Stormy seas: While profit is expected to expand, growth will be limited by rising input costs

As a highly discretionary purchase, boat sales plummeted amid the recession. Several companies were forced to exit the industry, and low demand, coupled with volatile steel prices, limited profitability. However, over the next five years, rising consumer confidence and favourable exchange rates are estimated to boost industry revenue slightly. Still, the lead time for boat building is high and forecasting production is difficult given demand is affected by several unforeseeable factors, such as more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Operators have increasingly invested in ecofriendly technology to increase their competitiveness
  • Fluctuations in the price of aluminim significantly impact purchase costs
  • While profit is expected to expand, growth will be limited by rising input costs
  • Industry Report - Industry Investment Chapter

    The Boat Building industry in Canada has a low level of capital intensity. In 2018, industry operators are expected to invest $0.08 of capital for every dollar spent on labour, representing a marginal increase from $0.06 in 2013. The majority of industry operators create custom models that cannot be automated, increasing the level of labour this industry requires which keeps capital intensity at bay. Nonetheless, many players within the industry only own one facility, making it difficult to lower facility capital costs through economies of scale.Capital costs are expected to increase as technology improves and the industry requires more specialized machinery and equipment. Alt...purchase to read more.

    Additional Insights for the Boat Building Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Boat Building Industry are

  • Undertaking technical research and development
  • Financial structure of the company
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Leisure time in the Boat Building industry impact industry performance..

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    What's in this report

    What is the Boat Building Industry?

    This industry is composed of establishments that build boats, which are defined as watercraft not built in shipyards and typically intended for personal use. This does not include establishments engaged in the Ship Building industry (IBISWorld report 33661aCA).

    Industry Products
  • Outboard motorboats, rowing boats, canoes, sculls and other
  • Inboard motorboats
  • Sailboats
  • Industry Activities
  • Dinghy
  • Motorboats building
  • Rowboats
  • Sailboat building
  • Yacht building
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • Leisure time
  • World price of crude oil
  • Canadian effective exchange rate index

  • Current Performance
  • Industry volatility
  • Aging customers
  • Growing trade
  • Pressure on profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Consolidation and inputs
  • Fuelling demand
  • International outlook
  • Table: Boat Building Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Boat Building Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting In Canada
  • Boat Dealership & Repair in Canada
  • Ocean & Coastal Transportation in Canada
  • Inland Water Transportation in Canada

  • Key Selling Industries
  • Engine & Turbine Manufacturing in Canada
  • Glass Product Manufacturing in Canada
  • Millwork in Canada
  • Navigational Instrument Manufacturing in Canada
  • Paint Manufacturing in Canada
  • Wind Turbine Manufacturing in Canada

  • Products & Services
  • Inboard motorboats
  • Outboard motorboats, rowing boats, canoes, sculls and other
  • Sailboats
  • Chart: Boat Building Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Consumers aged 31 to 49
  • Consumers aged 18 to 30
  • Consumers aged 50 to 64
  • Consumers aged 65 plus
  • Chart: Major Market Segmentation for the Boat Building Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Boat Building

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Boat Building Industry

  • Industry Globalization
    Brunswick Corporation, Pelican International Inc.,
  • Table: Brunswick Corporation - financial performance
  • Table: Pelican International Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Boat Building Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Boat Building Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Leisure time (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Inboard Motorboats
  • Mid-size boats powered by an attached engine located inside the hull.
  • Outboard Motorboats
  • Small to medium-size boats that use a self-contained detachable engine and propulsion system attached to the transom.
  • Personal Watercraft (Pwc)
  • A recreational watercraft that the rider sits or stands on, rather than inside of (as in a boat).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Boat Building market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Boat Building:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Boat Building market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Boat Building, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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