US Demand for Boating to Rebound
According to marketing research firm Freedonia Group, the recreational boating industry should start seeing an uptick soon. Demand for boats, propulsion systems and accessories is expected to rebound from 2009 levels at 9.3% annually to $10.1 billion...
According to marketing research firm Freedonia Group, the recreational boating industry should start seeing an uptick soon. Demand for boats, propulsion systems and accessories is expected to rebound from 2009 levels at 9.3% annually to $10.1 billion in 2014. The demand for boats only should increase 10.2% annually to $6.5 billion by the same year.
That sounds like really good news except that “even with the rapid sales growth, the market is not expected to recover to the pre-downturn levels until the end of the decade” – ooops that’s the bad news. It seems that the 08/09 recession sparked the worst marine industry contraction in 50 years. Not only did consumers not have the necessary disposable income but they couldn’t get loans to purchase new boats. Credit has been tight for boatbuilders as well who haven’t been able to fund raw materials and parts costs.
When it does come, growth is expected to be attributed to the 55-64 age demographic which will represent purchases made just prior to retirement. Women and minorities might also contribute to growth if the industry does its marketing right. Powerboats will lead the expansion as they are perceived to be easier to manage, especially for mature boaters.
What really puts this in perspective is that from a high of $13,284 million dollars spent on boats/propulsion systems/accessories in 2004, the total is expected to still be about 30% less in 2014. Better than last year? Yes. But even with the anticipated growth, a decade after its peak, this industry is likely to be two thirds of its former self.
Ouch.
