Sailboats take to the wind as gas prices soar

By Steve Wilhelm

updated 9:20 a.m. ET Aug. 19, 2005

Sailboats are looking better. Trips on the motor yacht might be getting shorter.

Record fuel prices appear to be making an impact on the leisure-boat industry around Puget Sound. While sales continue to grow this summer due to low interest rates and a stronger economy, the high fuel prices appear to be cooling the rate of growth and altering the blend of watercraft attracting buyers' interest.

Brokers say they're seeing some buyers shift to sail or to more efficient diesels, and they say some yacht owners are shortening their trips and throttling back to a more fuel-efficient pace when underway. It's a trend that parallels the automotive world, where fuel costs are causing many buyers to move away from big SUVs and toward smaller cars and hybrids/

"I've had people tell me, 'We've just sold our powerboat and we're looking for a sailboat, due to rising fuel expense,'" said Brian Gross, CEO of Windworks Yacht Sales Inc. in Seattle. "Those who are more concerned, or have more of a monthly budget, are the ones leaning more toward the sailing side of things."

New-boat sales statistics from the Northwest Marine Trade Association indicate that sailboat sales were stronger than those of motor-powered vessels during the second quarter of 2005, as fuel prices have been climbing upward and the higher prices have been given much media attention.

Sail craft sales rose 4.3 percent during this period compared with the same quarter of 2004, while sales of new motor yachts dropped by 8.1 percent during the second quarter of this year, according to association statistics. Sales of new pleasure craft of all types were up just 1.1 percent in the second quarter of 2005, a substantially slower pace than the year before when overall growth hit 15.7 percent for the year.

Last year, sales of new motor yachts grew much more robustly than sail, with 763 sold for the year, up 14 percent over the year before, while the 141 sailboats sold were up 8.5 percent over the year before.

To be sure, high fuel costs seem to be a factor only for selected buyers, some observers say. With new 40-foot cabin cruisers costing $400,000 or more, they point out, the cost of fuel is only a small part of the substantial expense of owning and operating a large pleasure craft.

Furthermore, the figures cited above reflect only the relatively small base of new-craft sales, not including used craft.

Regarding gas prices, association President Michael Campbell said, "The phones don't ring and say boat sales are dead in their tracks because gas is $2.43 a gallon. People are reluctant to give up that pleasure when the cost is incremental." Campbell's Seattle association represents both boat builders and sellers.

Olympic Boat Co. Northwest regional manager Mike Helgen agreed with Campbell. He said he hasn't perceived many buyers backing away from buying larger boats due to fuel prices. Olympic, which specializes in mid-market boats such as Bayliners built by Brunswick Corp. of Lake Forest, Ill., is one of the industry's largest retail chains.

"It's a conversation piece but not a deal breaker," Helgen said about fuel prices.

But then he added, "Maybe it (sales) would be a heck of a lot better with lower fuel prices."

MORE FROM SEATTLE

PulseDyne sees $100M potential in adapting jet engines to clean furnaces

PulseDyne sees $100M potential in adapting jet engines to clean furnaces Late from gate, Alaska Air soars in cyberspace 1,600 working on Boeing jet to hunt and sink submarines   Add Seattle headlines to your news reader: