“It’s tough out there,” says NMMA president, “but Americans want to be on the water.”

In an address to IBEX, Frank Hugelmeyer, NMMA president and CEO, has set out what he regards as the market challenges and opportunities for the recreational boating industry in the USA in 2024.

“We’re facing some arduous headwinds in the market,” he says.

While he notes that the marine industry is facing significant political challenges, Hugelmeyer believes there are also opportunities.

He says that regulatory and economic headwinds are constant, regardless of election outcomes later this year and that the NMMA (National Marine Manufacturers Association) is working to position recreational boating to consistently succeed, despite those obstacles.

As well as sending thoughts and prayers to colleagues int he marine industry affected by Hurricane Helene, Hugelmeyer used his address to outline how higher inventory costs and inflation have affected boat sales, but future rate cuts could provide more relief. He notes that recent rate cuts may help relieve pressure on businesses, particularly in boat sales, by making borrowing cheaper, but says sales recovery is unlikely until post-election uncertainties are resolved.

“In the midst of the current downturn the Federal Reserve slashed its benchmark interest rate by half a percentage point last month, the first since covid, signalling a hopeful end to our battle against inflation and an important piece of the puzzle that could help re-energise boat sales.”

He expressed cautious optimism about discretionary purchases (like boats) as wages are now starting to outpace prices in the USA but notes that retail unit sales of new powerboats are expected to be down by 12-15 per cent due to pandemic impacts and increased competition for consumer attention and spending.

Entry-level products like personal watercraft and freshwater fishing boats remain resilient and Hugelmeyer sees an opportunity (and challenge) in converting first-time boat buyers into long-term, higher-end consumers.

“Those already on the water are using their boats and creating continued spending. It means a strong desire for boating remains and that Americans still want to be on the water. They’re purchasing what they can afford right now to make that happen. In many cases it’s either a personal watercraft or a fresh water fishing boat and those are two higher volume entry level products that have remained fairly resilient throughout the downturn.”

Other industries, such as RVs, have done well in nurturing customers from entry-level to higher-end purchases, and the boating industry needs to follow suit.

“I saw it firsthand in the RV industry,” he continues.

“RV-ers entered the market through a rental or a small trailer before moving to a fifth wheel and then onto a motor home. Nurturing that same journey for new boaters and entry level boaters so that they can become lifelong boaters is crucial to our long-term success.

“When it comes to market potential we have not even come close to tapping the true upside as an industry with only a 16 per cent diversity share in a 40 per cent diverse country we have significant potential to bring more Americans into our industry, more boaters to our shows and more customers to you.”