It wasn’t long ago that many boat dealers and manufacturers were closing their doors and packing up shop salvaging what they could. After the market crash in 2008, boats were seen as unnecessary luxury items and most were kept in the driveway that coming season entombed in shrink wrap. It was one of the first costs cut in now struggling households, the last thing on anyone’s mind was “Hey lets buy a new boat!”
Now, after a good fiscal year and because of recovering markets, forecasts for the industry are skyrocketing. A market forecast by “AnythingResearch Economic Analysis” projects an almost 100% increase in the market in the next five years.
A good example of the turning tide in the boating industry is the publically traded Brunswick Corporation, the makers of Sea Ray. In October 2009 stocks were at around 12 dollars a share, they not only survived the crash but have seen highs in the $50 range this year.
Many big names in the game are also coming back from the dead and thriving. Chris Craft, a manufacturer once world renowned for impeccable quality and construction put its first boat out in 1874. After floundering a few times throughout the 20th century the company is now on the up. Prior to the recession in 2007 the company reported sales in excess of 60 million dollars. This is after its name and assets were bought for a mere 10 million dollars and hadn't sold a boat in decades. In the latest available report for 2012 the company stated its sales bounced back and were in the upper 30 million dollar range.
It seems that in many places the boating industry is growing and is something to think about. Warren Buffet himself recently invested in Brunswick Corporation (BC) and many other investors are bullish and optimistic in their predictions for the sector.