Boat Dealers
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 3,500 boat dealers in the US sell new and used boats and related products and services. Related products and services include motors, parts, and accessories; parts and labor for maintenance or repair work; and motorized sports vehicles (ATVs, snowmobiles). Dealers may also facilitate financing, offer slip and storage facilities, provide boat brokerage services, or offer extended service contracts.
Seasonal Sales
The boating industry is highly seasonal and sales peak during the summer, when weather is conducive to water-related activity.
Dependence on Credit
Both dealers and boat buyers depend on access to credit to fund purchases.
Industry size & Structure
The average boat dealer operates out of a single location, employs fewer than 20 workers, and generates about $4-5 million annually.
- The boat dealer industry consists of about 3,500 companies that employ about 37,000 workers and generate about $15 billion annually.
- The industry is fragmented; the top 50 firms account for 31% of industry sales.
- Large companies include West Marine and MarineMax.
- The majority of the recreational boating industry involves the use of small boats (26 feet or less in size).
- Pre-owned boats accounted for almost 80% of all boat sales in 2022.
Industry Forecast
Boat Dealers Industry Growth
Recent Developments
Jan 16, 2025 - NOAA Withdraws Whale Rule After Public Response
- The National Oceanic and Atmospheric Association (NOAA) has withdrawn a proposed vessel speed rule that was designed to protect an endangered whale, following a largely negative public response to the rule, according to Trade Only Today. The proposed North Atlantic Right Whale rule would have required small, recreational boats on the Eastern Seaboard to travel at 10 knots (11 miles per hour) for up to seven months of the year. The National Marine Manufacturers Association (NMMA), which opposed the rule, said the longer travel times on the ocean would put boaters at risk, given the ever-changing sea conditions. The NMMA said a better solution is the use of advanced marine technologies to detect fish, whales, and wildlife. Boat manufacturers and dealers were concerned the rule could lead to decreased demand for offshore boats in a slower market.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- Economic indicators maintained their cautious status in December 2024, according to the latest Recreational Boating Industry Monthly Summary from the National Marine Manufacturers Association in Boating Industry. The report noted that one potentially positive development was a decline in the Federal Funds Rate, the first drop since August 2023. The decline may reduce borrowing costs, which could drive consumers to make bigger purchases. The US Manufacturing PMI Index had a slight improvement, up 0.2% to 47.3%, with higher production activity. The report also found that year-to-date new personal watercraft (PWC) sales continued to have a positive presence in the market, with more than 65,000 units sold. PWC sales represent nearly 32% of total new powerboat sales.
- New powerboat unit sales declined nearly 7% in 2023 year over year to 176,643 units, according to data from the US Recreational Boating Statistical Abstract by the National Marine Manufacturers Association in Sail-World.com. The report cited shifting consumer preferences and broader economic pressures for the decrease. One category that improved in 2023 was new jet boat sales, driven by strong demand for fiberglass models. Producer inflation fell 3.1% in September 2024 compared to a year ago, according to producer price data from the Bureau of Labor Statistics (BLS). Employment by motorcycle, boat, and other vehicle dealers fell 7.6% in September 2024 year over year, while average wages for nonsupervisory employees in the industry were up 8%, per the BLS.
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