Boating Industry is Booming
You may not be surprised to know that boat sales increased last year during the pandemic as a great number of Americans chose to embrace boating due to a more flexible working environment. This helped people to entertain themselves and enjoy the outdoors during pressing times. Sales of marine products, boats, and services surged to $47 billion in 2020, the highest in 13-years. According to the National Marine Manufacturers Association, this is a 19% increase from the last year.
The current situation across the country has given few signs of a drop in sales in 2021. However, the market shocked boat manufacturers who were thinking they will also get affected because of the lockdown. Now, dealers and manufacturers are struggling to fulfill the demand. Buyers have to wait for months instead of days. In addition, there is a huge number of first-time buyers who are showing interest in boating.
As there is uncertainty about the Coronavirus, experts are expecting that the demand may increase or at least remain the same as the last year. Owning a boat is an expensive hobby, as the average price of a personal boat is $13,000. However, according to the President of the Marine Association, Frank Hugelmeyer, 61% of boat owners have an average annual household income of $75,000 or less. This is another surprising fact that people who don’t belong to the higher class are taking great interest in becoming boat owners.
In this article, we’ll discuss more about the sudden boom in the boating industry, and some important aspects contributing to the high demand for boats.
First Time Buyers
As we have already discussed, the sales of boats have increased tremendously, but the demand is not only for buying boats. Owners of the boat companies have said that they have seen a huge boost in demand for boat rentals as well. They say people who can't afford to buy boats are now experiencing this amazing recreational activity by renting a watercraft instead. This is the highest demand in decades in terms of renting boats. Moreover, first-time buyers are looking for new, old, and rented boats to get out of their homes to enjoy some time on the water.
The novel Coronavirus has left a positive impact on the boating industry across America that can last for coming years. The pandemic has brought people closer to their friends and family, encouraging them to find new hobbies and activities to enjoy with one another. New boaters who have entered the market are taking part in this fun, recreational activity with their closest friends and family, further stimulating the boating industry.
In 2020, the number of first-time buyers increased for the first time in almost 10 years, which is more than 10% from 2019. The average age of new boaters has also surprisingly dropped for the first time in 20 years. The involvement of young buyers is a sign of a bright future for the boating industry. They will inspire their friends and family to purchase or rent boats, which will result in great memories made together.
Apart from this, the shift to WFH (work from home) is offering people more flexibility to experience things for which they didn’t have time before.
Pros and Cons of the Recent Boost
The positive outcome of this surge is, of course, the large number of new watercraft and boaters. Additionally, it has also helped the boating industry to upgrade and design some innovative boats for their consumers. Another thing to appreciate is that the boating world has allowed people to forget their problems due to the pandemic and escape to the beautiful ocean. It is no doubt that people were getting depressed and facing other psychological problems by staying in their homes for months. An opportunity to purchase their own boats has helped them to come out of that undesirable environment. Hence, this is promoting wellness psychologically and physically.
But like all the other things, it also has a downside. The sudden rise in demand has made it challenging for manufacturers to create watercraft. Some manufactures don’t have a big enough workforce to deal with this situation. Also, there is a big question that whether the dealers and manufacturers will maintain quality while manufacturing boats in such a short span of time. But these are only concerns of the experts. The truth is the boating industry is creating income-generating opportunities in some other fields as well, such as fuel stations, accessories and much more.
The Future of Boating
As there is uncertainty in the effectiveness of the vaccine, interest of consumers in boating is likely to remain the same in 2021. Hence, the demand that we saw last year is expected to continue. Not to mention, this will continue to drive production for at least several more years.
People are now also realizing the need and importance of having hobbies and fun activities in their life. This awareness is also the primary reason that new boaters are not going to stop boating for several years. Another factor that will keep the demand high is the low inventories in 2020. Many people who were planning to replace their older boats last year, but did not do it because of the long waiting time, now have the chance to do so. Due to the high demand, it appears people will continue to purchase boats, even in the winter season. This means boat restorations will continue till the end of this year, and the industry will likely continue to grow at a steady rate.
Sources
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