Boat Building Industry Profile

Companies in this industry manufacture boats intended primarily for consumers' personal use, including inboard and outboard motor boats, sailboats, rowboats, yachts, and rubber and plastic inflatable boats. Major companies include Brunswick, Marine Products, Trinity Yacht, and Viking Yacht.

The US boat building industry includes about 900 companies with combined annual revenue of about $6 billion and is expected to experience high growth over the next two years. Consumer confidence is a major growth driver.

Construction of commercial and military vessels is covered in the Shipbuilding & Repairing industry profile.

COMPETITIVE LANDSCAPE

Demand depends on growth in consumer income. The profitability of individual companies is linked to manufacturing efficiencies. Large companies have advantages in marketing and distribution. Small companies can compete by specializing in niche markets. The industry is concentrated: the largest 50 companies generate about 75 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product segments are outboard motorboats (40 percent of revenues); inboard motorboats (30 percent); and inboard-outboard boats (20 percent). Other product types include sailboats and canoes. Some boat builders also do repair work, operate marinas, and sell auxiliary equipment and supplies on premises.

Boat building facilities vary from a few thousand to more than 100,000 square feet, and outside storage areas may extend to several acres. Most manufacturing locations for larger boats are on navigable waterways, as the finished product can't easily be shipped over road. Other boat manufacturers locate as close to primary ...