2026 FORECAST
“ This uncertainty makes it difficult for manufacturers, especially small- and mid-sized businesses, to forecast costs, invest confidently and meet growing consumer demand,” Hugelmeyer added.“ In the long term, companies are strengthening North American partnerships and exploring ways to improve resilience, but they need predictable and balanced trade policy to maintain global competitiveness, protect U. S. jobs and continue driving innovation across the recreational boating industry.”
Beyond trade and production challenges, the industry faces another fundamental issue – its customer base. The bulk of consumer spending stems from one demographic, and the market needs to be broadened. Boating needs to be accessible and attractive to younger people and more diverse audiences.
“ I think it’ s a multiyear, multidecade challenge in front of us,” said Keith Yunger, president of Sea Ray Boats and the 2025 Boating Industry Mover and Shaker of the Year.“ But if we don’ t start chipping away at it, we’ re going to wake up a decade from now and ask what happened, [ instead of ] recognizing new people coming in and learning how to retain them.”
Although the market for higher end boats is more resilient than other segments today, investing in lower-end, affordable products is important for the long-term health of the industry.
“ We’ ve got to find more innovative ways to build or keep pricing down so more people can get involved and on the water,” said Jamie Dewar, co-CEO of Legend Boats and a 2025 Boating Industry Mover and Shaker of the Year Finalist.“ It’ s easy to keep adding and making things bigger and better, but things just escalate and become less affordable. I think there’ s an opportunity to get creative, whether it’ s with manufacturing techniques, materials or products.”
In 2025, Legend Boats introduced the Pulse, a small, affordable roto-molded utility boat with electric options aimed at helping younger buyers get on the water.
So as dealers see tighter margins and longer sales cycles, manufacturers can help offset these challenges by delivering a balance of innovation and affordability.
Overbye added to this perspective.“ Baby boomers are the wealthiest and most passionate boaters. But they’ re aging out and they’ re less flexible, so their practical needs are different,” he said.“ Tapping that market by aligning every
Boat manufacturers are expanding the use of digital displays and integrated technology to make boating easier.
dimension of a go to market strategy to keep them happy, as well as their offspring, is a solid move.”
Overbye suggested that recreational boating is transitioning from a sport to a luxury activity, as seen in other industries, and manufacturers and dealers must stay innovative.“ Boat prices are extraordinary, on average well past what an average family can afford,” he said.“ A former key $ 399 monthly price has been replaced by $ 150,000 pontoons and $ 300,000 surf boats with payments often three times higher than before. Accordingly, the industry is entertaining a higher net worth buyer profile whose expectations are more demanding.”
He said the strongest dealers are transforming their business to attract the high-net-worth buyers that can afford new boats today.
“ The smart ones recognize that change is imminent, that yesterday’ s pricing models and buyers are being replaced,” he said.“ And becoming competitive requires doing more. Becoming savvy with social media, honing sales strategies and overhauling operational tactics are no longer checkboxes on a wish list but must do items for reaching desired metrics.”
Regulations and policies
Sherlock noted that environmental regulations are evolving quickly, impacting how companies design, build and sell products. NMMA monitors regulations on the federal and state levels, like proposed PFAS bans, emission rules and workplace safety regulations. Hugelmeyer added that increasing regulatory complexity at the state level is stunting industry growth.
The Trump administration, meanwhile, has promoted a business-friendly, anti-regulation sentiment that could ease the regulatory environment at the federal level.
“ On the infrastructure front, we are looking at the Water Resources Development Act to continue investments in recreational marine infrastructure, while the reauthorization of the Sport Fish Restoration and Boating Trust Fund, set to expire in 2026, is essential. It provides over $ 700 million annually for boating infrastructure, conservation and safety programs. NMMA is working with bipartisan congressional champions to ensure this critical user-pay / user-benefit program continues to support access and participation for future generations.”
He readdressed that expanding participation is the greatest opportunity for the industry at this time. Introducing new people to the lifestyle or re-engaging former boaters at every touch point is crucial.
“ On the policy front, the passage of the Explore Act, the first-ever stand-alone recreation bill, set an important precedent,” he said.“ It opens the door for additional legislation focused on access, recreation infrastructure and conservation, all of which directly support the boating economy. Combined with coordinated industry marketing and advocacy, these opportunities can drive lasting growth.”
www. boatingindustry. com january 2026
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