2012 A Look Back

With 2013 upon us we wanted to have a quick look back on the market as a whole with some data to compare to 2012,2011,2010 and 2007 (pre great recession) to give you a sense for what the industry overall looks like. We know Knot 10 has grown quite a bit in that time but its more from taking market share as opposed to a growing pool of boats being sold. It’s interesting to see that the Maryland/Virginia market appears the most stable thru this comparison while the harder hit was Florida which coincides with the sharper decline in that market’s real estate values over this time period.

2007

2010

2011

2012

Diesel Power Boats Settled
Florida

2303

1720

1775

1613

Maryland/Virginia

594

556

529

573

CT, MA, RI

617

545

487

533

Gas Power Boats Settled
Florida

3146

2916

2864

2842

Maryland/Virginia

1571

1609

1774

1784

CT, MA, RI

2182

1923

1678

1793

It’s undeniable that certain segments of boats have been hit far harder then others. Sportfish Convertibles have had a sharp decline and performance boats have been decimated while other broader cruising and motoryacht styles have seen little impact and demand has remained consistent. This has to be a simple supply and demand equation with loads of boats built and sold from 1998-2007 and far fewer buyers coming into the market as those owners decide to sell, trade or exit boating altogether. The one positive is that in the Sportfish segment 2012 showed some signs of positive growth over previous years as prices have in many cases lured buyers to clean boats with exceptional value.

 

2007

2010

2011

2012

Sportfish Convertibles

 

 

 

 

Bertram Sportfish 39-70′ 1995-2010

75

40

49

59

Viking Sportfish 40′ to 77′ 1995-2010

177

120

128

137

Ocean Yachts 40′ to 45’ 1995-2010

35

18

23

20

Various Builds

 

 

 

 

Hinckley 35-42′ 1995-2008

28

30

24

24

Carver 39-50′ 2000-2008

106

107

114

104

Formula 30-40′ 1996-2006

164

151

170

171

Performance Go Fast

2007

2010

2011

2012

Cigarette All Models

44

14

21

18

Sonic All Models

22

11

11

3

Going into the New Year and on the heels of many boats being replaced in the NJ/NY market we expect 2013 to probably show another slow year of growth for the overall used boat market. I certainly don’t expect a decline in our own numbers but for the overall boating market slow growth I believe is the best that can be expected.

The one change that could end up impacting the boating market on a longer term basis are signs that the housing market is recovering and showing appreciation in certain areas. It’s quite hard for people to feel positive about spending money on a major purchase like a boat with a constant negative trend in home values. The psychological effect of negative home equity, foreclosures, and a sick housing market weighs heavy on those that can afford to boat and want to experience the lifestyle yet are reticent to do so until the housing news is a bit more positive. If you have noticed there has been news proclaiming a turn in housing starts, permits, and resale data. That is absolutely a trend that can only help the boating industry although those results will take a year or two to show up. Think about it if you want to spend $200k on a boat are you more likely to do it knowing your house is continuing to lose value or when signs show you are in appreciation mode?

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