Sail-World.com : Foreign buyers keep US industry afloat
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Foreign buyers keep US industry afloat |
The strength of foreign currencies against the US dollar which more than offsets the cost of shipping a boat overseas, is leading the rising popularity of exports from the US to Australia, New Zealand and Europe.
American goods are looking better and better to foreign buyers. This is not news to Australian manufacturers, but perhaps the actual statistics will alarm you.
Five years ago, 20,000 Euros would have bought a boat worth about US$17,500. Today, it buys a boat worth more than US$31,000.
Believe it or not, boats from Michigan particularly strong sellers largely because they haven't been exposed to damaging saltwater.
'We think of it as the dollar weakening -- that's weakening our power to buy foreign goods,' said Linda Tesar, chairman of the economics department at the University of Michigan. 'But of course, it's strengthening the power of foreigners to buy US goods.'
Rick Fulmer, vice president of sales and marketing for Cadillac-based Four Winns boats, said about 40% of his company's sales are going abroad, including various sizes of boats shipped to Canada, and larger models to Europe and Australia.
'This has been growing over the last five years or so, but I think it's become very consistent the last couple of years, because of the exchange rate of the dollar,' Fulmer said.
The relative affordability and clear availability of US boats – new and used – is fueling a boating boom abroad.
The largest market is Europe whose appetite appears to be for 'middle-class boats', those equipped with some room for sleeping, and perhaps a small galley and head.
Dubai too, is stocking up as the marinas and moorings grow exponentially.
According to the Recreational Marine Research Center at Michigan State University, in the US, about 72% of boats sold are used boats. Ten years ago, used boats accounted for only about 30% of boat sales.
More at www.prr.msu.edu/RMRC/index.html
by Jeni Bone
6:12 AM Mon 25 Aug 2008 GMT
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