November 11, 2005
Fort Lauderdale, FL - Exhibitors at the Ft. Lauderdale International Boat Show had a mixed bag of reactions to the show, ranging from the words "ecstatic" to "disaster," with every opinion in between.
Many exhibitors randomly contacted by IBI used the phrase "exceeded expectations" when referring to sales from the hurricane-impeded show. That seemed to be a code for expecting the worst but being pleasantly surprised by the modest turnout and even more modest sales. But some exhibitors said this year's show exceeded last year's sales.
Show Management President Kaye Pearson told IBI that he would not have the final attendance figures for some time, and hadn't seen the weekend "gate" figures yet. "Clearly attendance was down," he said. "But they had plenty of quality people there."
That was a refrain that was heard over and over, and though at times it seemed like spin-doctors at work, "quality" seemed to fit sales patterns for companies like MarineMax and Zodiac, which reported sales matching up with last year's, despite a smaller crowd.
Felix Sabates, chairman of Trinity Yachts, told IBI that his Louisiana-based shipyard wrote contracts for six megayachts worth about US$240 million. "Three of them were repeat customers and one would've bought a new boat anyway, but the other two were a complete surprise," he said. "We would've missed them if we hadn't come to this show."
But Nico J. Van Breemen, chairman of Bloesma & Van Breemen in the Netherlands, said the show was a "disaster" for his company. "We only met people we already knew," said Van Breemen. "Our real clients stayed away from the show because there was a curfew and nobody knew about hotel arrangements."
Van Breemen said that his yard's megayacht, Flying Eagle, had been stuck in Savannah, Georgia, because of the hurricane. But he added that "bad communication" from Show Management concerning slip arrangements and local water conditions had kept them from having it at the show. "This is a very big show for us," he said. "This and the Monaco show are the only large venues for megayacht builders. It took us three years to build this yacht, and the owner gave us his permission to show it here. We feel like we missed a huge opportunity."
Most exhibitors said that the crowd in attendance was largely regional, and that international buyers from Europe and South America primarily stayed away because of Ft. Lauderdale's fragile infrastructure. The show also attracted some heat in the local press when stories blaming the city for deploying scarce phone and power repairmen to the boat show, when hundreds of thousands of local residents were without telephones or electricity, ran on opening day. The Sun-Sentinel later corrected those stories.
But other exhibitors shared Van Breemen's comments about the poor and often rough-shod communication style used by Show Management. "They pulled it off and that amazed me, but they also seemed to have a little more attitude than usual," said John Bennett of Algae-X International. "There were no refunds and they said they wouldn't guarantee space for next year if you don't show up this year."
Bennett added: "Sales were nearly non-existent for us and some other vendors I spoke with." Another supplier to most large boat builders said most clients he canvassed complained of poor boat sales at the show.
But the majority of exhibitors showed up. Some told IBI it was because their booths and boats were already in place and contracts had been signed. Only 117 of the approximately 1,400 exhibitors canceled this year. Their empty spaces in the exhibit halls were readily apparent, and in some of the quieter tents, exhibitors were reading newspapers or talking among themselves.
But Peter I. Naeye, managing director of Vripack, the Dutch naval architecture firm, said that the relatively quiet time gave him a chance to meet with clients like captains and project managers whom he might typically have to rush through. "I expected nothing from the show, so it seemed quite successful for me," he said. "We could spend a lot more time with important customers and have some good leads. We may have two new projects from people we've never met before."
W. van Rij, managing director of Free Technics, a Dutch electronics and software developer, also said that it was worthwhile to have exhibited at Ft. Lauderdale. He also noticed a shortage of crowds—and had to send staff across the Atlantic twice, before and after Hurricane Wilma, to build his booth—but expects forthcoming deals from leads generated during the show. Just one deal, he said, would make the show worthwhile.
While the tents were often quiet, the docks around Bahia Mar were relatively busy over the weekend. "We had a respectable finish, on par with last year," said Brad Jennings of Zodiac North America's Leisure Marine Division. "We had some concerns coming into the show about its infrastructure, but were pleasantly surprised by the results."
The Ft. Lauderdale area surrounding the show was functioning, but many stoplights were still down and a curfew remained in effect until Saturday night. Many of the locals working the show had no electricity or phone services, including a number of MarineMax's local sales force.
The national retailer, according to David K. Witty, senior vice president of its Southeast division, had geared its staff up to be successful at the show, despite suffering a severely damaged showroom in its local Pompano Beach facility. "We didn't have as many people coming from other parts of the country as we've had in years past, but we held pace with every single day of last year's show," said Witty. "It was much more of a local show, but we were very happy with what we saw in the customers' enthusiasm."
Witty said that Sea Ray and Meridian "sold well" at the show with a local buyer clientele, and MarineMax saw larger boat buyers from around the US for its Hatteras and Meridian lines. He said the Ferretti Group boats also "did well" at the show.
A few miles away at the Ft. Lauderdale Convention Center, where most of the smaller boat lines were being exhibited, the mood was upbeat, but certainly not ecstatic.
One boatbuilder, asking not to be named, said the first day was a "disaster," but that traffic picked up somewhat during the rest of the weekend.
"It was a lot better than everyone expected," said Kevin Mahoney of Edgewater Powerboats. "Most people I spoke with seemed to sell a few boats—but nothing near what they sold last year. But it was worth showing up. At least we got some business out of it. It will pay for the booth and expenses.
George C. Hetzel, director of sales for Boston Whaler, said his company "did extremely well, considering the crowd or lack thereof." Hetzel said that the "quality of the crowd" was excellent, though he didn't see any buyers whose boats were destroyed by hurricanes and were shopping for replacements. "Most were just here and ready to buy," he said.
Frank Longino, a managing partner in Southport Boatworks, said he also had buyers at his booth. But he didn't get "any sense of urgency" from the convention center crowds. "Most of the people had other things they were worried about—like their roofs and power," he said. "We had several sales but nothing dramatic."
For the organisers, there was a palpable sense of relief that the show came together as well as it did. "The bottom line was that we did it," said Frank Herhold, president of the Marine Industries Association of South Florida. "When we walked in Thursday morning, we weren't sure what to expect in terms of infrastructure."
Herhold said that the timing of the show was "non-negotiable" the week after it was originally scheduled because of scheduling conflicts with the six venues. "There was no wiggle room beyond that one-week delay," he said.
Pearson also acknowledges the grumbling by exhibitors, who were still grumbling during the show. "There was a lot of negative talk in the beginning, but when they look back, they'll see that we tried to help them generate the best show from a sales standpoint that we could have," he said.