Sales of all fiberglass boats, including personal watercraft, declined 24.6 percent last month, when compared with January 2009.
These preliminary statistics include 33 early reporting states that represent approximately 70 percent of the national market. Only states that currently provide weekly or monthly information are included in this summary. Percentage change is presented on a calendar-year basis to reflect actual results.
Fiberglass boats in the 14- to 30-foot segment were down 23.5 percent for the month.
Aluminum boats sales fell in January by 22.8 percent. PWC sales posted a decrease of 29.5 percent in the month.
All markets slowed to a lethargic pace in January. Economic and employment issues continue to exert their influence on retail sales moving into the first quarter of 2010.
- Aarn D. Rosen
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Too narrow or too broad of a view ("smoothed") is dangerous. Last year production was way down for all manufacturers and dealers were clearing floors with a fire sale mentality. As a result, dealer inventory last year was higher than this year.
Last January, whatever boat you wanted was available, and at a great deal. Buy in January, Take delivery and warranty register in January, and the sale shows up in January's numbers.
With dealers holding fewer boats in inventory due to floorplan restrictions and fear, the formula is put a deposit in January, order/locate the boat, take delivery and warranty register in spring, and in spring, the sale shows up in the numbers. In both cases, the buying activity took place in January, but the sales show up in different months.
Also, have buyers gone away, or are they waiting. People are holding on to thier money longer. I live in NH and have been a boater for 20 years. My boat WILL be in the water this year. I WILL need all the accessories, insurances, maintenance, supplies, etc. I have needed in past years. However, while I normally take care of maintenance items and buy supplies in the winter, I don't plan on doing that till closer to the season, say late april or may. If I was looking to spend $50,000 on a new boat, I definitely would be looking now, but not buying till spring to put off the cash outlay. Again, the deposit might happen in January, but the sale doesn't show up until spring.
While the decreased sales numbers are alarming, we need to know what is happenning overall and adjust our marketing approach to meet the needs of as many buyers as possible.
Successful manufacturers analyze all data available, as well as communicating with thier retailers to find out what is really happenning. The old adage "if it can't be measured, it can't be improved" is true, however, make sure you know what you are measuring, buying trends, or delivery trends, because there will be seasonal fluctuations in both.
At the gut level, my observations of the boat shows are decreased vendor participation, reduced floor space, reduced hours, but increased consumer interest. The only thing that really matters in that equation is consumer interest.
Now that marine dealers will carry little to no inventory, the manufacturers will have a very short demand period for their units. When the buying public is not buying, the dealers will also quit buying..
January and February are now two of the non-demand months which will also include September through December. January and February 2009 probably included lots of repo sales/registrations which will also help to make the Y2Y comparison numbers look even more scary for the current state of the industry.
Unless something changes to allow dealers to buy and carry inventory (floor planning) through the fall and winter months, marine manufacturing will become an open-six-months, closed-six-months industry.
Boat builders might want to consider building snow mobiles during the fall and winter. Consumers will not be thinking about buying a boat as they rake leaves and shovel their sidewalks and driveways.
January 2010 Sales vs. January 2009 Sales, ok but what were January 2009 Sales vs. January 2008 Sales?
January 2009 Sales were not a good base for comparison, depressed vs. 2008. It sounds like things are things are getting much worse.
Guys,
Percentage change is always calculated by comparing the same period last year to the same period this year. In this case January 2010 is being compared to January 2009.
Year over year numbers will smooth out the high and lows. When the market is declining, YOY numbers will make the declines look smaller. When the market is growing, YOY numbers will make the growth look smaller. I prefer to look at comparisons without the smoothing. Everybody is entitled to their preference. Call me anytime Al, and I'll give you the YOY numbers for the reporting period.
Aarn,
How do these numbers compare with January 2009? Year over year comparisons are more meaningful due to our seasonality.
Even though we all know the recession isn't over and that it's going to be another subpar year, I think the weather has skewed these numbers. I bet you will see a big jump in Feb/March.