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 US boatbuilding continues to thrive, although some companies are performing a lot better than others, and there is a clear distinction between the slow demand for entry-level product, and the more buoyant larger end of the boat spectrum.
The US economy is hardly booming, but it has been relatively healthy. The dollar has rallied a little over the past year, helping those exporting to the US, but also denting slightly the US’ competitiveness globally.
Domestic consumer confidence has instead been undermined by natural disasters such as hurricanes Katrina and Wilma, as well as the US military’s continued presence in Iraq.
The storms caused huge damage and carried a high human cost, turning swathes of homeland America into a war zone. Like the war in Iraq, this was not the sort of political backdrop that a US luxury goods market needs to thrive upon.
The country has also been forced to make trillions in tax cuts while spending billions in Iraq. At the moment it has massive deficits, and these will have to be paid for fiscally at some stage, which will squeeze credit and hence the demand for luxury goods such as boats.
Nonetheless, most would agree that there are more winners than losers in the US marine industry at the moment, an impression backed up by exhibitors at this year’s Miami boat show.
Attendance figures were up on 2005, and more importantly, the mood was positive. This was true for most of the main winter boat shows, which were well attended with exhibitors reporting static sales at worst and significant increases at best.
Many of the US builders canvassed for this report claim to be doing as well as ever, and sales appear strong pretty much everywhere, save for entry-level. Domestically, low interest rates are mainly responsible, while a relatively weak dollar has helped abroad.
The exchange rate impact on US boatbuilders has been two-fold, making US built boats seem cheaper in export markets and the imported competition look more expensive at home. These factors are helping to maintain a positive outlook among the majority of US boatbuilders.
To read Key Market Facts on USA Click
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Summarised from the US Business Report in IBI's April/May 2006 issue.
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