Please select your home edition
Edition
C-Tech

USA demand for cruising boats 'disappointing'

by Sail-World Cruising round-up on 20 Jul 2011
Disappointing year for yacht dealers SW
A wide-ranging survey of 288 dealers in the USA confirms that 2011 has been a disappointing year for yacht and boat dealers. According to a report from Royal Bank of Canada (RBC) Capital Markets, '2011 is not the transition year that many hoped for going into the selling season.'

'Dealers expressed disappointment with what appears to be a flat to slightly down year for new boat sales. However, RBC's guidance and investor sentiment reflect a flattish year, so we view these results as roughly neutral, versus expectations,' analyst Edward Aaron wrote in his report. The survey was done in conjunction with Boating Industry magazine.

Bright spots in the survey include:

• Small-boat categories continue to show gradual recovery and dealers are reporting robust used boat sales and service business.

• There are pockets of geographic strength, including evidence of a recovery in Southern markets.

• Inventories remain healthy.

Still, Aaron wrote, 'Dealers have grown more cautious in recent months, reflecting disappointing sales performance and negative macro headlines. The biggest fundamental problem, by far, is that ‘trade-up’ segments, cruisers in particular, are still very weak despite absorption of late model year used inventory.'

Aaron noted that the survey results are consistent with expectations for a 'flattish' year for the industry.

'Our best guess is that [second-quarter] retail sales were down slightly following the 1 percent decline reported in [the first quarter],' he added. 'We expect data to show single-digit growth in aluminum … flat growth in outboard … and an approximately 20 percent decline in sterndrive/inboard.

'While dealers are broadly disappointed with [second-quarter] business performance, investor expectations have come down since last quarter and no longer reflect expectations for positive industry growth in 2011,' Aaron wrote.

About half of the dealers said that the key second-quarter selling season was below expectations, though 20 per cent said it was above their forecasts. About 40 per cent reported positive new-boat sales through the second quarter, with 24 per cent seeing a decline. Though pessimistic about macro-economic conditions, a majority of dealers said that financing was better than they had experienced in the first quarter of 2011.

But only 29 per cent of the dealers maintain an optimistic outlook, compared to the previous survey in the winter, when 60 per cent said reported optimism
Protector - 660 x 82Giacomo Yacht SaleRS Sailing 660x82

Related Articles

Int Moth Worlds - Zhik returns to its spiritual home at 2017 Worlds
Zhik is returning to its roots as the official clothing sponsor of the 2017 McDougall McConaghy Moth World Championships Zhik, the innovative sailing apparel specialist, is returning to its roots as the official clothing sponsor of the 2017 McDougall McConaghy Moth World Championships. And, ten years on, the Moths are returning to their spiritual home on Lake Garda. Zhik and the International Moth class are virtually synonymous with each other.
Posted on 20 Jul
Cheeki Rafiki - Douglas Innes to face retrial over manslaughter
Douglas Innes to face retrial over manslaughter The Director of Stormforce Coaching, the company that ran Cheeki Rafiki, is set to face retrial for manslaughter over the deaths of the four crew. They were 700nm from Nova Scotia, returning to Southampton after racing in Antigua when the keel feel off. It is said that previous groundings had weakened the keel bolts....
Posted on 17 Jul
Rytov continues to defend lead at 2017 Melges 20 European Championship
On the eve of final day at Melges 20 European Championship Russia's Igor Rytov & his Russian Bogatyrs remains in command On the eve of the final day at the 2017 Melges 20 European Championship, Russia's Igor Rytov and his Russian Bogatyrs remains in command. Thanks to a very consistent performance thus far, they are inching ever closer to capturing the top European title and trophy.
Posted on 15 Jul
Get better wave forecasts from PredictWind and ECMWF
Predictwind is well-known for accurate wind forecasts but now leads the way with accurate wave forecasts PredictWind is well known for its world leading accurate wind forecasts, but did you know Predictwind also leads the way with accurate wave forecasts?
Posted on 12 Jul
Centennial Transat builds bridge to a flying future
The Queen Mary 2 won its battle with the four 30-meter trimarans, as expected, in upwind conditions for the sailboats The race was timed to mark a hundred years since American troops arrived on the shores of France in WW1, and it also brought together all of the fastest Ultimate trimarans for the first time as the class begins to take flight.
Posted on 7 Jul
X-Yachts announce the new X49 as the latest member of the 'X' range
In 2016, X-Yachts launched the new pure ‘X’ range which included the X4³ and the X65.  In 2016, X-Yachts launched the new pure ‘X’ range, which included the X43 and the X65. This range was exceptionally well received by both press and clients, with more than 50 yachts sold in the first year. The ‘X’ range incorporates the best elements from both the Xcruising range and the Xperformance range into one beautifully designed performance cruiser
Posted on 6 Jul
Sailors for the Sea named an Environmental Innovator of the Year
Green Sports Alliance presented annual Environmental Leadership Award and Environmental Innovators of the Year Awards The Green Sports Alliance presented their annual Environmental Leadership Award and Environmental Innovators of the Year Awards, the highlight of their annual Green Sports Celebration on Wednesday, June 28th at the Green Sports Alliance Summit in Sacramento, CA.
Posted on 5 Jul
The Bridge – Colville nurses boat and crewman to third place finish
Arriving in New York on Independence Day will be some consolation for finishing lower on the podium than Colville wanted Sodebo Ultim’ finished five hours nine minutes and 52 seconds after second-placed IDEC Sport and 15 hours 47 minutes and 35 seconds after the winner Macif.
Posted on 4 Jul
The Bridge – Francis takes second but not passing the flame on yet
Joyon and his crew of Alex Pella, Gwénolé Gahinet, Sébastien Picault and Quentin Ponroy exchanged the lead with Macif IDEC Sport remained in the hunt, 30-50 miles behind, and Joyon used all his nous to make it quickly through transition zones and keep a boat 10 years older and several tonnes heavier in contention.
Posted on 4 Jul
François Gabart and Macif win The Bridge – Centennial Transat
François Gabart and his five-man crew on Macif have won The Bridge – Centennial Transat trimaran race François Gabart and his five-man crew on Macif have won The Bridge – Centennial Transat trimaran race, crossing the finish line under the Verrazano-Narrows Bridge in New York, on Monday, July 3 at 13:31:20 (local time), 08 days, 00 hours 31 minutes and 20 seconds after leaving from under the Saint-Nazaire Bridge. Macif sailed 3,582.13 nautical miles at an average speed of 18.61 knots.
Posted on 4 Jul