The major boat manufacturers are in fairly sharp decline as we enter 2024.

In fact, dealers have significantly reduced their orders for new boats to put into inventory.

We are definitely in a buyer’s market. This article will give you some figures for a few manufacturers on the stock market.

But this drop is not generating a downward movement in prices for new boats, at least at Canadian dealerships.

But the situation is completely different for recent and especially very recent pre-owned boats. Prices are clearly dropping, and in some cases very sharply, for units priced in excess of $1.5 to $2 million.

The buyer knows he’s in an excellent position to negotiate, as supply is abundant and buyers are rarer, so to sell, you need to be open to negotiation or benefit from a particular context. For this to happen, the boat has to be a rare commodity, in terms of the model itself, its characteristics and, of course, its excellent level of maintenance.

Prices are showing a little more stability for units priced at $750,000 and under, still in the pre-owned boat segment. However, this situation is volatile, especially on the American market, where the abundance of supply is incredible.

The Canadian market, on the other hand, is evolving differently, with sales rather quiet. What’s more, marinas that were at full capacity in previous years have availability this year (in the greater Montreal and Quebec City areas).

What does the summer of 2024 and the end of the season have in store for us?

Latest news as of May 28, 2024

BRP Recreational Products also announces layoffs at two of its factories due to weak demand and very high inventory levels at dealerships.

Here is the BRP press release in brief:

Last week, Bombardier Recreational Products laid off 148 employees at its Sturtevant, Wisconsin, plant, two months after laying off 150 people in March, according to published reports. The company also laid off 106 people at its Alumacraft factory in Saint Peter, Minnesota.

According to WiscNews, these layoffs are attributed to continued unfavorable economic and market conditions.

BRP’s Emilie Proulx said the company made the layoffs after deciding to reduce production volumes. “As part of our latest financial results, we announced that we were proactively adjusting our production volumes. and our deliveries for the coming quarters against the backdrop of lower consumer demand in the current macroeconomic environment,” she said. “As such, and given the general slowdown in the boating industry and high dealer inventory levels, we have had to reduce production at our Sturtevant facility.”

BRP brands (nautical): SEADOO, ROTAX, ALUMACRAFT, MANITOU

Here’s the article to read…(in French or English), click here.

 

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