purchased two companies in the past 10 months and profits are up becouse we're doing more with less and outsourcing the rest. At our present rate of process improvement we should be able to lay of a couple more people and become even more profitable.

sasto · Mar 11, 2012

Re: Boating Industry Bouncing Back...

That's good news, Philster. I got out of the boatbuilding industry awhile back, but I'm still in the marine business. The marina I'm currently at has doubled in occupancy over last year. A few are due to the fact it is cheaper to live onboard rather than a home. Some are first time owners of large boats. Several new faces....and several new boats. Lots of work going on around here!

Philster · Mar 11, 2012

Re: Boating Industry Bouncing Back...

BillP said:
I guess Mercury has finally sold their 6 yr old inventory and parts of "no model date" engines and have to start making them again. The new motors people bought in 2011 may have been manufactured in 2006.

Verados, indeed.

airdvr1227 · Mar 11, 2012

Re: Boating Industry Bouncing Back...

We're a bit ahead of where we were this time last year. There is a 'feeling' of consumer confidence. Just hope gas prices don't scare everyoine off.

Philster · Mar 11, 2012

Re: Boating Industry Bouncing Back...

Gas prices = news industry's LAZY WAY OF MAKING NEWS.

It's the American consumers' LAZY WAY OF BEING INFORMED AND CONCERNED.

Gas price concern is the way the Kardashian followers act informed and concerned. If the depth of your economic concern is 'OMG, gas is sooo expensive!", maybe you need a more holistic approach to grasping economics. Alright, I am being a wire-arse (apologies airdvr :redface

and harsh, but...

The boating industry is going to thrive because it's finally a good time for people to finance their purchases again. Loan rates are low; people have more savings and credit scores have rebounded (please, for the love of god, don't pop in here and tell me this isnt true because you have anecdotal evidence to the contrary. I am in finance and my life depends on these things).

Gas prices will not stop this boom. The increase in fuel costs might keep the economy slightly stagnant, which will contain inflation and keep interest rates low.

People are keeping cars longer; credit card debt is down; credit scores are up and interest rates are low.

BillP · Mar 11, 2012

Re: Boating Industry Bouncing Back...

dingbat said:
If you would read our press releases you would figure that the world is going gang busters. Back orders are up. Profits are up and sales are up.

In reality, back orders are up becouse we laid everyone off. Sales are up becouse we purchased two companies in the past 10 months and profits are up becouse we're doing more with less and outsourcing the rest. At our present rate of process improvement we should be able to lay of a couple more people and become even more profitable.

Thank for the insite. Such as several large mfgs, they laid off and closed factories. Then sent all the production to one facility...which could now be reported as having a banner yr. Same with marina in Florida, we lost appox 1/3 of the marinas on the east coast to developement during the bubble. People could not find slips and sold their boats. Now marinas have slips. Booming marinas have typically been caused from others closing in the area and the crowds relocating. Little growth is actually happening but the trend has been to sell the big boat and buy a small one. Florida is becoming unfriendly to boaters and it isn't helping the industry.

bp

sasto · Mar 11, 2012

Re: Boating Industry Bouncing Back...

Not one marina in my county has closed in years. Two new ones were built and a few expanded. I guess they are all coming here!

Slide · Mar 12, 2012

Re: Boating Industry Bouncing Back...

We all know anecdotal evidence isn't worth a squat, but I do have a nice tidbit to share. My co-captain was down at the Sea Ray dealer getting a new sticker for our Maxum and decided to see what kind of trade they'd do for it. He pulled the usual "well how many boats have you been selling" trick - 15 in the past week!! There are car dealers around that might sell 15 cars in a MONTH!

lakegeorge · Mar 12, 2012

Re: Boating Industry Bouncing Back...

Philster said:
Gas prices = news industry's LAZY WAY OF MAKING NEWS.

It's the American consumers' LAZY WAY OF BEING INFORMED AND CONCERNED.

