Companies in this industry are engaged in retail sales of new and used boats, as well as boat motors and trailers; they may also offer replacement parts and boat repair services. Major US companies include MarineMax and West Marine.
Demand for boats is closely linked to personal income, consumer confidence, and the general economy. Industry groups also examine other indicators such as home sales, RV sales, light vehicle sales, and fishing license sales to gauge demand for boats. The profitability of individual companies depends on effective marketing. Large companies may have economies of scale in advertising and purchasing. Small companies compete by specializing in a certain category of boats, such as fishing boats, or by focusing on a specific customer segment, such as sailing enthusiasts. The US industry is fragmented: the 50 largest dealers generate about 30% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Dealers sell new and used boats, engines, parts, and a large variety of associated products. Other offerings typically include maintenance and repair services. Some dealers may operate marinas and winter storage services; sell service contracts, especially for boats with expired warranties; or provide financing, insurance, and boat brokerage services.