Article by Pat Schrawder
WHAT TO EXPECT IN 2010
Well, the economy’s “in the tank” and the weather is as usual for this time of year—windy and still a little chilly. So where does that put all our boating enthusiasts? Let’s look at the positive. The waters of the bay and ocean are free. If you already have a boat, fuel prices are fairly stable right now and fuel economy is up. You might just need to take a different approach to this season’s boating.
If you were contemplating a new boat, you might have to put that off for a little while. On the other hand, another would-be boater may have decided to look for something used and that gives you the perfect opportunity to trade your boat in for a newer one. When it comes to electronics, the same thing applies. If your current equipment serves you well but needs some work, then go ahead and invest in repairs or updates to it. You’ll save some money. By the same token, you may be able to sell your old equipment to someone looking for a deal and put that money towards a new unit.
While you’re deciding, lets take a look at what is going on in the world of electronics manufacturers. There are a few new models out there this season, but no brand new technology. Just like you, the manufacturers appear to have decided to improve features and functions on some of their current models. In most cases, they have taken a previous model, added or changed features and packaged it as a new model. This means you may find some really good deals on leftover items and/or close outs. Unfortunately, it is not likely that you can take your own current model and have it updated to the same configuration as the new model. In many cases, however, you can at least update the software for a nominal fee.
The marine electronics field is no different than the rest of the economy when it comes to “hard times”. There will likely be more companies merging and some companies that “bite the dust”. Two of those that bear close scrutiny are Raymarine and Northstar. The rumor circulating is that both companies are on the verge of going out of the marine electronics business. I have been tracking this very carefully and can only report what has been documented by others so far. Raymarine is the result of the purchase of Raytheon’s Marine division in 2001. It has relied heavily on OEM (original equipment manufacturer) sales and, with the decline of new boat sales, their revenue has declined as well. In June 2009 they reported net assets of GBP (Great British Pound) 25.1 mill and debts of GBP 87.7 mill. On March 18th of this year, Raymarine announced that it had extended the term of its banking facilities to September 30, 2010. However, Raymarine also noted that it is “still unable to comply with the financial covenants under these facilities and that it remains reliant on continuing covenant waivers from its banking syndicate”. Most recently, Garmin has announced an offer to buy all Raymarine’s shares for 23 cents per share, subject to shareholder acceptance and regulatory approval. It remains to be seen if this transaction will take place and, if so, what that will mean for the Raymarine product line and for parts to repair current models. In the meantime, Raymarine has introduced new products for this season and has even embarked on a 2010 “mobile showroom” tour through parts of the country. The most comprehensive information on this I have seen in one article can be found on-line at http://www.sailworld.com/news_printerfriendly.cfm?Nid=68968 .
The picture with Northstar is not so clear. Once a leader in GPS equipment, they seem to have taken a back seat in recent years, particularly since their purchase by Navico, a company that bought up a total of seven other companies, including Northstar. Northstar’s web site shows the introduction of broadband radar in February of 2009 but not much new happening in 2010.
So what does all this mean to you? I guess the real message is to be cautious this season when purchasing new or used equipment. You may find some good buys but, at the same time, you may be buying a product that will present problems when you need it serviced if the company is on shaky financial grounds. The good news is that there are still plenty of other products out there even though there may be some continued mergers or buy outs of manufacturers.
Over the next several months, we’ll take a look at some of the new product offerings as well as some items that you may find very useful but don’t get the same publicity as others.
Pat Schrawder and her husband Larry are owners of L&L Marine Electronics on Golf Course Road in West Ocean City.
