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
Jul 10, 2024 - Declines in Producer Prices, Employment
- Boat dealers have seen recent declines in producer prices and employment, according to data from the Bureau of Labor Statistics. Producer prices fell 4.8% in May 2024 compared to a year ago. Year over year, producer prices have fallen every month of 2024 excluding April, per the BLS. Employment by motorcycle, boat, and other vehicle dealers decreased by 4.4% in May 2024 year over year. Meanwhile, wages have continued to rise due to a competitive labor market. Wages at other motor vehicle dealers, which includes boat dealers, increased 2.4% to $27.43 per hour in May 2024 compared to a year ago. Wages for the industry have increased by about a third from 2019 to 2024, per the BLS.
- The National Marine Manufacturers Association (NMMA) is asking for the withdrawal of a proposed vessel speed rule by the National Oceanic and Atmospheric Association (NOAA) aimed at protecting an endangered whale, saying it would put boaters at risk. The proposed North Atlantic Right Whale rule will require 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 NMMA says the longer travel times on the ocean put boaters at risk, given the ever-changing sea conditions. According to The Carolina Journal, some boating businesses such as fishing charters say the slower proposed speed would turn a 10-hour trip into a 14-hour expedition, making the business infeasible. NMMA President and CEO Frank Hugelmeyer said the NOAA did not consult the recreational boating industry when writing the rule and noted in an editorial that large ocean-going ships are the cause of the majority of whale vessel strikes, not recreational boats. The NMMA proposed that a better solution to protect the endangered whale is the use of advanced marine technologies, adding that many recreational boats have technology on board to detect fish, whales, and wildlife.
- Boat dealers and other recreational product dealers are facing overflowing lots and a buyers’ market as demand dropped in a tough post pandemic economy, according to a recent report in the Wall Street Journal. Still, firms that have diversified into services are faring better. For example, leading boat dealer MarineMax made 16 acquisitions between 2019 and 2023 in areas such as insurance, marinas, and other services to diversify its income, which has helped it to double its revenue and triple its net income during that time frame, per the report. Boat manufacturer Brunswick, which has seen a 22% year-over-year sales decline in Q1, has also made acquisitions to make its business less cyclical. One such purchase was Freedom Boat Club, a provider of membership services to boat owners, such as storage, maintenance, and repairs. High demand during the COVID-19 pandemic led to record boat sales, though supply chain issues somewhat constrained purchases. The National Marine Manufacturers Association projects that combine US new and used boat sales in 2024 will be about 22% below their 2021 peak, per the report.
- 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.
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