Spokane-area boat dealers are upbeat about sales this year after receiving a strong response at the recent exhibition boat show here.
"Our floor traffic has been greater the first two months of this year than the previous two years," says Doug Trudeau, co-owner of Trudeau's Marina. The longtime dealership located at 304 E. Sprague carries Sea Ray, Boston Whaler, and Bayliner brands.
Meanwhile, Coeur d'Alene-based Hagadone Marine Group general manager Craig Brosenne says that dealership returned to the Spokane Boat Show held early last month after staying away last year to hold an exhibit event at its yard.
"We were asked to return this year, and we had one of our best boat show years since 2009," Brosenne says. "We sold 25 boats."
The optimism among boat dealers here is supported by Northwest Marine Trade Association data showing a shift upward last year in the sales volume for both new and used boats, after four years of significant decline.
For all of last year, the value of both new and used boat sales in the state jumped sharplyby 15 percent to $428 million, the Seattle-based group says. Of that, new boat sales by dealers totaled $123 million in value, up 15 percent from $106.6 million in 2011, while sales of used boats also climbed 15 percent and topped $304.8 millionincluding private sales.
Meanwhile, the number of boats sold last year in the state also reached the highest number since 2006, though still far from reaching that year's peak of 55,000 boats sold. The association says slightly more than 37,000 boats were sold in 2012, up 0.2 percent from the prior year. Of that, 3,325 new boats were sold by dealers, up 9 percent, and 33,700 used boats were sold, amounting to a 0.5 percent decline.
Preliminary data for January and February also is trending positive for new boat sales, says John Thorburn, spokesman for the trade association, which receives data from the Washington Sea Grant research program that compiles Department of Licensing numbers.
"Preliminary data indicates the dollar values of boats sold for the month of February alone are up 35 percent for new boats sold by dealers, but the number of boats sold is down about 5 percent," he says, adding that suggests higher priced boats likely sold well.
"In January, the units of new boats sold were up a bit, but the dollar values were down."
Boat dealers here say last year had up and down months for sales, including a decline near last fall's presidential election. However, they say overall sales for the year ticked up. Boat sales are looking even better this first quarter, several of them add.
"We have a lot of repeat customers," Brosenne says about Hagadone Marine Center. "Last year was a tough year with the election, but it seems that once the election was over, people got on with their lives. Boats are a great escape to get away and relax."
The Hagadone Marine Center, located at 1000 S. Marina on Blackwell Island in Coeur d'Alene, carries such brands as Harris Flotebotes, Cobalt, Regal, Marquis, Carver Yachts, AXIS, and Malibu.
Brosenne adds, "We probably carry $4 million to $5 million in inventory of new and used combined at any time. We'll probably end up selling for the 2013 model year over 200 boats new and used."
Improving technology such as the ability to operate a high-powered 30-foot boat with a joystick system is attracting buyers again, Brosenne contends. "Technology that's made it much easier on the boat operator is what's driving the market," he says.
He also cites increasing demand on its Hagadone Marine Group's boat services side that includes winter storage facilities, and 1,000-plus public slips on the north end of Lake Coeur d'Alene. He says moorage is filling quicker than any other year at this time and has a current waiting list.
"We anticipate being full this year," he says. "We stored last winter over 1,000 boats; it was a record. We stored in every inch we own. I suspect that will grow again this year. We have 81 acres and over 400,000 square foot of indoor storage, and we'll build more buildings if the market demands it."
Trudeau says the trend of customers seeking to buy quality used boats remains strong, and the dealership near downtown Spokane carries both pre-owned and new models. However, he says overall sales for all types of boats at the dealership edged up the first two months of this year.
"I'd say it's probably up 5 percent, which we're happy with for this year," he says. "If we can sustain even flat sales as compared to the year before, we'll be happy as far as what our sales are doing. We were happy with last year; it was good."
He adds, "Lending from banks is still very solid."
Trudeau says dealers here have adjusted to marketplace demands after sales numbers and U.S. boat manufacturing shrank around 2009. "The marketplace had shrunk dramatically for different reasonsthe costs of building boats, the lending industry shrunk, and there were new environmental standards for boats being manufactured."
Trudeau says 2014 is expected to bring a lot of new releases in boat styles and technology improvements, partly in jet boats and partly in deck boats. Some boat manufacturers are building what he calls hybrids, blending fiberglass sport boat and pontoon boat features.
"There will be resurgence in outboards because they cost less, in general," he adds.
While Trudeau's Marina sells fiberglass-model sport boats, cruisers, and a few large runabouts, he says he's hearing about rapid growth in the sales of both aluminum boats, popular for fishing, and pontoon boats, which have large square-shaped decks for carrying typically 10 to 12 people.
"The aluminum and pontoon boat side is actually seeing growth, which we don't sell, but I get reminded daily that they're selling," Trudeau says.
Spokane Valley Marine Inc. co-owner Dan Conrath says he agrees that aluminum and pontoon boats are gaining popularity and that sales of all boat types have been doing better in recent months.
The dealership moved in 2011 to the former Skipper Bill's building at 7915 E. Sprague, after that boat retailer went out of business. Spokane Valley Marine carries brands that include Ranger, Stratos, Starcraft, and Four Winns.
"The last two years, people are spending money if their jobs are secure," Conrath says. "Pleasure and runabouts haven't come back as much, but in general people are willing to buy boats if they're feeling secure in their jobs."
He adds, "Pontoons are the growing segment in the industry. In our lineup, they start at under $18,000 and go up to $70,000, and you can get a lot of boat for your money. They are 18-footers to 20-foot boats as a typical size."
Asked why pontoon and aluminum boats are getting more notice, he cites several reasons, including that fishing enthusiasts still will go fishing even when the economy is bad. He also says pontoons are advancing in performance.
"Pontoons typically have lower horsepower for better gas mileage and lower cost of ownership," he says. "However, you can equip them for skiing and tubing. It depends on what people want. People use them for fishing too."
For Hagadone Marine Group, though, the fiberglass boat sector also is picking up, Brosenne says, adding, "We're probably 20 percent of the marketplace in the state of Idaho for fiberglass runabouts from 20 feet to 35 feet."
As another indicator of growing demand, he says that Cobalt Boats, a Kansas-based maker of high-end runabouts, has returned to building about 55 boats weekly, about the same number as 2007. He says that around 2009, Cobalt had cut back to building only about 10 boats a week.
Overall, Conrath says he's also noticed a steady improvement in all types of boats being sold.
"Last year, we had an outstanding year," he says. "This year is starting out spectacular. We've been very busy since the boat show, both in selling and servicing boats. We've been on a steady climb. Last year was probably 10 to 15 percent up. This year, the first two and a half months was good."
He adds, "With the boat show, attendance was about the same, but there were people out shopping to purchase boats. We've been busier since the boat show than we were last year."
Thorburn, with the Northwest Marine Trade Association, says the group has heard similar positive responses to a boat show held in Seattle early this year. The early sales numbers for January and February also hold promise, he says.
"What we're seeing for January and February as far as units sold are typically smaller months as compared to the spring and summer months," Thorburn says. "Any variation is going to show up pretty dramatically in January and February."
He adds, "I think what we're seeing across the country at boat shows like that is that sales are very strong."