Trade Only Sample TO.03.10.Sample : Page 1
Lighter, less-thirsty outboards for 2010 — P.16 Cuba as a post-embargo boat center — P. 55 March 2010 Weak dollar boosts exports Source: U.S. Census Bureau U.S. exports Dollar's value compared to euro ® $121.8B $129.4B 76¢ 70¢ $138.2B $142.7B 66¢ 70¢ Apr ’09 WWW.TRADEONLYTODAY.COM $5.00 The question now: How much to build? Companies closely monitoring sales as they ramp up to avoid shortages By Reagan Haynes B oat and engine manufacturers were casting a hopeful eye to the winter boat shows as they wrestle with the uncertainties of how much product to build. With inventory levels at record lows, manufacturers are trying to shorten lead times to meet seasonal demand and structure employment so they don’t land in an annual layoff situation. Builders are approaching the issue in different ways — from reducing the number of options and variations on boats to designing add-ons that are easi- er to install at the dealership level. Some say parts have been difficult to come by because of a drastically weak- ened supply chain, sometimes resulting in production slowdowns. continued on Page 35 Tone at Miami: Worst may be over State of the industry report is upbeat; activity picks up in small-boat sales By Beth Rosenberg / Associate Editor b.rosenberg@tradeonlytoday.com T his could be the year the turnaround begins. Con- sumer confidence is on the rise, the auto and RV in- dustries are seeing an uptick, and the retail financing crunch is starting to ease. And while there’s still a long way to go, dealers say boat buyers are back at the shows. “We clearly are beginning to see that consumers are tiring of deferring their boat purchase, and we’re seeing more buy- ers coming to the shows,” said Thom Dammrich, president of the National Marine Manufacturers Association, in his an- nual state of the industry address at the Miami International Boat Show and Strictly Sail Miami. “That seems to indicate to me that in the next couple of months, particularly as we enter the height of the selling season for the boating indus- try, we should see some increase in the sale of new boats.” With 17 million boats in use in the United States and 70 continued on Page 34 HEARD IT HERE FIRST “As soon as we walked in the door [of the auction] and saw there were only two bidders, I knew we were done.” — Genmar creditor Gary Potter Jul ’09 Nov ’09 Dec ’09 *Exports, especially to Europe, commonly increase when the dollar’s value decreases. INSIDE Tomorrow’s techs The work force of the future will con- sist of skilled technicians with expert- ise in one specialty, but a broad knowledge of boat systems in gener- al, says a Rhode Island training in- structor in a Q&A. Page 8 They’re out $140M The Genmar bankruptcy conclusion brings little comfort to the 4,000 un- secured creditors — many of them suppliers. They have virtually no hope of seeing any of the $140 mil- lion they are owed. Page 28 No longer immune The megayacht business has lost its standing as the “recession-proof” in- dustry segment. Despite growth in the extreme upper end (boats over 200 feet) orders overall are down 25 percent. Page 30 ADVERTISING SPECIAL 2010 Dealer Recruitment Marine dealers are a critical link to the boating consumer. As 2010 un- folds, these companies appreciate their existing dealer families while looking forward to welcoming new dealers aboard. Pages 39-54
The Question Now: How Much To Build?
Reagan Haynes
Boat and engine manufacturers were casting a hopeful eye to the winter boat shows as they wrestle with the uncertainties of how much product to build.
With inventory levels at record lows, manufacturers are trying to shorten lead times to meet seasonal demand and structure employment so they don’t land in an annual layoff situation.
Builders are approaching the issue in different ways — from reducing the number of options and variations on boats to designing add-ons that are easier to install at the dealership level.
Some say parts have been difficult to come by because of a drastically weakened supply chain, sometimes resulting in production slowdowns.
Tone At Miami: Worst May Be Over
Beth Rosenberg
This could be the year the turnaround begins. Consumer confidence is on the rise, the auto and RV industries are seeing an uptick, and the retail financing crunch is starting to ease. And while there’s still a long way to go, dealers say boat buyers are back at the shows.
“We clearly are beginning to see that consumers are tiring of deferring their boat purchase, and we’re seeing more buyers coming to the shows,” said Thom Dammrich, president of the National Marine Manufacturers Association, in his annual state of the industry address at the Miami International Boat Show and Strictly Sail Miami. “That seems to indicate to me that in the next couple of months, particularly as we enter the height of the selling season for the boating industry, we should see some increase in the sale of new boats.” With 17 million boats in use in the United States and 70
