BizJournals Portfolio
Jul 03 2008 12:00am EDT

For Sail

In the longstanding marine rivalry between powerboats and sailboats (and their respective owners), sail is getting a boost from--of all things--fuel.

High gas prices and a poor economy have some power boaters choosing to remain moored rather than drop hundreds of dollars into the tank. Some are even considering a switch.

"The buzz on the docks is that power boats are getting the "For Sale" signs while interest in sail is growing," says Sally Helm Helme, publisher of Sailing World magazine. "While power boat mags are reflecting doom and gloom, the sailing market is holding up pretty well and we're ahead of our projected [advertising] goals"

According to several reports from marinas, boat service companies, and harbormasters across the U.S., this season has seen far less powerboat traffic than in recent years. According to National Marine Manufacturers Association, the primary reason is high gas prices, but other factors are at play.

"The soft housing market, a weakening economy and declining consumer confidence have clearly impacted our industry in terms of new boat sales," says Thom Dammrich, C.E.O. of the Chicago-based trade group. Dammrich said new boat registrations were down about 20 percent for the first quarter, and 9 percent for a rolling 12-month basis "in basically every boat category."

Boaters are still heading out on the water, he says, but are finding ways to conserve gas by spending more time anchored, boating to specific destinations instead of cruising around, and running at slower speeds. "There are other ways than going full throttle," he says.

One business casualty is the Brunswick Boat Corp of Lake Forest, Illinois, the largest boat manufacturer in the U.S. Citing a poor economy, rising fuel prices, and slow sales (down 21 percent in the first quarter of 2008), the company recently shuttered four plants and laid off 1,000 employees.

The squeeze at the gas pump is also affecting other marine businesses, from charter vessels to fishing boats to ferries. The Massachusetts' Steamship Authority, which ferries tourists and residents from Hyannisport to Nantucket and Martha's Vineyard, recently levied a $2 increase on its one-way fare, a unprecedented fare hike, according to Wayne Lamson, The Steamship Authority's general manager. Boston Harbor Cruises has added a $2 fuel surcharge for its whale watches and ferry to Provincetown.

Some boaters, like Rick Dieffenbach, who spoke to the Morning Sentinel in Augusta, Maine, are taking advantage of hybrid vessels. His Macgregor 26 X can operate both as a powerboat and sailboat. "I have two six-gallon tanks," the Topsham, Maine, resident told a reporter. "I just went out on a weekend, and I used a third of one tank."

"It's the best of both worlds," Helme says. "You can have the sail, the big engine and the generous accommodation. It's the ultimate hybrid vehicle of the seas. I'll be willing to bet we'll see more them in the future."

by John Clarke Jr.


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