Smith: After recession, hope floats in boat industry

Minnesota's love affair with boats -- on the rocks in recent years because of the recession -- appears to be on the mend.

While overall boat registrations have fallen since 2008, the state remains No. 2 in the nation with more than 809,000, behind only Florida. Perhaps more telling, registration of new boats in the state has increased from 11,000 in 2009 to 16,000 in 2010 and 20,000 last year.

"It was rough going for a few years, but last year was good for us," said Jake Jacobson, general manager of Rapid Marine Group, one of the largest marine businesses in the state. "I'm expecting good things this year."

Jacobson's company recently opened a fourth large store in Rogers -- a rare expansion after the industry saw dealerships collapse and consolidate.

"There's fewer dealers now," Jacobson said, "but the strong ones have survived."

And two years after eight Twin Cities boat dealers, including Jacobson's, pulled out of the big Minneapolis Boat Show in the wake of the recession, they'll be back when the show opens Thursday at the Minneapolis Convention Center.

"The dealers who opted out [in 2010 and 2011] are all back in the show," said Jennifer Thompson, Boat Show manager. "We'll be 25 percent larger than last year."

To save money during the boat industry slump, the eight dealers held their own "Parade of Boats" sales event. "We did well," said Jacobson, but financial support from manufacturers has made the show more affordable, and the dealers have rejoined the show.

The show routinely attracts tens of thousands of people. About 32,000 attended last year, and Thompson said she's hoping for 40,000 this year.

There are other signs for industry optimism: Crestliner is putting finishing touches on a 22,000 square-foot expansion at its New York Mills plant, marketing manager Lori Kneeland said.

"We do anticipate growth," she said.

The National Marine Manufacturers Association (NMMA), which puts on the Minneapolis Boat Show and others like it around the nation, expects sales to increase by 5 percent in 2012.

An indoor marina

New at this year's show is an indoor "marina and yacht club," where about 20 boats will be docked in a 110-by-100-foot flooded area. The scene will look inviting, but don't jump in the water -- it will only be 2 feet deep.

It will look as if the boats are moored at docks, but they'll be on blocks. Nearby will be a patio area with food and live music Thursday, Friday and Saturday nights -- to help complete the illusion.

"It hasn't been done before," Thompson said. She's hoping for no leaks.

Getting wet and wild

Do-it-yourself

The show has expanded its do-it-yourself "Fred's Shed" interactive learning center, offering tips on installing boat electronics, engine maintenance, upholstery repair and other repairs. Local marine service mechanics will be on hand for the seminars. "It will look like a marine service center," Thompson said.

A new name

They'll be plenty of references to Progressive Insurance at this year's show, the 40th annual boat show. The company bought naming rights to all of the NMMA's boat and sports shows, including the upcoming Northwest Sports Show, for the next three years. Now it's technically the Progressive Insurance Minneapolis Boat Show.