Sailing rough seas

Local boat makers say they will stay afloat despite a national slump in boat sales amid a listless economy.

Sea Fox, Key West and Scout boat builders in the Charleston area insist they are holding their own and do not expect to founder as other boat-builders in the Carolinas have in the past few months.

"If anybody tells you they are up and doing great, it's not true," said Jeff DeBar, vice president of marketing for Sea Fox Boats in Berkeley County. "It's almost like a perfect storm."

High gasoline prices, the housing market fiasco and tight credit are creating a tidal wave of bad times for the industry.

Tom Marlowe, sales and marketing manager at Key West Boats Inc. of Summerville, put it bluntly.

"Business sucks," Marlowe said. "No boat manufacturers can stay in business if we don't have orders. Based on the demand that we have right now, we will be fine. We will be positioned to take advantage of the upturn when that occurs."

In the meantime, other boat builders are sinking in the choppy waters that the recreational marine industry and the overall economy is navigating right now.

Brunswick Corp. announced last week it will shutter its U.S. Marine boat yard near Wilmington, N.C., eliminating 270 jobs by year's end.

In August, Cobia Boats said it would shut down its Marion, N.C., plant, putting 68 people out of work.

In May, Brunswick Corp. sank its Sea Pro line of fishing boats and laid off 175 workers at its Newberry plant northwest of Columbia.

While business is down, local boat makers say diversification is keeping their heads above water, though they all have shed employees, mainly through attrition, since the downturn started two years ago.

"We have a good balance between saltwater fishing boats and pleasure boats," said DeBar of Sea Fox. "We are balanced between U.S. sales and global sales."

Dave Wallace, vice president of Scout Boats in Summerville, echoed DeBar's remarks.

"The boat industry is soft," Wallace said. "It's a luxury item. It's not something you have to have, but we are holding our own."

He said international sales have been very strong at Scout, helping to offset weak demand in domestic sales.

"We are the Number 2 importer in Finland and Number 1 in Greece," Wallace said.

He added that Scout Boats will emerge from the downturn.

"Our company is financially sound and privately owned," Wallace said. "We are diversified with our international market. It's just a blip in the marketplace right now. People will continue to boat and fish. They are using their existing boats longer, but that will change. We are very encouraged."

Marlowe of Key West Boats said most of its sales are domestic and that some pockets of the country, such as booming energy markets of Houston and Louisiana, are doing very well right now.

Nevertheless, Key West's number of employees is down to 125 from 200 a year ago and he expects business to be between 60 percent and 70 percent of the 2,000 boats they sold last year.

Marlowe said he is upbeat about Key West's future, but he predicts an industry shakeout is inevitable.

"There are too many manufacturers and too many dealers to be supported by anything other than a perfect situation," he said.

For Hanckel Marine of West Ashley, which opened at its Sportsman's Island location in July on Daniel Island, the boat-buying business has nearly dried up.

"It's off a huge amount," said Miles Hanckel, vice president of the dealership. "Traffic coming through the door has dropped drastically."

With gas prices and people's inability to get credit, he does not see it turning around anytime soon.

"It feels like hard winter is here for us already," Hanckel said.

In the middle of what could be the real hard winter is the 29th annual Charleston Boat Show at the Charleston Area Convention Center, set for Jan. 23-25.

"I don't feel like it's gloom or doom for us at all," said Jacqui McGuinness Bomar, whose company promotes and organizes the annual sales event. "We can't control the issues with credit. Hopefully by January, we will have some resolution with that. Statistics are high of how important boat shows are in purchasing a boat."

A recent Michigan State University study showed that 55 percent of boat buyers attended a boat show within six months prior of their purchase. Realizing that, all major boat dealers in the Charleston area already are committed to the show, Bomar said.

"We are just hoping for the best," she added.

saltwater fishing boats and pleasure boats," said DeBar of Sea Fox. "We are balanced between U.S. sales and global sales."

Dave Wallace, vice president of Scout Boats in Summerville, echoed DeBar's remarks.

"The boat industry is soft," Wallace said. "It's a luxury item. It's not something you have to have, but we are holding our own."

He said international sales have been very strong at Scout, helping to offset weak demand in domestic sales.

"We are the No. 2 importer in Finland and No. 1 in Greece," Wallace said.

He added that Scout Boats will emerge from, the downturn.

"Our company is financially sound and privately owned," Wallace said. "We are diversified with our international market. It's just a blip in the marketplace right now. People will continue to boat and fish. They are using their existing boats longer, but that will change. We are very encouraged."

Marlowe of Key West Boats said most of its sales are domestic and that some pockets of the country, such as booming energy markets of Houston and Louisiana, are doing very well right now.

Nevertheless, Key West's number of employees is down to 125 from 200 a year ago and he expects business to be between 60 percent and 70 percent of the 2,000 boats they sold last year.

Marlowe said he is upbeat about Key West's future, but he predicts an industry shakeout is inevitable.

"There are too many manufacturers and too many dealers to be supported by anything other than a perfect situation," he said.

For Hanckel Marine of West Ashley, which opened at its Sportsman's Island location in July on Daniel Island, the boat-buying business has nearly dried up.

"It's off a huge amount," said Miles Hanckel, vice president of the dealership. "Traffic coming through the door has dropped drastically."

With gas prices and people's inability to get credit, he does not see it turning around anytime soon.

"It feels like hard winter is here for us already," Hanckel said.

In the middle of what could be the real hard winter is the 29th annual Charleston Boat Show at the Charleston Area Convention Center, set for Jan. 23-25.

"I don't feel like it's gloom or doom for us at all," said Jacqui McGuinness Bomar, whose company promotes and organizes the annual sales event. "We can't control the issues with credit. Hopefully, by January, we will have some resolution with that. Statistics are high of how important boat shows are in purchasing a boat."

A recent Michigan State University study showed that 55 percent of boat buyers attended a boat show within six months prior of their purchase. Realizing that, all major boat dealers in the Charleston area are already committed to the show, Bomar said.

"We are just hoping for the best," she added.

Reach Warren Wise at 937-5524 or wwise@postandcourier.com.Reach Warren Wise at 937-5524 or wwise@postandcourier.com.