As people adapted and learned that outdoor activities were safe alternatives to quarantining in their homes, boat sales boomed during the pandemic after an initial slump.
One Jacksonville company, Atlantic Coast Marine, experienced sales growth of 40% in 2020, said Brett Cannon, president of Cannon Marine Partners LLC.
Since 2006, he and his father, Managing Partner Carl Cannon, have sold and serviced boats at the 13748 Atlantic Blvd. dealership, on the western side of the bridge over the Intracoastal Waterway.
The dealership sells center console fishing boats ranging from 18 feet to 35 feet in length. Brands include Pathfinder, Cobia, Everglades, Hewes and Maverick and a full line of Yamaha outboard motors.
It also sells used boats.
The company went from selling 150 boats total in 2019 to more than 200 boats last year.
Brett Cannon expects sales to increase 5% to 10% this year, compared with 8% annual growth in a typical year.
Carl Cannon suspects the interest in boating is up because COVID-19 changed people’s plans in 2020. Money set aside for vacations was used instead for a down payment on a new boat.
Today’s boat designs also lead to a vessel being a recreational outlet for the entire family.
“Most of those boats appear to be fishing boats but as they have evolved it can be your fishing boat on Saturday and your family cruiser on Sunday,” he said.
The Cannons now are expanding the dealership.
They cite the pandemic as the reason for increased sales as well as a depleted boat inventory, making this a good time to tear down and rebuild the Atlantic Coast Marine property.
Construction should begin by the end of March and take six months to complete on the 5,500-square-foot building, which includes an expansion to the service center.
Scherer Construction is designing and building the project, which will serve as the company’s headquarters.
The city is reviewing a permit application for the demolition of the existing building and construction of the new building at a cost of $1.15 million.
The business owns about 2 acres near the Intracoastal Waterway that houses the offices and service center where the company repairs and repowers boat motors.
Cannon Marine Partners also owns Jacksonville Boat Sales at 14603 Beach Blvd. in the Palm Cove Marina.
The service center will remain open at the Atlantic Boulevard location during construction while the Atlantic Coast Marine offices will move temporarily to the Palm Cove Marina sales office.
The Cannons found that many of their customers were looking at boats on the internet.
They have a good working relationship with the operators of Palm Cove Marina. Prospective buyers can be shown examples of the boats they want from the many boats stored at that site.
The existing offices, which are more than 80 years old, need to be replaced. Recent hurricanes and heavy storms damaged the roof beyond repair. The project also calls for new asphalt for the parking lot and new fencing around the property.
“The building is just too tired and we have outgrown it,” Carl Cannon said.
Boat production lagged demand
Consumer demand and jurisdictional rules about how businesses could operate during the early stages of the pandemic put new boat purchases on back order.
Barrons.com reports that the National Marine Manufacturers Association saw the biggest sales increase last year in recreational marine craft in all categories since 2007. Industry sources predict increased boat sales revenue through 2025.
The sales spike came at time when the Jacksonville Marine Association had to cancel its October 2020 and January 2021 boat shows, which are primary sales drivers for the industry.
“It had nothing to do with COVID. You can’t have boat shows without boats. Our dealers didn’t have any inventory to show,” said Erin Johnson, administrative director of the Jacksonville Marine Association.
Dealers hope there will be enough boats to hold the show planned April 16-18 at Metropolitan Park and Marina in Downtown Jacksonville.
Brett Cannon expects it to take 18 months to two years to see production catch up with demand.
The immediate outlook for 2021 is murky because of the supply issues, Carl Cannon added.
The virus also has caused other problems.
The Cannons have seen the cost of construction increase due to the scarcity of building materials and labor. The cost of boat fuel also has risen since the end of 2020, Brett Cannon said.
Carl and his wife, Rita, both contracted the disease last spring but had mild symptoms, primarily feeling fatigued for a few days.
Before buying the business in 2006, Brett Cannon was a charter captain and operated Cannon’s Bait and Tackle.
Carl Cannon was publisher of The Florida Times-Union from 1990 through 2007.
In that position, he was part of the leadership team of Touchdown Jacksonville and played a key role in bringing the NFL to Jacksonville.
He remains an active supporter of the Jacksonville Symphony and the Jacksonville Zoo and Gardens as well as other philanthropic organizations.
The lingering effects of the 2008 economic downturn stagnated boat sales, he said.
Brett Cannon estimated that nearly half of the boat dealerships in Florida went out of business during that time.
“When we bought the business we put a reserve amount aside. From my experience, I knew every small business would fail without a reserve. In other words, we didn’t use all of our cash to buy the business,” Carl Cannon said.
