MARINE PROPULSION
North American Diesel Powerboat
Market Still Facing Choppy Seas
1987-2007 North American Diesel
Powerboat Production/Shipments
6000
5000
Exports
4000
3000
2000
Domestic
1000
0
1
1
1
1
1
1
9
9
9
9
9
9
8
1
1
1
9
8
8
9
9
9
7
9
2
2
2
2
8
9
9
9
0
1
1
2
1
1
9
9
9
9
3
1
9
4
2
9
9
9
5
9
6
7
2
0
0
0
9
8
9
2
0
0
0
0
0
1
2
0
0
0
0
3
s
t
2
0
0
6
0
5
4
7
E
.
0
0
A graphic representation of the ups and downs of the diesel powerboat market over the
last 20 years.
BY DAVE CROCKER
For at least three consecutive
years, the U.S. pleasure boat
market has been mired in a
prolonged slump that has impacted
virtually all traditional boat segments
from the smallest entry level boats up
to large inboard cruisers. Outboard
boat retail sales declined 7 to 8% in
2005, another 5% in 2006 and are on
course to decline again more than
10% in 2007. Gasoline sterndrive
boats declined 2 to 3% in 2005,
another 6% in 2006 and also appear
to be headed for a double-digit
decline for 2007. Domestic sales of
inboard cruisers, both gasoline and
diesel, have been on the decline
since their peak of 11,800 units in
2002, primarily from the gasoline segment. Cruiser sales plunged 13% in
2006 and could be headed toward
another double-digit drop this year.
According to statistics published by
the National Marine Manufacturers
Association (NMMA), U.S. pleasure
boat registrations for traditional powered boats totaled 379,000 units in
2006. Broken down, it looks something like this: 200,000 outboard
motorboats, 66,000 stern drive boats,
87,000 to 88,000 personal watercraft,
6000 jet drive boats, 13,000 ski and
wakeboard boats and 6750 gasoline
and diesel inboard cruisers. About half
of recent U.S. reported registrations
for inboard cruisers are believed to be
diesel, which is the focus of this report.
During the first three months of
2007, Power Products Marketing conducted its annual survey of more than
200 North American builders of diesel
powerboats to determine what
changes had occurred between the
2006 market and that of 2005. For
2006, Power Products Marketing estimates total North American diesel
powerboat production amounted to
about 4950 boats, which was down
about 8% from our revised estimates
of 5375 vessels for 2005 — but still
well above our estimate of 4250 boats
for 2003, when we last profiled this
market. North American production
had jumped nearly 15% in 2004 and
another 10% in 2005 to a record level,
mostly attributable to a surge in
export business.
According to Power Products Marketing analysis, about 23% of all
North American-built diesel powerboats were exported in 2006. This
compares with 19% in 2005, 13% in
2004 and 12% in 2003. These mostly
went to European customers and
many were sterndrive configurations.
Since 2003, exports have more than
doubled in the span of three years
and will exceed 25% of total builds in
2007. Many of these boats typically
have Volvo Penta, Yanmar and MerCruiser propulsion engines.
Dave Crocker is senior partner at Power
Products Marketing, a market research
company headquartered in Bloomington,
Minn. Phone: (952) 893-6870; Internet:
www.powerprods.com.
Analysis By Length
Inboard cruisers sold domestically
have suffered the worst in the 31 ft. and
under category for combined gasoline
and diesel. For diesel, all categories
less than 60 ft. in length suffered
declines in 2006, although the worst hit
appeared to be boats between 26 and
31 ft. and 50 to 60 ft. Boat sales over 60
ft., however, reportedly increased 30%.
