Hugelmeyer: ‘We Find Ourselves in a Period of Transition’ – RVBusiness – Breaking RV Industry News

EDITOR’s NOTE: The following is an excerpt of an op-ed piece authored by Frank Hugelmeyer, president and CEO of the National Marine Manufacturers Association (NMMA), that was published by Soundings Trade Only, a trade publication that covers the marine industry. Hugelmeyer was previously the president of the RV Industry Association (RVIA). Click here to read the op-ed piece in full.

As 2023 winds down, recreational boating and fishing continue to be the backbone of America’s outdoor recreation economy, driving economic growth and providing countless jobs. However, we find ourselves in a period of transition, marked by shifting market dynamics, economic uncertainties and a focus on innovation.

According to the U.S. Bureau of Economic Analysis, recreational boating and fishing have consistently held their position as the leading contributors to the $862 billion outdoor recreation economy, accounting for 1.9% of the U.S. gross domestic product. During the past few years, we’ve witnessed an unprecedented surge in consumer interest and spending on boating. The Covid-19 pandemic redefined how people lived, worked and played, resulting in a surge in outdoor engagement. People found solace and enjoyment in the great outdoors, with boating and fishing at the forefront of this trend.

Frank Hugelmeyer

But with any rapid surge, a correction is inevitable. In 2023, our industry entered a new phase characterized by changing market dynamics and economic headwinds. Historically, new-boat sales have been closely tied to consumer confidence, and there is no doubt that consumer wallets are stretched thin from rising interest rates, the return of student loan payments, and inflation. There’s no doubt that these factors collectively hurt boat sales.

We are also seeing challenges to the remote and hybrid work arrangements that benefited outdoor recreation during the pandemic. As other forms of entertainment and travel compete for consumers’ time and resources, our industry is feeling the pinch.

Heading into a new year, we are trending toward an oversupply of small, entry-level boats, partly driven by a lack of consumer credit. This oversupply has been exacerbated by the lag in our industry compared with the RV industry, which is already grappling with a significant oversupply of recreational vehicles. As a result, marine dealers have adopted a more conservative posture.

In this landscape, total new-boat unit sales for 2023 are estimated to be down compared with 2022, indicating that momentum is leveling off. Some boat types are faring better than others, with freshwater fishing boats, pontoon segments and smaller fiberglass models facing the most impact. In contrast, larger boats and personal watercraft continue to show relative resilience.

Click here to read the op-ed piece in full.

Source: https://rvbusiness.com/hugelmeyer-we-find-ourselves-in-a-period-of-transition/