Issue link: https://read.dmtmag.com/i/231507
[ 2014 Outlook ] REASONS FOR OPTIMISM We also asked Boating Industry readers what makes them optimistic about the boating industry. While a large number – about 10 percent – said they have no reason to be optimistic, several did respond with positive sentiments. The most common reason for optimism, according to the survey, was the hope of change in the 2014 and 2016 elections. Beyond that, here is some of what we heard: "It is still people's dream to own a boat or other luxury. It rewards our hard work and success." "We are seeing younger families enter boating; it is always going to be a fun family activity." "New designs are attracting the younger upscale buyers." "Boating is a family-oriented activity that brings parents, grandparents and children together. No other activity does this as well as boating." "Robust growth in stock market and economy raises all boats." "Boating will always be around. We just have to adapt to the customers." "People will always be drawn to the water for relaxation and recreation." Continued on page 22 20 | Boating Industry | January 2014 P18x22-BI14JAN-2014Forecast.indd 20 "If we have more crises and more government shutdowns, it weighs on consumer confidence, it causes a contraction in the economy … and it's not healthy for the boating industry." — Thom Dammrich, NMMA president interest rates remain low, 5 to 10 percent growth for the marine market would be likely, Houseworth said. That falls right in line with NMMA's projections, Dammrich said. "A lot is going to depend on whether Congress gets its act together," he said. "Can we get some level of normalcy in eliminating these recurring crises around the budget, around the government shutdowns, around the debt ceiling?" A large majority of Boating Industry readers are expecting growth as well – 81 percent of all survey respondents expect revenue to increase in 2014. Eight percent expect an increase of more than 25 percent and 43 percent expect revenue to be up more than 10 percent. Only 4 percent expect their revenue to decrease. Manufacturers are much more optimistic about how big that growth will be than dealers are. Eighty-two percent of them expect their revenue to increase this year compared to 79 percent of dealers. The real difference, though, comes at the top level, with 14 percent of manufacturers expecting revenue to increase by more than 25 percent compared to only 2 percent of dealers. Overall economic growth and consumer confidence will be the biggest factors in their company's success in 2014, according to those surveyed. More than 60 percent cited those two as "very important," ranking them much higher than weather (37 percent), regulations (36 percent) and government stalemates (29 percent). The only major difference between manufac- TOP LONG-TERM CHALLENGES TO THE INDUSTRY Ranked by % of respondents concerned about it MANUFACTURERS/SUPPLIERS 1.Affordability 76% 2. Competition from other activities 63% 3. Water access 61% 4. Aging boaters 60% 5. E15 (15 percent ethanol fuel) 57% 6. Lack of minority participation 37% DEALERS/RETAILERS/MARINAS 1.Affordability 78% 2. Competition from other activities 64% 3. E15 (15 percent ethanol fuel) 63% 4. Aging boaters 62% 5. Water access 39% 6. Lack of minority participation 33% Source: Boating Industry survey turers and dealers was that dealers were much more likely to be worried about the impact of weather – 44 percent said it was very important, compared to 29 percent of manufacturers. Dammrich suggested that government issues are the most important challenge facing the industry, especially because of how they can impact other factors. "Frankly, I think the biggest risk to our industry is in Washington, D.C., at least in the next year," he said. "If we have more crises and more government shutdowns, it weighs on consumer confidence, it causes a contraction in the economy … and it's not healthy for the www.BoatingIndustry.com 12/18/13 9:59 AM