Analyst forecasts flat boat sales in July - Trade Only Today

Analyst forecasts flat boat sales in July

Powerboat sales were likely “flattish” year over year in July, a Wells Fargo marine industry analyst says.
Author:
Publish date:

Powerboat sales were likely “flattish” year over year in July, a Wells Fargo marine industry analyst says.

The prediction is based on conversations analyst Tim Conder had with industry lenders.

“Deceleration from recent trends is solely due to the fewer non-holiday weekdays in July 2016 — [which had] 20, versus July 2015 — [which had] 22,” Conder wrote in a report.

Holidays are when dealer payoffs and state registration typically take place, Conder said.

Year-to-date trends continue to demonstrate broad-based gains across all categories, with aluminum fishing boats, pontoons, yachts, ski and wake boats and runabouts seeing the highest growth.

Wells Fargo is narrowly raising its 2016 outlook, expecting the industry to be up 6 percent on unit growth, compared with its previous expectation of 5 to 6 percent. Wells Fargo continues to expect a 9 to 12 percent increase in dollar growth, given richer mix trends.

Conder expects trends for the second half of the year to be similar to the first half.

“U.S. dealer aged inventory — new product older than 12 months still in dealer inventory — and inventory turn trends remain intact and on track for fourth consecutive year of record-best levels,” Conder wrote.

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.