The most obvious effect of steep oil prices is the pinch boaters feel at the fuel dock, as gasoline balloons to more than $4 per gallon in some areas with diesel close behind.
But complaints can also be heard in showrooms, where salespeople often use the increasing cost of oil to justify the increasing cost of new boats. Can you really trust a dealer when they say this year's model is more expensive than last year's because the price of oil has gone up?
The truth is that it is difficult to make generalizations, because different companies and segments of the market are impacted by a myriad of economic factors. But government and industry statistics do show that the price of oil and the average price of a new boat in some segments of the market have climbed together since at least 1995.
For example, the average cost of a new boat with an outboard engine nearly doubled to about $15,000 between 1995 and 2005, according to the National Marine Manufacturers Association. The cost of a new boat with an inboard engine rose roughly 87 percent to almost $400,000 during that same period. Concurrently, crude oil prices tripled worldwide, from $17.02 per barrel to $54.52 per barrel, according to statistics from BP.
Reporting: Patrick Reaves
Sources: BP, NMMAThe price of crude oil and the price of power boats with inboard and outboard engines increased between 1995 and 2005.
James Petru, director of industry statistics and research at the Association, said any industry that is reliant on petrochemical products like fiberglass is going to be sensitive to oil prices.
"We do anticipate it to cause increases," he said, though he added that, "I don't think it will affect boating any more than the plastics people."
High oil prices hurt more than just consumers. Boat builders feel the sting first, in the form of increased costs for raw materials and shipping, which are generally passed on to dealers and then to buyers. Many manufacturers, particularly those with smaller companies making smaller boats, say fluctuating oil prices make managing their costs and customer pricing far more difficult.
"You look at a boat, and it's almost all based on petrol," said Rob May, director of marketing for Regal Boats, which makes high-performance gas and diesel engine sport boats and cruisers. Because wooden boats have been reduced to niche craft, and boats made of steel and aluminum are still small segments of the market, the vast majority of recreational boats are made primarily of some form of petrochemical, usually fiberglass and plastic.
Regal Boats makes about 3,000 recreational units per year, ranging from 19 feet to 53 feet. May said that because the cost of building those boats has risen so steadily, Regal has to fight harder than before to retain and gain market share.
"We have been very cautious because of the price of raw materials," May said. "We have to work harder for the sale before."
