Dealer sentiment on current conditions remained steady at 36 in December (same as November), while the three- to five-year outlook ticked higher (52 vs. 51 in November). A figure of 50 represents neutral sentiment.
For this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas asked 50 retailers to assess recent sales trends in North America.
In December, 46% of dealers reported retail declines compared with 33% who reported growth. Dealers also reported lower used-boat retail; 43% reported declines compared with 22% who reported growth. “Quality still sells,” one dealer said. “Quality boats backed by quality service keeps business moving. Entry-level models and customers that require financing are on the sidelines right now.”
New-boat inventory remains a concern. Seventy-one percent of dealers reported it being “too high,” while no dealers reported it being “too low.” One dealer said: “Keeping both inventory and staff low at the moment.”
Some 45% of dealers reported used inventory as “too low” versus 27% who reported “too high.” The relative affordability of used units may be supporting demand trends, according to Baird’s report. One dealer said that “lower interest rates will help payment buyers. Used boats will continue to be relatively strong, as prices are much lower than new boats.”
While early industry forecasts endorse a flat to slightly up outlook, Baird’s models are based on more flattish trends, the report stated. “We see reasons for optimism in 2026 (lower interest rates, less tariff noise and better tax refunds) but are mindful of reasons for pessimism, as well (affordability headwinds, employment anxiety, credit instability and policy wild cards).”
One dealer said, “I’m hoping that interest rates dropping may ignite some sales. I think this is going to be another very competitive year because several dealerships in my area still have a good deal of non-current inventory and will be blowing it out.” Another said, “Customers are expecting a higher-quality experience than in the past. Boats have gotten far more pricey, and that consumer has higher expectations.”
Asked what was working for their business, one dealer said, “New blood in our sales department that has more background in website development and internet marketing. The tricks of the trade we learned at the Marine Dealer Conference & Expo eight or 10 years ago no longer work. This industry is forever changing, and it’s doing so at record speeds. Dealers, don’t think you know it all. … I was shown that’s not the case anymore. Complacency breeds inefficiency.”
Another dealer said, “Great customer service is what’s keeping things running. Most of the boats we sold in the past six months were to existing customers looking to upgrade with us because they like our staff and the way we run things.”
On what’s not working, one dealer said, “Consumers are concerned about the economy, politics and pricing, with many taking a wait-and-see attitude on major purchases.” Another was blunt: “Overpriced new boats.”
Numerous dealers mentioned the changing nature of marketing, boat shows and the need for a more personal buying experience. “You cannot stand still from a marketing standpoint. AI is changing the game,” one dealer commented.
About customer expectations and market dynamics, one dealer said, “With many dealers still heavy in aged inventory, price is still the main topic of conversation. Customers are trying to steal inventory at the moment, so making standard margins moving forward is going to be difficult. OEMs continue to raise prices, and it is only going to hinder things further. We are planning to keep inventory low, stock high-demand product and hope to move it as quickly and for the most margin as we can.”
Another dealer mentioned customers having less time to get on the water: “We’re seeing affordability becoming a two-dimensional issue. Financial has been with us for some time. Now time itself is becoming more and more of a factor. We’ll need to figure out how to get and keep people boating with less of each.”
The survey also asked dealers about their expectations for the ideal partnership with manufacturers. The value of promotions topped their concerns. “Thankfully,” one dealer said, “the two manufacturers we are partnered with have been mapping out promotions and rebate programs to help arm us for a strong spring.” Another said, “Manufacturers need to understand that floorplans can kill even the best dealers in economic downturns. Trying to force product on us or have us run deals that really just come out of our profit feels like a slap in the face.”
A dealer in the Southeast said, “Upcoming boat shows will be interesting to see how they turn out. I believe that will be the indicator, as it usually is in times like this. I have been hearing positive talk that things will open up for the season, and I sure hope so … fingers crossed.”
This column first appeared in the February, 2026 issue of Soundings Trade Only.
