First quarter 2010 data from NMMA shows a slowing in sales declines of new powerboats – down 12% compared to a decline of 35% during the first quarter 2009. Leading this recovery are small aluminum outboard boats.
“Consumer spending and consumer confidence increases in March and April have helped boost new aluminum outboard powerboat sales, leading a recovery for the recreational boating industry as overall new powerboat sales declines slow,” says Thom Dammrich, president of NMMA. “This growth can signal a return of the entry-level boater and the outdoors enthusiast and angler to boating and overall growing trend in fishing.”
Aluminum powerboats are typically used for fishing throughout inland and Great Lakes states. Discover Boating data shows that 75% of boaters have a household income under $100,000 and 96 percent of powerboats on the water in 2009 were 26 feet or under, meaning boaters are primarily middle-class Americans operating small, trailerable boats, not large cruisers or yachts.
In fact, the top ten states for aluminum boat sales in 2009 in ranking order with corresponding new unit sales are: Texas, Louisiana, Minnesota, Wisconsin, Michigan, Florida, Alabama, Arkansas, Illinois, and Georgia.
“We anticipate 2010 new powerboat sales to remain flat with 2009 as the economic indicators that impact our industry – consumer confidence, housing and credit markets, as well as unemployment- start to improve and open the door for boat sales to begin increasing in 2011 and 2012,” notes Dammrich. “The growth in the aluminum outboard boat market is consistent with recent trends showing increased fishing license sales and is an indicator of the beginning of a turnaround for new boat sales. Consumer spending has been increasing for seven months and recreational boating will get its share of new consumer spending as the economy continues to recover.”
Industry Also Sees Gains From Existing Boaters, Pre-Owned Sales
In addition to first quarter 2010 growth within the aluminum sector and a slowing of overall sales declines, the NMMA's 2009 Recreational Boating Statistical Abstract reveals that boaters remain passionate about being on the water, increasing the time spent on their boats in 2009 by 4%.
What's more, there were an estimated 66 million adult Americans who went boating in 2009, according to NMMA. These boaters helped drive an increase in the boat services sector (repairs/services, storage, insurance, taxes and interest payments) of nearly two percent in 2009 to $6.3 billion. And, reinforcing Americans' passion for boating during times of economic downturn, sales of pre-owned powerboats increased 7.7% to 780,300 and increased 5.4% in dollars for a retail value of $8.5 billion in 2009.
Americans Trend Toward Experiences During Economic Downturn
Discover Boating, the boating industry's national awareness program, explains the increases in boater spending and pre-owned sales as a trend toward Americans' search for new ways to enjoy time with family and friends, as well as their willingness to spend on experiences during times of economic downturn.
Additionally, the survey reports boating impacts Americans' well being with 78% of respondents saying boating brings their family closer together. Sixty-eight percent said it has improved their social life, while 89% felt it contributes to their health and wellness.