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Issue Date: November 2006


The Boat Biz
by Joe Myerson

Waterfront Development, Worker  Shortage Challenge Industry
The accelerating loss of waterfront access through the development of marinas into high-end residences poses the greatest strategic challenge to the recreational boating industry, according to Gerry Dischino, CEO of the Hinckley Company. Sailing legend Gary Jobson agreed, calling continued access to the water “fundamental to the growth” of the sailing industry. Dischino and Jobson described the state of their industries at a press briefing on the opening day of the Newport International Boat Show.

Other significant long-term issues facing the boatbuilding industry, Dischino said, include the shortage of skilled tradespeople in the United States and increasing competition from boatbuilders in Asia and eastern Europe. He described boatbuilding as “a very tough business,” adding that U.S. companies have enjoyed “a good run” over the past 10 years because of the large amount of wealth generated by the thriving American economy. Recreational boating, Dischino said, contributes $73 billion to the economy, adding that there are roughly 18 million boats currently registered in the country. Most of the industry’s growth has been in powerboat sales, he said.

As residential developers continue to buy up existing boatyards and marinas, Dischino said he worried about the possibility that “people may not be able to buy a boat, because they won’t have any chance to use it.” Responding to a question, the Hinckley CEO said he did not believe that increasing fuel costs had any major impact on boating.

Jobson, who discussed the state of sailing, said his industry’s greatest “enemy” was the lack of available time for enjoying the sport. While he described sailing as a lifelong pursuit that tends to attract an affluent portion of the population, he also praised the many sailing organizations that sponsor programs to make sailboats available for young people of many different backgrounds.



NMMA Grounds Lobbying Cruises
It’s been a tough boating season for some members of Congress and their aides: For the first time in recent memory, the National Marine Manufacturers Association (NMMA) did not charter a yacht as part of its campaign to familiarize Washington politicians with its legislative agenda. The change in NMMA lobbying tactics came about because of concern over rules about gifts to members of Congress, the Chicago Tribune reported recently. In the past, the NMMA entertained as many as 650 congressional staff members onboard its chartered yacht. The boat was also made available for political fundraisers. Monika Fontaine, NMMA’s senior lobbyist, told the newspaper that while she didn’t think the boat trips had violated any congressional gift-giving rules, the trade group wanted to avoid the possibility of future complications.



PWC Sales Up, Accidents Down
While ownership of personal watercraft (PWC) has increased steadily since 1996, the number of accidents involving these boats has declined in the United States, according to a statement by the Personal Watercraft Industry Association. Boating safety education programs and enforcement of state boating laws have helped reduce the number of accidents involving PWC, the trade group said. Thirty-five states have adopted legislation requiring PWC operators to complete a safety course. Between 1996 and 2004, the last year for which statistics were available, the association said PWC ownership increased by 58 percent, to 1.55 million, while the number of accidents decreased by approximately 59 percent during the same period. Roughly 80,000 new personal watercraft have been sold annually since 2002, the group reported.



S&S Opens Newport Brokerage
Sparkman & Stevens (S&S), the legendary 77-year-old yacht design and brokerage house, has expanded its brokerage business, opening an office in Newport, Rhode Island, in the historic Aquidneck Mill building on property owned by the International Yacht Restoration School. The company also hired Alan Huth as a broker in its office on Fifth Avenue in New York City. Established in 1929 by designer Olin Stevens II and broker Drake Sparkman, S&S also maintains an office in Fort Lauderdale, Florida.



BRIEFS
Kate Yeomans, nonfiction author and former assistant editor and longtime contributing editor for Offshore, was recently named associate editor for Amesbury, Massachusetts-based Maptech. Yeomans will oversee the company’s Embassy Cruising Guides. Maptech also announced three other hires: Jeff McWeeney as director of sales, Craig Cushman as director of marketing and Sandy Rikkers as director of finance and operations.

Gus Kreuzkamp III was recently named senior engineer at the Newport, Rhode Island, office of Applied Technology & Management Inc., where he will work to further the Charleston, South Carolina-based company’s coastal and marina business in the Northeast.

Ocean House Marina of Charlestown, Rhode Island, Eagle Marine of Sagamore Beach, Massachusetts, and All Seasons Marine of Norwalk and Westport, Connecticut, were among five dealers of Hydra-Sports Boats to receive customer satisfaction awards at the company’s annual dealer meeting in Sarasota, Florida.

Oldport Marine Services Inc. of Newport, Rhode Island, has announced that it will fuel its launches and tour boats with a 20 percent biodiesel mixture.

Boston Acoustics Inc., a manufacturer of high-performance audio systems based in Peabody, Massachusetts, has announced a new partnership with Calabria Boats, a California builder of high-performance ski and wakeboard boats. Under the agreement, four 6-inch-by-9-inch BA speakers will be featured as standard equipment on Calabria boats.



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