Boat Builders NAICS 336612

May 20, 2025 - Higher Growth Forecast

• 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.

• The number of new boaters who sold their boat within four years rose slightly in 2024, and anecdotal evidence shows consumer pressures are a factor in leaving the sport, according to a report in Trade Only Today. Boat makers may see lower demand if there is a decline in the number of active boaters. According to data from Info-Link Technologies for Soundings Trade Only, the share of new-boat buyers who sold their boat after four years was about 24% in 2024, higher than the industry average of 20%. A combination of factors may be weighing on consumers, including high prices from inflation causing a reduction in discretionary spending, an increased feeling of anxiety, and a sense of being time-crunched that prevents people from taking their boats out. Industry experts also indicated that boat usage overall also seems to be falling.
• Officials from the National Marine Manufacturers Association (NMMA) met with staff from the US Trade Representative’s office in March 2025 to express concerns about the Trump administration’s tariff plan for key trade allies Canada and Mexico, according to a Boating Industry report. Canada is the largest customer of American-made boats, with 51% of US boat exports going to Canada, and Mexico plays a critical role in the industry supply chain. Expressing concerns about the stability of the US-Mexico-Canada Agreement (USMA), the NMMA has called for a “balanced and stable approach to tariffs.” About 95% of boats sold in the US are made in the US, per the NMMA. Trump’s 25% tariffs for Canada and Mexico were paused and were expected to go into effect in April, though some were put on hold again. Recreational boats from the US were originally part of Canada’s planned tariff package, in response to the proposed US tariffs.