2-STEP DISTRIBUTION IS ALIVE AND WELL p. 30
INSIDE: Catalytic
converters are
coming to inboard
and sterndrive
engines as part of
what is called the
industry’s largest
environmental
challenge. p. 45
THE BOATING BUSINESS NEWSPAPER VOL. XLIV, NO. 12 JUNE 2007
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www.tradeonlytoday.com
Hard times for dealers … and getting worse
By Gary Beckett
The economy is growing, albeit modestly. The Dow Jones Industrial Average
was setting new highs almost daily in
May. Interest rates remained near historic lows and with unemployment at
around 4. 5 percent, just about anyone
who wanted a job could find one.
Yet, in the face of all these positives,
the recreational marine market is in the
midst of its worst downturn since the
early 1990s. Coming on the heels of a
modest contraction last year, new-boat
sales were expected to decline by as
much as 10 percent this year, according
to Thom Dammrich, president of the
National Marine Manufacturers Association. “It’s pretty soft out there,” he said,
while downplaying complaints by some
retailers that business is as bad as during
the industry “depression” of 1991.
• The soft market is exacerbating dealer-manufacturer tensions. p. 18
• The bottom lines of industry leaders
Brunswick, MarineMax and West Marine
take major hits. p. 20, 22, 24
Nonetheless, Dammrich acknowledged
that in the face of a relatively strong overall
economy, many manufacturers and dealers
are frustrated with the state of the industry
following the sluggishness in 2006.
“Last year we were down about 6 percent,” he said. “It wasn’t terrible, but everyone wanted it to be better. This year
is softer than last year.”
The weak financial results reported by
some of the industry’s major public companies bear that out.
Dealers are particularly stressed as
they prepare for the summer manufac-
continued on Page 34
The lake has
water, just not
as much of it
Cumberland area at center
of Arkansas-Kentucky feud
ABC
From access to taxes,
industry argues its case
STEVE JYLKKA GRAPHIC
By JoAnn W. Goddard / Associate Editor
j.goddard@tradeonlytoday.com
Industry leaders met in the nation’s capital in May to
tackle thorny topics, including dwindling water access,
taxes and environmental issues such as emissions standards, ballast water and biofuels.
The American Boating Congress, organized by the
National Marine Manufacturers Association, was held
continued on Page 44
By Beth Rosenberg / Staff Writer
b.rosenberg@tradeonlytoday.com
Business owners along Lake Cumberland, supported by Kentucky tourism officials, have spent the past
few months battling the perception that the lake has
been drained, and letting people know they are open
for business.
A repair project at Wolf Creek Dam, which impounds Lake Cumberland, has forced the Army
Corps of Engineers to reduce the lake elevation to
lessen pressure on the dam while work is under way.
Some abnormal seepage levels had been found at the
dam and, if left unaddressed, could have led to a serious problem, officials say.
However, contrary to some reports, there is plenty
of water in the lake for boating and other recreational activities, business operators say.
“Things are slow, and whether it’s a result of
the lake or the economy or both, it’s hard to say,
continued on Page 26
New to the pipeline:
Odyssey Trolling Thunder,
a battery from EnerSys. p. 52
Inside:
The wooden-boat niche is one
industry segment that hasn’t
been badly hurt
by the slump in
boat sales.
