Survey: Marine industry adding inventory, expects sales gains

Posted on Written by Michael LaBella

In light of an improving consumer outlook, more than half of marine industry survey participants say now is the time to increase inventory levels to be fully stocked for the spring selling season.

That’s according to results released by GE Capital, Commercial Distribution Finance, which reported that 51 percent of respondents said it was the best time for dealers to increase inventory.

GE Capital’s survey was conducted Feb.13-15, according to The Wall Street Journal’s Market Watch. The respondents are a variety of marine industry participants, including manufacturers, dealers and distributors.

“Overall, our data indicate sales are improving, costs are down and earnings are up at the dealer level,” Bruce Van Wagoner, president of CDF’s marine group, told the paper. “We believe that 2013 will look a lot like 2012 — slow and steady growth in a smaller, healthier market.”

Forty-three percent of survey respondents said they expect sales to increase 5 percent to 10 percent this year, and 30 percent said they expect sales to increase 10 percent to 15 percent.

CDF’s forecast, unveiled Feb. 13 at the Miami International Boat Show, calls for the marine industry to grow about 8 percent in the United States in 2013. “Of course, positive news on some of the most critical economic factors could kick up consumer demand and drive industry performance beyond current expectations,” Van Wagoner said.

Forty-two percent of survey respondents said consumer demand was their greatest business concern, down from 64 percent in 2012.

Asked which trend will have the largest impact on the boating industry this year, 32 percent of respondents pointed to the popularity of low-cost or “base” models, up from 23 percent last year. Thirty percent of respondents expect long production lead times, compared to 21 percent last year.

Aluminum boats, fiberglass fishing boats and recreational boats are the top three types, respectively, that the industry believes will be in demand this year.

“Low stocking levels may result in lost sales, but today shipments are generally aligned with demand,” Van Wagoner said. “Many dealers ask for market intelligence to make better-informed decisions about brand, segments and stocking levels so they can be sure to stock the products that their customer base wants to buy.”

Click here for the full WSJ story.

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

Is the decision to move the Miami show to the Miami Marine Stadium a good one?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password