Marine Manufacturers Report Significantly Higher Second Quarter Unit, Dollar Sales Compared to 2003; Outlook for Remainder of Year and Beyond Remains Positive.

CHICAGO -- Marine business leaders reported significantly higher unit and dollar sales in the second quarter of 2004 compared to the same period last year according to the latest Marine Business Leaders Outlook (MBLO) Quarterly Survey released today by the Recreational Marine Research Center (RMRC).

The Unit Sales Index rose to 182 in the second quarter, up from 177 in the first quarter and up from 112 in the second quarter in 2003. This is based on a scale of zero to 200 with a neutral rating of 100. In addition, manufacturers reported increased second quarter dollar sales to an index of 181 compared to 108 in 2003 (and 177 in the first quarter).

The recreational boating industry is very optimistic about its economic health. The MBLO Business Confidence Index of 142 for the second quarter of 2004 indicates solid economic optimism for the industry. The confidence index for the next six months stands at 129, then perks up to 137 in the 12-month outlook.

"With consumer confidence reaching its highest level in two years in July and interest rates still at low levels, we are encouraged about the prospects for the recreational boating industry for the remainder of 2004 and 2005," said NMMA president Thom Dammrich. "This rise in consumer confidence coupled with the overall rise in the popularity of boating is driving sales.

"The growing popularity of boating can be attributed to a number of factors. Americans don't have to travel long distances to boat because approximately 90 percent of them live within an hour's drive from a body of water, boating can be affordable compared to some of the more traditional family vacations and it's an ideal way to spend time with family and friends," added Dammrich.

This is consistent with 2003 findings of the Travel Industry Association of America (TIA) which reported that Americans are staying close to home and looking for authentic American experiences where they can "make connections" with family, history and culture.

Moving forward, recreational boat manufacturers expect to maintain the same production levels in the third quarter. Meanwhile, more than half of responding manufacturers (53 percent) say they plan to increase investments in plants, equipment and technology during the next six months. "Efforts to produce higher quality products with more focus on technology continue to fuel these investments," says Dr. Ed Mahoney of the RMRC and Michigan State University.

The MBLO Quarterly Survey is comprised of a 750-member panel representing boat manufacturers, dealers, marine lenders, aftermarket retailers, distributors, boatyards and marinas from around the country. The survey covered performance in the second quarter of this year compared with the previous four quarters, as well as industry expectations and plans for the next three, six and 12 months.

The Recreational Marine Research Center was created through a partnership between Michigan State University and the National Marine Manufacturers Association. The RMRC was developed to address market research needs in the marine industry. Its membership includes all segments of the industry, including boat and engine manufacturers, dealers, retailers, marinas and financial services organizations.

National Marine Manufacturers Association (NMMA) is the leading association representing the recreational boating industry. NMMA member companies produce over 80 percent of the boats, engines, trailers, accessories and gear used by boaters and anglers in the United States. The association is dedicated to industry growth through programs in public policy, market research and data, product quality assurance and marketing communications.