MARKET FOCUS : AUDIO & ENTERTAINMENT

BY JAMIE STAFFORD

People may get caught up in boat specifications like speed and horsepower , but at its core , the recreational boating industry is a lifestyle industry . This encompasses much more than the “ bare bones ” of a vessel . A customer comes into a dealership looking for something that will facilitate the life they want to live – fully decked out and all . This is where marine electronics shine . This niche of the industry caters to things like lighting , sound systems , accessories and more .

Boating Industry spoke with a few representatives of the marine electronics sphere to get a pulse on where the market is at and where it may be going .

For Kicker Marine Audio , business was booming in 2022 . “ While some problematic categories remain , supply chain limitations have eased ,” says Jeremy Bale , brand manager . “ This has allowed us to increase inventory levels on most products and better prepare for dealer and consumer demand in 2023 . We ’ ve expanded our dealer network and actively engage around conversations for new OE partners with a cautious footing to ensure we hedge against any avoidable product availability concerns .”

“ Inflation has impacted every industry ,” adds Phil White , director of Marine Audio at Kicker . “ We ’ re working with vendors to control input costs and make every effort to maintain the stability of our pricing . Approaching the end of 2022 , there was evidence of some inflationary easing among consumer staples which could provide a stabilizing effect for discretionary spending . Knowing the boating consumer considers their audio system a ‘ need ,’ we expect continued demand for all our components as boat owners look to improve their experience on the water .”

Clearly , customer demand has kept the market strong . Brett Dibkey , president of Navico Group , commends the industry ' s adaptability . “ Despite the macro-economic challenges , we are all facing , our business and industry has shown remarkable resilience . As we emerged from depths of the pandemic , the consumer outlook was very positive , but inflation and persistent supply challenges certainly served as formidable headwinds . Despite this , I am proud of the resilience that our organization has shown . Our supply chain and operations teams have been working tirelessly for the better part of two years to meet the needs of our customers and keep costs in check .” These supply-chain issues have been at the forefront of the industry ’ s mind . Even as certain supply lines replenish , a lot of electronics businesses face ongoing challenges when it comes to acquiring component parts .

“ Working with our supply

Infinity Kappa 8 " three-way convertible marine speakers from ProSpec Electronics . partners around the world has become a 24 / 7 operation ,” Dibkey says . “ Supply of certain components has obviously been a challenge for the entire world . This has been a notable advantage of being part of Brunswick , as we ’ ve often been able to leverage our collective scale to secure supply when perhaps others couldn ’ t . From a manufacturing perspective , the last couple years have forced a very strategic and thoughtful approach with regard to our “ make vs . buy ” decisions . We do more in-house manufacturing today than we did a couple years ago . We ’ ve also become really focused on selecting the right strategic supply partners who can scale with us and respond flexibly to changing market conditions .”

Of course , not everyone has the scale and resources available to large companies like Brunswick and Navico Group . This is where proactive planning pays off for smaller businesses . “ Kicker had planned for aggressive growth and increased our inventory on hand , pre-pandemic ,” says Bale . “ We certainly didn ’ t expect the extreme demand brought on by the boating market ' s staggering growth , but with high inventory levels , we kept our dealers stocked with most items . Still , with the rapid deployment of inventories , we worked to expedite our vendor shipments and replenish available inventory ― even using air transport when shipping via water was so backed up . It was expensive , and we sacrificed profits but delivered for our clients .”

On the other hand , those replenished supply lines can pose their own problems . “ It ' s quite the irony going from famine in the COVID years to being overstuffed ,” says Josh Berry , VP of sales and marketing at ProSpec Electronics . “ Still , as an audio supplier / manufacturer , I ’ d like to think the worst is behind us . We regrouped quickly as the 20 other audio suppliers that were nipping at our heels kept us at our peak engineering performance . We have a strong team here and steady factory relationships which greatly helped .”

Navigating these issues will continue into 2023 and perhaps even 2024 as another recession looms ( see our 2023 Industry Forecast for more on dealer and consumer sentiment ), but that doesn ’ t mean the marine electronics sphere has stopped pushing forward . There ’ s a lot to expect from companies in the coming year , and a lot more to be excited about .

In terms of OEM partnerships , ProSpec Electronics continues to deliver . “ We are well positioned with our branding power due to the appeal of the Harman brands , JBL and Infinity ,” says Berry . “ We ’ ve recently partnered with Harman in launching the illustrious Harman Kardon ( HK ) brand to boat OEM ’ s . HK will not be available to the aftermarket so that further increases that brand ’ s equity at the OEM level . All of the 3 mentioned brands are incorporated at the automotive OEM level , something that few of our competitors can say .”

OEM partnerships are an increasing focus , especially in regard to implementing new technologies . “ The role of technology has become more central and plays an increasingly important role in the boater experience ,” says Dibkey . “ At Navico Group , we are laser focused on delivering seamless integration among our many diverse products and brands to deliver a better overall boater experience on the water ― and , importantly , to improve the vessel integration experience for boat builders . We see a future where the digital control and monitoring experience , at the helm via the MFD and off the helm via mobile apps , is much more brand centric . Also , and importantly , these digital experiences should make operating the vessel easier , more intuitive , and more enjoyable ."

www . boatingindustry . com february 2023

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