So, who’s buying boats these days?
The answer depends on the type of boat, the length of the boat, the location, and the particular responder. The question evokes different answers, and this is the tale of two boat-buying segments.
It’s
the best of times for those people purchasing boats
To understand how the eroding middle class affects boating, GLB
smaller than 25 feet. Sales of these boats have increased
took a look at the sale of new boats between 25 feet to 40 feet
significantly in the last two years, and exhibitors and sponsors at
between 2006, which was pre-recession, and 2013, the most recent
this year’s boat shows report an upbeat enthusiasm among these
year for which figures are available. The key here is to realize that
consumers. They see a real revival in boating.
economic uncertainty keeps people from buying boats, and this
The other tale is put forth by business analysts who believe the
certainly shows up in reviewing these sales numbers.
current uptick is blown out of proportion. These individuals believe
The accompanying chart provided by the National Marine
the lingering effects of the recession of 2008-2009 are still with us,
Manufacturers Association, and prepared by Statistical Surveys Inc.,
and are the most dominant factor affecting today’s boat buyers.
shows a tremendous drop in the sales of new boats between 25-feet
A common thread between both boat-buying segments is that the boating industry is slowly but surely coming out of the recession. What’s debatable is the idea that this is a full recovery. In fact, most industry analysts agree that the industry will never return to the days
to 40-feet in 2008-2010. While there was a slight increase in 2011 and more robust sales increases in 2012 and 2013, they are from a very low figure. Overall, sales of new 25-foot to 40-foot boats in 2013 were less than half (48 percent) of what they were in 2006.
of 5 percent annual growth. As Ned Dikmen, the publisher of this
While sales of new boats have dropped precipitously between
magazine, noted, “Those days are long gone.”
2006 and 2013, used boat sales have continued to grow. Today, it is
A closer look
estimated that 75 percent or more of all boat sales are used boats.
Perhaps the one segment of the population that suffered the most from the financial recession of 2008-2009 was the middle and upper middle class. These individuals saw the value of their IRAs and 401Ks lose anywhere from 30 percent to 50 percent. As a result, instead of thriving and wondering when and how they’re going to spend their discretionary funds, this group’s focus has turned to surviving. 32 GLB | May/June 14
Sales of All Boats 25’ – 40’ Great Lakes States
100 80 60 40 20 0
2006
2007
2008
2009
2010
2011
2012
2013 source: Statistical Surveys, Inc