Markets & Regions
ibinews.com International Boat Industry | JUNE–JULY 2019 35
BOAT SALES | USA
Reason for optimism
WITH THE ELIMINATION OF CANADIAN AND MEXICAN
RETALIATORY TARIFFS IN MAY, US BOATBUILDERS LOOK TO
RECOVER LOST SALESWORDS: CRAIG RITCHIEA
lthough the North American boat
industry may have hit a bit of a soft
patch to begin the 2019 season,
and still faces tariff concerns with China,
Mexico and the EU, there are reasons for
optimism as boatbuilders move toward
the 2020 model year.
New data released by the National
Marine Manufacturers Association
(NMMA) shows unit sales of new
powerboats in the US domestic market
reached 276,000 units in 2018, an increase
of 4.0% over 2017 and the highest level
the US recreational boating industry
has seen in 11 years. Growth was led by
watersports towboats, which posted year-
over-year sales growth of 10% to a level of
10,500 units in 2018. Personal watercraft
sales – widely considered a gateway to
boat ownership – rose by 8.0% to 69,000
units while jet boats posted YOY gains of
4.0% to 5,900 units. NMMA notes growth
among outboard-powered boats of all
types as having increased by 3.0% over
2017 numbers, representing approximately
177,600 units in all. Sales of cruisers from
22ft-32ft were also up for the year, climbing
by 3.0% to roughly 9,000 units.
Overall, spending on boats, engines,
trailers, accessories and related services
reached an all-time high in 2018 at
US$42bn, up 7.0% over the previous year.
“Sales of new boats and boating
expenditures have been on a consistent
upward climb for eight years, with some
segments reaching pre-recession sales
volumes,” said NMMA president, Thom
Dammrich. “With consumer confidence
high, unemployment low, wages on the
rise and interest rates holding level, we
anticipate the recreational boating market
to remain healthy in the year ahead with
modest growth of up to 2.0% in new
powerboat unit sales in 2019.”THE BIG PICTURE
There’s even greater reason for optimism
in Canada, with NMMA Canada reporting
41,700 units sold in 2018 and marking
a year-over-year increase of 7.0%. The
inboard-powered ski/wakeboard boat
category led the way with a 16.0% YOY
increase in unit sales, followed by personal
watercraft (13.0%), inflatable boats (6.0%)
outboard-powered boats (6.0%) and
inboard-powered cruisers (4.0%).
Sales data for Mexico is harder to come
by. The US Department of Commerce
notes that in the absence of an organised
domestic recreational boating industry,
the majority of boats sold in Mexico for
recreational purposes are imported from
the US. Despite recent currency exchangerate fluctuations and a recently-lifted 10%
retaliatory tariff on American goods, these
imports have held steady in the range of
US$128m since 2016.
Imports of pleasure boats into Canada
from the US in 2018 are said to have
approached US$860m. While a significant
percentage of that traffic took place before
the Canadian tariffs kicked in on July 1,
with minimal orders since the inventory
pipeline for most dealers is now depleted.
“It’s definitely less than it was a year ago,
simply because dealers wouldn’t take the
inventory at the price points that included
paid tariffs,” says Wells Fargo’s Bruce Van
Wagoner. “Ageing in Canada typically runs
a little higher than the US, but it’s also in
very healthy shape.”
Assuming no further hiccups, the
elimination of tariffs on US boats by both
the Canadian and Mexican governments
holds promise for the rest of the year. NMMA president
Thom DammrichComplete Climate Solutions: Heating, Cooling & Roofs