New boat sales in Washington plummeted by more than 56 percent during the first three months of 2009 over the same period last year—indicating that the sinking boat market hasn’t turned around.

Used boat sales fared only somewhat better, dropping 27.5 percent during the first quarter. But together, as the region’s boating season officially kicks off tomorrow, the numbers paint a gloomy picture for an industry that’s been hit on all sides by the recession.

“There’s no doubt about it—sales are way down for our industry,” said George Harris, vice president and boat show director for the Northwest Marine Trade Association. “I don’t want to sugarcoat it. It’s tough out there.”

Just 390 boats were sold statewide during the first three months of the year, compared with 899 last year. The figures represent a sharp downturn since 2005, when 1,361 new boats were purchased during the first quarter of the year.

Harris blamed sluggish sales for the closure of several Washington boat dealers over the past six months, including Passage Maker Yachts in Seattle, PowerBoats NorthWest in Fife and Blackfish Marine, a Carver dealer that had locations in Seattle and Mount Vernon.

Sales slump in first quarter.

“I think there is a huge oversupply of new boats in the market right now, and until consumer confidence increases and the reality of lending improves and the perception of lending improves, we’re going to see slow sales,” Harris said.

The recent sunny weather may be bringing out boat shoppers, but dealers say that’s not necessarily translating to sales. Bob Ross, a broker at Sail Northwest in Seattle, said he’s noticed an increase in traffic on the company’s website and more customers walking through the door. Customers are interested in buying, Ross said, but they’re also hesitant.

“There’s a lot of wait and see out there,” he said.

Organizers of the Seattle Boat Show, operated by the NMTA, had hoped that a better than anticipated turnout at the January event might signal a turnaround for the boating industry. But the first quarter figures didn’t offer much encouragement.

A dismal start to the year has left many boat dealers hoping that the sunny weather will finally bring in the buyers.

“I think we were hoping to see something better coming out of the Seattle Boat Show, which is kind of the kick-off for our industry each year,” said John Thorbun, the NMTA’s director of communications and marketing.

Still, some are optimistic that the industry is on the upswing, albeit slowly. Chapin Day, a broker at Signature Yachts in Seattle, said the company experienced a lull late last year after its business peaked in 2007, but began seeing signs of some recovery around February of this year.

“We’ve had quite a few sales. There has been a lot more traffic, people on the docks, people calling, people emailing,” he said. “It’s still not back to anywhere near the levels we were experiencing in the earlier parts of 2008, but we’re cautiously hopeful.”

With consumer spending just starting to rebound after reaching its lowest levels in almost three decades late last year, boat brokers have a difficult task in convincing buyers to take the leap.

“It’s basically creating an excitement and creating a ‘wow,’” Ross said. “But you can’t really create that anymore. The consumer is too smart. They know when they’re ready, and they’re not going to do it until they’re ready.”

About Deborah Bach

Deborah Bach is the editor and co-founder of Three Sheets Northwest. She is an avid sailor and long-time professional journalist. You can find Deborah aboard Three Sheets, an Island Packet 38, with her husband Marty and their cat Lily.

• View all posts by Deborah Bach →
• Blog
• Facebook