Supply Constraints Mean Better Buy Early
Published: Wednesday, March 10, 2021
By: Norm Schultz
No one could have predicted a pandemic would trigger a boat sales boom while boatbuilders were hampered by both supply constraints and extensive safety measures. But that’s what happened in 2020 and it’s expected to continue to impact boating most of this year, too.
It is, therefore, sound advice for anyone wanting to enjoy a new boat purchase for the upcoming boating season to act now or expect many models will be sold out.
A record number of families joined the boating lifestyle last year. New boat sales reached a 13-year high, up 12 percent accounting for more than 310,000 units. Freshwater fishing boats and pontoons led the sales boom because of their attractive entry-level price points. Likewise, more than 11,000 PWCs were sold which are often considered a gateway to larger boat ownership.
But the real surprise was the sales of more than 13,000 water sports models that have become attractive to new and active boating families that relish water skiing, wakeboarding, and the latest rage, wakesurfing.
In normal times, builders would be increasing production to meet demand. But these still aren’t normal times. For boat dealers, doing business during the continuing pandemic will remain challenging at best.
A survey of dealers in the Great Lakes region reveals most have already been informed by their manufacturers they will not get all their normal inventory of boats in 2021, and many popular models will even be rationed so all dealers will get at least some.
The shortages are two-fold. First, they’re a remnant from when Covid-19 closed all boat plants last spring. Hundreds of boats never got built. In addition, safety measures such as distancing were imposed to prevent the Covid spread, which negatively impacted production processes.
Second, as manufacturing backlogs were climbing, virtually every boatbuilder’s problems were compounded by the slow-downs of manufacturers in the parts supply chains. Boats missing parts couldn’t be completed and shipped to dealers for customers. Indeed, many models now arriving at dealerships are already sold to customers who ordered them last fall.
One example of the impact comes from a dealer in northern Ohio. He normally sells around 170 boats each year. This year, his builders have indicated he will likely only get about 100. Besides getting to a dealer and buying now, boaters and wannabes intent on a new boat in 2021 should expect they may have to be flexible on their model choice. The longer one waits to buy, the more likely a model could be sold out. But there can also be several other models from the same builder that essentially offer similar accommodations and performance. In other words, while a boat model may be designed with a principle use in mind, all boats can do many things, like the kids can still fish from a bowrider or a sailboat!
Finally, boat purchases are easily financed. Today’s interest rates are at record lows. All dealers can handle your no-hassle financing arrangements. So, why wait? There’s nothing like safely getting away outdoors, turning off that cell phone, and kicking back on the water. No matter where you live, nearby lakes and rivers are accessible and a boat is your ticket to ride to many wonderful experiences.
Reprinted from Soundings Trade Only
A version of this article appeared in the Spring Issue (Mar/Apr) 2021 of Great Lakes Scuttlebutt magazine.
tags: New Boat Models
