New Boats and the Economy??????

[bucktail]

I have been trying to figure out over the last few weeks what is going to happen to the sportfishing boat manufactures over the next few years.

Especially aluminum boat manufacturers.

 

Since reaching an all-time high in July at $3,375 per tonne, the price of aluminum has tumbled to a more than five-year low around $1,440.

 

Tis was the reason I heard Lund introduced there glass line last year.

 

In this economy how are they going to sell all the stock they manufactured at the higher prices? and can they even survive for the next 2-3 years until the economy recovers and people start buying the new stock at the deflated values of the aluminum prices.

 

 

I am no economist but I can't see many of the aluminum boat manufacturers surviving this.

 

Maybe someone out there, a dealer or insider can answer these questions?

 

 

Darren

[lunkerbasshunter]

prices have dropped so if your going to buy a boat its probally the time to buy. i think most manufacturers try to lock into pricing so its hard to say how much they will be effected.

 

if there smart they would stock pile aluminum now for a few years ahead

 

cheer!

[LeXXington]

I am sure a few smaller boat builders will go bust, people just might put off buying for a while.

 

On the upside, if you wanted a boat or new motor this is the time as the prices will never be better.

[irishfield]

Issue is.. the main cost of the boat is labour.. not aluminum. I don't think the cost of aluminum will effect anything survival wise or not... it will be strictly the fact there is no "play" money around. Already seeing this in the aircraft business. Not even engine parts are selling on ebay... and that was always a guaranteed source of income.

 

Based on even the low volumes that I buy aluminum in and my pricing... there is no more than $2200 worth of aluminum in my 2150 Baron.

 

That pricing per tonne is in bulk... not rolled sheet. So even though the price per tonne has dropped to less than 1/2.. the labour to roll sheet sizes.. transport etc will bring that back up somewhat. Even if the $2200 in aluminum in my boat drops to $1500 or even a $1000... it's not going to change the sales market.

Edited December 21, 2008 by irishfield

[Radnine]

The bigger concern to people buying new boats is the dollar and the fact that is back to where it was a while back. Your Canadian dealer has to buy the boat from the manufacturer at $1.25 (or whatever) unlike last year when he was buying it for par or better.

Perhaps even, if you have a one year old boat you might be able to sell it for what you paid for it. Or if you were going to buy new it might pay to look at 2008 stock left in the showroom at the dealers as he paid less for it.

Interesting times indeed.

Edited December 21, 2008 by Radnine

[Stoty]

All valid points for sure!

I am actually in the market for a new boat.

I'm looking at the Triton X5.

 

Do you think it would be worth my time to drive down and get it from the states?

Are there any deals for boats like there are for trucks right now? (Buy one get one free)

[lunkerbasshunter]

i dont think there is much savings in the us now that the dollar is as low as it is? do yoru research though!

 

Cheers!

[misfish]

IMO it has no way/shape or form at the price of a vessel. Like Wayne said,LABOUR. Wayne works cheap,so if you want a nice tinny ,you better get you order in soon.

So Wayne,hows my 22 ft slim line coming ?????????

Edited December 21, 2008 by misfish

[forrest]

The manufacturers got hit hard when the price went up, not when it went down.

 

The dealers will have to discount older product to clear it, no big deal...their supposed to do that anyway. I do not understand those dealers that have boats on the showroom floor for years.

 

forrest

[diggyj]

I bought a brand new boat in the middle of August last year. I have checked this years price for the 2009 model and the exact same boat is exactly $2000 more this year. Looks the same, maybe some subtle changes. As for prices coming down, looks like they are going up.

Edited December 21, 2008 by diggyj

[OhioFisherman]

RV dealers were getting hit hard here, I would imagine the same with boat dealers. If your unsure about the economy toy buying is usually the first thing to stop? Most people don`t need a boat for work, and a used one can be a carry over till things turn around? Better to do with out the debt?

 

Some info: (InvesTrend Via Acquire Media NewsEdge)

October 10, 2008 (FinancialWire) -- Boatmaker Brunswick Corp. (NYSE:

BC) said that it will cut 1,400 more jobs as the company shuts four

plants and furloughs workers at three more, as boat sales slump to

near-record levels.

The manufacturer's stock plunged to an 18-year low, as it slashed more

than a third of its marine work force since the beginning of the year,

prompted by worsening financial conditions, including rising oil prices

and frozen credit markets.

The company said that in July and August, industrywide sales of

fiberglass boats fell 40 percent while sales of aluminum boats dropped

21 percent and Brunswick also said that September declines were likely

to be worse.

Brunswick plans to permanently close plants in Pipestone, Minn.,

Roseburg, Ore., and Arlington, Wash., while monthballing another

facility in Navassa, N.C. The closures will be completed by the first

quarter of 2009. When the cuts are complete, the company will have

closed more than 40 percent of the boat plants it operated in 2006.

Meanwhile, employees at three other facilities near Knoxville, Tenn.

will be furloughed beginning October 27 through the end of the year.

Shares of Brunswick fell $1.88, or 18.8 percent, to close at $8.12

Edited December 21, 2008 by OhioFisherman

[BUSTER]

not to mention guys the motors that come with the boat , i WAS looking into a boat without a motor NEW and it came down to sticking canadian so i was very interested in LEGEND boats , built in whitefish very near sudbury my home town so i though perfect its canadian its next door to the cottage perfect,, oh wait we cant sell you a boat without a motor because we have a deal merc motors??? i think what happends with merc and other motor makers will determine the cost of boats in 2009....

[F7Firecat]

I have been looking at new boats for about 4 months now. SHould have bought when the dollar was good but who knew where it would go so quickly.

 

You are right about mercury. The have their own monopoly on about 80% of the boat manufacturers. It really sucks how the industry has become this way, I am by no means a mercury fan.

 

There are some deals out there on boats that were brought in around par with the us dollar but with my eperience looking around the dealers know what a new boat is costing now with the dollar the way it is and "most" of them arent giving you much for a deal regardless of what they brought it in under.

 

One dealer did say it will be interesting at the boat show because there maybe some dealers with boats brought in around par and wanting to move them with good pricing and other dealers very ticked that they cannot compete because of the dollar now.

 

 

Bryan