James Nolan Associates Inc.

Everyone recognizes that 2008 was such a dramatic year for the recreational marine industry that its effect will be felt for a long, long time.   The unfortunate reality, however, is that the negative effects of 2008 are not yet over and more damage is still happening.  It will likely be April or May, for example, before the final effect on boat dealers is known when those in the colder climates either open their doors or not.  The subsequent effect on the boat builders they represent will not be known until some considerable time after that.  Financial service companies who broker marine loans to potential boat buyers are another example of businesses that are still being impacted.  It is highly doubtful that all will survive on a fraction of the loan volume generated in previous years.

One of the big consequences of all of this is that what happens in 2009 really does not matter; all activities are going to be compared to 2008.  The primary comparison will not be whether a business did better or worse than in 2008 and to what degree, but whether it survived or not.

This is not as apocalyptic as it sounds.  There will still be some seventeen million boats here in the U.S and the majority of them will still be used and be in need of products and services.   The big questions that need answering therefore are “how do I reach these owners in an efficient manner, give them the compelling reasons why they need to use my products and an incentive to purchase them and do all of this in a manner in which my competitors cannot compete?”  Businesses that achieve these objectives efficiently are almost certainly going to need to do things differently than they have done before.  In doing so they will ensure their survival.