18 JUNE–JULY 2019 | International Boat Industry ibinews.com
Markets & Regions
OVERVIEW | USA
The surging US boat
market hit a soft patch to
begin 2019. The question
boatbuilders are asking
is, why?One slow quarter
IN SPITE OF FAVOURABLE ECONOMIC INDICATORS, THE PRE VIOUSLY-
SURGING NORTH AMERICAN BOAT MARKET BEGAN THE 2019 SEASON
BY HITTING A SOFT PATCH. ALTHOUGH STRONGER LATE-SPRING SALES
SEEM TO SUGGEST A RECOVERY, MORE INVENTORY IN THE PIPELINE
HAS CUT PROJECTIONS FOR THE YEARWORDS: CRAIG RITCHIEO
n the strength of a surging economy, low
interest rates, a stable currency situation,
employment rates approaching record
levels and wage growth on the rise in practically
every sector, the North American boat market
has been outperforming even the most optimistic
expectations over the past few years. The positive
economic picture, buoyed by a growing number of
baby boomers enjoying their peak earning years
or beginning to take early retirement, has created
a tremendous demand for boats of all kinds. In
practically every category, boatbuilders report 2018
sales as approaching or exceeding pre-downturn
levels in terms of unit volumes, and surpassing
them in dollars.
In the US, the employment rate presently stands
at an astounding 96.2% – a level so high that it has
spawned competition for labour in some regions,with wages being forced skyward due to higher
demand. According to Comerica Bank’s April
2019 economic outlook, average hourly earnings
increased by 3.4% in February, a level well above
the Consumer Price Index yearly change of 1.5%.
As a result, a majority of US households are now
seeing real gains in take-home incomes. At the same
time, Americans are seeing equity in their homes
grow on the back of continuing low interest rates,
holding consumer debt to easily manageable levels.
Consumer confidence remains strong, and GDP
continues to grow.
The picture in Canada looks remarkably similar,
with an employment rate of 94.3%, continuing low
interest rates, and a housing market so strong that
it has required government intervention in order to
hold prices in check.
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