Report indicates improving boat market

HOFFMAN ESTATES, Ill. — GE Capital, Commercial Distribution Finance (CDF) has issued its 2011 Mid-season Update for the marine industry.

Bruce Van Wagoner, managing director of the Marine division at CDF wrote these comments in the report:

“We are generally pleased with the year-to-date results across the nation despite challenging regional weather conditions and an overall “mixed” macro-economic climate. Wholesale shipments in units are up 16% through May, and retail registration data on a like data set through June is indicating a slightly improved overall market performance compared to the same time frame last year.

“This positive news is being driven by strong improvements in the Aluminum, Pontoon, Sail and Deck Boat segments.

“The overall level of new boat inventory in the field today is likely at the industry’s historic low point, so as dealers align inventory levels to anticipated customer demand, we have experienced an increase (up 29%) in the dollar volume of new marine inventory we financed through June 2011.

“As we move into the new model year, aged and distressed inventory levels are back at or better than historic norms and continue to trend favorably. Our dealer inventory turns are also suggesting a much healthier marine environment, and have moved to levels stronger than the industry’s historic norm.

“Segment turns vary, but overall the inventory turn quartiles and average turn ratios speak to a recovering industry.

“As we move into the new model year, aged and distressed inventory levels are back at or better than historic norms and continue to trend favorably. Our dealer inventory turns are also suggesting a much healthier marine environment, and have moved to levels stronger than the industry’s historic norm.

“Segment turns vary, but overall the inventory turn quartiles and average turn ratios speak to a recovering industry.”

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button