Chris Ruhling, manager of Brewer Greenwich Bay Marina, in Warwick, says he’s seen a small increase in the number of owners who, in arrears on their bills, choose to let the marina keep their boats.

WARWICK — On a cold afternoon at the Brewer Greenwich Bay Marina, a dozen men stand around a 27-foot power boat sitting up on blocks.

It’s one of six boats scheduled for auction on this March day because their owners failed to pay off outstanding debts for storage, warehousing or repairs. The vessels have been abandoned.

Edward Lawson, the marina’s lawyer, announces the terms of the sale.

“We do not guarantee the condition of the boats,” he tells the prospective buyers. “We sell them as is, where is.”

The 1996 Larson boat is probably worth more than $10,000. Lawson opens the bidding at $1,000.

As spring settles in and boaters prepare for a new season on the water, the marine industry in Rhode Island is struggling with the effects of the weakening economy.

Pearson Composites, a Warren boat builder, laid off half its 120-person work force Jan. 16 because of slumping sales. Freedom Yachts, in Middletown, and Albin Boats, in Portsmouth, both closed within the past year. Goetz Custom Boats, a builder of America’s Cup yachts, filed for receivership in January and only reorganized this month after repaying a quarter of a $1.9-million debt. Boat World, a Warwick boat retailer, has laid off all its employees.

All aspects of the market have been affected. When a boat builder goes out of business, the dealer that would carry its products takes a hit. Marinas, where those vessels would have been docked, also suffer.

“It all trickles down,” said Ray Mooney, general manager of Port Edgewood and Pawtuxet Cove marinas, in Cranston.

Unlike a house or a car, a boat is not a necessity for most people. The boating industry relies on discretionary spending, which dried up as the country sank into recession.

Boating is an expensive hobby. A recreational boater can pay tens of thousands of dollars for a vessel and then face thousands more in fees for a slip in the summer and storage in the winter. Then there are costs of fuel and engine maintenance.

Some people with boats are selling. Others are cutting their losses and simply walking away.

At the height of the market, boating was never more popular in Rhode Island. The number of boats registered in the state jumped from 39,776 in 2006 to 43,734 in 2007, according to the Department of Environmental Management. But as the economy softened last year, the number dropped to 42,999.

It was not a precipitous decline, but the timing of the registration period may have mitigated the effect. Boat owners do not have to renew their registrations until they put them in the water in any given year, typically at the beginning of the summer. The economy didn’t fall into a full-blown recession until the second half of last year.

It’s too early to tell how many people will register boats this year. As of yesterday, the DEM had 12,827 registrations, down slightly from 12,884 for the same period last year.

Marinas hold boat auctions from time to time. No matter the state of the economy, there are always some owners who fail to pay their fees, which can range from $80 a foot to rent a slip for a summer season at a lower-end marina to more than $100 a foot at more exclusive facilities. Winter storage fees can cost about $35 a foot.

Sometimes it takes the threat of foreclosure to force owners to pay their debts. For example, the Brewer Greenwich Bay Marina advertised that it would sell nine boats at its March 4 auction. Three owners made payments to the marina to save their boats from the block.

But boat values typically decline at a rapid pace, and sometimes an owner of an older boat will do the math and figure it’s not worth making a payment. Mooney calls these situations “flipsides.” The bill owed to the marina is more than the boat is worth.

Chris Ruhling, manager of the Brewer Greenwich Bay Marina, says he’s seen a small increase recently in the number of owners who choose to let the marina keep their boats.

“They feel it’s just easier to let them go,” said Ruhling, who is also president of the Rhode Island Marine Trades Association.

There have been a number of auctions in Rhode Island since the beginning of last year. C.L. Marine, in Warwick, advertised that it was putting four boats up for sale in February 2008. Last September, Brewer Cove Haven Marina, in Barrington, listed four boats for auction, Pirate Cove Marina, in Portsmouth, listed one, and Pointview Marina, in Wakefield, listed two.

In November, Port Edgewood Marina listed seven boats for sale. The marina sold four boats in 2007. So far, said Mooney, Port Edgewood has sold two boats this year and has four more foreclosures being processed.

Boat owners aren’t just voluntarily giving their boats up. There has also been an increase in the number of repossessions.

National Liquidators, a Florida-based company that is the largest marine repossession business in the country, has reported that its seizure orders jumped by 50 percent from 2007 to 2008.

The numbers have also gone up in Rhode Island. Preferred Recovery and Towing, a Lincoln repossession business, usually has only one boat on its lot at any given time, said co-owner Mark Labbe. It currently has three. Just before Christmas, the business had 10.

Certified Sales, a marine repossession company with an office in Warwick, seized 10 boats in all of New England last year, said manager Ron Bethel. Since the start of this year, the company has already seized 40 boats.

Marinas are seeing the effects of the recession in other ways.

At Pirate Cove Marina, co-owner Brandon Kidd said his customers aren’t maintaining their boats the way they used to. In a typical winter, he and his workers will shrink-wrap 100 boats at the marina to protect them from snow and sleet, a service that costs $14 to $22 a foot. This past winter, they did about 85.

Kidd also provides the service to other marine businesses. A marina that contracted him to do 20 boats the previous winter didn’t ask last winter.

Kidd, whose family has owned the marina since 1967, has also seen the demand for its 80 slips decrease. As space has opened up, he has called people on the marina’s waiting list.

“I’m hearing far too often, ‘I’d love to get in there but I just got laid off,’ or ‘I’m not certain about my job,’ ” he said.

Five years ago, Port Edgewood and Pawtuxet Cove marinas had each of their 256 total slips filled. But occupancy has gradually declined at the marinas, which appeal to working-class boat owners because of their relatively low rates.

The marinas had 11 vacant slips in 2006. That figure climbed to 17 the next year and 27 last year. Mooney, the general manager, expects at least 40 empty slips this year.

With revenue falling, Mooney has had to lay off staff. He had 11 employees last year. Now, he has four full-time workers and one part-time worker. It’s gotten so bad that Mooney has started an incentive program for his customers, offering referral fees for anyone who brings in new business.

At the Brewer Greenwich Bay Marina, the bidding on the Larson fiberglass boat starts with a $1,000 bid.

“Do I hear $1,100?” Lawson asks.

A man signals with a wave. The bidding quickly tops $3,000 and then slows down.

“I have three seven. Do I have three eight?”

Nobody responds and the boat sells for $3,700, about a third of its market value.By the numbers

Number of boats

registered in R.I.

•2008: 42,999

•2007: 43,734

•2006: 39,776

Amount of money spent on new powerboats, motors, trailers and accessories in R.I.

•2007: $81 million

•2006: $93.9 million

•2005: $114.7 million

Sources:

Department

of Environmental

Management,

National Marine

Manufacturers

Association

akuffner@projo.com