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
Jul 19, 2024 - Prices Higher, Employment Down
- Producer prices for boat builders increased during the first five months of 2024, according to the US Bureau of Labor Statistics (BLS). Producer prices for boat builders are about a third higher in 2024 compared to the pre-pandemic period. Employment by boat builders decreased slightly in the first five months of the year. On a year-over-year comparison, employment by boat builders fell almost 13% in May 2024.
- 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.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- New powerboat retail unit sales are expected to reach an estimated 258,000 units sold in 2023, down slightly from the previous year, according to data from the National Marine Manufacturers Association (NMMA). The decline follows a period of continued inflation and higher consumer borrowing costs; demand is also lower following a wave of boat sales in 2021 and 2022 during the COVID-19 pandemic. The industry is expected to sell about 900,000 used boats in 2023, the lowest levels for pre-owned vessels since 2011, according to industry estimates. The market is still seeing a lower supply of used boats after consumers depleted the supply of used boats when new boats were not readily available during the pandemic due to production issues.
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