Growth in boatbuilding production is expected to be constrained through 2020 and into the first quarter of 2021, turn up in mid-2021, and hold steady through 2023, according to the latest Forecast on U.S. Boat Building Production from ITR Economics.
The firm upwardly revised its June boatbuilding forecast to reflect new data from the Federal Reserve showing boatbuilding production will increase in the third quarter of 2021 in response to a surge in demand, according to the National Marine Manufacturers Association.
ITR Economics said in the report that it is potentially underestimating the impact of positive consumer trends in the marine sector, and that a second stimulus bill, if passed, would add to this upside potential.
“Reopening reversals in selected states, were they to broaden to include manufacturing-site shutdowns, pose a downside threat to the forecast,” the firm said.
“Boat shipments through September are at about 90 percent of where they were a year ago due to a halt in production at the onset of Covid-19 and now pandemic-related supply chain constraints,” said Vicky Yu, senior director of business intelligence for NMMA, in a statement.
“As those constraints are lifted, we should see a healthy pickup on boat building production as manufacturers work through their backlogs to fulfill new boat orders rising from the uptick in retail sales over the summer,” said Yu.
NMMA members can view the full October 2020 report for additional detail here.