Dollar having major impact on boatbuilding industry

By Andy Walker

SOU’WESTER

The Canadian dollar is having a major impact on the boatbuilding industry in the Atlantic region.

"Many of our members sell some of their products south of the border, especially in the pleasure boat sector," says Tim Edwards, executive director of the Nova Scotia Boatbuilders Association, which has members in all three Maritime provinces.

However, Edwards says even those who rely largely on a domestic market are feeling the impacts.

He points out many of the materials needed in construction come from the United States, adding, "I can’t think of any facet of the industry here that it might have helped."

At the expense of the American greenback, Edwards says the Canadian dollar has risen rather rapidly, noting that it was in the 80-85 cent range last spring and by the end of 2007 had topped out at close to $1.10 when compared to its U.S. counterpart.

"That kind of rapid rise has been very challenging for our members to react to,” he says. “That’s quite a difference when you are talking a big ticket item like a boat."

The loonie has also caused a change in the industry’s marketing strategy, as the association promotes the products of its members at such major American regional boat shows as the Newport International show in Rhode Island, the powerboat show in Maryland and the Maine Boatbuilders Show.

Now, Edward says, they are shifting their focus north of the border. The association attended the Toronto International Boat Show in January and Edward says there will be an increased focus on the central Canadian market.

"We are going to go to more shows in Ontario and we are now having all our material translated into French so we hope to do more in Quebec next year," he says. "We certainly see there is quite a bit of potential there."