Boat Dealers NAICS 441222

Apr 16, 2025 - Powerboat Sales Dip in January

• New powerboat retail unit sales declined by 8.2% in the 12-month period ending in January 2025 year over year, influenced by an ongoing softening in discretionary purchases due to inflation and interest rate concerns, according to the Monthly Recreational Boating Industry Data Summary from the National Marine Manufacturers Association (NMMA) in Boating Industry. New retail unit sales were up 1% in January 2025 compared to January 2024, marking the first time sales increased in January since 2021. Sales of freshwater fishing boats drove the 1% uptick, growth attributed to the category being accessible and having broad appeal among middle-income households. The wholesale shipments were down 23.2% in January 2025 year over year, pointing to a tightening inventory strategy across the supply chain amid tariff headwinds and economic uncertainty.
• Boat dealers may want to prepare for potential changes in shopping habits created by falling consumer confidence, with levels declining 7.2 points to 92.9 in March 2025 month over month, according to the Consumer Confidence Index from the Conference Board. Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board, noted that the segment driving March’s decline was consumers over 55 years old, and the decline spanned all income groups with the exception being households earning over $125,000. Per Guichard, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.” Purchasing plans for homes and new cars declined while big-ticket purchases rose on a six-month moving average basis, which may reflect plans to purchase certain items before impending tariffs lead to price increases.

• 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. Dealers may see less traffic 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. According to Matt Gruhn, president of the Marine Retailers Association of the Americas, “There appears to be a decline in boat usage. The dealers are talking about it, that throughout all the ups and downs of our industry, boat usage has largely stayed the same. They have this anecdotal evidence that the boat ramps aren’t as busy. The waterways aren’t as busy. There’s no data, but it seems like there’s some kind of a decline.”
• The US boating industry has concerns about President Trump’s tariff plan for Canada and Mexico, with both countries playing key roles in trade partnerships, according to a National Marine Manufacturers Association (NMMA) statement in Boating Industry. Canada is the largest customer of American-made boats, with 51% of US boat exports going to Canada. The NMMA also said that Mexico plays a critical role in the industry supply chain, expressed concerns about the stability of the US-Mexico-Canada Agreement (USMA), and 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 proposed 25% tariffs for Canada and Mexico are deferred for 30 days. Recreational boats from the US are part of Canada’s planned tariff package, in response to the proposed US tariffs. Canada announced a planned 25% tariff on $155 billion worth of goods imported from the US.