Boat Builders NAICS 336612

Jul 21, 2025 - Powerboat Sales Drop

• New powerboat retail unit sales declined by 9% year to date through April 2025, compared to the same period a year ago, amid ongoing economic uncertainty, 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 (-19.5%), jet boats (-19.9%), and wake sport boats (-14.3%). Segments with flat sales included freshwater fishing boats and yachts. According to the report, “While economic fundamentals remain relatively intact, shifting consumer psychology is weighing on durable goods like boats. Higher interest rates, tighter credit, and perceptions of economic uncertainty are converging to create a more hesitant buyer.
• The University of Michigan’s consumer sentiment index increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. The record low of the index during the past 10 years was in June 2022, when it reached 50. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• 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.
• According to a recent report in Boating Industry, boat builders are facing a looming lumber crisis, due to potential tariff hikes on Canadian softwood lumber. Canada is the source of 85% of US softwood lumber imports, with China and Russia as additional sources. Earlier this year, the Trump administration proposed a 25% tariff on top of an existing 14.5% tariff, but the duty was delayed and then put on hold until further review. Tariffs bring pricing pressure on boat builders and marine suppliers for essential materials such as marine plywood, decking cores, and structural framing. Lumber supply problems could result in long boatyard delays and higher costs for new builds and retrofits. In addition, the marine industry is already facing backlogs in key materials such as resins, epoxies, and specialty components. The industry only recently recovered from a crisis during the Covid era when supply chain disruptions caused lumber prices to quadruple. The report mentions exploring new materials for boat building, such as recycled plastic composites.