NMMA Survey: Decrease in Boat Sales, but Signs of Recovery
A new study by the National Marine Manufacturers Association states that despite another annual decrease in new boat sales, the boating industry is showing signs of economic recovery.
Sales of all powerboats and sailboats in 2010 were down 4 percent from 2009, with sales of used boats being down 2.4 percent and sales of new boats being down 10 percent, according to the NMMA’s annual Recreational Boating Statistical Abstract. However, that 10-percent decrease in new boat sales for 2010 is actually good news, according to NMMA, because the 2009 decrease was a much larger 35 percent over 2008. “The rate of decline for new boat sales is slowing—a welcome sign for the industry,” the report states.
A graph from Thom Dammrich's NMMA state of the industry presentation shows the growth of boat sales relative to overall consumer spending growth.
Additional signs that the industry is in the early stages of economic recovery include an increase in the total number of American boaters as well as an increase in spending on existing boats. Some 32 percent of U.S. adults went boating in 2010, the highest percentage recorded since 1999 and an increase of 14 percent compared with 2009. And those 75 million American adults who went boating in 2010 increased their spending-per-boat as well as their spending on aftermarket accessories.
“Increases in participation and spending on the aftermarket equal good news for the industry,” NMMA President Thom Dammrich says. “It tells us boating remains a recreational activity Americans aren’t willing to forgo in times of economic recession.”
Interestingly, NMMA also reports an attendance increase at 70 percent of the 15 boat shows it held during the winter months. Exhibitors reported better boat-show sales compared with 2009, too. While these reports have yet to translate into a positive sales curve for the boating industry, they do add further evidence to NMMA’s claim that the market is showing signs of recovering.
Some regions of the United States appear to be rebounding from the recession faster than others. The Great Lakes, in particular, showed strong sales growth for 2010 compared with 2009. According to NMMA, sales of new boats, engines, trailers, accessories, and services in 2010 increased in the following states:
- Pennsylvania, by 11.9 percent
- Michigan, by 10.6 percent
- Ohio, by 5.5 percent
- New York, by 5.3 percent
- Illinois, by 5.2 percent
- Indiana, by 0.5 percent
Not every state in the Great Lakes region showed an increase in sales—Minnesota and Wisconsin decreased by 5.5 percent and 2 percent, respectively—but the region remains the largest in America for boating overall, with two in 10 U.S. boaters living in the Great Lakes region.
The way I read the tea leaves based on this new data, occasional boaters are once again joining the die-hards out on the water, and all boaters have made a mental adjustment to the new economic normal. That folks are once again spending money on their existing boats means they are much more likely to start spending soon on new or newer boats. The brokerage market, which still has significant inventory, should benefit from that attitude change first, followed by an increase in new boat sales later.
How much later, of course, remains the multimillion-dollar question. We’ll all have to wait for next year’s NMMA data to try to determine how long it will be before the boating industry can declare an actual economic recovery.
Editor’s Note: Kim Kavin is an award-winning writer, editor and photographer who specializes in marine travel. She is the author of seven books including Dream Cruises: The Insider’s Guide to Private Yacht Vacations, and is editor of CharterWave and Boatermouth.
