2023 FORECAST
Trending upwards
“ I think all areas are going to see weakness . I don ’ t think any area is going to be particularly strong ,” comments Dubay . While the economist is somewhat pessimistic about the odds for growth during 2023 , dealers remain hopeful .
“ The 2023 forecast was really cloudy in December . But today , happy to report , there ’ s a little bit more sentiment – I would say it ’ s more positive ,” says Wooden , of River Valley Marine . “ Marine activity has increased ; consumer lead activity has increased , and obviously the boat show season provides a huge opportunity . There ’ s lots of hope and optimism this month . As we look forward with our brands in 2023 , I think there ’ s a better opportunity with respect to production . Yes , demand was unprecedented these past few years , but production and availability of inventory from manufacturers has been extremely strained because of supply chain issues . Those are , for the most part , finally behind us , so I think that there is a fair amount of optimism that we will have a lot of boats to sell , counteracting the economic headwinds that are a current concern .”
Dealers have been braced against these headwinds for upwards of three years now . The dealerships who have been recognized as a Top 100 dealer , and those who claim a spot in the coveted top 20 , are constantly evolving to be able to navigate the challenges thrown their way . They all approach the industry in a unique manner tailored to their market , but others can take valuable lessons from observing the practices of these dealers .
Innovation is the name of the game , and Nautical Ventures isn ’ t afraid to jump into the arena . “ We ’ ve added several new additions to the company ,” says Moore . “ With the addition of these lines , we ’ re looking for an overall 10 to 12 % increase in sales for 2023 . We ’ ve added Fairline Yachts , and we ’ ve also branched out and opened an entirely new division of sailboats .” Nautical Ventures foray into the world of sailing includes brands such as Tiwal , Hobie , Beneteau First Sailboats , and Oceanis .
“ I think we ’ re getting a very strong foothold in the sailing community . People said it wouldn ’ t work but I ’ ve seen the opposite . There ’ s a very high level of interest and engagement .” Moore wouldn ’ t have found success for his dealership if he wasn ’ t prepared to take risks . “ I ’ ve been known to go against the tide ,” he comments . “ We ’ ve decided to go against the tide , and I think it ’ s the right thing to do . People in the sailing community are enthusiastic about it , and I see really great market potential in the area .”
Along with sailboats , the dealer is embracing electric . “ We ’ ve been dabbling for four years in electric boats . Frankly , we were too early , but we see now , thanks to what happened in the automotive industry , everyone is joining the bandwagon in the marine sector . We ’ ve been able to secure exclusive distribution for X Shore , an electric boat company out of Sweden . We ’ re quite excited about that .” Electric promises to be area of opportunity for the industry as more and more companies try their hand at manufacturing fully electric outboards .
Future-proofing the industry
Meanwhile , trade organizations such as NMMA remain focused on the industry at large . Two initiaves guide the NMMA ’ s current objectives : advancing proactive advocacy efforts and expanding the boat market . “ It ’ s imperative that we remain united as an industry to ensure recreational boating is protected against harmful policies and regulations , while helping to position the industry for future advancements in john Wooden Owner , river valley areas including sustainability and next generation marine propulsion technology ,” comments Hugelmeyer .
“ Businesses can ensure a successful future by retaining the more than 1 million new boat owners that have entered the market in the past two and a half years . Research shows that the boating industry went into and came out of the pandemic with a 16 % diversity share . This is unacceptable when the U . S . consumer has a 40 % diverse makeup that is expanding . We are all leaving market share on the table . ‘ Future-proofing ’ a dealership in this area means attracting and retaining diverse management and sales talent that can relate to , sell to and market to the changing U . S . population .”
The NMMA conducts research through their initiative , Discover Boating . This research shows that the core of consumers in the marine industry is slowly changing . “ However , their mindset and interests in many ways , remains similar ,” says Hugelmeyer .
NMMA splits consumers into three segments : Traditional Boaters , Growth Segment and Emerging Segment .
“ The Traditional Boaters are who their name suggests – they most closely resemble the current boat owner ,” Hugelmeyer explains . “ The Growth and Emerging segments are opportunities to expand the market for recreational boating , representing 91 million people and more than 1.5x the Traditional Boater segment size .
“ Traditional Boaters are older and more suburban / ex-urban than other groups . The Growth Segment pursues boating-adjacent activities at high rates , including powersports , biking and hiking and is younger . In fact , they are younger than current first-time boat buyers . And , they are more ethnically and racially diverse and more likely to live in denser areas . The final segment , the Emerging segment , is a large , dynamic , and affluent segment of the potential future boat owner population . In their daily lives , while they are not pursuing the outdoor activities predictive of future boating , they are doing those activities on vacation with a potential “ pull ” via rental activity . They are the most diverse , most affluent segment .”
Because of this increase in diversity , the NMMA encourages the rest of the industry to be proactive about inclusivity . Hugelmeyer asserts that “ We need to embrace a commitment to diversity in several areas ― diversity in products , experiences , customers and workforce ― to meet the expectations and needs of a changing consumer and world . We also need to drive towards a more sustainable future .”
www . boatingindustry . com february 2023
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