Boat Dealers

Industry Snapshot

According to the National Marine Manufacturers Association's (NMMA) 2008 Recreational Boating 2008 Statistical Abstract, the boating industry generated $33.6 billion in revenues (sales and service) in 2008, representing a 10 percent decrease from 2007. The boating industry suffered from a recessive economy that resulted in declines in consumer spending, especially for luxury items and nonessentials. The number of new boats sold declined by 16 percent during 2008, to 704,820 units. Sales of new boats and engines generated $11.2 billion, down 22 percent from the previous year. Sales were down across the board, including inboard and outboard power boats, jet boats, stern-drive boats, sailboats, kayaks, and canoes. Net profits fell dramatically. According to NMMA's key performance indicators, net profits through October 2008 were down by nearly 59 percent compared with net profits through October 2007. Added to a depressed economy were record-high fuel prices, leading to an increase of consumer "boat share," in which multiple owners share the use of a single boat and slip.

The boating industry is seasonal, with 75 percent of revenues from new boat sales coming during the first two quarters of the year. May, June, and July are the peak of the boating season. Florida led all states in boating revenues; other top-producing states included Texas, California, New York, and North Carolina. The top 20 states generated some 70 percent of all sales. Even though sales of new boats were down in 2008 and the number of boats in use declined slightly (from 16.94 million in 2007 to 16.94 million in 2008), the number of people who participated in boating recreation increased to 70.1 million people, up from 66.4 million in 2007. Nearly 95 percent of all boats registered in the United States are 26 feet or less in length, suggesting that most boaters own entry-level, trailer-able boats.

Boat dealers in the United States are, for the most part, independent retailers. Although a retailer may choose to feature a particular manufacturer's boat, dealerships are not controlled or owned by that manufacturer. MarineMax, a publicly held company founded in 1998, is the nation's largest dealer, with 75 stores in 20 states and $885 million in revenue in 2008. About 50 percent of revenues are generated by new boat sales; the remainder is from used boats, engines, service, and other business sectors within the company. West Marine, located in Watsonville, California, was the nation's top boating supply retailer, reporting sales of $631 million in 2008. Ritz Camera Centers, located in Beltsville, Maryland, owns the subsidiary Boaters' World Marine Center, which was a leading supplier of boats and boating accessories. However, due to declining sales in its camera business sectors as well as declining boat sales, Ritz Camera Centers filed for Chapter 11 bankruptcy in February 2009.

The value of imported boats fell by 14 percent in 2008 to $2.2 billion, and boat exports grew 12 percent to $2.5 billion. Including import/export of boat engines, the industry experienced a trade surplus of $865million, making it the second year that boat exports had out-gained boat imports.