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 marina companies in the US operate docking and storage facilities for water craft and offer boating-related goods and services. Most companies offer both temporary (overnight, daily) and long-term (annual, seasonal) rentals. Many marinas provide maintenance and repair services for boats. Companies may sell fuel, marine supplies, meals and beverages, and sports and recreational equipment. Some marinas offer boat rentals or sell boats.

Seasonality And Weather

Boating is a seasonal activity, particularly in markets with long winter periods.

Dependent On Boating Industry And Economy

Because boating is a recreational activity, demand for marina services is vulnerable to changes in the economy and the corresponding effect on the boating industry, particularly new boat sales.

Industry size & Structure

The average private marina operates out of a single location, employs 8-9 workers, and generates $1.5 million annually.

    • The marina industry consists of about 3,500 companies that employ 28,700 workers and generate $5.2 billion annually.
    • Marina may be privately-owned, or associated with municipalities or cooperative entities (home owners associations, condominiums, yacht clubs).
    • The industry is highly fragmented; the top 50 firms account for about 19% of industry sales. The vast majority of marinas are independently owned and operated.
    • Marina Del Rey, CA has one of the world's largest man-made marinas with over 4,600 boat slips.
                            Industry Forecast
                            Marinas Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            May 8, 2023 - Marina Market Sees Slowdown
                            • The challenging economy has caused a slowing of the marina market, according to the annual Marina Investment Report reported in Marina Dock Age. The report, developed by the Leisure Investment Properties Group (LIPG), found a lower transaction volume than in 2021, even as buyer interest and marina fundamentals remain strong. Higher interest rates have made borrowing more difficult and expensive. The tighter lending conditions have resulted in reduced offer prices, higher equity requirements, and more selective lending decisions based on the specific marina and location or the experience and financial qualifications of the borrower. According to LIPG’s Brett Murphy, “As the Fed aggressively raised rates, many investors hit ‘pause’ to evaluate their financial situation, deals under contract were re-evaluated and many fell apart, and investors waited patiently on the sidelines.”
                            • Research by Discover Boating, powered by the National Marine Manufacturers Association and the Marine Retailers Association of the Americas, has identified more than 90 million potential boaters who skew younger, more educated, and more ethnically and racially diverse. The core segment resembles current boat owners and tends to be older, family-oriented, and more suburban/ex-urban than other segments. The growth segment often participates in boating-adjacent activities such as powersports, biking, and hiking but can feel overwhelmed by the boat-buying process. The emerging segment of boaters is a large, dynamic, and affluent group that often participates in outdoor activities during vacations. The boating industry can court new buyers by representing them better in marketing materials, helping them to understand the emotional and experiential benefits, encouraging boat rental as a gateway to boat ownership, and explaining the financing options available.
                            • The number of boats sold was down 4.3% in 2022 compared with 2019, as the total number of boats sold declined globally for the first time since the pandemic-driven boom, according to data from the Boats Group in RV PRO. However, the global average boat value increased by 29.5% in 2022 compared to 2019. Trident Funding, a leading marine lending company, reported that boat loan applications were up by 80% in 2022 compared to 2021, although the loans have been smaller than in 2021. Inventory levels are also improving, as listings were 4.5% below 2019. According to Courtney Chalmers, VP of marketing at Boats Group, consumer demand is starting to soften. He added, “The effects of the demand and supply chain disruption during the pandemic are also still very apparent. Boats continue to move off the market faster and sales remain higher than before the surge.”
                            • Nearly 60% of small business owners reported hiring or trying to hire staff in March 2023, down one point from the previous month, according to the monthly jobs report from the National Federation of Independent Businesses (NFIB). Of those companies hiring or trying to hire, 90% of owners reported few or no qualified applicants for the positions they were trying to fill. About 23% of owners reported labor quality as their top business operating problem, and 11% reported labor costs as a top concern. According to NFIB Chief Economist Bill Dunkelberg, “The labor force participation rate remains below pre-COVID levels, which is contributing to the shortage of workers available to fill open positions. Small business owners are struggling to take advantage of current sales opportunities.”
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