You may have noticed the line to be a bit smaller when you were registering your boat this year. You might have even noticed it when you were in chatting with your boat insurance agent. Fact, the rough economy has hurt the boating industry as well. Here are just a few areas hit by a bad economy.

Fewer boats being sold

People have become weary of making bigger purchases. With high unemployment, a shaky stock market, people are more cautious now than they ever were before. Purchasing a luxury items, like a boat, are one of the first things people cut.

Potential boat buyers face new obstacles as well. Lending institutions are not as willing to lend out money to new boat buyers. Even if a buyer is a prime candidate, the hassle of getting lending is turning people off.

The hardest boats hit are yachts. Not only has the economy down turn pushed potential buyers away. However, a 10% luxury tax that now rides on these floating marvels is like slapping a purchaser twice in the face.

More docking spaces are available

Another area hit by the downturn is port. Some ports used to see upwards of ten to twelve new boats a year. Now increasingly docking slips remain empty. The biggest people to skip out on docking their boat are the middle class.

The working class consisted of people driving boats in the 20 – 30 foot range. You may also know these folks as the day-trippers. This class consisted of the families who came out to spend a day on the water, or the folks coming out to do a bit of fishing. This group has dried up substantially and docking slips are a key indicator of this decline.

New boat registrations have declined

One of the easiest places to see the downturn comes in boater registrations. December of 2009 saw 171,185 boater registrations. This number is down from the 174,207 boater registrations from 2008.

Layoffs hit boat manufacturers as well

Like many industries hit hard, the boating industry has had to do its share of cutbacks as well. Boat sales are on the decline. This cuts out on company profits. Companies do what they do best and lay people off. The U.S is currently in this sad state.

There is good news though. With the slow economic recovery, more boats will start seeing the light of sales. As manufactures see more sales, they will ramp up production again. More production will bring in more jobs. This is a win for everyone.

Therefore, what can you do to help this down turn? Keep your boat insurance renewed. Keep your boat registered and tagged. Support your local boating stores if you can. Better yet, introduce new people into the boating sport. The economy is slowly picking up. The more people who are excited to get into boating the better the industry will recover.

Photo via donjd2