Analyst sees new sales growth in July

Author:
Publish date:
Social count:
0

A marine industry analyst for Wells Fargo disagrees with growing concerns that U.S. retail boat sales are sluggish.

Senior analyst Timothy Conder says that based on conversations with marine lenders, Wells Fargo is estimating that July sales are up between 7 and 9 percent.

“The 19- to 30-foot portion of the sterndrive segment remains the most challenged part of the market, while the remainder of the industry has continued its seasonal upturn begun in June,”Conder wrote in a recent report. “Of particular note is an ongoing improvement in 31- to 40-foot sterndrive …and 40-foot-plus inboard products.”

Aged inventory seems to be tracking sequentially toward a new annual historic low, Conder wrote.At the same time, dealer inventory turns are around two times and dealer financial health is at record highs.

“We believe the 2014 retail season will be concentrated in June to September, similar to the late-season trend seen in July to October of 2013,”Conder said. “For July-October, we expect solid mid- to upper-single-digit year-over-year growth rates,”given comparisons that were up 12 to 18 percent.

Conder said “flash”data provided by Statistical Surveys that focuses on 25 to 30 early reporting states should be considered secondarily to broader trends occurring in the marketplace. The Statistical Surveys data are later updated with reporting from all states.

Related

Dealers cautiously optimistic in March

Potential tariffs on aluminum and aluminum sheet are the most concerning policy issue facing the industry outside of workforce challenges, with the spread of E15 following closely behind, according to a new dealer survey.

Hinckley’s Scott Bryant

The Hinckley Company has long been a leader in technology, and in 2017, it became the first production boatbuilder to roll out an all-electric luxury yacht, Dasher.

Full Slate at ABC

A slew of major marine industry issues — including some it has confronted for years — are closer than ever to being resolved, making the American Boating Congress, May 9-11 in Washington, D.C., the most crucial to date, organizers say.