March 14, 2002

Poor Planning Threatens to Sink Marinas in 2002

Mt. Pleasant, South Carolina - Inadequate planning will cost some marinas dearly in 2002. According to Applied Technology & Management, Inc., a leading environmental, coastal, and water resources engineering firm, one of the biggest marina profit killers this year will be unexpected capital expenditures and unplanned maintenance.

"Marinas that don't plan will lose slip revenue while making repairs and constructing replacements," says Mark Bolchoz, senior engineer with the firm's West Palm Beach office. "Slips and tenants will be displaced. And when marina staff has to focus on unexpected maintenance and construction, it will take away from the time and attention they could spend on tenants' needs."

Dock repairs, bulkhead replacements, and deferred maintenance will be among the top capital expenditures for marinas in 2002. According to Bolchoz, most marinas that are more than 10 to 15 years old are outdated and in need of repair, and few facilities have contributed to capital replacement funds to improve them. For marinas that aren't prepared, even routine ongoing repairs and regular dredging will become major challenges.

According to Applied Technology & Management, developing a solid business plan is key to maintaining profitability in 2002. "Like any other industry, marina owners and operators need to approach their long-term goals with a solid business plan," Bolchoz says. "If you arrange your marina's budget to accommodate a certain number of expenses each year, you can really absorb the shock of the overall cost over the course of five or ten years. Repairs and replacements will be necessary- it's just a question of when you'll have to dig into your pockets. It always comes back to a strategic approach to maintaining and improving marina facilities."