Boat Builders NAICS 336612

Sep 30, 2025 - Electric Boating Gains Momentum

• According to a report in Trade Only Today, electric boating is rapidly transitioning from niche to mainstream, driven by environmental concerns, regulatory pressure, and advances in battery and propulsion technologies. OEMs are investing heavily in electrifying models and developing new designs, while consumer interest grows, especially in recreational segments. Despite infrastructure and performance concerns, over 100 manufacturers are actively innovating, signaling long-term market growth. Rising consumer demand for sustainable, low-maintenance vessels opens new sales channels, particularly among first-time buyers and eco-conscious boaters.
• Transportation equipment manufacturing, which includes boat builders, is one of the ten manufacturing industries reporting contraction in August’s Manufacturing ISM Report on Business. Transportation equipment manufacturers reported increases in raw materials prices and inventories, while reporting a decline in new orders, a decrease in production, lower employment, and lower backlogs. Other manufacturing industries reporting contraction during the period were Paper Products; Wood Products; Plastics & Rubber Products; Furniture & Related Products; Machinery; Electrical Equipment, Appliances & Components; Computer and Electronic Products; Chemical Products; and Fabricated Metal Products. Seven industries reporting growth were Apparel, Leather & Allied Products; Textile Mills; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Miscellaneous Manufacturing; and Primary Metal. Overall, economic activity in the manufacturing sector contracted for the sixth consecutive month in August, with the Manufacturing PMI registering 48.7%.

• New powerboat retail unit sales declined by 9.7% year to date through June 2025, compared to the same period a year ago, amid ongoing economic pressures, according to the Monthly Recreational Boating Industry Data Summary from the National Marine Manufacturers Association (NMMA). Sales fell in several categories during the period year over year, including new pontoons (-10.9%), jet boats (-14.4%), and wake sport boats (-9.9%). Segments with a small improvement in sales included yachts (1.8%).
• The US boat builders industry is projected to grow at a CAGR of 4.48% between 2025 and 2029, faster than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation. The durable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry.