How is downturn impacting boat, RV owners?
By Anthony Clark
Sun business editor
Published:
Saturday, June 7, 2008 at 6:01 a.m.
Last Modified: Saturday, June 7, 2008 at 12:22 a.m.
Brandon
Kruse/The
Chuck
Langley, a mechanic at P&J Marine, scrubs the deck of a boat after working
on its carburetor Thursday afternoon. Steadily rising gas prices are having an
impact on luxury items like boats and RVs.
Tough Time
For 'Toys'
2007 boating statistics compared to 2006
- Powerboat sales down 8.4 percent
January-April RV statistics compared to same period in 2007- Shipments down 10.9 percent
- Motorhome shipments down 23.1 percent
- Towables shipments down 8.7 percent
- RV rental bookings up 20 percent
In the face of rising gas
prices, big hobby crafts like boats and RVs may not seem as necessary as the
family car.
But for the owners,
boating or RVing is more a way of life than a hobby, so instead of parking or
docking their crafts, they are making the same kinds of adjustments as other
motorists such as taking shorter trips and buying more efficient models.
And like the auto
industry, the boat and RV industries report that sales are down.
Nationwide, boat sales
were down 5 percent to $37.5 billion in 2007, according to the National Marine
Manufacturers Association.
Kelly Kaylor, NMMA
spokeswoman, said the housing downturn has undermined demand for big-ticket
purchases.
Michelle Thompson, owner
of LTD Motors in High Springs, which sells both boats and RVs, said gas prices
are not the big concern for the kinds of consumers who can afford these
high-priced toys.
"If they're going to
spend $60,000 on a boat and $10,000 in electronics, I can't imagine them being
worried about gas," she said.
"Banks are getting
stricter, but your typical boat and RV customer is more educated and qualifies
(for financing)."
Thompson said sales of
both are down a little, but she's still moving merchandise.
Boat manufacturers are
already building lighter boats with more efficient engines, she said.
Some of her customers are
trading in old, larger boats for something a little smaller.
A modern four-stroke
engine boat will get 7-9 miles per gallon, while an older two-stroke engine on
a large boat may get a half mpg, Thompson said.
"I don't hear a lot
of complaints on fuel," she said, adding that anglers are more concerned
about new limits on the number of grouper and redfish they can take.
Paul Santaniello, owner of
P&J Marine in
"I don't think gas is
affecting us as much as the doom and gloom in the media," he said. He said
customers who could pay cash for a new boat are waiting for the economic news
to improve.
NMMA surveys show boaters
are responding to gas prices by reducing their cruising speed, tuning the
engine and taking shorter trips.
Boaters spend a lot of
time anchored with the engine off, so gas becomes less of a concern than it is
for other types of vehicle use.
Jeremy Williams, 32, of
"I'm going to go no
matter what it costs," he said. "As far as boating, I don't use that
much (gas). I've got a small engine, but for the drive over, it's getting
expensive, that's for sure."
He said gas prices are
more of a concern for big boats that go 40-50 miles offshore to fish, such as
charter boats.
Santaniello said offshore
anglers are becoming more selective about what days they boat because of gas
prices.
"They want to make
sure the weather's good if they make an hour's trip to the coast. They're not
going to gamble," he said. "Everyone goes 30-40 miles off the coast
and it's 100 miles over there and everything is super regulated on how many
fish you can take, so unless you take a bunch of people in the boat, you end up
paying $60-$70 a pound for that fish you caught."
Georgia Waters, 51, of
High Springs was at P&J to get a new gas tank for the family's five-person
boat. She said the family goes fishing in the Gulf every weekend or two
regardless of gas prices.
"Because that's our
relaxation," she said. "It's a really fun family thing."
As for the RV industry, shipments
were down 9.5 percent in 2007, and another 10.9 percent in the first four
months of this year, according to the Recreation Vehicle Industry Association.
From January to April, motorhome sales were down 23.1 percent and towable
trailer sales were down 8.7 percent.
The RVIA reports that more
RV drivers are staying closer to home and driving shorter distances, as well as
spending more time in one location. A survey showed that 24 percent of RV
owners planned to use their RVs less this spring and summer.
RV manufacturers are
making more aerodynamic and lightweight models, Thompson said. She sees
customers trading in bigger units for more economical models. With travel
trailers, she said customers are looking for something light so they don't have
to upgrade their vehicle.
Both the boat and RV
industries report positive signs for demand once the economy turns around.
Although sales were down,
adult participation in boating was up 10 percent in 2007, the NMMA reported.
And while RV sales were
down, RV rentals are up 20 percent this year, according to Kevin Broom of RVIA.
"It could be there
are people who want to buy but want to hold off until the economy improves. Or
it could be instead of flying, staying in a hotel, eating in restaurants,
they're saving money by renting an RV and taking an RV trip," he said.
The RV industry also
expects to benefit as more baby boomers reach retirement age, the RVIA reports.
Anthony Clark can be
reached at 352-374-5094 or anthony.clark@gvillesun.com.