Boating Industry

February 2015

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www.BoatingIndustry.com 14 | Boating Industry | February 2015 MONTHLY RESEARCH There are two major factors driving that in- crease, said Peter Houseworth, Info-Link's direc- tor of client services. One is the higher scrap rate of PWC — they don't last as long as boats and are often cheaper to replace than make major re- pairs. Secondly, BRP's Sea-Doo Spark also made a major impact on the market this year, both in direct sales and its large marketing campaign that raised awareness of the entire category. "The Spark from BRP did very well," House- worth said. "It hit a sweet spot, with a high attrac- tion of first-timers and more … female buyers." When it comes to powerboats, readers were least optimistic about the sterndrive segment, which continues to struggle. Sales were down 8.8 percent through September, continuing a trend that started nearly a decade ago now. Despite the engine innovations coming from Mercury and Volvo Penta last year and this year, only a quarter of all respondents ex- pect to see sterndrive sales increase in 2015. Thirty-one percent expect sales to decrease this year, while 44 percent expect them to be unchanged from 2014. The only category about which readers are less optimistic is sail, with only 16 percent pre- dicting a better year in 2015 than in 2014, with 22 percent expecting a sales decrease. A familiar story When it comes to specific boat types, there are many segments about which readers are feel- ing confident. Not surprisingly, considering the success of the last several years, pontoons lead the way, with 82 percent calling for continued growth in that market. It's worth noting, though, that some respondents did express concerns about the segment reaching a "saturation point" this year or in the near future. The saltwater fishing segment also garnered high marks, with 67 percent of readers predicting that those boats will continue to rebound from the market crash. A majority of readers are also expecting deck boats (62 percent) and ski boats (53 percent) to continue their growth in 2015. Just less than half of readers expect the bass boat segment to grow. When it comes to runabouts and cruis- ers, though, they are markedly less optimistic. Barely a third of readers expect growth in run- about sales this year, while 23 percent expect BY JONATHAN SWEET Those working in the boating industry expect the growth of outboard power to continue in 2015, especially in the pontoon segment. That's according to the latest survey of Boating Industry readers. Conducted via the In- ternet in December, the survey includes a cross section of the industry including dealers, boat and engine manufacturers, service providers, suppliers and others. Outboard optimism Outboards were the first market segment to recover and sales have been growing for the last four years. Through September, outboard- powered boat sales were up 7.6 percent year- over-year from 2013, according to market data provided by Info-Link. Survey respondents are confident that trend will continue in 2015, with 84 percent predict- ing an increase in outboard sales this year. Only 2 percent expect to see a decrease in sales. The outboard segment easily topped the confidence list, as no other propulsion type had more than half of readers predicting growth. Forty-six percent of readers, though, expect to see the personal watercraft portion of the business continue to grow in 2015. The PWC segment was particularly strong in 2014, with sales jumping 21.4 percent through September, with 46,923 units being sold over the previous 12 months, according to Info-Link. Outboards, pontoons poised for 2015 success Readers less optimistic about sterndrives, survey shows LEAST OPTIMISTIC We asked readers what segment of the market they were least optimistic about this year. Sterndrives and cruisers were the most common answers, but here is some of what they had to say: "Sterndrive-powered cruisers. The aftermarket is horrible. I can't even give them away." "Sterndrives because of the expense of ownership." "Sail. Target demographic is aging and lower oil prices have those considering sail to choose or stay in power." "Inboards. Baby boomers are aging out of the cruiser market." "All new boats under 25 feet." "I think we've hit or are very close to the peak of sales in [pontoons]." "Runabouts – this market is slowly contracting and will continue until the fears of being a new boat owner are gone." "Sterndrives – too expensive, too much maintenance, nothing to get very excited about." "Pontoon. I feel there is too much competition in that category." "Jet boats. Not a good choice for first-time buyers and not as versatile as sterndrive for seasoned boaters." "Jet and pontoon. They've hit their peak." "Sterndrive. We see the new era of jet power offering too many advantages over sterndrive systems." "No matter how many new engine blocks you come out with, sterndrive seems to be the dinosaur of the industry."

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