For the action sports industry in 2009, it’s all about keeping your head above water.
Already struggling with a glut of inventory, the $14.4 billion industry is forecasting sales to fall as much as 25 percent this year. Some surfboard makers say their business is down 30 percent to 40 percent as consumers put off larger purchases.
With numbers like that, industry insiders say some brands will disappear and the economic undertow will pull down a number of mom-and-pop shops, considered the backbone of the business because of their connection to the core action sports customer…. More info
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What’s true of real estate in 2009 is also true of the boating world: It’s a buyer’s market. So if you’ve always wanted to hit the open water but didn’t think you could afford it, now may be the right time to reconsider.
Prices on new boats dropped steeply in the past year as used boats flooded the market, so start your search at a boat show or local dealer, where you can find surprisingly good deals on new models. For instance, Chaparral Boats, a subsidiary of Marine Products(MPX Quote – Cramer on MPX – Stock Picks), is running a “Wow Now” sales event with cash rebates and free extended engine warranties. Marine retailers like MarineMax(HZO Quote – Cramer on HZO – Stock Picks) can help you choose and finance the right boat. By cruising shows and dealers, you can get a firsthand look at different models and ask questions about them…Â More info
A temporary shutdown last month at Mercury Marine was done in an effort to preserve the company’s cash and keep an already inflated inventory in check.
“The biggest issue is to preserve cash while we’re in this volatility,†said Ray Atchinson, vice president of human resources for Mercury Marine.
Atchinson said a second reason for the shutdown was to make sure the company isn’t “filling the pipeline†with inventory that will sit and age in dealer showrooms.
Rather than laying people off permanently, the company is utilizing temporary layoffs to preserve its work force so trained workers are in place when the market improves…Â More info
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ATLANTIC CITY – To Bob Hazard, the boating industry is a lot like the sea.
Some days, the waters are calm and bountiful for the vice president of Egg Harbor Yachts, an Atlantic County boat builder that’s among dozens of dealers offering vessels for sale through Sunday at the Atlantic City International Power Boat Show.
But on other days, the waves are rough. Sales ebb, and interest in the boating “lifestyle” – because, really, this isn’t just about product, Hazard insists – declines…Â More info