Midland, Ontario (PRWEB) February 28, 2014
It been a rough go for most marinas for more than the past five years. In reviewing the AGF Investments Illustrated Downturns & Recoveries, the 2008/2009 recession was a short deep recession (S&P/TSX down 43%) with a very long recovery. In North America, we are now running towards a 5 year recovery period ... a longer recovery time than the Great Depression! Our recent recession, although short, actually cut deeper on the S&P/TSX by a percent more than the Great Depression. “We have heard some say the marina industry is never coming back to what it has been. It may seem like that for some operators over the last number of years, but it is coming back – and it’s coming back soon,” according to Mark Coles who does research on the marine industry in Canada and is the owner of the popular Boating Georgian Bay web site (http://www.boatinggeorgianbay.com).
“Markets have done their job and have led out. Housing in Canada hardly took a pause, and real estate returns have been excellent in most areas these past few years. More often than not, companies around the world have their balance sheets in great shape and they are poised to expand if they haven’t started doing so already,” according to Coles. Coles notes that in the DOW index, 2/3 of companies reporting earnings are beating their numbers. Job numbers are also improving overall ... albeit sluggishly. This should change for the positive as business begins to invest and ramp up production and inventories. Overall it is expected that the economy in Canada will grow at just under 3% next year and the US economy will expand at a significantly greater pace, ultimately passing more trade to Canada as things heat up. Money is currently cheap and will likely remain cheap for a few more years. The stage is set.
“Disposable income recreation, like boating, will start to grow in 2014,” suggests Coles. “Already we can see significant expansion of sales at the US boat shows and the massive amount of used yacht inventory on the market is gradually getting sopped up. Mothballed boats are being made ship shape and will be back at the docks,” says Coles. By 2015, Coles predicts marinas will have their businesses normalize and most of those empty slips will be full. He also believes that there will be a movement to even bigger recreation boats on the Great Lakes, there will be a pent up demand for boat repairs, retrofits, and new electronics will take off. “It may not be like the 70’s when marinas had mile long waiting lists, but it will be a damn site better than it has been over the last 10 years ... and it’s about time - marinas need to feel the love too,” adds Coles.
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