A recently released report from ITR Economics said that boatbuilding is expected to decline next year and rebound in 2021. NMMA’s Currents e-newsletter cited the report, saying that boatbuilding will dip by summer 2020, but it still will be on the same level as spring 2019.
This story by Michael Verdon originally appeared in Trade Only Today.
Trade Only Today was unable to cite data from the report because of contractual agreements between the National Marine Manufacturers Association and ITR Economics. NMMA commissioned the study for its members.
NMMA President Thom Dammrich calls recent economic news about looming recessions “a lot of noise,” and says this year’s decline in sales could be attributed to weather, particularly in the Midwest. He also called “tariffs” a headwind for the industry.
“The sky is not falling,” Dammrich said. “The economy’s still growing at 2.5 percent. We’re not going to lose anybody through this little softness, especially if you manage your business correctly. It’s important to plan ahead for the business cycle in 2020.”
The industry has been “up” for eight consecutive years, so next year will be a question of managing inventory, said Dammrich. “We don’t want to be caught with growing inventory. Since the recession, the industry has been good at aligning inventory with boat sales. Next year it will be a question of having as much inventory as you need for sales.”