Smooth Sailing in the Recession

On Saturday, July 10, Larchmont Race Week gets underway. The 112th edition of the week-long race, held by Larchmont Yacht Club, will see over 1,000 sailors compete in the multigenerational annual regatta.

But when these avid boaters embrace the waves and currents of Long Island Sound, some of us will wonder if other sailors out there are still negotiating the ripple effect of our slumping economy. While the effect of the recession on the boating industry has seen some subtle changes in the community, it has not been significant enough to dampen the passion of those involved in the sport.

Gary Jobson, a former All-American collegiate sailor, won the America's Cup in 1977 as Ted Turner's tactician. He is ESPN's sailing analyst, a writer, lecturer, editor-at-large for Sailing World and Cruising World magazines, Hall of Famer, president of U.S. Sailing (the national governing body for the sport of sailing), and the pre-eminent ambassador for sailing in the U.S.

"After sailing for over 40 years, you get to see trends," Jobson explains, "but one thing that remains is enthusiasm for sailing."

One such trend might be an outgrowth of the downturn in our economy.

"People are tending to stay closer to home," he adds. "They go to the yacht club. The trip to Europe is out."

Jobson says that of those making purchases, there have been more sales of sailboats than powerboats, while others have been  upgrading their existing boats' equipment.  Yet another trend he cites is the purchasing partnership. "Couples purchasing boats with other couples or families making a boat purchase with other families are trends on the rise," he says.

Howard McMichael, President of McMichael Yachts in Mamaroneck and a member of the Larchmont Yacht Club, echoes Jobson's observations.

"People have not been turning their boats over as quickly as they have in the past.  Just like homes and cars, they have been maintaining their boats instead and keeping them longer, upgrading things."  

While McMichael Yachts remains a profitable enterprise and boat sales are better than last year, according to McMichael, sales still lag behind prior years. On the other hand, the company has been doing a brisk business with outboards, which have grown in popularity.

 At the Larchmont Yacht Club, for the most part, it seems to be business as usual. The club is at its constitutional maximum number of members, notes McMichael, once commodore at the club, and it has enjoyed full membership this year.  One indication of the recession's impact might be the decreased number of those seeking membership on the club's waiting list.  

Robert French is Commodore at Orienta Yacht Club. The club functions as a cooperative where members take turns managing the club rather than an exclusive club some may associate with yacht clubs. Commodore French, who was enjoying a  day on the water in Maine when contacted by Patch, shared that the club's 77 members form a laid back group which functions more like a social club. "Some members are in the trade, and have already increased or in the process of increasing the size of their boats but we all just love to sail," shared the commodore.

Most indicators point to a healthy boating industry in the Sound Shore area. Hence, don't expect the government to sponsor a "Bucks for Boats" program like the "Cash For Clunkers" program aimed at reviving the automotive industry. The Larchmont Yacht Club will be the official sponsor of the prestigious Sperry Topsider NOOD Regatta in September and Carolyn Nye, head instructor of the junior program at the club, lists 180 young students in this year's summer program.

So perhaps a boat is in your future? If you're in the market, French luxury brand Hermes recently exited a joint venture with shipbuilder Wally to create the state of the art 'WHY' yacht estimated from $128 - $143 million. Interested parties can check it out here.