$$$ NEEDED TO SAVE THE ICW P. 8
® INSIDE: An ice
and snow storm
left millions in
damages at
marinas at Lake
of the Ozarks
and surrounding
region. p. 72
THE BOATING BUSINESS NEWSPAPER VOL. XLIV, NO.
7 JANUARY 2007
$5.00
www.tradeonlytoday.com
Most expect downturn to spill over into 2007
Industry leaders give their forecasts, and few see major relief on the short-term horizon
By Melanie Winters / Associate Editor
m.winters@tradeonlytoday.com
For the most part, industry leaders are cautious in
their forecasts for 2007.
They say the negative trends that dominated
through much of 2006 will carry into the new year.
Interest rates have been climbing from the historic
lows of recent years, the Consumer Confidence
Index numbers reflect a cautious mood, Gross Domestic Product has been sluggish, the housing market has slumped badly and the cost of doing business has risen.
“We are in the midst of unsettling times and they are
mirrored in the mood swings reflected in the CCI and
other economic barometers,” says Rick Jelinski, general manager of Rampage Sport Fishing Yachts.
Brunswick chairman and CEO Dustan McCoy also
expects a difficult year for the marine industry, and is
projecting flat to declining boat sales. “There remains
FORECAST 2007
PAGES 22-24
little information pointing to an economic resurgence
in 2007,” he says.
Some others are more optimistic, however. They
believe 2007 will start out slow, but they also predict the next growth cycle is just around the corner. There are several positive indicators working in
favor of the marine industry, they say: Inflation is
under control, interest rates may actually decline
slightly later in the year, and the 2008 presidential
election will motivate politicians to work harder to
improve the economy.
“I anticipate we’ll see a turnaround begin to take
shape in the last quarter of 2007, providing a launch-
ing pad for strong sales in 2008, 2009 and 2010,” says
Thom Dammrich, president of the National Marine
Manufacturers Association.
Dammrich and others also suggest the industry will
begin to reap the benefits of the Grow Boating Initiative in the second half of 2007 and beyond.
“A stronger Grow Boating Program, benefited by one
year on the learning curve, should bring more new
boaters into the mix,” says David Ray, executive director of the Marine Industries Association of Florida.
Regardless of whether the economy is up or down in
2007, everyone agrees it will be a competitive year. Those
who are the best prepared and the most aggressive will
stand out as the winners of coveted market share.
“I think 2007 will see the big get bigger and the aggressive get more aggressive and dealers will have to
put in place smarter systems in their dealerships to
keep pace,” says Phil Keeter, president of the Marine
Retailers Association of America.
Is Brunswick readying
a move into boat loans?
North Sail retrofitted its plant to meet the demand for panels weighing up to
16,000 pounds. Pictured is an employee making a 3DL sail. p. 19
By JoAnn W. Goddard / Associate Editor
j.goddard@tradeonlytoday.com
The marine lending industry is abuzz
with rumors that Brunswick Corp. has
acquired a marine finance company —
a move that would give Brunswick dealers a competitive edge.
Troy Tiedeman, president of Blue
Water Dealer Services, confirmed that
his finance company forged an agreement with Brunswick in November. But
he declined to provide details. Tiedeman said Brunswick would make an announcement at a later date.
Tiedeman’s company was formerly
known as Blue Water Finance & Insurance Crew, a Stuart, Fla.-based company
that provided direct and indirect lending
for boats and RVs. The company changed
its name in November, when it merged
with two other Florida companies: Land
and Sea Dealer Service, and Land and Sea
Finance and Insurance. Brunswick’s mailing address is listed on some state documents associated with the Land and Sea
companies. Blue Water Dealer Services
has since relocated to Wilmington, N.C.
Some say Brunswick’s move into the
finance segment is not unexpected.
“It’s no surprise,” said Donald Parkhurst,
senior vice president of SunTrust Bank,
Marine & RV finance division. “Brunswick
has been trying to do this for years.”
Brunswick a few years ago announced its goal to offer complete and
integrated services for its dealers. The
Illinois-based corporation since then has
See Brunswick, Page 26
‰ OUR VIEW: Environmental investments did not hurt Cummins’ profits ...............p. 6
‰ PEOPLE: Philip Stoegerer is international sales manager at Cabo Yachts ........p. 83
‰ FOR THE RECORD: ALGAE-X International selected T.I.M.E. as its distributor ...p. 85
‰ CALENDAR: Mac Events Boat Show, Greater Richmond Convention Center ......p. 86
AN ISLAND DIVIDED — P. 20
