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 837 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 $12 million annually.
- The boat building industry consists of 837 firms that employ 51,400 workers and generate about $10 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
Mar 14, 2024 - Producer Prices Up, Employment Down
- According to the Bureau of Labor Statistics (BLS), producer prices for boat builders increased by over 3% in December 2023 compared to December 2022 and 27% compared to 2019. Due to weaker demand and higher interest rates, employment in the boat-building industry has declined in the past year. Employment in the sector dropped 8.5% in December 2023 compared to the same period in the previous year. The decline comes after a period of growth for the industry during the pandemic, when consumers took to water sports as a recreational activity. Employment for boat builders increased by 9.5% from December 2019 to December 2023, per the BLS.
- US manufacturing activity contracted in February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
- 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.
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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