Boat sales increased during the pandemic, dealers cannot keep up with demand

Boat sales skyrocketed last year during the coronavirus pandemic, as more Americans turned to lifestyle in the midst of more flexible work environments that allowed people to spend extra time enjoying the pandemic. ‘Open air.

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

The trend, which shows few signs of slowing in 2021, surprised industry agents who were confident they were in difficult times as the pandemic shut down the economy. Now, dealers are struggling to maintain inventory and manufacturers are expanding production capacity to meet demand. Buyer waiting times have gone from a few weeks to several months. In addition, first-time buyers are entering the market in greater numbers, a sign that growth has staying power.

Eric Wold, an analyst at B. Riley, notes that uncertainty remains when new variants of Covid appear, even as vaccine implementations accelerate, concerns that could keep consumers’ interest in browsing strong 2021.

“There is still not much security as to when the economy will reopen with the launch of the vaccine, so the demand we saw last year will at least continue this year, and this will continue to boost production. from the manufacturer for at least a couple of years, ”he said.

Owning a boat can be a costly endeavor. Priced at $ 13,000 for personal craft, sailing is generally considered a hobby reserved for the rich. But according to Marine Association President Frank Hugelmeyer, 61% of sailors have an annual household income of $ 75,000 or less.

Steve Arnold, owner of 57 Maine marinas and a 57-year-old boat club franchisee, experienced a massive jump in sales last year. He said overall sales soared, with average new boat sales 40%, used boat sales 45%, boat rentals 65% and Freedom Boat Club members 28% . He said he has never seen such numbers during his 18 years in the business.

And while it expects sales to drop from 5% to 10% this year, that will still be well ahead of expectations.

He said the effects of the pandemic have left a positive impact on the boating industry that will last for years to come. “I think Covid changed society to improve in terms of looking at his family and their relationships at his discretion,” he said.

As new sailors enter the market, a domino effect is occurring, where their friends and family also participate in the activity.

Last year, the number of first-time boat buyers increased for the first time in more than 10 years, 10% more than in 2019. Among these new boat buyers, the average age has also decreased by first time in 20 years, according to the Marine Association. The entry of these new young buyers is a bright signal for the future of the industry, Hugelmeyer said.

“There is never a shortage of friends who want to go out on a boat. It becomes very popular and then family and friend groups start to expand to become families with boats,” Hugelmeyer said.

In addition, Americans find that their work schedule from home allows more flexibility to do activities whenever they want.

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

Rick Davis, sales and finance manager for Palmetto Boat Sales, a dealership in South Carolina, experienced first-hand the spread of high consumer boat demand during the pandemic.

“We thought we were done [last] year, in terms of business and 30 days later, it’s really just the opposite. It was definitely the best year of my 24-25 years, ”Davis said.

Sales of new boats in the United States increased by about 12% last year, to over 310,000 compared to 2019, the marine association said. Among the categories of consumer-bought boats, freshwater fishing boats and pontoons were extremely popular, accounting for half of last year’s motor boat sales. Sales of new alarm boats, used for wakeboarding and wake surfing, increased 20% to 13,000 units by 2020, according to the association.

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

Brunswick’s most profitable categories during the pandemic were mainly its parts and accessories companies, mostly the Mercury Marine brand.

“As more and more people enter the sailing style and use boats, the general use of boats generates the need for more parts and accessories,” said Craig Kennison, Baird’s senior analyst.

Many boat traders still are fulfilling its accumulation of orders that are presented this year. Social welfare measures are expected to be maintained in the near future in many areas across the country, so people continue to buy boats as a way to enjoy the outdoors safely, especially in the wettest months. temperate.

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

Brunswick announced last year that it was expanding its boat production capacity at three of its manufacturing facilities to meet rising consumer demand. Still, Foulkes said it will be at least two or three years before he can completely replace his boat dealers.

“Distributors are looking for boats for us and we are increasing production as quickly as we can, not just to meet retail demand, but all sorts of demand to fill the pipeline, which ran out a lot of field inventory,” Foulkes said.