North American sailing industry production declines by 5 per cent in 2007
By IBI Magazine
Sailboat production declined by 5 per cent or 787 boats in 2007 to 14,158 units, compared to 14,945 units in 2006. The Sailing Company's annual North American Sailing Industry Study, compiled by Rick Walter MarketResearch Associates, also reported that production of sailboats below 20 feet dropped to five-year lows. Overall, this is the seventh straight year of decline for North American builders. The industry hit a high note in 2000 with 22,164 boats. But the Study did offer some bright spots, notably that some manufacturers are now going after a higher-demographic buyer. Small-volume boats over 46 feet, it reported, are being produced and sold at record rates. The Study, which polled 88 per cent of North American sailboat builders, also reported an overall workforce reduction of five per cent in 2007 compared to 2006. In the different size categories, sailboats up to 19 ft declined by 3 per cent to 11,265 units compared to 2006, while mid-range boats from 20 to 40 feet were off by 15 per cent to 2,284 units. Boats in the 41-ft.-plus range were off by 7 per cent in 2007 to 609 units. In the 46-ft. and over category, however, orders were up by 104 units to 249 boats in 2007. Multihulls, particularly in the 19-ft. and under category, declined significantly from 2,674 units in 2006 to 1978 last year. Overall, US multihull production was down by 25 per cent. "High-volume boats under 20 feet are at five-year lows," noted the Study. "They are down 3 per cent versus a year ago and 14 per cent versus five years ago." The general cruiser category over 20 feet was also down 14 per cent, or 460 units, at the lowest level in five years. "An uncertain economy and real estate investment crises had a major dampening effect on the mid-cruiser aspirational segment, 36 to 45 feet, which declined by 285 units year to year," said the Study. In order to increase margins, some boat builders are using a "recession-proof strategy" of building sailboats over 46 feet. "That category's production increased sharply to a five-year high of 249 boats," said the Study. "Almost one out of four bigger boats over 36 feet were 46 feet and over, suggesting a redefinition and potentially lucrative proposition at the top end." Despite the lower production numbers, the participating manufacturers said that the value of the boats increased by 6 per cent to US$802 million. The increase came, in large part, because of the higher-margin sailboats over 46 feet, valued at US$216.7 million. P>Cruiser imports into North American markets also declined by 5 per cent in 2007. Mirroring US manufacturers, importers reported strongest sales with large boats over 46 feet. "The smallest cruiser segment, 20 to 35 feet, appears to be losing ground as a viable import strategy based on five-year trends," noted the Study. "This was the second lowest number of boats in this category during that time frame." Both importers and US manufacturers are predicting relatively flat sales in North America in 2008. "Threats of a recession and prediction that the real estate crises will carry well into 2009 are reflective of a very cautionary tone in builder predictions for 2008," the study concluded. "No category of sailboat is predicted to increases versus '07 by greater than 4 per cent." In past surveys, sailboat manufacturers have been overly optimistic about prospects for the year ahead.
(10 March 2008)
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