Gas price concern is the way the Kardashian followers act informed and concerned. If the depth of your economic concern is 'OMG, gas is sooo expensive!", maybe you need a more holistic approach to grasping economics. Alright, I am being a wire-arse (apologies airdvr :redface and harsh, but...

The boating industry is going to thrive because it's finally a good time for people to finance their purchases again. Loan rates are low; people have more savings and credit scores have rebounded (please, for the love of god, don't pop in here and tell me this isnt true because you have anecdotal evidence to the contrary. I am in finance and my life depends on these things).

Gas prices will not stop this boom. The increase in fuel costs might keep the economy slightly stagnant, which will contain inflation and keep interest rates low.

People are keeping cars longer; credit card debt is down; credit scores are up and interest rates are low.

I guess you forgot about the millions of people out of work, or the millions of people who make $8.00 or $10.00 an hour. Gas prices will absolutely affect them and it will absolutely hurt the economy.
I disagree with most of what you said.

hog88 · Mar 12, 2012

Re: Boating Industry Bouncing Back...

Philster said:
Gas prices = news industry's LAZY WAY OF MAKING NEWS.

It's the American consumers' LAZY WAY OF BEING INFORMED AND CONCERNED.

Gas price concern is the way the Kardashian followers act informed and concerned. If the depth of your economic concern is 'OMG, gas is sooo expensive!", maybe you need a more holistic approach to grasping economics. Alright, I am being a wire-arse (apologies airdvr :redface and harsh, but...

The boating industry is going to thrive because it's finally a good time for people to finance their purchases again. Loan rates are low; people have more savings and credit scores have rebounded (please, for the love of god, don't pop in here and tell me this isnt true because you have anecdotal evidence to the contrary. I am in finance and my life depends on these things).

Gas prices will not stop this boom. The increase in fuel costs might keep the economy slightly stagnant, which will contain inflation and keep interest rates low.

People are keeping cars longer; credit card debt is down; credit scores are up and interest rates are low.

Philster - if you don't think gas prices will punch this minor economic rebound in the gut you are mistaken my friend. When, yes when, the avg hits $5 in another 30 to 45 days the panic and slide will make the last one look like a bump. Diesel is already out of control, which pushes all consumer goods higher then throw in the gas for your passenger cars. It's not going to be pretty.

BRICH1260 · Mar 12, 2012

Re: Boating Industry Bouncing Back...

I can`t help but think that unless gas prices do not get under control that all of the economy will downturn, including the boating industry. After all, aside from us diehards, a boat is considered a luxury item. Many will not want to spend thousands on a new boat and then fill it with $4.00/gallon gas, only to be able to use it for half the year.

lakegeorge · Mar 12, 2012

Re: Boating Industry Bouncing Back...

BRICH1260 said:
I can`t help but think that unless gas prices do not get under control that all of the economy will downturn, including the boating industry. After all, aside from us diehards, a boat is considered a luxury item. Many will not want to spend thousands on a new boat and then fill it with $4.00/gallon gas, only to be able to use it for half the year.

Brich1260, Gas at our marina is $4.70 a gal most marinas on our lake charge $1.00 more a gal than what it's selling for at the pumps.

Slip Away · Mar 12, 2012

Re: Boating Industry Bouncing Back...

BillP said:
I guess Mercury has finally sold their 6 yr old inventory and parts of "no model date" engines and have to start making them again. The new motors people bought in 2011 may have been manufactured in 2006.

Unlikely if it is a catalyst motor, those were non-existent in 2006.

tpenfield · Mar 12, 2012

Re: Boating Industry Bouncing Back...

If I look at the money I spend maintaining and using my boat . . . Gas is fairly minor, maybe 35% of the total.

If gas went up by $2.00 a gallon, I'd probably spend $400 more for the season. So, I'm not too worried about gas prices.

Hey, if you want to lower gas prices . . . just try driving slower . . . if everybody does it, there will be so much gas lying around, the oil companies will have to give it away.

Boating Industry Bouncing Back...

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