Issue link: https://read.dmtmag.com/i/776460
February 2017 | Boating Industry | 29 [ 2017 Outlook ] www.BoatingIndustry.com SSI, sterndrive sales growth is negative overall but 20-foot-plus sterndrive boat sales were up in the period ending September 2016. Kloppe believes the Volvo Penta Forward Drive is helping this segment recover, especially as the ski/wake category continues to experience double-digit growth. "I think with the ski/wake segment in general doing very well, Volvo with their forward-facing I/O, that should probably help the sterndrive category a little bit as well for the future," he said. "That surfing/wakesurfing/wakeboarding fun atmosphere is a trend that's catching on and has continued growth." Ultimately, the positives in the sterndrive seg- ment are largely due to a low number of units being sold, which is still well below their pre- recession days. When you're down to selling 12,000 units, 240 units is a 2 percent increase. "It's just been decimated. That as a category, it's amazing how much smaller it is. At one point, I think it was 50,000 units a year, and now it's [more] like 12,000," said Houseworth. While all regions in the U.S. performed on track with previous years' trends, California's growth in 2016 was significant compared to previous years. California and Florida were 0% 5% 2% 0% 4% 13% 7% 4% 8% 30% 20% 10% 21% 25% 23% 30% 35% 26% 66% 30% 42% 54% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall economic conditions Government regulations Weather Consumer confidence The new presidential administration 5 – Very important 4 3 2 1 – Not important at all 2% 3% 13% 11% 4% 3% 19% 3% 9% 16% 11% 12% 10% 19% 19% 17% 31% 22% 26% 26% 32% 33% 32% 21% 20% 30% 34% 21% 43% 40% 18% 35% 27% 28% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Affordability Workforce challenges (Finding and keeping good employees, etc.) Limitations on water access Increased use of E15 (15 percent ethanol) fuel Competition from other activities for consumer dollars Increasing age of boaters Lack of minorities participating in boating 5 – Very concerned 4 3 2 1 – Unconcerned HOW IMPORTANT DO YOU EXPECT THE FOLLOWING TO BE TO YOUR COMPANY'S SUCCESS IN 2017? HOW CONCERNED ARE YOU ABOUT THE FOLLOWING CHALLENGES TO THE BOATING INDUSTRY? Up more than 25 percent 12% Up 10 to 25 percent 40% Up less than 10 percent 26% Flat 12% Down less than 10 percent 6% Down 10 to 25 percent 4% Up more than 25 percent 9% Up 10 to 25 percent 45% Up less than 10 percent 35% Flat 9% Down less than 10 percent 2% REVENUE IN 2016 VS. 2015 WHAT ARE YOUR REVENUE EXPECTATIONS FOR 2017 COMPARED TO 2016? Source: Boating Industry survey, December 2016