From the Editor…

It’s hardly surprising that the topic we at Power & Motoryacht are most often asked about by our European friends and partners is the health of the U.S. economy and boating industry. The consensus here is that despite occasional false starts and setbacks, America is in the midst of a recovery, although it’s a weak one. Industrial output is modestly increasing, and interest rates remain at all-time lows. Unfortunately, the recovery is not strong enough that businesses feel that they can safely begin hiring back workers. The unemployment rate hovers at 9½ percent, which reduces consumer confidence but is down from 10 percent, and economists predict it will continue to slowly drop.


The boating industry has seen a number of positive developments, the biggest being the elimination of inventories. The huge discounting of new boats has ended, and dealers are stocking 2011 models, although in smaller numbers. Floor plan and retail financing are a challenge, but not the barrier they were six months ago. New lenders are entering the market, and retail buyers with strong credit ratings can generally get financing.

To be sure, the recovery in the boating sector is spotty. Certain types of boats are doing better than others—generally, expensive production and semi-production boats are seeing increased activity while smaller production boats struggle. Specific kinds of boats like long-range cruisers are selling well. The lesson seems to be that it pays to be in a niche.

One optimistic sign is that since June, Power & Motoryacht has been receiving invitations to test new 2011 models. This is in contrast to last year when really new boat models were relatively scarce.

In sum, the U.S. boating industry is definitely on the road to recovery, but as with the U.S. economy in general, it will likely be a gradual rebound with the most benefit being enjoyed by individuals and companies with strong balance sheets.

Power & Motoryacht is the award-winning American yacht magazine targeting passionate boat owners. Renowned for its commitment to quality boat tests, Power & Motoryacht is widely considered the educated expert in its field. It’s also renowned for the Power & Motoryacht 100, the original annual listing of the world’s largest private superyachts. The magazine is helmed by acclaimed editors and designers and backed by quality, audited research, providing unmatched information for both advertisers and subscribers.