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
Jan 23, 2025 - Shipments Up, Employment Down
- New orders and shipments for ships and boats rose 10% and 2.1%, respectively, in November 2024 year over year, according to the latest data from the US Census Bureau. Compared to the previous month, new orders were down 2.5% and shipments were up 6.3% in November. Producer prices for boat builders increased 1.8% in November 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Employment by boat builders fell almost 11.6% in October 2024 compared to a year ago. US manufacturing activity contracted in December 2024, marking the ninth consecutive month of contraction for the Manufacturing PMI, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.3% in December, up 0.9 percentage points from the 48.4% recorded in November. A reading above 50% indicates manufacturing expansion.
- 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.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- According to a new report by the Boats Group, global boat sales fell 9.1% in the first half of 2024, continuing a downward trend in year-over-year sales. Consumer demand has been lagging due in part to persisting high interest rates and inflation. Used boat sales declined 12.4% in the first half of 2024, while new boat sales were up 5.4%. However, New boats are taking longer to sell, spending 53 days more on the market than a year ago. Average sold boat prices were up globally, increasing 2.4% to $203,000. The average sold price for used boats increased 4.2% to $211,500, while the average sold price for new boats was down 3.4% to $174,000. The report noted that boats under 26 feet were the primary market driver for global unit sales in the year's first half.
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