COUNTERFEIT PRODUCTS STILL FLOOD MARKET p. 16

^®INSIDE: As water levels inch below record lows, marine businesses along Georgia’s Lake Lanier question if there is an end in sight. p. 19

THE BOATING BUSINESS NEWSPAPER VOL. XLV, NO. ⁷ JANUARY 2008

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Industry leaders see a crystal ball half full

For the most part, their 2008 forecasts don’t go beyond ‘cautious optimism’ and ‘mild growth’

By Beth Rosenberg / Staff Writer Outlook 2008 be more recession-proof than that of ^{b.rosenberg@tradeonlytoday.com}smaller vessels, and continues to have Many industry leaders remain cau- double-digit growth,” Herhold said. tiously optimistic that the New Year p. 28-31 Manufacturers remained cautiously will usher in some growth in the mar- optimistic, as well, with Genmar chair-ket, despite declining consumer confi- man Irwin Jacobs predicting, “It won’t dence, a slump in the housing market be bad for everyone all the time. You and high fuel prices, which marked the have to be responsive to the market.” end of 2007. Tom Thies, president of S1 Marine, said While they don’t expect to break any manufacturers need to look for opportu-sales records they see signs of an upturn. nities outside the U.S. market and take “It will probably be 2009 before we advantage of the global economy. “From see strong growth again, but in 2008 we a survival standpoint, to stay healthy, we should see some mild growth for the in- all need to take a hard look at exports.” STEVE JYLKKA GRAPHIC dustry,” said Thom Dammrich, presi- Dealers, too, expect a challenging 2008. dent of the National Marine Manufactur- place since 2003 and the Seattle Boat “For the most part, they predict aners Association. “Fall boat show atten- Show, help the boating industry “hold other flat year for our industry,” said dance was strong, and so were fall boat its own” in the Pacific Northwest. Phil Keeter, president of the Marine Reshow sales. Is this the beginning of the On the East Coast, the sales of mega- tailers Association of America. “I, per-new uptrend? I think so.” yachts have spurred the local economy sonally, think we will see that happen-

Michael Campbell, president of the in South Florida, noted Frank Herhold, ing in the first quarter of the year, but I Northwest Marine Trade Association, executive director of the Marine Indus- think the second quarter will see a said a strong economic base, a regional tries Association of South Florida. slight ‘uptick.’ ”

Grow Boating program that has been in “The megayacht market has proven to Luke Kujawa, president and COO of

Change of CEOs atWest Marine _Tough _mpg _rule

Crystal-Pierz Marine, said dealers who manage their inventories well will be in the best position for success this year. While the entry-level market will be soft, “second, third and beyond buyers, who have built a family culture around boating will still be in the market, however, they will be more cautious about their purchase,” he said.

Marina owners, too, will face challenging situations. They worry about the lack of water access and the threat of marinas selling to private developers.

“I see a marina industry that, as a whole, has never been in such a state of flux,” said Alex Laidlaw, chairman of the Association of Marina Industries. “The increasing financial, regulatory and competitive challenges facing marina own-ers/operators creates a complicated playing field. However, there’s never been more opportunity to be successful in the marina business due, in part, to the challenges facing us.”

Geoff Eisenberg takes the helm as Peter Harris departs

(Left) Geoff Eisenberg; (Right) Peter Harris.

Investors and the industry will have to wait a while to find out if a change in direction is in the offing for retail giant West Marine under its new leadership.

The company named Geoff Eisenberg its president and chief executive officer Dec. 10 after announcing the resignation of Peter Harris. Analysts will be looking for a sense of what’s ahead when Eisenberg releases fourth-quarter earnings in January. West Marine’s practice has been to hold a conference call with analysts when earnings reports are issued.

Stock in Watsonville, Calif.-based West Marine has lost half its value during 2007 — a year that saw a spate of store closings and other cost-cutting measures.

“Geoff has been closely involved with West Marine

continued on Page 12

rattles industry

By Reagan Haynes

A proposed 40-percent increase in fuel economy standards, contained in a landmark federal energy bill, could have a drastic impact on the boating industry and other businesses that rely on small trucks to tow heavy loads, some industry leaders believe.

The energy bill was passed by the House of Representatives in early December and was stalled in the Senate at midmonth. But the fuel economy standards portion of the measure had bipartisan support and appeared likely to survive if the measure finally is passed in any form.