Boat dealers around the nation are beginning to smile again as pent-up demand and an improving economy are reflected in improving boat sales, according to area dealers and industry groups.
Local boat ownership is showing a steady increase according to N.C. Wildlife Resources Commission registration numbers.
Atlantic Marine opened a new showroom near Wrightsville Beach recently, and earlier this year, Angler’s Marine moved into its new facility on U.S. Highway 17 near Supply.
“Our business is good,” said David Floyd, president of Atlantic Marine. “That’s the reason I proceeded with starting with that building. Last year was the best year we ever had in the past 38 years.”
The second generation to operate the family business, Floyd has worked there since he was 13. His 18-year-old son, Will, also works in the business.
Nationally, powerboat sales were up 8.7 percent from 2013 and were continuing to increase, said Ellen Hopkins, spokeswoman for the Chicago-based National Marine Manufacturers Association.
Recreational boating expenditures in the U.S. increased from $30.4 billion in 2010 to $36.9 billion in 2013, Hopkins said.
Leading the reasons for stronger powerboat sales were pent-up demand and manufacturing innovation, she said.
“Manufacturers are producing more innovative boats that offer an all-encompassing entry to the boating lifestyle at a variety of price points. A trend in boat manufacturing is the versatile boat – one that can pull tubers or wakeboarders, can be used for fishing outings, relaxing with the family or entertaining,” Hopkins said.
Floyd agrees and sees those trends in his own customers. The majority of his customers five or six years ago were fishermen and sports types, he said. Today, most sales are family-oriented purchases, he said.
“In years past, it was more center consoles. Now 80 percent of what we sell is dual console with bathrooms, sunshades, family-oriented stuff,” Floyd said.
In addition to changing family dynamics, the cost of fuel has caused a decrease in the frequency of offshore fishing trips, he said.
Despite poor weather conditions in the first quarter of 2014, Floyd says he expects to sell about 125 new and used boats this year, about the same as last year. He’s seeing a trend toward the purchases of larger size boats, but he said the majority of what the company sells is 28-foot vessels and smaller.
Bennett Brothers Yachts Inc. president Tricia Bennett said she is “cautiously optimistic” of the improving market.
Her marina in Wilmington is fully occupied and receiving more inquiries, Bennett said.
“We’re halfway between Newport [Rhode Island] and Fort Lauderdale. Folks make this a destination to stay for a couple of months,” she said, adding that some end up purchasing homes in the area.
During the recession Bennett Brothers Yachts “experienced some slowdown – not as dramatic as some – we’re still standing. We adjusted,” Bennett said.
She’s hopeful that increasing activity on the river will result in more boating businesses locating downtown.
“The potential is phenomenal,” she said.
Last year, nearly 37 percent of adults in the U.S. participated in recreational boating at least once last year, according to the National Marine Manufacturers Association.
That figure of 88.5 million people was the second-highest percentage on record, Hopkins said.
“The highest was in 2012 with 37.8 percent of the U.S. population,” she said.
Locally, Joel Romig, owner of Salt Water Marine on Carolina Beach Road, is enjoying a good year and also seeing a change in his customer base and the purchases they’re making.
“It’s definitely recovering. There’s a different customer that’s buying now,” he said. “The 50-plus crowd is back strong and buying bigger boats.”
Rather than 17- and 18-footers, he’s selling more in the 23-foot-plus range, which bumps the price from the $20,000 range to the $50,000 range, he said.
“People are adding the option and goodies, stuff like hardtops, underwater lights and fancier GPSs. They’re adding power poles for fishing and trolling motors,” Romig said.
While buyers are still fishing, Romig said he’s seeing more people who want a boat to pull the grandkids or to socialize at waterside restaurants.
In the past five or so years, several local boat dealerships closed operations. Floyd said the age and diversity of his business helped him to stay afloat.
“We have 34 employees and four locations. We do service and sales. About five years ago, we had our slowdown,” he said. “We were debt free because of the age of our
business, so we were able to adjust and keep our employees.”
He also described Wilmington as a good market. In addition to old-line boating families, the area has a steady increase of people moving in who want to experience boating.
Many of his sales, Floyd said, are to people who have second homes in the market. Those boats, and others, may be registered elsewhere and are not reflected in the N.C. Wildlife
registration figures.
Buyers are also looking more for convenience, Romig said.
“Again, it’s an older buyer, so they’re getting a wet slip or dry dock rather than having to trailer it. They’re more interested in service,” he said. “I’m on the board at Inlet Watch Marina, and we are at an unbelievable occupancy this year.”
He said pricing on the slips fell earlier, but they’re also recovering.
The service side of the business is also critical to those who survived the downturn.
“The service business never slowed down because when people use their boat less it costs more,” Romig said.
The industry, both locally and nationally, predicts continued uptick in sales this year.
“In 2010, the height of the impact of the recession, there were approximately 143,000 new powerboats sold,” Hopkins wrote in an email.
“In 2011, this number remained flat. In 2012 they increased to 157,000, and in 2013 they increased to 161,200. This year … we expect sales of new powerboats to increase 5-7 percent.”
