July 10, 2002

Boating Steams on While Economy Drags

Mt. Pleasant, South Carolina— Despite economic downturn and the effect of terrorism on market conditions, demand for large boats and marina slips has actually increased in recent months. Apparently, high-end boating enthusiasts have been somewhat insulated from the recent recession, according to Ed Modzelewski, chairman of Applied Technology & Management, Inc., a leading environmental, coastal, and water resources engineering firm.

"There's been a steady upswing in the demand for larger vessels and a slight drop in demand for smaller ones," Modzelewski says. "As a result, many marina owners and operators are attempting to upgrade their facilities and provide additional expanded slips. They're also changing their mix of slip sizes to accommodate the increased number of mega-yachts."

The mega-yacht industry appears to be growing at a rate of 20% each year. To keep abreast of market changes and demands for larger slips, Modzelewski suggests that marine owners and operators watch sales trends on national, regional, and local levels to prepare for the storage needs of their clientele. "Boaters are gravitating to longer and wider vessels," Modzelewski says. "And marina owners and operators need to be able to provide the upgrades and expansions to offer berthing for larger boats."

People are making a significant effort to spend more time with family and friends, and that is translating into more recreational activities. "Even with a downturn in the economy and a reduction in 'disposable income spending,' recreational boating at the higher end of the spectrum has not been sacrificed," says Modzelewski.