Surf shops across so cal are treading water through our current economic crisis. "We're not used to moving backward," said Aaron Pai, owner of Huntington Surf & Sport, a chain of four surf shops in Huntington Beach. "To be truthfully honest, there's one word on my mind right now: uncertainty."
Bob McKnight, chief executive of Quiksilver in Huntington Beach, said the industry had been especially hard hit because its core customers tended to live in areas most affected by the mortgage meltdown. "We've been through a couple downturns like this, so we know what to expect," McKnight said. "But this one is certainly worse than anything we've seen."

The surf industry had been increasing it’s sales and appeal to a wider consumer base. According to the Surf Industry Manufacturers Association, the industry grew from $6.5 billion in 2004 to $7.5 billion in 2006, the most recent year for which data are available. "The industry had been on a really solid growth curve for the past 10 years, so this is really the first time that it's taken a step back," said Andy Tompkins, group show director of Action Sports Retailer, "It's more than just that core surfer that they're speaking to. They gained more customers, so they have more to lose too."

This year’s ASR show in San Diego had a 15% decrease in traffic and several brands, including Quiksilver and Hurley, pulled out of the event, leaving the show with 100 fewer brands represented than in 2008. Of the 400 brands that did attend, many scaled back their booth displays, Tompkins said.

Rumor had it that Quicksilver was on the table for Nike to pick up, who has owned Hurley since 2002 but McKnight shot down last week. "People pose different ideas, but right now, no, it's not part of our plan," he said. "We have three great brands, we think we're positioned down where it needs to be for 2009 and 2010, we're much more global than any other surf company. I think that we will weather the storm nicely."

Many chain surf retailers across the country are watching their dollars and scaling back their inventory and budgets. At least the kids on the retail floor will have more time to be in the water.
"The worst thing about the surf industry is that it's an industry," said Casey Cagle, 19, a surfer and sales associate at Jack's Surfboards in Newport Beach. "It's no longer a culture."