For the first time in recent memory, year-over-year growth for the total recreational boating industry was on the plus side — 1.3% — in November. The monthly numbers were also strong, with 4,541 new boats registered in the 11th month, which was down only 1.3% from 2022’s 4,603.
Also on the positive side were aluminum fish and pontoon boats. Some 1,249 new aluminum fishing boats were registered in November, a 14.2% jump over 1,094 in November 2022. For pontoons, 937 new models were sold in November 2023, a 1.8% boost over the previous year’s 920.
“Pontoon didn’t surprise us,” says Chad Lyon, manag‑ ing director of Wells Fargo commercial distribution finance. “We had known there was an effort to create incremental demand.”
He was looking at data provided by Statistical Surveys, a Michigan-based firm that compiled information from 34 states, representing about 68.92% of the U.S. recreational boating market.
The jump in sales for aluminum fishboats did catch Lyon and other analysts off guard because they fall into one of the categories that had been harmed by economic uncertainty and high interest rates. “I still think there’s still quite a headwind with interest rates,” Lyon says. “But I think the incentives that the manufacturers and OEMs are providing can offset that.”
Continuing its topsy-turvy run of luck, ski/wake was up 22.1% with 238 new boats registered in November, compared with 195 the previous year. In the past couple of months, this segment had shown volatility, with some people wondering if complaints about waterfront damage from surf-boat wakes was slowing sales.
The three aforementioned segments were the lone bright spots in a month that saw many categories with big declines. Year-over-year numbers for the main powerboat segments were 150,847, which was 6.2% less than November 2022’s 160,848. Nearly 1,950 outboard-powered fiberglass boats were registered in November, an 11.2% decline compared with the previous year. Sterndrive-powered deckboats and bowriders were in a similar state, with 101 new models in November, a 9.8% drop compared with 112 in 2022.
For cruising vessels, the larger the boat, the worse the numbers were. Cruisers from 31 to 40 feet were down 17.6%, with 28 sold in November compared with 34 in 2022. Bump up to 41 to 65 feet, and 2023’s 33 was a 25% drop-off from 2022’s 44. For yachts larger than 66 feet, there were eight documented in November, a 33.3% decline from 12 in 2022.
Personal watercraft sales plunged 45.2%, with 1,113 registered in November compared with 2,031 in 2022. Not far behind, sailboats were down 40% with 39 sold in November versus 65 in 2022.
Looking ahead, Lyon says Wells Fargo is forecasting sales to be “flat to maybe up a point or two. I don’t see any reason why the first quarter won’t be on the same level as last year.”
The battle to win the White House isn’t helping, Lyon added. “Elections never seem to create much certainty.”
This article was originally published in the February 2024 issue.
