The total value of all boats and marine services sold last year was $37.5 billion, down five percent from 2006, according to statistics released today by the National Marine Manufacturers Association (NMMA). Powerboat sales were down eight percent last year, and sailboat sales figures have not yet been released.
The numbers paint a picture of an industry suffering from the one-two punch of decreasing sales and increasing fuel prices, the latter of which are setting records as the Memorial Day weekend kicks off. Gas prices at the marina pumps continue to rise along with everywhere else. For drivers, a gallon of regular gas cost an average of $3.88 nationwide, according to the Associated Press, which quoted AAA and the Oil Price Information Service. Diesel prices have soared even higher, with the national average at $4.69 a gallon. At a marina in Mattituck, on the North Fork of Long Island, mid-grade gas was priced at $4.81 a gallon, while diesel cost $5.05 per gallon on Friday. Prices at the gas stations were hovering close to $4 a gallon for regular grades. How will fuel prices impact boaters? Well, the dockside chatter indicates that people are slowing down, and sometimes staying put. But the NMMA says data from a survey of 2,400 boat owners suggests gas prices won't keep boaters off the water this summer. Only one percent of those surveyed said they planned to not use their boat in 2008 due to high fuel costs. Even though prices were lower last year, NMMA said three percent of boaters in 2007 stayed home because of fuel prices. NMMA President Thom Dammrich admitted that rising fuel costs "have certainly shifted boater habits, causing them to take shorter trips or reduce their cruising speeds, but we expect boaters' passion for the lifestyle to continue to lead them to the water this summer." Will the exports significantly offset lower domestic sales? Well, there are probably two sides to that story, too.
One piece of positive news for the industry: exports of U.S. recreational boats and engines grew 23 percent to $2.9 billion in 2007, creating a positive trade balance in that market for the first time since the NMMA starting keeping figures in 1996.
