Boat Builders
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 848 boat builders in the US design, manufacture, and market boats used primarily for personal and recreational purposes. Major product categories include power boats, sailboats, kayaks, canoes, and rowboats. Power boats include boats with inboard, outboard, stern drive, and jet powered engines. The power boat category includes Personal Water Craft (PWC), such as a jet ski. The retail price for a new fishing boat ranges $25,000 - $100,000, but luxury yachts can retail for millions of dollars.
Variability in Costs
Variability in the cost of materials and components affect margins and profitability for boat builders.
Competition from Used Boats
Boat builders compete with the used boat market, which appeals to deal-seeking buyers and new boaters looking to minimize their investment.
Industry size & Structure
The average boat builder operates out of a single location, employs fewer than 20 workers, and generates $15 million annually.
- The boat building industry consists of 848 firms that employ 50,000 workers and generate about $13.2 billion annually.
- The industry is concentrated; the top 50 companies account for about 74.5% of industry revenue.
- Large companies include Brunswick, Bombardier, Viking Yacht Company, and Marine Products Corporation. Some large companies have international operations.
- The US became a net importer of boats in 2015.
Industry Forecast
Boat Builders Industry Growth
Recent Developments
Mar 21, 2025 - Trade Disputes Expected to Impact Boating Industry
- Officials from the National Marine Manufacturers Association (NMMA) met with staff from the US Trade Representative’s office in March 2025 to express concerns about the Trump Administration’s tariff plan for key trade allies Canada and Mexico, according to a Boating Industry report. Canada is the largest customer of American-made boats, with 51% of US boat exports going to Canada, and Mexico plays a critical role in the industry supply chain. Expressing concerns about the stability of the US-Mexico-Canada Agreement (USMA), the NMMA has called for a “balanced and stable approach to tariffs.” About 95% of boats sold in the US are made in the US, per the NMMA. Trump’s 25% tariffs for Canada and Mexico were paused but are expected to go into effect in April. Recreational boats from the US are part of Canada’s planned tariff package, in response to the proposed US tariffs.
- The number of new boaters who sold their boat within four years rose slightly in 2024, and anecdotal evidence shows consumer pressures are a factor in leaving the sport, according to a report in Trade Only Today. Boat makers may see lower demand if there is a decline in the number of active boaters. According to data from Info-Link Technologies for Soundings Trade Only, the share of new-boat buyers who sold their boat after four years was about 24% in 2024, higher than the industry average of 20%. A combination of factors may be weighing on consumers, including high prices from inflation causing a reduction in discretionary spending, an increased feeling of anxiety, and a sense of being time-crunched that prevents people from taking their boats out. Industry experts also indicated that boat usage overall also seems to be falling.
- New powerboat retail unit sales fell in 2024 by an estimated 9% to 12% to approximately 230,000 to 240,000 units sold, according to data from the National Marine Manufacturers Association (NMMA) in Marina Dock Age. The boat industry continued to normalize in 2024 following record growth years during the COVID-19 pandemic, while managing inflationary pressures and higher interest rates. The forecast projects that US boating expenditures will increase 3% to 5% in 2025 from 2024’s estimated total of $55 billion. Unit sales of new freshwater fishing boats are expected to stay flat in 2024 compared to 2023. NMMA data found new powerboats will return to growth in 2025, as a result of new innovative products, consistent demand for on-water experiences, and changes in US economic policies.
- According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
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