Boat sales took off during the pandemic, dealers could not keep up with demand

Boat sales rose last year during the coronavirus pandemic, as more Americans turned to lifestyles 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 at $ 47 billion, up 9% from the previous year, according to the National Association of Marine Manufacturers.

The trend, which shows few signs of slowing in 2021, shocked industry players, who were sure they were in hard times, as the pandemic shut down the economy. Now, representatives are struggling to maintain inventory, and manufacturers are expanding production capacity to meet demand. Waiting times for buyers have increased from a few weeks to a few months. Moreover, for the first time, buyers enter the market in greater numbers, a sign that growth has the power to maintain.

Eric Wold, an analyst at B. Riley, notes that uncertainty remains with the new Covid variants that appear even if the acceleration of vaccine launches, concerns that could keep consumers interested in boating in 2021.

“There is still not much certainty about when the economy will reopen with the launch of the vaccine, so the demand we saw last year will continue at least this year and this will continue to drive production for the producer for the a few years, “he said.

Owning a boat can be a costly endeavor. With personal boat prices averaging $ 13,000, boating is usually seen as a hobby for the rich. But according to Marine Association President Frank Hugelmeyer, 61% of seafarers have an annual household income of $ 75,000 or less.

Steve Arnold, a 57-year-old owner of two Maine marinas and a boat club franchisee, saw a massive jump in sales last year. He said overall sales increased, with average sales of new boats up 40%, used boat sales up 45%, rental boats up 65%, and Freedom Boat Club subscriptions up 28%. He said he had never seen such numbers in his 18 years.

And while sales are expected to fall between 5% and 10% this year, this will be well ahead of expectations.

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

As new navigators enter the market, a domino effect takes place, with their friends and families entering the business.

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

“You never run out of friends who want to go out on a boat. You become very popular and then family groups and friends start to expand to become families with the boat,” Hugelmeyer said.

In addition, Americans find that their work schedule at home allows them more flexibility to do activities when they want.

“We have these long-term results of Covid, including flexible working arrangements, which I believe will allow people to engage in more flexible walks that week,” said Brunswick CEO David Foulkes. Brunswick is the parent company of popular boat production brands such as Boston Whaler and Sea Ray.

Rick Davis, sales and finance manager at Palmetto Boat Sales, a South Carolina representative office, directly experienced the extent to which boat consumer demand increased during the pandemic.

“I thought I was done [last] the year, in terms of business and 30 days later, is actually the complete opposite. It was the best year of my 24-25 years, for sure, “Davis said.

Sales of new motor boats in the US increased by about 12% last year, to over 310,000 compared to 2019, the maritime association said. Among the categories of boats bought by consumers, freshwater fishing boats and pontoon boats were extremely popular, accounting for half of last year’s motor boat sales. Sales of new sailboats used for wakeboarding and wake surfing have increased by 20% to 13,000 units in 2020, the association reported.

The Freedom Boat Club, based on membership, which appeals to those who do not want to fully commit to buying a boat, has also seen an increase in consumer interest. Brunswick Corp. Division recorded a 61% increase in membership in May 2019 in 31 states, Canada and Europe.

The most profitable categories in Brunswick during the pandemic were largely its parts and accessories business, especially the Mercury Marine brand.

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

Many boat retailers are still fulfilling their arrears of orders entering this year. Social distancing measures are expected to remain in place in the near future in many areas across the country, so people continue to purchase boats as a way to enjoy the outdoors safely, especially in the warmer months.

Arnold said that before 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 to three of its production units to meet growing consumer demand. However, Foulkes said it would take at least two or three years before he could fully review his boat dealers.

“Dealers are looking for boats from us and we are increasing production as fast as we can, not just to meet retail demand, but all sorts of requests to fill the pipeline, which has become very depleted of land inventory,” Foulkes said.