Sink Or Swim: Analyzing The Marine Industry

April 1, 2006
Tapping into marine businesses and customers.

A new "Discover Boating" promotional campaign aimed to boost the marine industry's overall profile, and increase sales in 2006 and beyond, will have a positive impact on tool dealers who choose to take advantage of selling tools and equipment to marine technicians.

Lower mechanic earnings, a lack of certified boat repairers and stagnant sales have hurt the marine industry, according to Joe DeMarco, the founder and president of the Association of Marine Technicians (AMTECH).

DeMarco is also in charge of distributor sales and marketing for Rapair, Inc.'s CDI Electronics division in Madison, AL. CDI Electronics was the first company to manufacture and sell a multimeter/thermometer — called the CDI Multimeter/Thermometer Fluke® — and compatible adapters tailored specifically to the marine industry.

While the automotive industry boasts more than 450,000 ASE-certified technicians nationwide, the marine industry only accounts for about 20,000 mechanics, according to AMTECH executives.

AMTECH hopes to change that with the launch of a series of initiatives that would restructure how the industry operates—from boat sales all the way to repairs.

Although trade schools, universities and boat tech-only training facilities offer exclusive hands-on courses, no certifications are currently available for technicians that specialize in the $33 billion marine industry.

"There are no standards to help measure what the marine technician should know, what classes or training they should have, or how much they should be paid for their knowledge and skills," DeMarco says.

As a result, marine technicians typically earn less than their counterparts in the automotive industry, although both careers require similar education, training and experience. None of the organizations that were contacted for this article had salary figures to disclose, but industry analysts say the difference is quite significant.

DeMarco is in the process of working with other industry organizations to develop certification guidelines similar to the National Institute for Automotive Service Excellence for the boat segment of the marine sector.

According to the U.S. Bureau of Labor Statistics, the number of marine repair technicians will likely increase by 18 percent between 2002 and 2012, and industry experts say they want to equip these technicians with the appropriate tools to qualify for competitive jobs and career wages.

This is good news for tool distributors. As more mechanics enter the boat repair field and begin to earn more money, opportunities for more tool sales abound.

Currently, there are roughly 12,000 marinas in the U.S., according to Jim Frye, the president of the Association of Marina Industries (AMI), which has headquarters in Washington, D.C.

Florida, California, Texas, New York and Minnesota accounted for almost 35 percent of total expenditures for new powerboats, motors, trailers and accessories last year.

If the ocean seems as distant as the moon, don't despair. According to AMI executives, federal waterways, reservoirs and lakes are popular destinations for boaters, which create a need for marine technicians—and that translates into selling opportunities for you.

Boat industry executives suggest tool dealers carry the following items:

  • Small hand tools, such as wrenches, pliers and screwdrivers.
  • Grinders and sanders for customized repairs.
  • Computerized engine analyzers.
  • Compression gauges.
  • Ammeters and voltmeters.

"Tool sellers should offer any testing device that will help mechanics find and fix faulty parts, and tune engines," Frye says.

Motorboat mechanics, or marine technicians, repair and adjust the electrical and mechanical equipment of inboard and outboard boat engines. Most small boats have portable outboard engines that are able to be removed and transported to repair shops. Larger watercrafts, such as cabin cruisers and commercial fishing boats, utilize diesel or gasoline-powered inboard or inboard-outboard engines, which are usually removed from boats only for major overhauls.

Boat technicians typically perform these repair jobs at docks or marinas, according to the U.S. Bureau of Labor Statistics. Marine mechanics also work on propellers, steering mechanisms, marine plumbing and other boat equipment.

A shift in personal and financial priorities caused an upsurge in boat interest in the recent years since 9/11, according to the AMTECH. "It can be a leisure or recreational activity that people can enjoy with their families close to home," DeMarco explains.

Despite a sluggish economy, research shows people with disposable incomes have continued to buy boats, according to the National Marine Manufacturers Association (NMMA), which has headquarters in Chicago.

The marine industry has also held a steady grip on sales. Figures from the NMMA show sales for modestly priced boats, such as ski and wakeboard models, which on average cost $37,533, were up 4.5 percent in 2004 vs. 2003, and have gradually climbed from 6,100 units in 1997 to 11,600 in 2004.

If all this isn't enough to motivate you to sell your wares to the next marine tech you see, consider this: The NMMA reports an estimated 72 million people participated in boating in 2003. These are the last numbers available for this trend.

"To any tool seller, I would say they should be hitting every marina, every boat shop, every watercraft store on their route," DeMarco recommends. "It doesn't matter if you service mechanics in a coastal state or the middle of America, get out and meet the mechanics in the marine industry."

Someone has to wrench on all these boats, and they will need tools.

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