Bayliner Boats - Dealers at Palm Beach Boat Show optimistic despite downturn
Monday, March 31st, 2008Hi gang, Rick Ostler bring you Bayliner Boats and news from the boating industry. Despite the economic slump, boat dealers remained buoyant Thursday on opening day at the Palm Beach Boat Show. But the plethora of discounts was a sure sign many were making adjustments.
High gas prices, a dismal housing market and rising unemployment have withered consumer confidence, resulting in less spending on big-ticket items like automobiles and boats.
“It’s [economy] tightened up the market,” said Daniel Hunt of Boat World of Florida Inc. of Pompano Beach.
Hunt said people with money were still spending, and avid boaters were trading up for newer models, but first-time buyers weren’t ready to seal the deal.
The show, in its 23rd year, runs through Sunday at three sites in West Palm Beach, including the Palm Beach County Convention Center.
Boating enthusiasts will find more than 1,000 watercraft on display, ranging from inflatables to megayachts and seafaring accessories and electronics, valued at more than $350 million.
Show divas include the 145-foot megayacht Lady Kathryn III displayed by Moran Yacht & Ship, going for $25 million, and the 147-foot Tooth Fairy, by International Yacht Collection, for $15.5 million.
Nationwide, the $40 billion boating industry has been hit, forcing many builders into layoffs, plant closures or restructuring.
Earlier this month, Sea Ray Boats Inc of Knoxville, Tenn., which operates at three sites in Merritt Island, said it was laying off 400 employees at one site between May and July.
For the boat show dealers, the slump’s effects have been mixed.
Foot traffic at the convention center was quieter than previous years for Howard Garolsky of West Palm Beach’s The Boat Connection.
“It’s always very busy, and usually I sell one to three boats,” said the longtime exhibitor.
While the last two weeks were busy, the year was shaping up to be the worst for Garolsky’s marine business since 1988.
Sales have been steady for Gilman Yachts of North Palm Beach, a family-owned business since 1968.
“We’re still selling as many boats as we used to,” Don Gilman said.
At last year’s show they sold a $10 million yacht. This year, they’re showcasing 25 boats, including the 107-foot Adriana II Horizon megayacht.
Trade-ins and used-boat exports to Europe and Central America have been strong, boosted by the weak dollar, said Mark Lassila of West Palm Beach’s Marine Connection.
He sells six brands of fishing and pleasure boats priced from $20,000 to $100,000.
“We’re not setting new sales records, but business is good,” he said.
With interest rates at all-time lows, marine lenders have gotten creative with financing, some even offering “no-money-down” options. And many were on hand to assist showgoers with new buys or refinancing.
Jack and Sharon Holland of Pompano Beach were looking at a 22-foot, 2008 Hurricane sailboat at Lassila’s exhibit Thursday. Originally priced at $48,625, the show deal on the sailboat was $38,900.
The 30-year boating veterans own a 34-foot sailboat, but want a smaller one for exploring Florida’s canals, lakes and rivers.
“We’re hoping to make a decision today,” Jack Holland said.
Thanks to |South Florida Sun-Sentinel for this report.
Arlene Satchell can be reached at asatchell@sun-sentinel.com or 954-356-4209.
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Rick Ostler, Bayliner Boats.