Marine dealer sentiment decreased in January (36 versus 45 in December) while the three- to five-year outlook improved (45 versus 37 in December), according to this month’s Pulse Report survey. A neutral outlook is 50.

Dealers reported flattish retail trends in January. Slightly more dealers reported declines (38%) than growth (35%). Dealers also cited lower used boat retail in January, as 33% reported growth and 37% reported declines.

One dealer remarked, “Promotions are helping to move the needle and create some sense of urgency for boat-show season. Shows have been hit and miss for us.” Another remarked, “Interest rates are still turning customers off.”

Inventory continues to be high. New-boat inventory remained higher than dealers would like, but opinions of that improved from December, when 88% of dealers reported inventory was “too high.” In January, 67% of dealers reported new boat inventory was “too high” and just 5% of dealers reported new boat inventory was “too low.” Used boat inventory was also higher than dealers would prefer, as 36% of dealers said it was “too high” and 23% responded “too low.”

For this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas asked 80 retailers to assess current trends in North America.

Comments from dealers reflected the trenchant issues that are keeping sales from improving. One dealer said, “Access to credit, stricter underwriting and higher unit pricing [are] still deterring buyers. The year 2024 was our slowest year for sales in the past decade, with January 2025 our second-slowest January ever. Buyers remain shocked at finance rates and new-boat pricing.” Another listed the issues as follows: “Potential tariffs, trade relations, flux in the U.S. dollar, aged inventory, no urgency.”

When asked what is working regarding retail sales, dealers conveyed the necessity of discounting and cited the power of social media to bring in potential customers. “Social Media marketing continues to generate activity and questions, opening dialogues about units, financing and options. For now, it seems to be our best response for marketing dollars, despite those also being the longest turn times,” one respondent said. Another stressed the importance of a good attitude, always: “We’re not going to let the outside noise affect our daily attitudes. The best thing we can do is provide an experience to every person who walks through the doors.”

Regarding what’s not working to move the needle, high prices came up often in respondents’ comments: “Prices on new boats have gotten too high for our customers. They just don’t see the value at current pricing levels.” Another said, “Manufacturer promotions are worthless. The consumers are wise enough to know that promotions of some sort will be around at any time of the year. There’s no value, and they generally cut into the dealers’ margins.”

Another said: “All but the wealthy are strapped for cash. They don’t or can’t justify the down payment or even the payment right now. Recreational interest rates are too high. The M.Y. price increases along with exorbitant freight charges (diesel fuel costs are falsely inflated) are preventing many dealers from ‘restocking’ units until they actually have a deposit and a ‘signed’ purchase agreement. The last thing the dealerships need are another round of unsold non-currents that come due.”

To sum it all up, one dealer responded with a comment about the complexity of the sales environment and the importance of optimism. That dealer said, “Everyone in the marine industry should be ‘optimistic’ but not overextend their enthusiasm. As the economic focus is on America, and shoring up the internal U.S. economy, Americans should not expect to be greeted with exuberance from foreign buyers of U.S.-made goods. So tighten your seat belts a bit — it might get a bit bumpy over the next 18 months. This is all the more reason for U.S. suppliers to reinforce their partnerships with local U.S. distributors and dealerships that represent their products. Get out there and be ‘friendly’ to the people that brought you to the dance, so to speak, and don’t forget to smile.”