TRADE SHOW MONTH IN LAS VEGAS p. 38

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INSIDE: More and more, the industry’s boat-buying pitch is being directed toward women, a long-neglected force in purchasing decisions, says the new Marine Marketers Association. p. 25

THE BOATING BUSINESS NEWSPAPER VOL. XLVI, NO. ¹ JULY 2008

$5.00

High fuel prices are giving boaters pause

www.tradeonlytoday.com

Some are shortening trips or tying up longer, but few appear to be bailing out altogether

By Gary Beckett

Att Ciitty off Tiittusviilllle (Flla..)) Muniicipal Marriina,, emplloyee Matttt Bandiilllla hellps John Perrrriigo off Vero Beach ffiillll up at $4.. 58. 9 a gallllon..

Fuming over fuel

What do readers think of the fuel price dilemma? See comments from our Trade Talk blog site. p. 8

PHOTO: GARY BECKETT

With gasoline prices at the dock
close to $5 a gallon — even $6 or more
in some coastal markets — the debate
over whether high fuel prices or fuel
availability has a greater negative im-
pact on boating has been re-ignited. cent months, many in the industry
The conventional wisdom for years have expressed concern that very high
was availability determined whether fuel prices, on top of a list of other
boaters would skip a season or get out economic negatives, could tip the
of the discipline altogether. Price was scale and force many die-hard boaters
considered a less important factor, out of the market.
since it was argued boaters would sim- But a random survey of dealers and ma-
ply absorb the higher costs, change rina operators nationwide suggests this is
how they used their boats and keep on not the case. They say boaters continue
boating. And over the last couple years, to adjust their boating habits while re-
as fuel prices at the pump crept up, maining very loyal to the lifestyle.
that’s largely what they did. “People are not using their boats as
But with prices skyrocketing in re- continued on page 22
Passport Marine
closes, faces suit

Florida throws out a lifeline

State moves on incentives to retain marine businesses

By Lisa Hoogerwerf Knapp

Progress is on the horizon to reverse the hemorrhage of marine businesses defecting from Florida to North and South Carolina. Enterprise Florida Inc. (EFI), the public-private partnership devoted to statewide economic development in high-growth industries, has included budget dollars targeted toward marine business development and retention.

State economic development incentives for the recreational marine industry include $1.4 million from EFI’s general revenue fund. The state budget is expected to be signed July 1 by Gov. Charlie Crist.

“This is the first time the Florida legislature has dedicated budget to the marine industry, which is the major economic engine of the state with an $18 billion dollar economic impact and 220,000 jobs,” said

Frank Herhold, executive director of the Marine Industries Association of South Florida (MIASF). “We have never asked for anything before and are trying to maintain our critical mass in an environment with high taxes and hurricanes that add to the cost of doing business.”

Thirty percent of Florida’s boatyards have disappeared in the last five years. South Florida was home to 19 major boatyards in 2000; 13 remain today, according to studies commissioned by the MIASF. The six that were lost were converted for residential development. Nine of the 13 remaining yards have received offers from developers.

“It’s a disturbing trend that we noticed a couple of years ago,” Herhold said, noting that many marine manufacturers and suppliers have relocated to more

continued on page 30

Bank claims dealer in default on $18.8 million loan balance

By Beth Rosenberg / Staff Writer

b.rosenberg@tradeonlytoday.com

Once the top-selling Formula dealer, Passport Marine was forced to shut its doors earlier this year with company officials citing the weak economy as the reason for its demise.

“In short, the company was a victim of bad timing amid one of the worst luxury goods retail-sales environments in decades,” said Andrew Sturner, who served on the company’s board and whose company, Aqua Marine Partners, was a minority shareholder.

What was most disappointing, Sturner said, is

continued on page 34

New to the pipeline

Colligo Marine’s new Lifeline Terminator uses a sacrificial lashing line the company claims is less expensive than the synthetic lifeline. p. 55