OTTOM
GOOD
Cratering Oil Prices Equate to Good Times
for PNW Boaters Dave Morrison knows boating. Since 1977, he and his family have operated Morrison’s Fuel Dock, located next to the Aurora Bridge on the Ship Canal in Seattle. Morrison sees people at their happiest. Customers stop by his convenience store and gas station to fuel up as they head out on vacation or on their way home from a typical Lake Union outing. Morrison sees a steady stream of boaters at his fuel pumps, and, according to him, lower fuel prices are the driving force. “Business is good,” says Morrison, peering out from his window overlooking Lake Union.“And while that’s due to several reasons, the one that sticks out is the low cost of fuel is changing boating behavior in the area.” He should know. The Morrisons have seen about everything when it comes to fuel prices. When they opened almost four decades ago, the average price of gas was 65 cents a gallon. Adjusted for inflation, gas is cheaper today than it was then. “I get the advantage of knowing my customers and what makes them tick. What I used to see was that consumers were completely filling their tanks for trips to the San Juans and back for the weekend. This behavior dropped considerably when prices were high, because it didn’t make sense to spend thousands of dollars in fuel just to jump up to the islands for a few days,” Morrison says. “But now people are doing that once again.” Lower fuel prices are not just a Washington phenomenon. According to the National Marine Manufacturers Association (NMMA), which tracks gas prices and their relationship to boating activity, the cost of a gallon of gas nationally is $2.22. In Washington, the price for a gallon of gas is $2.38. Carl Blackwell, director of the NMMA Discover Boating Campaign, echoes Morrison’s connection of gas prices to consumers’ moods. “Fuel savings may encourage current boat owners to use their boats more. Or for someone thinking about buying a boat, it could be just the
factor that motivates them to buy,” says Blackwell. “Lower gas prices can also help reduce a potential barrier for a new boater looking to get on the water.” There is a boating resurgence going on in Washington and across the nation. Conventional wisdom says that lower gas prices will translate to increased boat sales. Washington leads the country in boat sales, but that is due to more than the cost of fuel. The summer weather, the tremendous fishing seasons in recent years, and the price of gas have come together for a once-in-a-lifetime moment for boaters. George Harris, president of the Northwest Marine Trade Association, credits NMTA’s Grow Boating Campaign and events like the Seattle Boat Show for driving turnout on the water. “We are fortunate to have consumers who can’t get enough of Northwest boating. Looking around the various sites to boat, who can blame them?” says Harris. Yacht brokers agree that cheap oil leads to a spike in boat sales and more chances of fun on the water. With the number of boats sold and the total dollar sales of those boats increasing after the Great Recession, lower fuel prices are a favorable tailwind for continued growth in the boat manufacturing, retailing, and brokerage industries. “For a long time, it seemed that everyone at boat shows was hyperconcerned about the cost of fuel. This concern is rarely mentioned now, and we’re back to selling the joy of boating — not just the comparative fuel economy of particular designs,” says Scott Helker, principal of Waterline Boats of Seattle and builder of Helmsman Trawlers. “In truth, fuel costs were never more than a small component of boat ownership, but the dampening effect of high fuel costs was tangible. Our sales are enjoying the benefit of the overall improved economic picture, including lower fuel prices.” It’s a national success story, too, according to Blackwell. The recreational boating industry aims to attract more people onto the Continued on Page 78
JUNE 2016 // NORTHWEST YACHTING 77