2023 FORECAST
The recreational boating industry is an economic driver supporting more than 812,000 American jobs and more than 36,000 American businesses . ( Source : NMMA Economic Impact Study )
Recreational boating is a uniquely American-made industry : 95 % of boats sold in the U . S . are made in America . An estimated 85 million Americans go boating each year . Recreational boating isn ’ t just for the one percent : 61 % of boaters have an annual household income of $ 100,000 or less . 95 % of boats on the water in the U . S . are less than 26 feet ― boats that can be trailered by a vehicle to local waterways . Leading the nation in sales of new powerboat , engine , trailer and accessories in 2023 were the following states : Florida : $ 6.4 billion , up 3.1 % from 2022 Texas : $ 2.4 billion , down 1.4 % from 2022 Michigan : $ 1.6 billion , down 2.9 % from 2022 North Carolina : $ 1.38 billion , up 1.1 % from 2022 Minnesota : $ 1.2 billion , down 3.5 % from 2022 New York : $ 1.19 billion , down 1.7 % from 2022 Wisconsin : $ 1 billion , down 1.8 % from 2022 Georgia : $ 1 billion , up 1.2 % from 2022 California : $ 1 billion , down 3.9 % from 2022 Alabama : $ 991 million , up 2.8 % from 2022
Focusing on dealers specifically , as 2024 wraps , boat dealers are facing a more challenging landscape compared to prior years , with revenue growth significantly lower than in 2022 . As part of Boating Industry ’ s annual Market Data Book , we surveyed dealers about the year that was and sentiments about the year ahead . Within the survey respondents , only 5 % of dealers expect revenue to increase by more than 10 % this year , compared to 7 % in 2023 and 40 % in 2022 . Dealers anticipating revenue declines are more prevalent , with 26 % expecting decreases of less than 10 %, and 28 % forecasting drops exceeding 10 %.
Dealer optimism has also dampened for 2024 . In 2023 , 10 % of dealers expected revenue growth over 10 %, while only 5 % feel the same this year . Caution and pessimism dominate the outlook , as 54 % of dealers foresee revenue declines , a reflection of tightening profit margins , economic uncertainty , and weaker consumer demand .
Despite these struggles , dealers remain focused on improving service and after-sales departments , as customer demand for maintenance and repair continues to grow . This remains an essential revenue stream in a year when new and used boat sales face softening headwinds .
Major pillars for the year ahead ( and beyond ) Boat Shows Despite rising costs , dealers and manufacturers alike continue to see the importance of boat shows and the role they play in getting boats in front of new and returning consumers as the 2024-2025 winter boat show season continues on .
“ I ’ m a big believer that the future of boat shows is becoming more and more experiential ,” Hugelmeyer said . “ And that ’ s where you ’ re seeing us drive the Discover Boating shows .”
The NMMA has long said it continues to believe in the long-term value of boat shows and its stance that boat shows in large , populated boating markets are most viable and will remain a critical part of the boating industry to facilitate boat sales and engage core audiences .
In an effort to reinforce this belief , NMMA most recently announced its acquisition of the Mid-Atlantic Boat Show in Charlotte , N . C . from Southeast Productions , Inc ., to strategically broaden the industry-owned Discover Boating boat show portfolio . The Mid-Atlantic Boat Show , now in its 52nd year , is the largest boat show in the Carolinas .
“ The Mid-Atlantic Boat Show is the dominant boating event in the region and presents enormous opportunities to engage target audiences , foster sales and complement our regional advocacy efforts ,” Hugelmeyer said at the time of the acquisition . “ A show of this caliber , in one of the top boating markets in the country , is capable of attracting a diverse and wide-ranging group of potential boat buyers . With Discover Boating ’ s marketing resources at the helm , we are excited to partner with the recreational marine industry in the Carolinas to break new ground for our industry and exhibitors .”
With the recent acquisition , NMMA owns and produces 10 consumer boat shows annually in major markets throughout the U . S .
Sustainability Sustainability has been an increasing key focal point across the recreational marine industry . From associations to manufacturers and all in between , insiders are consistently looking for ways to make boating and the industry that provides it more sustainable .
During this year ’ s METSTRADE , NMMA and the International Council of Marine Industry Associations ( ICOMIA ) shared the next phases of the Propelling our Future campaign in a keynote presentation from ICOMIA President Darren Vaux and NMMA President and CEO Frank Hugelmeyer . The duo presented on METSTRADE ’ s main stage to discuss the effects of the industry decarbonization research launch , the global reach of the message , and the scope for future partnerships and developments .
The recreational boating industry decarbonization message has gained worldwide traction through ICOMIA ’ s network of Member Industry Associations ( MIAs ), with presentations , roundtable discussions and international boat show events focusing on this key topic .
Announced in 2024 was new supporting data that focuses on the so called ‘ tipping point analysis .’ One of the key input factors when performing this analysis is the average annual usage hours of each boat type . The original Pathways to Propulsion Decarbonisation report performed this analysis using real world data who were able to supply exact average hours based on diagnostic and service records .
However , there is no such thing as an average boater and a common question received was “ what about me with my 300 hours per year ” and it is from this question that the Propelling our Future team have developed more analysis showing the range of utilization scenarios and the impact this makes .
This tipping point analysis demonstrates the relationship between ‘ hours of utilization ’ per year and when , as a result , the benefits of a particular propulsion technology can outweigh the other options available . Understanding this tipping point and the likely use case for the boat in question is therefore a vital consideration for manufacturers and consumers alike .
20 december 2024 / january 2025 www . boatingindustry . com