Yacht & Boat Sales Rebounding in Minnesota In 2011

After years of steadily declining sales for new boats, Minnesota’s boating industry is hoping a slowly improving economy will help sales rebound this year.

Sales of new boats, engines, trailers and boat accessories have fallen for at least five consecutive years in Minnesota. Last year’s Minnesota sales of about $300 million were about 45% less than they were in 2005. That drop is in line with the national yacht sales decline over that period.

But some Minnesota dealers and manufactures say business seems to be turning around this year.

“This year has been incredible,” said Matt Ness, general manager of the Crystal Pierz Marine store in Shakopee. “As of the end of last month, we were almost exactly double the sales of the year before. So, it’s a nice change.”

Ness said the used boat market has been pretty strong, but said he was budgeted to be up about 40% on new boat sales. He said his biggest challenge now is getting them in stock.

“They can’t seem to make them fast enough for us. So, that helps our used business,” Ness said. “It seems like the people who have money are feeling more secure again. People are either coming in with cash or the people who are financing are in better credit positions. The last few years that has been a challenge.”

Some dealers say things started improving last year, after a string of bad boating seasons.

Denise Halberg Tetrault, sales manager at Halberg Marine in Wyoming, said they will end up better than last year. “And we were very pleased with last year,” Halberg Tetrault said. “You’re not allowed to make very much money,” she said. “That’s why 30% of the dealers are gone, because the margins weren’t there to have them be profitable.”

But she said dealers that remain are seeing customers more ready to spend.

SIGNS OF IMPROVEMENT

The National Marine Manufacturers Association (NMMA) says there were signs this past winter that the boating business was on the rise.

At boat shows around the country, the association saw increased attendance at 70% of its exhibitions, an indicator that boat and yacht buyers were returning. And boat show exhibitors reported improved sales and more attendees looking to make a purchase.

“All the indicators are that the industry is starting to come back,” said David Dickerson, the marine association’s director of state government affairs. “We are seeing better sales and seeing stabilization among those businesses that manufacture and sell boats.”

Last year, Minnesota boat registrations increased 0.25% to 814,000. That count includes new and used boats and everything from jet skis to yachts.

Kim Elverum of the state’s Department of Natural Resources said the state’s boating industry seems to be on the mend.

“It’s going to depend on the climate as far the economy goes, whether this year will be different than the year before,” Elverum said.

Source: Minnesota Public Radio