Dealer sentiment on current conditions improved in July (45 compared to 31 in June), and the three- to five-year outlook was flat from June at 37. These figures are both below the neutral outlook of 50.
For this month’s Pulse Report, Soundings Trade Only, Baird Research and the Marine Retailers Association of the Americas asked 66 marine retailers to assess recent trends in North America.
More dealers reported retail declines (46%) than growth (34%) in July, similar to recent trends. “July was on par with years past. But unfortunately, the wind was already out of our sails through the prime selling months, leaving little hope of ending this fiscal on a strong note,” one dealer said.
On the used side, dealers reported a second consecutive month of growth, a sign that some payment-sensitive buyers may still be in the market at lower price points. In June, dealers reported the first positive signal since February 2024.
High inventory levels remained problematic. Most dealers (70%) reported that new-boat inventory was “too high” compared to just 5% that reported “too low.” One dealer reported, “We have our inventory down and will be keeping it that way until business picks up again.”
Dealers reported closer to balanced used inventory, with 33% saying “too high” and 25% saying “too low.” “We need to be careful with inventory levels and not get overextended. The politics make the economic world unpredictable. Thus, we need to be very cautious,” one dealer said.
Aside from the observable lift in used-boat sales, not much has changed in the retail markets. One dealer lamented, “Interest rates remain too high, new unit prices too high, coupled with a slower-than-normal buying season as we prepare for the winter months. We have had several local dealers close their doors, indicative of what seems to be happening across our market.”
Another dealer wrote, “We are stocking way less boats due to tariffs and demand. Happy to order retail-sold boats for customers as long as they understand the costs can shift considerably based on tariffs.”
When asked what was working, dealers mentioned the importance of relationships and, through them, the promotion of the boating lifestyle. “Good relationships with our customers and having a good selection of product on hand have helped us have a good summer for both sales and service,” one dealer said.
Another, noting that aluminum and middle-market fishing boats were moving the “best at this time,” said the dealership was “concentrating on promoting fishing, family time and affordability.”
Many dealers mentioned the strength in used-boat sales. One said, “Used and brokerage are very strong this year and we plan to invest more into that for 2026. Plans are in place.”
When asked what was not working, many dealers expressed frustrations with marketing. One noted, “The online boat platforms are not as effective as they were. They have gotten more expensive without delivering better quality lead flow. We need to research other avenues to market our boats.”
Another said, “We have almost no promotions from manufacturers right now. Many customers are inquiring about end-of-season deals, but it seems that many of our suppliers are going to be raising prices at the end of the season instead of discounting anything.”
Another dealer said, “No factory incentives, we haven’t even seen our rep in quite some time.”
Another aspect of the survey looked into strategies for current market conditions. As most important, dealers cited the need to grow pre-owned boat sales and to build a strong, adaptable team culture. Dealers also noted the need to streamline repair event cycle times, manage inventory and reach the next generation of boat buyers.
“We will be focusing much more on the service side of our business. There are many opportunities to increase revenue and margin in service,” one dealer said.
Many respondents emphasized the critical value of customer service. One said, “Strong personalized customer service and quality products keep business moving ahead. Price is what you pay, value is what you get.”
Another said top priorities will be “keeping our service department booked and busy so we have a revenue stream, also keeping inventory levels down to minimize interest payments.”
Many dealers stressed quick reaction and adaptability to market conditions. One summed it up like this: “We meet weekly to discuss trends and see where we need to adjust. Making quick decisions to pivot when demand, the market, competition and inventory change is key for us.”
