2013 could see continued 5-10 percent growth for industry
By Christopher Gerber, Associate Digital Editor
January 4, 2013
Filed under Chris Gerber
The NMMA said this week that following an estimated 10 percent increase in powerboat sales during 2012, the industry could see as much as 5-10 percent more sales during 2013.
The NMMA said that those factors depend on the improvement of indicators such as consumer confidence and the housing market as well as an increase in the outdoor activity participation rate.
Throughout 2012 both measures of consumer confidence, Thomson Reuters/University of Michigan Consumer Sentiment and The Conference Board’s Consumer Confidence, were up year-over-year, indicating that consumers are not just more positive about the current economy, but about the future as well (until fiscal cliff worries started to factor in).
One indicator, the Consumer Sentiment index, found that consumer assessment of current conditions was up 13.3 points year over year through November and the future expectations index was up 22.7 points, leading to a 19 point year-over-year increase in consumer sentiment. But, those gains were lost in December after the expectations and sentiment indices plunged against signs that congress and the president may fail to reach a fiscal cliff compromise.
The Conference Board’s consumer confidence index followed similar trends. After several months of growing confidence and positive expectations, turned in slightly in November for plunging down in December.
Boat sales in 2012 followed with consumer confidence. According to Info-Link data through November, year-over-year boat sales were rising as much as 12.5 percent, and the average Spader dealer had 13 percent more new boat sales for the year through the end of October. Helped by mild weather and an early year jump in consumer sentiment and expectations, this lead to a strong start to the year which fought off late season economic worries.
If Fiscal Cliff worries are somewhat abated before the boating season begins, consumer confidence and an improving housing market could very well drive the NMMA’s early projections of of 5-10 percent more sales in 2013.