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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Oct 16, 2024 - Jet Boat Sales Up
                                • While sales of new cruisers, watersport, and fishing boats slowed in 2023, jet boat sales grew 44.3%, according to the recently released US Recreational Boating Statistical Abstract by the National Marine Manufacturers Association. Watersport boats topped the market in 2023 with 35.2% of sales, followed by fishing boats (30.7%), and jet boats (4.5%). Consumer spending, a key indicator for the industry, grew 2.6% in June 2024 compared to a year ago and increased 0.2% from the previous month, according to the Bureau of Economic Analysis. Producer inflation grew 11.3% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics. Employment by motorcycle, boat, and other vehicle dealers fell 6.1% in July 2024 year over year, while average wages for nonsupervisory employees in the industry were up 4.3%.
                                • The US boat dealers industry is projected to grow at a CAGR of 1.9% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the retail and wholesale industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. On a positive note, inflation is subsiding, which supports a moderate increase of real disposable income by about 1.9% in 2024 and 2.4% in 2025.
                                • 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.
                                • More than 57 million Americans went fishing in 2023, a 6% increase in participation over 2022 and a record high figure, according to recent data released by the Recreational Boating and Fishing Foundation (RBFF). The number of Americans six and over who went fishing in 2023 topped 2020’s pandemic-influenced record of 54.7 million. It is estimated that 85 million Americans went boating in 2023, down from the pandemic-high of 100 million. RBFF noted that 23% of anglers lapsed out of fishing in 2023, a figure for the industry to focus on reducing. The most popular fishing locations were shoreline (48%), riverbank (47%), boat (45%), pier (24%), kayak (7%), and other (5%). 2023 set a record for female participants, reaching 21.3 million from 19.8 million in 2022.
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