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 marinas 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

                            Mar 1, 2024 - Powerboat Sales Dip in 2023
                            • The National Marine Manufacturers Association (NMMA) has projected a slight decrease of 1% to 3% in new powerboat sales in 2023, reaching an estimated total of 258,000 units sold, according to Trade Only Today. The forecast for new-unit sales in 2024 is expected to be similar to 2023. According to NMMA President Frank Hugelmeyer, “With jumps in interest rates and inflation in 2023, we saw more boating consumers being price-sensitive and deciding to wait things out before buying their next boat and, in the meantime, picking up a personal watercraft to enrich their time on the water.” While most of the new powerboat categories experienced a 5% to 25% decline in sales in 2023, the personal watercraft segment is expected to increase by 20% to 25%, representing 85,000 to 90,000 of the estimated 258,000 new units sold at retail. Boat manufacturers are focused on creating new products and implementing emerging technologies such as hydrogen-fueled engines, per the NMMA.
                            • According to recent reports, plans for hydrogen refueling stations for recreational boating are moving forward in both the US and abroad as companies and governments invest in greener energy options. According to Arkitera, the world’s first green hydrogen refueling stations for the recreational boating industry will be built in Italy, with the first station to be installed in summer 2024. The plan is for 100 stations supplying green hydrogen to be constructed in 25 Italian marinas and ports by 2030, funded by NatPower H and designed by Zaha Hadid Architects. In the fall of 2023, the US Department of Energy announced that it would award $7 billion in grant funding to seven regional hydrogen hubs across the US. The hubs are expected to form a national clean hydrogen network that will include the production, processing, delivery, storage, and end-use of hydrogen.
                            • Marina operators will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to Chain Store Age. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
                            • Consumer confidence levels rose in January 2024 for the third month in a row, following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index increased to 114.8 in January 2024 from 108 in December 2023. According to Dana Peterson, Chief Economist at The Conference Board, “January’s increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead, and generally favorable employment conditions as companies continue to hoard labor.” Peterson added that the gains in consumer confidence were largest in householders aged over 55. Plans to purchase homes, autos, and large appliances declined slightly on a monthly and six-month basis.
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