Latest Industry Research Unveiled in Miami

Annual North American Sailing Industry Study produced by The Sailing Company reveals critical insight into sailing trends.

Several key industry findings and trends were shared with Sail America members during Strictly Sail Miami, based on the latest survey results commissioned by The Sailing Company, and conducted by Rick Walter MarketResearch Associates.

Publisher Sally Helme presented the findings in three separate areas: bareboat charters, North American imports and North American sailing industry study. Key highlights are shared below.

BAREBOAT CHARTERS
Based on the results of 65 bareboat charter companies, bareboat charter sales for 2008 were down just three percent below the previous year, though the fleet decreased below the 3000 level for the first time in the decade as companies maximized usage of their newest and most profitable models. The third quarter suffered the greatest hit with sales off 15 percent, which adversely affected the prime season for North American destinations.

The Caribbean continued its market share dominance, claiming 63% of the market in 2008, one percent ahead from the previous year. Specifically, the Virgin Islands and Puerto Rico were the top performers, maintaining course with results for 2007. North American sailing enthusiasts pumped $75,000,000 into the bareboat charter business.

NORTH AMERICAN SAILBOAT IMPORTS
Some 55 importers of sailboats were surveyed via phone, mail and email, representing an 80% response rate which included all major importers.

Importers trimmed their sales two years in a row, down 63 units in 2008, for a 15% decrease. Small cruisers from 20’ to 35’ took a huge hit with a 45% decrease, and the 36’ to 45’ category saw a 17% decline. The biggest boats (46’ and over) increased 10%, supported primarily by custom orders.

Nine out of ten imports are now concentrated in the more profitable and more frequently custom-ordered 36’ and larger category. Imported multi-hulls account for 32% of all imports to North America and posted a 7% increase from the previous year.

Importers missed their 2008 forecast by 19% and anticipate a “serious hit” in 2009, predicting imports will be down by 16%.

NORTH AMERICAN SAILING INDUSTRY STUDY
Over 90% of all builders, including the market leaders, participated in this survey study, with 113 out of 126 providing production data. The total full-time production workforce was down by 23%, while aggregate sailboat production was down 18% over last year. Exports remained flat, down 2% vs. ’07, thanks to more favorable exchange rates.

From a production perspective, all segments struggled equally: 0’ to 19’ declined 19%, 20’ to 35’ cruisers declined 24% in units produced, and 36’ or more were reduced by 18%. Smaller cruisers are still the largest category in units but there has been a “stunning shift” to larger boats over the past five years. Midsize units from 30’ – 35’ were down 35% as builders focused efforts on the 46’ and over category which made up 23% of the big cruiser production, up from 12% in 2004. Multihulls saw a decrease of 17% in 2008 and now account for 16% of total North American production.

As was the case with the importers, North American boat builders’ predictions were off by 20% for 2008, and builders predict “further declines” for 2009.

THE CHALLENGE AND OPPORTUNITY
Based on the survey results and forecasts, Helme made specific recommendations as to how sailing companies can maximize the opportunities for sales during these economic conditions. She said that companies should seek to relate to their customers and to remember that buyers are interested in “securing their passion, growing their knowledge base, investing in their families and protecting their assets.” From a business and operations strategy, she advised companies to, “invest in industry initiatives, secure brand visibility, protect the best workers, and educate and innovate.”

For more information contact The Sailing Company, telephone (401) 845-5105 or email sally.helme@thesailingcompany.com.

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