SIC 3732 Boat Building and Repairing

SIC 3732

This industry consists of establishments primarily engaged in building and repairing boats. Establishments primarily engaged in operating marinas and that perform incidental boat repair are classified in SIC 4493: Marinas. Membership yacht clubs are classified under SIC 7997: Membership Sports and Recreation Clubs; and outboard motor repair is classified under SIC 7699: Repair Shops and Related Services, Not Elsewhere Classified.

NAICS CODE(S)

811490

Other Personal Household Goods Repair and Maintenance

336612

Boat Building

INDUSTRY SNAPSHOT

The boating industry in the United States has grown steadily—albiet not dramatically—since late 1990s. The number of boats in service increased incrementally from 8.13 million in 1997 to 8.42 million in 2003. Sailboats were the only category that saw a slight decrease in operating units. Total value of shipments went from $5.61 billion in 1997 to $8.66 billion in 2003.

Although unit sales slipped during the economic recession of the early 2000s, revenues were bolstered by the sale of higher-end, higher priced boats, and by the mid-2000s the industry was poised for renewed growth. Increased prices tags on boats were driving up revenues even though unit shipments were stagnant in some categories. Low interest rates, consumer confidence, and a renewed emphasis on leisure also were helping the boating industry.

ORGANIZATION AND STRUCTURE

Outboard boats make up the largest category of boats built in the United States, accounting for approximately 48 percent of all pleasure boats owned in the mid-2000s and 21 percent of the industry's total shipment values. In 2003 about 207,000 outboard boats were sold and 8.42 million were in operation. Approximately 143 companies specialized in the manufacture of outboard boats in 2003. The value of outboard boats shipped that year was $2.74 billion, with an average per unit cost of $13,244. Boats in this category include runabouts, bass boats, utility boats, offshore fishing boats, and pontoons. Aluminum and fiberglass are the most common materials used in the construction of these boats.

Inboard/outdrive (I/O) boats, also known as stern drive boats, account for approximately 10 percent of U.S. pleasure boats sold and nearly 17 percent of industry revenues. More than 80 companies specialized in I/O boats in the mid-2000s. In 2003 the industry sold 69,200 stern drive boats for an average per unit cost of $32,097. Total sector shipments were valued at $2.22 billion.

Inboard boats mainly include cabin cruisers and sport boats. Ski boats accounted for 54 percent of the inboard sport boats manufactured and high-end cruisers accounted for the remaining 46 percent. In 2003 the industry shipped 11,100 ski/wake boats at a per unit average cost of $36,332, for an industry total of $403.3 million. Cruiser shipments totaled 9,300 at a per unit average cost of $372,820, equaling $4.47 billion—26 percent of the industry's total revenues.

Of the boats owned in the United States (about 1.6 million units), 9 percent are sailboats. This includes both nonpowered sailboats and auxiliary-powered craft. Altogether, sailboats represent about 1 percent of boats manufactured. The vast majority of sailboats built were in the 12- to 19-foot range, with 78 percent of all sailboats sold in 2004 in this range. In 2003 the industry shipped 16,700 sailboats. The average unit cost was $40,077, for an industry total of $669 million.

Personal watercraft, which were very popular during the 1990s, saw sales fall off during the first half of the 2000s. Units shipped in 2003 totaled 80,600 for a value of $716 million, down from 176,000 units with a value of $1.14 billion in 1997. Personal watercraft are small inboard engine boats powered by jet propulsion units and operated by a person or persons sitting, standing, or kneeling on them.

Other types of boats include unregistered small craft (canoes, rowboats, dinghies, etc.), open-deck boats (deck-style monohull runabouts and aluminum pontoons), and houseboats. In 2003 canoes and inflatables sold 86,700 units and 30,500 units, respectively. Kayaks sold 324,000 units.

Markets

In 2003 sales of boats, motors, trailers, and marine accessories were highest in Florida, which took more than 10 percent of total sales, followed by California and Texas, which accounted for 9 percent and 6 percent of all boat sales, respectively. Michigan and Minnesota followed, each with shares of 4 percent. Michigan had the most boat registrations on file (more than 1 million), followed...

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