2026 FORECAST
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Dealers anticipate the strongest performance in the service department, followed by used boat sales and then new boat sales. Consumer demand remains the top concern, with pricing pressures and compressed margins close behind. Broader economic uncertainty, including the impact of tariffs, ranked as the third-highest concern. Though cited as lower concerns, interest rates, inventory levels, floorplan costs and staffing challenges continue to factor into dealer planning.
“ Buyers remain reluctant and dealer inventories are still high, but there’ s reason for hope,” said Mark Overbye, CEO of Anthem Marine.“ Dealer orders for 2025 were slimmer and aged inventories are closing out, creating opportunities as inventories clear.
“ It’ s good to remember this is a seasonal and cyclical industry,” he added.“ We’ ve seen this before. Higher highs and lower lows are characteristic by comparison to other industries. Passion for boating and being on the water hasn’ t waned, product sales have. Times like this are a chance a check your enthusiasm for the industry.”
“ We’ re also seeing a lot of innovation happening across the industry, and that gives us confidence,” said Daniel Sherlock, director of Honda Marine Division.“ Companies are adapting, finding creative ways to navigate these challenges, and that innovation is what keeps our overall outlook positive. We’ re seeing a lot of resilience and forward-thinking out there, which gives us assurance that the momentum will continue.”
Industry challenges
Opportunities for growth always exist, but the reality is that the market has softened under the weight of mounting challenges. Consumers face high interest rates and financing costs, and dealers and OEMs are navigating affordability, inventory, labor and supply chain challenges, and shifting buyer demographics.
“ Our industry depends on both domestic production and globally sourced components, everything from aluminum and copper to engine parts, electronics and raw materials,” Hugelmeyer said.“ Overlapping tariffs under Section 232, particularly aluminum and steel, and IEEPA have increased manufacturing costs and complicated sourcing, putting pressure on pricing and long-term planning … Trade policy remains a top priority, particularly as the U. S.-Mexico-Canada agreement is revisited.”
Recent trade agreements have provided some relief, like exemptions for U. S.- manufactured recreational boats from retaliatory tariffs in the European Union. But ongoing disruptions continue to impact production costs and demand.
12 january 2026 www. boatingindustry. com