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Companies in this industry are engaged in retail sales of new and used boats, as well as boat motors and trailers; they may also offer replacement parts and boat repair services. Major companies include MarineMax and West Marine.
The US boat dealers industry includes about 5,000 retail dealers with combined annual revenue of about $16 billion, according to the National Marine Manufacturers Association (NMMA), and is expected to see a moderate rate of growth over the next two years. Key demand drivers include a gradually improving US economy and increased revenue for repair and maintenance services as some boat owners opt to keep their older boats longer.
Demand for boats is closely linked to personal income and the general economy. The profitability of individual companies depends on good marketing. Large companies may have economies of scale in advertising and purchasing. Small companies compete by specializing in a certain category of boats, such as fishing boats, or by focusing on a specific customer segment, such as sailing enthusiasts. The industry is fragmented: the 50 largest dealers generate less than 30 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Dealers sell new and used boats, engines, parts, and a large variety of associated products. Other offerings typically include maintenance and repair services. Some dealers may operate marinas and winter storage services; sell service contracts, especially for boats with expired warranties; and provide financing, insurance, and boat brokerage services.
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