Pleasure Boat Manufacturing Industry Trends

Population Growth in Coastal Areas

Half of the US population lives in coastal areas (under the jurisdiction of the federal Coastal Management Zone Program) and the population of such areas is forecast to grow rapidly. Growth will pressure estuarine eco-systems and may slow development of marinas, docks, and other infrastructure necessary to support the boating industry.

Industry Consolidation

Overall industry sales are dominated by large boat manufacturers. Industry consolidation continues to advantage those companies that become part of a larger organization. To leverage their already strong positions in purchasing, distribution, and marketing, larger manufacturers continue to add brands by acquiring builders that fill missing niches in product offerings.

Engine Technology Advances

Low-noise, low-emission outboard engine technologies have advanced such that some companies have stopped building the traditional two-stroke engines in favor of the more efficient four-cylinder. While costlier for consumers and with less gross margin for manufacturers, these engines continue to grow in popularity due to their reliability, fuel efficiency, and low noise levels. EPA requirements regarding fuel efficiency have influenced the industry to produce these popular engines.

Improved Working Conditions

Manufacturers building fiberglass boats, the majority of hull constructions, are installing processes and controls to lower and treat vapors, fumes, and noxious emissions from volatile organic compounds (VOCs). Paints and varnishes are now applied with more stringent controls, including worker protective gear and automated spraying equipment with ventilation and emission controls. In-plant safety programs to lower injury rates concentrate on reducing falls that result in sprains, contusions, and lacerations.