by David Ball
Staff Writer
The economy is falling. People are losing jobs. Consumer confidence is reaching historic lows.
Still, Jimmy Hill expects thousands of shoppers congregating in Downtown in two weeks to spend millions of dollars on items, frankly, they really don’t need — boats.
Hill has organized the Jacksonville International Boat Show since its inception 11 years ago, and he said he expects plenty of commerce at this year’s event scheduled for April 18-20 at Metropolitan Park.
“Ironically, for whatever reason the show continues to grow,” said Hill. “Even as the economy is faltering, we haven’t felt it in the boat show world.”
But money is tight, and gas prices are at all-time highs. Hill has a theory.
“Even the average blue-collar guy has some investment money, and if your money’s not working for you (in the market), it might as well be playing for you,” he said. “What’s the point if not to live your life and enjoy it. And Boating is a benefactor of that, especially on the high end.”
But across the $40 million boating industry, sales are slipping — about 15 percent compared to last year in some reports — as consumers divert less of their money to luxury items and toys. And that has further translated to job cuts.
According to a report on FloridaToday.com, Illinois-based Brunswick Corp., which manufactures more than a dozen boat brands including Bayliner, Sea Ray and Hatteras, closed or planned to close seven factories and laid off more than 1,300 workers as it realigns its business and cuts boat production by more than 10 percent. Some of those facilities are in Florida.
But as Hill pointed out, there is one specific segment of the market that is actually experiencing unprecedented growth — sales of yachts.
“Every year, we gain about 10 foot in the length of the longest boat sold at the show,” said Hill. “Last year we sold one about 70 foot, so the larger yachts are right behind it.”
A recent ABC News report showed that waiting lists for large, super luxurious mega-yachts is approaching four-six years at some companies. Reasons include an emergence of superwealthy buyers in Eastern Europe, Russia and the Middle East, as well as a weak American dollar.
“It’s not that significant to them whether we’re in recession or not, because they’re so wealthy,” the report quoted Tork Buckly, editor of London trade magazine The Yacht Report. “The business appears to be recession proof.”
And since manufacturers have such a long wait time for delivery of a new boat, used models are selling for more than double their original price — ironically making them a smart business investment.
However, Hill doesn’t expect many of the patrons at the Jacksonville show to leave in yachts, although he does think many local buyers aren’t turned off by the economy and even high gas prices.
“Within 25 to 30 miles around Jacksonville is a host of micro-vacation destinations that doesn’t cost that much to go to,” he said. “It’s really a fun and cheap way to vacation if you aren’t trying to get to Europe.”
Hill said the key to his show’s success is having vendors that offer a versatile array of products, from inshore and flats boats to offshore fishing machines and everything in between. The Jacksonville International Boat Show is also the only in-water show in the area, and it allows larger and unique products to be showcased.
“We have something else in our show that no one else has for quite a distance, and that’s sailboats,” said Hill. “With increase in gas prices, I think we’ll follow Europe and see a huge upswing in that market.”
Plus, the environment of the boat show seems to be conducive to better sales.
“At the show, you can actually see what you’re getting and compare it to what else is out there,” said Hill. “And if the whole family is there, all the decision makers are sitting in boat, and sales go up.”
Hill said he spends hundreds of thousands to put on the event and hundreds of thousands to promote it, although it’s worth it to bring in the close to 20,000 people he expects to tour the more than 250 vendors. Plus, he said those that aren’t there for the boats but simply for a nice day on the river may walk away a future boater.
“You don’t have to be a boater to make this a really great day, although you’ll probably leave a boater,” he said. “One thing we do that’s different is we don’t charge for kids under 16. The whole idea is to develop the activity of boating, and the only way to do that is to get the kids to come.”
Entry for adults cost $10. For more information on the Jacksonville International Boat Show, call 673-0093 or visit www.jaxboatshow.com.