Hundreds of people who worked for boat manufacturing companies in East Tennessee lost their jobs in 2009.
At least seven local boat dealers closed up shop and surviving businesses are still fighting to stay afloat.
Still experts say boating has begun the slow climb back.
There’s no other place Lynn Holmes, of Loudon County, would rather be than on the water, and there are still lots of people joining him.
“It hasn’t slowed down here,” he says. “I think people, instead of going on vacations and spending that money, they just go out on the lake.”
Speaking from the helm of his boat Friday, Holmes says he’s cut back some, but he’s re-charged by time spent on his boat.
“When you watch the sun go down in the afternoon and you’ve got your grill going and you’re grilling a hamburger or steak, piece of chicken and you’re with all your friends and you’re rafted up, it’s just a good, easy time,” Holmes said.
Boat dealers hope that feeling gets people buying again.
Sea Ray of Knoxville owner Pepper Marcum admits it’s been the toughest year she’s seen in nearly three decades.
“We were the first ones to feel it and we’ll be the last to come out of it because, obviously, we are a luxury item,” Marcum said.
There are dozens fewer new boats on the lot, but Marcum says people are still buying. “Used boat sales have been phenomenal. We can’t keep them in. Brokerage boat sales have been great. Our service department has been working non-stop, overtime and we’re very thankful for that.”
One of the largest boat manufacturers is MasterCraft in Vonore.
Last year, 90 percent of its work force was laid off. The factory shut down for months. President and CEO John Dorton says it was rough.
“This time last year, we were all just trying to survive. Most of us had shut our production down. We had let the bulk of our employees go just so we could figure out what was going on in the marketplace. There was some softening in retail demand, but the biggest problem was the issues with wholesale financing. Dealers just could not get credits to buy boats,” Dorton said.
Now banks are slowly starting to make loans again. MasterCraft has added a new boat line, started selling more product abroad, and called 60 percent of its employees back to work.
Boating industry survivors have been forced to change the way they operate. The most obvious difference is that they no longer have large inventories.
“It’s slower for the retailer. It’s slower for the consumer to get their product, but at the end of the day there’s no inventory. There’s no interest. There’s no curtailments. There’s none of that thing in general happening as much as it used to happen,” said MasterCraft Chief of Sales and Marketing Scott Crutchfield.
Pepper Marcum says things have changed at SeaRay, too. “We have tightened our belts. We have paid attention to what is important to the customer and we have stayed on top of customer service.”
Everyone who spoke with 6 News says the lakes of East Tennessee will always beckon boaters.
“Pulling tubes and wake boarding and skiing, it’s just a lot of fun. It’s a lot of family, good, honest fun,” Marcum added.
“The economy, good or bad, we need to get out and play and have a little fun,” said John Dorton. “Boating is one of those few things you can do. You get the whole family confined on 20 to 25 feet of real estate out there in the middle of the lake and everybody’s just having a good time.”
Experts believe the industry is rebuilding slowly and East Tennessee will remain big on boat manufacturing and dealing, although the industry will be less saturated than in years past.
Those in the boating business also learned costly lessons in the last couple years. “We just have to be smarter and do more with less going forward, which is probably a good lesson for American businesses anyhow,” Dorton said.
Experts say it will be at least three years before we see a real bounce back.
You can still get a good deal on a new boat, if you’re willing to buy something that’s already in a dealer’s inventory.
But most people will have to pre-order, and you’ll likely have to wait two months or more to get a boat.
There was also a major trickle down effect with the dive in the boating industry. Not only did thousands of people lose jobs, but businesses that supply products to the marine industry also suffered.
Maryville-based Alloy Fasteners is one that took a big hit. The company makes stainless steel fasteners for several products including decks, fences and spas. But the marine industry has been a multi-million dollar client.
There are hundreds of different kinds of fasteners that go on a boat and losing that business was a blow felt by everyone who works there.
Alloy Fasteners account manager Craig Ippolito says it was scary. “There were days that you know we would come to work and it would be so desolate that you were scared that tomorrow, today was your last day or am I going to have a job next month, how am I going to feed my family.”
Alloy stayed afloat by adding more deck and fencing business, and the re-opening of manufacturing at MasterCraft has also given it a boost.
Source: WATE.com