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
Nov 15, 2024 - Manufacturing Activity Falls, Employment Down
- US manufacturing activity contracted in October 2024, marking the lowest Manufacturing PMI registered in 2024, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. Producer prices for boat builders increased 2.5% in September 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Employment by boat builders fell almost 13% in September 2024 compared to a year ago.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose 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.
- The US outboard engine retail market grew in 2023, as the appetite grew for higher-performance engines, according to the latest US Recreational Boating Statistical Abstract from the National Marine Manufacturing Association (NMMA). The 300hp and greater categories showed a nearly 18% sales increase, and the 250-299.9hp segment also posted an uptick. According to the report, the South Atlantic, Great Lakes, and Gulf Coast continued their market stronghold regionally, even with slight variations in unit sales.
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