Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, March 1, 1992 TAG: 9203020240
SECTION: SPORTS PAGE: D13 EDITION: METRO
SOURCE: BILL COCHRAN OUTDOOR EDITOR
DATELINE: LENGTH: Medium
Following three years of declining sales that had severely tested the boating industry, that kind of business appeared to make it a prudent time to strike up a chorus of "Happy Days Are Here Again."
While none of the 15 boat dealers at the Roanoke Civic Center was spotted doing that, there were smiles and expressions of optimism at the three-day show which opened Friday.
"I think people are finally getting fed up with the doom and gloom and are saying, `Let's go ahead and buy it,' " said Dave Condom of American Marine and Sail Supply.
"We have turned the corner," said Jim McClain, the Southeast sales manager for Cobia Boat Co. "Last year was the worst year the marine industry had, and that is a quote you will get from most boat company presidents."
McClain said his biggest task now is to travel from show to show in an effort to pump up the enthusiasm of dealers, following three years in which the industry saw half its dealers and manufacturers go bankrupt.
"The dealers who are here today have the greatest opportunity they've ever had. There are less people to share the pie," he said.
"Dealers are being very conservative on their inventory," said Wilma Stevens, a vice president of Mastercrafters Corp., the makers of Cajun boats.
While the interest level is high at the retail level, inventories are low at both factories and dealerships, which likely will mean shortages if boat sales remain strong, she said.
There was similar talk at last year's show, a time when the ending of the Persian Gulf War had left a certain amount of euphoria in its wake. But it was short-lived. The industry saw sales decline nearly 25 percent from 1990, and 1990 wasn't that good a year. Big inboard cruisers took the biggest hit, their sales down more than 50 percent.
Because there is no war to throw off calculations this time, early season trends are more reliable, industry spokesmen say.
"My orders have increased substantially over what we have done the past three years," said McClain.
The spontaneous buyer is back, he said - people who come to a show just to kill a couple of hours and end up buying a boat. That's happening, said McClain, because many consumers have cleaned up their personal debts.
"They are buying now what they want, rather than just what they can afford."
But those still in debt are having difficulty finding financing.
Loan applications are being scrutinized like never before, said Jim Mills of Webster Marine Center. Lending institutions are taking a careful look at debt-to-income ratios. Many loan applications are being turned down.
This results in something of a paradox, said Guy Sparks of Gio's Marine. What good are the lowest interest rates in recent history if a bank won't approve your loan?
Those who have the cash or credit can discover that now is a fine time to buy a boat, said Stevens. Most boats in the show were purchased last fall, when factories gave dealers incentives just to keep their employees on line. And dealers have kept their markup to a minimum, she said.
When a load of boats is ordered this spring, the dealer is going to have to pay more; and that will be passed onto the consumer, she said.
Entry-level buyers shouldn't overlook the opportunity to purchase a used craft, several dealers are suggesting. Most new-boat buyers have something to trade, said Fielder, who was carrying a clipboard listing 20 used craft available at his dealership.
There also are opportunities to buy 1991 models still in dealer inventories, he said.
Show hours today are 10 a.m. to 6 p.m.
by CNB