Industry Overview
Since time began, people have had a fascination with the sea. Today, that nautical love affair continues. Boats range in every size and shape up through 260 foot floating palaces and prices range from $200 to over $20 million. There are aluminum hulls, wooden hulls, fiberglass hulls, inboard and outboard motors.
In 2008, there were over 17 million recreational boats in American waters, including houseboats, sailing boats, yachts, kayaks, canoes, rowboats and everything else that floats. There were 704,820 new boat sales in 2008, of which 203,000 were power boats. The National Marine Manufacturers Association deals with statistics and oversees quality assurance and public policy advocacy.
What drives sales and prices in the boating industry is the home price market. When funding is available for mortgages, it is generally available for other big ticket items, such as boats. The Case-Shiller Home Price Index for 20 cities is followed on a monthly basis.
Miami’s boat dealers, while feeling a downturn last year, are well positioned to increase sales this year. Retail boat dealers in San Diego might not recover as quickly from the recent economic problems.
Industry Trends
Lighter and faster has been the catch phrase of the boating manufacturers. In today’s market, bigger is not always better. Most consumers cannot afford floating palaces but like the sleek designs of inboard, and some outboard, power boats. Lighter means less fuel consumption and easier handling.
Technology in nautical equipment means being able to determine depths, topography, weather and more. In cabin cruisers, galleys are better equipped with the latest for entertaining.
Brand Names
Companies such as Honda Marine, Chris Craft, AMF and others are industry standards.