Boat Builders NAICS 336612

Jan 23, 2026 - Boat Builders Adjust Production, Pricing Amid Softer Demand

• According to a report in Boating Industry, the US boat building industry continues to recalibrate after pandemic-driven highs, with demand softening but long-term fundamentals intact. Year-to-date through mid-2025, new powerboat sales were down roughly 10% year over year, with pressure concentrated in entry-level segments most sensitive to financing costs. Dealer performance was mixed: 36.8% reported revenue slightly up in 2025, while 21.1% saw revenue slightly down and 19.3% reported flat or significantly lower results. Future sentiment is cautiously optimistic, with 57.4% of dealers expecting revenue growth in 2026. Manufacturers face higher production costs from tariffs on aluminum and steel, supply chain complexity, and regulatory uncertainty, while high interest rates continue to weigh on affordability. To offset these pressures, boat builders are emphasizing innovation, sustainability, and more affordable product designs, alongside premium offerings that remain resilient. Expanding access and attracting younger, more diverse buyers is increasingly critical to long-term industry stability.
• December’s decline in recreational boat sales reflected challenges for US boat builders, according to Lightspeed data reported in Boating Industry. The data from nearly 700 dealers shows sales falling 3.7% year over year, with the Midwest up 4.2% and the West up 13.9%, offsetting declines in the Northwest (12.8%) , Northeast (31.1%), and South (0.4%). For builders, the disparities highlight uneven demand but reinforce the importance of aligning production with growth markets. Service revenues climbed 2.5% nationally, led by the Northwest at 8.5%, signaling opportunities for builders to support aftermarket parts and maintenance. Parts sales were up 9.6% overall, while the Midwest led with 23.5% growth. Combined dealer revenue rose 2% nationwide, with the West reporting the strongest gain at 9.1%. For US boat builders, the data point to uneven regional demand and softer unit sales, partially balanced by a resilient installed base supporting service and parts. Production planning may remain cautious in early 2026, with greater reliance on regions showing continued sales strength.

• The transportation equipment manufacturing category is one of the 15 manufacturing industries reporting contraction in December’s Manufacturing ISM Report on Business. Transportation equipment manufacturers reported a decline in new orders , lower volumes of imports, and lower backlogs while reporting faster supplier deliveries, price increases for raw materials, and growth in production and employment. Other manufacturing industries reporting contraction during the period included Apparel, Leather & Allied Products; Wood Products; Textile Mills; Paper Products; Chemical Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Petroleum & Coal Products; Primary Metals; Miscellaneous Manufacturing; Plastics & Rubber Products; Fabricated Metal Products; Machinery; and Food, Beverage & Tobacco Products. Two sectors reported growth in the period including Electrical Equipment, Appliances & Components; and Computer & Electronic Products. Overall, economic activity in the manufacturing sector contracted for in December, with the Manufacturing PMI registering 48.7%.
• 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.