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I think the main difference between the past down turns and this one is fuel prices. Although the Lux Tax hit the yacht business hard, once it was gone things got going again. No one seems to think the high fuel prices will be going away anytime soon, if at all. The upper end of the market, mega yacht owners and buyers, should be able to absorb 50%-75% increase in fuel cost. However, the buyers and owners of smaller yachts might think twice before up sizing their next yacht purchase. When that happens, as the 80's expression goes, the trickle down effect hits the support industries. Boat owners who were thinking about upgrading electronics and other components are seeing that money going into the fuel tanks. Then the marina fuel docks will be hit hard because boaters are not going out therefore no need to fill up those tanks. Which leads to raising fuel prices to get more margin and/or laying off staff to decrease expenses.
I too hope things will come back bigger and stronger. As with most things, the people in the middle get squeezed the most.
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Lionel
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