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 34,300 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 79% of all boat sales in 2021.
Industry Forecast
Boat Dealers Industry Growth
Recent Developments
Apr 15, 2024 - Slower Growth Expected for Industry
- The US boat dealers industry is projected to grow at a CAGR of 1.8% 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 projected growth. Factors that continue to limit consumer spending are higher price levels and interest rates, though both are expected to improve in 2024. Post-pandemic, consumer spending has shown slower gains of 2.5% in 2022 and 2.2% in 2023, supported in part by savings amassed by households from federal pandemic relief programs. According to the forecast, "2024 may bring further deceleration, but improving consumer sentiment may support moderately strong gains in household spending, together with rising wage rates and lower inflation."
- The National Retail Federation (NRF) released its 2024 retail sales forecast, projecting an increase of approximately between 2.5% and 3.5%, reaching sales of between $5.23 trillion and $5.28 trillion. The projected growth aligns with the 10-year pre-pandemic average annual sales growth of 3.6% and compares with the 2023 annual sales growth of 3.6%, which reached $5.1 trillion. Non-store and online sales (included in the total figure) are expected to grow at a higher rate of 7% to 9% year over year, to a range of $1.47 to $1.5 trillion, compared to $1.38 trillion in 2023. A tight labor market is expected to cool in 2024, with about 100,000 fewer jobs on average per month projected in 2024 compared to 2023. The NRF forecast excludes automobile dealers, gas stations, and restaurants to focus on core retail.
- According to a recent ConsumerSignals survey by Deloitte, more discretionary categories, including recreation and entertainment, leisure travel, restaurants, and electronics, represented an estimated 22% share of consumer’s wallets in January, up slightly from a year ago. According to the Spending Intentions index, global total spending intentions remained consistent in January compared to December and were significantly higher than a year ago. Spending intentions have gradually returned to their 2021 levels after inflation stunted global spending confidence. The survey also revealed that over 60% of survey respondents reported their finances had either remained the same or improved in the past year, up from 58% a year ago.
- Consumer confidence levels were essentially unchanged in March 2024, after a dip in February 2024 following three consecutive months of growth, according to data from The Conference Board. The Conference Board’s consumer confidence index was 104.7 in March 2024 from 104.8 in February 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Consumers’ assessment of the present situation improved in March, but they also became more pessimistic about the future.” Peterson added that confidence rose among householders 55 and over but fell for those under 55. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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