18 JUNE–JULY 2018 | International Boat Industry http://www.ibi-plus.com
Markets & Regions
OVERVIEW | US
W
hat a difference a decade makes. Ten years
ago the American boatbuilding industry
was facing a crisis. The worst financial
downturn since the Great Depression had brought the
US economy to its knees as banks failed, businesses
closed, unemployment skyrocketed and some of the
largest corporations on the planet went begging for
government bailouts. As discretionary spending and
consumer confidence plummeted, one boatbuilder
after another closed its doors while others cut staff,
sliced production and took other drastic measures just
to stay alive.
Fast forward 10 years and it’s a completely different
world. Today, American boatbuilders talk about
expanding their manufacturing plants, hiring more
staff and struggling to keep up with mounting dealer
orders. According to the Chicago-based National
Marine Manufacturers Association
(NMMA), sales of new powerboats,
jet boats and personal watercraft
were up by 5% in 2017, bringing
the number of new boats sold last
year to an estimated 250,000. “The
close of 2017 marked our sixth
consecutive year of growth in new
boat sales and recreational boating
expenditures, and we expect that
trend to continue through 2018
and possibly beyond,” says NMMA
president Thom Dammrich. “If economic indicators
remain favourable to the recreational boating market
with strong consumer confidence, a healthy housing
market, rising disposable income and consumer
spending, and historically low interest rates, the
outlook for boat sales will remain very good.”WINTER BOAT SHOWS
Strong sales at a number of winter boat shows across
the US appear to support Dammrich’s forecast of
continued sales growth through 2018. “We had a veryA ROBUST ECONOMY, LOW INTEREST RATES, CHEAP FUEL AND STRONG CONSUMER
CONFIDENCE SPELL GOOD TIMES FOR US BOATBUILDERS. BUT LOOMING TARIFF AND
TRADE ISSUES THREATEN THAT SUNNY OUTLOOKWORDS: CRAIG RITCHIERiding a high tide
- for now
good crowd this year at the majority of the shows we
exhibited at. Consumers are confident and engaged,
and there’s a lot of excitement over new product,” says
Peter Barrett, senior vice president of marketing and
corporate development for New Paris, Indiana-based
Smoker Craft Inc. “Interest rates have begun to creep
up a little but they’re still in the range of historically
low levels. The economy is doing extremely well, gas
is still comparatively cheap, and we have consumers
who want to get out and recreate. The inventory
pipeline is in great shape, so we’re looking at a very
healthy market with no indication that will change any
time soon.”NEW COHORT OF YOUNG BUYERS
Further evidence of the rapidly improving health of
the market can be seen in the growing number of
younger buyers that have begun to
appear in dealer showrooms and
among winter boat show crowds.
While millennials and Gen-Xers
have long been considered strong
influencers in boat sales, the two or
three years have marked a turning
point as the leading edge of this
new cohort begin to make the
leap from influencers to buyers.
“We are seeing a lot of millennial
engagement, a lot of millennial
participation,” says Brunswick Boat Group president
Huw Bower. “Many of the entry level OEMs are putting
price-point boats out there, very attractive models
and that’s the hook to appealing to millennial buyers.
They’re having families and moving to the suburbs
and buying houses. By all accounts there’s a time when
they’ll appreciate wanting to spend time on the water
with their families, so we have boats catered for and
focusing on that market.”
As millennials have begun making an impact at the
entry level, Gen-X buyers have simultaneouslyComplete Climate Solutions: Heating, Cooling & Roofs
SNMMA president
Thom Dammrich
forecasts continued
sales growth in 2018
The economy is
doing extremely
well, gas is still
comparatively cheap,
and we have consumers
who want to get
out and recreate