Boat sales skyrocketed during the pandemic, dealers are unable to keep up with demand

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

Sales of boats, products and maritime services across the country jumped to a 13-year high in 2020, to $ 47 billion, an increase of 9% over the previous year, according to the National Marine Manufacturers Association.

The trend, which shows little sign of slowing in 2021, shocked industry participants, who were certain they would face tough times as the pandemic paralyzed the economy. Now, utilities are struggling to maintain inventory and manufacturers are expanding production capacity to meet demand. Buyers’ waiting time has 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 with new Covid variants emerging, even as vaccines are accelerating, concerns that may keep consumers interested in sailing strong in 2021.

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

Owning a boat can be an expensive undertaking. With personal watercraft prices around $ 13,000, canoeing is generally seen as a hobby reserved for the wealthy. But, according to the president of the marine association, Frank Hugelmeyer, 61% of sailors have an annual family income of $ 75,000 or less.

Steve Arnold, a 57-year-old owner of two Maine marinas and a yacht club franchisee, saw a huge jump in sales last year. He said sales soared, with average new boat sales increasing 40%, used boat sales increasing 45%, rental boats increasing 65% and Freedom Boat Club memberships increased 28%. He said he never saw this type of number during his 18 years in the business.

And although he expects sales to drop 5% to 10% this year, it 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 many years. “I think Covid has changed society for the better in terms of looking after his family and relationships in his spare time,” he said.

As new sailors enter the market, a domino effect is occurring, with their friends and family entering the activity as well.

Last year, the number of boat buyers for the first time increased for the first time in more than 10 years, an increase of 10% compared to 2019. Among these new boat buyers, the average age also decreased for the first time in 20 years. years, according to the marine association. The entry of these new young buyers is a bright sign for the future of the industry, said Hugelmeyer.

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

In addition, Americans are finding that their work hours at home allow more flexibility to perform activities when they wish.

“We have these long-term results from Covid, including flexible working arrangements that, I believe, will allow people to engage with navigation more flexibly during that week,” said David Foulkes, CEO of Brunswick. Brunswick is the parent company of popular boat-making brands like Boston Whaler and Sea Ray.

Rick Davis, sales and finance manager at Palmetto Boat Sales, a South Carolina dealership, experienced firsthand the extent of increased consumer demand for boats during the pandemic.

“We thought we were lost [last] year, when it comes to business, and 30 days later, it’s just the opposite. It was the best year in my 24-25 years, for sure, “said Davis.

Sales of new speedboats in the U.S. increased by about 12% last year, to more than 310,000, compared to 2019, the maritime association said. Among the categories of boats that consumers purchased, freshwater fishing boats and pontoons were extremely popular, accounting for half of last year ‘s motor boat sales. Sales of new wakeboards, used for wakeboards and wakeboards, increased by 20% to 13,000 units in 2020, the association said.

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

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

“As more and more people enter the nautical lifestyle and use the boats, general use of the boat increases the need for more parts and accessories,” said Baird senior analyst Craig Kennison.

Many boat retailers are still fulfilling its order book entering this year. Social detachment measures are expected to continue in the near future in many areas of the country, so people are still buying 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 the boat.

Brunswick announced last year that it has expanded its boat production capacity at three of its factories to meet rising consumer demand. Still, Foulkes said it will take at least two or three years before he can fully replenish his boat dealers.

“Resellers are looking for our boats and we are increasing production as fast as we can, not just to meet retail demand, but all kinds of demand to fill the pipeline, which has been very depleted in field stock,” said Foulkes .