July, 2008 | SeaDream Boating News

Archive for July, 2008

Boaters Beware You May Soon Be Fined $32,000 a Day!

Thursday, July 17th, 2008

You read that headline correctly. If Congress does not pass the 2008 Clean Boating Act by September 30th, boaters who do not file for a state or federal permit to operate a boat face potential fines of $32,000 a day.

In lieu of a federal act boaters will be faced with local regulators interpreting the new Environmental Protection Agency requirements for engine cooling water, deck run-off, bilge water, and any other water-based operational discharge from a recreational boat. Failure to obtain the proper local permits will subject boaters to fines up to $32,000 a day for non-compliance. In order to avoid this potential nightmare scenario write your local Congressman a letter urging them to sign the Clean Boating Act before Sept. 30th. You can send a letter online by following this link and filling out the form.

Boat Dealers Face Tough Economic Times

Friday, July 11th, 2008

Boat dealers are continuing to struggle with the economic downturn. According to Spader Business Management new unit sales dropped 31.0 percent in the January – April time period this year compared to 2007. Used boat sales didn’t suffer quite as badly dropping 22.2 percent. Overall total dealership sales are down 24.2 percent for the January – April time frame compared to 2007 resulting in an increase in net loss of 476.3 percent.

In order to survive the current economic downturn dealers are cutting expenses. New unit inventories have dropped 1.9 percent. Despite those efforts expense have still increased 12.2 percent as a percentage of gross margin as boat buyers continue to bargain hunt reducing overall profit margins.

The increase in buying power is good news for prospective new boat owners but it will continue to put pressure on boat dealers and manufacturers as evidenced by the recent layoffs at Tiara Yachts, Chris-Craft, and Century Boat Co. The hard times appear to be here for a while. Tim Condor, Wachovia Capital Markets analyst, believes the first signs of an upturn in the U.S. marine industry won’ t be seen until 2010.