"Ahoy Matey!" Or should we say "Abandon Ship!" Regardless, the boating industry is sinking. Isn't it about time for the boating stimulus package? Everyone can buy a boat and put it in their 3 car garage that they can not make the mortgage payment on.
Consider the following chart based on the federal reserve data through July 2009 for the ship and boat building industry:
Note that the highest production times are during the summer months. It is good that there is a small blip up through July in 2009. However, consider how the production tails off at the end of most years. The boating season is coming to a close for many folks in the northern half of the country. Demand is certain to wane. The impact to an already severely depressed industry will not be good. If you are in the industry, buckle up - speed bumps (waves) dead ahead.
Another way to look at this is the old adage -
Red sky in the morning, sailor take warning. Red sky at night sailor's delight.
Could be restated as -
Red ink on the paper, owner in danger. Red face on the banker, the company's a tanker.
Yes - I know that there wasn't a pleasant outcome in the second verse. That is my fear for the economy, the boating industry (short term) and all the unfortunate employees, owners and suppliers to the boating industry.
Copyright 2009 - Jim Lindell