NMMA President Gives State of Industry Report
During his annual “state of the industry”
address at the Miami International Boat Show, NMMA President Thom Dammrich said,
“Boating is not going away.” He expects a turnaround to begin in the second half
of this year for new boat sales. He also said that the NMMA is working with government
officials to use TARP funds to support dealer floor plans as well as working to
promote credit union lending for new boats.
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| Thom Dammrich is president of the boating industry’s trade association, NMMA. |
Dammrich also said, “Though current economic conditions are depressing consumers'
buying at the moment, dealers tell us there is significant pent-up demand among
consumers attending boat shows.”
Dammrich said he believes that in the next 12 months credit will begin flowing again
for retail and wholesale, the housing market will begin to stabilize, and consumer
confidence will improve.
“We cannot lose sight of the fact that boating remains the best way to spend quality
time with family and friends, the best way to enjoy the outdoors or go fishing,
and the best way to relax and get away from all of our stresses on land.”
Sales Back to 2001 Levels…
“In 2006 we reported that the marine industry nearly reached $40 Billion in total
direct sales. This slipped a little in 2007 to $37.5 Billion. Though the numbers
for 2008 are not all in yet, we expect that for 2008 the marine industry may slip
under $30 Billion. That is back to levels last seen in 2001.
What the NMMA is Doing…
“NMMA is working with the Congress and the Treasury to try to be sure that any efforts
to stimulate the economy stimulate sales of new boats too. We want boats and other
consumer durable goods treated the same as automobiles. Secretary Geithner in announcing
phase II of the financial bailout, expanded the wording from auto loans to “consumer
and auto loans” and added small business loans.
“We are working to promote greater credit union lending for new boat purchases and
have met with CUNA officials. Legislation sponsored by Congressman Barney Frank
passed the House and included, at NMMA’s urging, a provision allowing TARP funds
to be used to support dealer floor plan financing.
We’ve Seen Tough Times Before…
Recently, Mr. Dammrich also said, “During tough times we also lose perspective and
believe the industry will never come back to its former self—but it always has!
“
Remember—
• The oil embargo in ’73-‘74
• President Carter’s proposed ban on weekend boating in ‘78
• Inflation and interest rates up 22% from ’79 to ‘81
• First Gulf War ‘91
• Luxury Tax ’91-‘93
• Asian Financial Crisis ’97-‘99
• Recession ’00-‘01 • 9/11 2001
• Iraq War ‘03
“The boating industry took a hit in every one of these tough times, yet new boat
sales and marine sales bounced back every time.
“In the past decade we have lived through significant change:
• the emergence of the internet
• bursting the dot com bubble
• major corporate scandals (Enron)
• 9/11 and the growth of terrorism
• War on terror, and in Iraq and Afghanistan
• A series of devastating natural disasters
“The global economy and the global boating industry have weathered each one of them
and we will weather the current turmoil and malaise, too.
Why Boating Grows in the Future…
In the next 40 years, the US population is predicted to grow from 300 million people
to 450 million people. If we can make boating attractive to 32% ( the same % of
current Americans who go boating each year) of the 150 million new Americans that
would represent nearly 50 million new boaters in the next 40 years. About 80% more
boating participants than we have today. We don’t need to convert a lot of them
to boat ownership to have a dramatic impact on new boat sales.”