New boat registrations turned positive in August for the first time in 2022 compared to the same month in 2021, a possible sign that deep supply-chain headwinds might be easing, as well as a reflection of the market of summer 2021, when boats became scarce.
Registrations of new boats in the main powerboat segments were up 1 percent over August 2021, and total registrations grew 2.1 percent versus the same time last year, according to Statistical Surveys Inc. The Michigan-based firm released August
registration data from 34 states, representing nearly three-quarters of the U.S. market.
“We are optimistic OEMs may be turning the production corner — although, admittedly, one month does not a trend make,” B. Riley analyst Eric Wold wrote in a note to investors discussing the data.
The year-over-year comparisons became easier this summer, with average monthly declines of around 33 percent from June through October 2021, when the industry was coping with the toughest supply-chain headwinds, Wold says.
Still, registrations were down 15.2 percent overall year-to-date, dropping 13.9 percent in the main powerboat categories, a reflection of ongoing supply-chain disruptions.
“Lack of inventory continues to be the main headwind for boat industry retail,” says Gerrick Johnson, an analyst with BMO Capital who covers the marine space. “However, we have begun to see retail demand normalize, with dealers at the Norwalk, Connecticut boat show commenting [that] customers are becoming more cautious owing to the macro environment.”
Using the marine classifieds website Boat Trader as a guide, BMO Capital estimates new dealer inventory increased about 30 percent at the end of August versus last year, but was still 43 percent below 2019 levels.
According to Statistical Surveys, the pontoon segment grew 7.2 percent, with nearly 4,000 boats registered versus 3,727 in the same period last year. Tow boats and fiberglass outboards posted modest gains of 3.5 percent and 1.3 percent, respectively.
Those gains were partly offset by a 13.1 percent decline in sterndrive registrations, which saw a rare boost in 2021 as homebound people clambered for any boat they could buy. There also was a 6.1 percent drop in aluminum fishing boats.
“The notable declines in specific categories came from aluminum fish — where, we suspect, there are adverse impacts from lower-income demographics and a late start to the Northern summer boating season — and sterndrive/inboard, where, we suspect, we are returning to a more normal degradation in demand after the pandemic-driven buy-anything mindset,” Wold says.
Cruisers also posted a 6 percent decline, from 50 to 47.
Jet boats helped boost the overall industry’s numbers with a 21.6 percent jump in registrations, from 328 to 399. Sailboats saw an 11.7 percent increase from 103 to 115.
Partly offsetting those increases were electric boats, which dropped 27.8 percent from 36 to 26; aluminum boats under 16 feet, which declined 17.2 percent from 483 to 400; and personal watercraft, which fell 2.7 percent from 6,466 to 6,289.
This article was originally published in the November 2022 issue.
