December 28, 2024
Business

Sales of boats in Maine defy nationwide decline

PORTLAND – While nationwide pleasure-boat sales declined last year, industry revenues increased slightly, according to a report by the National Marine Manufacturers Association.

The latest figures for Maine, where annual sales exceed $60 million, were not available. But boat dealers in the state said they have not seen a drop-off.

Nationally, boat sales fell by 6 percent to 541,300 in 2001. However, Americans increased spending on boats by 2.3 percent to $25.6 billion, the boat manufacturers association found.

The trade group’s report blamed the national sales decline on the current recession and a jolt in consumer confidence following September’s terrorist attacks.

Despite the drop, industry revenues increased because the average price for a new boat climbed by 13 percent, reflecting a trend toward more expensive purchases.

“The fact that there was a 6 percent decline in unit sales and a gain in revenue is quite phenomenal,” said Thom Dammrich, president of the National Marine Manufacturers Association.

In Maine, where one in every 10 people owns a boat, more than twice the national average, buyers seemed unfazed by the faltering economy.

Rick Richardson, who owns a boat store and marina in Windham, said his sales increased slightly last year.

“The last couple of years, they’ve been buying more expensive boats,” he said. “I know sales were down nationwide, but I don’t think that’s the case in the Northeast. Maybe we’re lagging in being hit by the recession.”

“Sales for 2001 were the highest we’ve ever had,” said John Williams, owner of John M. Williams, Inc. located in Mount Desert. “We’ve been extremely busy.”

Williams’ pleasure-boat-building business accounted for about $2 million of the state’s sales for the company’s highest total sales in more than 30 years of business.

The sales were mainly the result of customers’ buying larger, more extravagant, vessels, Williams said.

Jim Allen, who co-owns a marina in Naples, said his sales of used boats increased significantly in 2001. And before the season ended, he also sold out of new boats.

Total U.S. spending on boats exploded during the 1990s. Figures from the National Marine Manufacturers Association show that total sales have climbed steadily every year since 1992, when revenues were just $10.3 billion.

The association said there were 69.5 million boaters in the United States last year, a drop of 4 percent from 72.3 million a year earlier.

Through last August, Maine officials had registered 117,371 pleasure boats in 2001. Though that number was slightly lower than the 2000 total of 119,243, it reflected only boats registered by the end of summer.

Though New England was able to sustain sales while the rest of the nation faltered, Williams cautions local businesses against becoming too comfortable with 2001’s sales numbers.

“I think you’re going to see a leveling out in sales coming up,” Williams said. “A lot of people’s portfolios took a hit. You’re not going to see customers being as aggressive as we’ve seen; the money’s dried up.”


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