Canadian marine retail market increased 13 percent in 2012
In 2012, Canada’s new boat and engine retail sales were estimated to have increased by 13 percent over the prior year, which was similar to the double-digit growth year estimated for the United States, according to an audiocast produced by the National Marine Manufacturers Association Canada and GE Capital.
In a GE Capital survey of more than 200 Canadian middle-market CFOs, most were expecting moderate growth in the economy and have plans to hire more people in the upcoming year, according to GE Capital marine expert Richard Straka.
“All of this is a good indication that the marine industry should continue to grow,” Straka said.
Transfers of Canadian licensing data point to retail sales of new boats and engines surpassing $2 billion in 2012 – a 13 percent increase over 2011 and included a 10 percent increase in outboard sales, specifically, according to Sara Anghel, executive director of NMMA Canada.
Straka said shipments of fiberglass boat models increased by 14 percent and aluminum models increased by 16 percent in 2012.
Stocking levels peaked in June with fiberglass models still 15 percent lower than pre-recession levels in 2008. However, Straka said aluminum models surpassed stocking levels in 2008, pointing to the market fully recovering from the downturn.
Regionally, Straka said there was a 50-percent increase in ordering in both Saskatchewan and Manitoba due to the economy and new dealers entering the market. Ontario, British Columbia and Alberta saw increase of around 20 percent, while Straka said ordering in Quebec and Atlantic provinces increased only single digits.
Anghel said outboard engine sales were strongest in Ontario, British Columbia and Quebec, which as a group account for more than 70 percent of outboard sales in Canada.
Currently, Straka said dealers are at a healthy aged inventory number of 15 percent – a number he expects to improve in the first part of 2013.