Boat sales boomed during the pandemic, dealers can’t keep up with demand

Boat sales skyrocketed last year during the coronavirus pandemic as more Americans turned to the lifestyle amid more flexible work environments that allowed people to spend extra time enjoying the outdoors.

Sales of boats, marine products and services across the country rose to a 13-year high in 2020 to $ 47 billion, up 9% from the previous year, according to the National Marine Manufacturers Association.

The trend, showing little sign of slowing down in 2021, shocked industry players who were confident they were going through tough times when the pandemic brought the economy to a standstill. Now dealers are struggling to keep stock levels and manufacturers are expanding their production capacity to meet demand. Waiting times for buyers have accelerated from a few weeks to a few months. In addition, new buyers are entering the market in greater numbers, a sign that growth is continuing.

Eric Wold, an analyst at B. Riley, notes there is still uncertainty with new Covid variants emerging, even as vaccine rollout accelerates, concerns that could keep consumer interest in boating strong in 2021.

“There is still not much certainty as to when the economy will reopen with the rollout of vaccines, so the demand we saw last year will at least continue this year, and that will continue to boost production for the manufacturer. few years, ”he said.

Owning a boat can be a pricey endeavor. With an average price of $ 13,000 for watercraft, boating is usually viewed as a hobby reserved for the wealthy. But according to maritime association chairman Frank Hugelmeyer, 61% of boaters have an annual family income of $ 75,000 or less.

Steve Arnold, a 57-year-old owner of two marinas in Maine and a boat club franchisee, had a huge sales jump last year. He said sales have skyrocketed across the board, with average new boat sales at 40%, used boat sales at 45%, boat rentals at 65%, and Freedom Boat Club memberships at 28%. He said he has never seen numbers like that during his 18 years in the company.

And while he expects sales to fall 5% to 10% this year, that will still be well above expectations.

He said the effects of the pandemic had a positive impact on the boating industry that will last for years to come. “I think Covid has changed society for the better in terms of looking at your family and your relationships in your spare time,” he said.

As new boaters enter the market, a domino effect takes place, with their friends and families participating in the activity as well.

Last year, the number of starters in more than 10 years rose for the first time in more than 10 years, an increase of 10% from 2019. Among these new boat buyers, the average age has also fallen for the first time in 20 years, according to the maritime association. The arrival of these new young buyers is a bright sign for the future of the industry, Hugelmeyer said.

“You are never short of friends who want to go with a boat. You become very popular and then family and friends groups start to expand into boat families,” said Hugelmeyer.

Additionally, Americans find that their work-from-home schedule provides more flexibility to do activities when they want to.

“We have these longer-term results from Covid, including flexible work arrangements that I believe will allow people to sail more flexibly during that week,” said David Foulkes, Brunswick CEO. Brunswick is the parent company of popular boat building brands such as Boston Whaler and Sea Ray.

Rick Davis, sales and finance manager at Palmetto Boat Sales, a dealer in South Carolina, has experienced firsthand how much consumer demand for boats has grown during the pandemic.

“We thought we were done [last] years, as far as business is concerned and 30 days later, it’s actually the opposite. It was certainly the best year in my 24-25 years, ”said Davis.

Sales of new motorboats in the US are up about 12% last year to more than 310,000 compared to 2019, the Maritime Association said. Among the categories of boats that consumers bought, freshwater fishing boats and pontoon boats were hugely popular, accounting for half of last year’s motorboat sales. Sales of new wakeboards, which are used for wakeboarding and wake surfing, were up 20% in 2020 to 13,000 units, the association reported.

The membership-based Freedom Boat Club, appealing to those who don’t want to fully commit to buying a boat, has also seen a surge in consumer interest. The Brunswick Corp. division saw membership increase 61% in 31 states, Canada and Europe since May 2019.

Brunswick’s most profitable categories during the pandemic were largely the parts and accessories businesses, particularly the Mercury Marine brand.

“As more and more people get into the boat’s lifestyle and use boats, the overall use of the boat means that more parts and accessories are needed,” said Craig Kennison, senior analyst at Baird.

Many boat sellers are still there fulfilling their order book starting this year. Social distance measures are expected to remain in effect in many areas of the country, so people still buy boats to enjoy the outdoors safely, especially in the more temperate months.

Arnold said that prior to the pandemic, the average waiting time to get a boat was four to six weeks. Now he says it can take up to eight months for customers to receive their boat.

Brunswick announced last year that it has expanded its boat production capacity at three of its manufacturing facilities to meet increased consumer demand. Still, Foulkes said it will be at least another two or three years before it can fully replenish its boat dealers.

“Dealers are looking for boats from us and we are ramping up production as soon as possible, not only to meet retail demand but also to fill the pipeline, which has become very depleted,” said Foulkes.