Marinas in the US Industry Market Research Report Now Available from IBISWorld

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After a rocky period of losses in revenue and demand, revenue will make a marginal recovery over the next five years. The expansion of marinas to include other services will drive this growth, but the industry will continue to be hampered by low boating registration numbers and participation numbers. However, a renewal in consumer sentiment and disposable incomes will encourage greater discretionary spending on recreational activities like boating, boosting overall demand. For these reasons, industry research firm IBISWorld has updated its report on the Marinas industry.

IBISWorld Market Research

IBISWorld Market Research

Though the industry will recover over the next five years, growth will be slow

The Marinas industry was unable to escape economic turmoil in recent years. “The industry has suffered from lower boat sales, as consumer discretionary spending fell sharply during the recession,” says IBISWorld industry analyst Lauren Setar. This factor has flattened demand for slip rental, launching fees and storage, which together generate about 40.0% of industry revenue. Sales have also been hampered by reduced maintenance revenue, merchandise sales and food and beverage income since fewer people have gone boating. Over the five years to 2012, revenue in the Marinas industry is expected to decline at an average annual rate of 1.7% to $3.9 billion, including a sharp dip of 5.0% in 2009. From 2011 to 2012, IBISWorld estimates that revenue will remain fairly stagnant, dropping just 0.8%, as demand for such luxuries has not yet recovered. However, profit margins have improved and make up about 12.1% of industry revenue in 2012. Poor performance during the recession caused industry operators to cut down on costs, but this lean approach has led to higher profit in more recent years as expenses have stayed low.

The Marinas industry has a very low level of concentration. “There are a significant number of small players in this industry,” says Setar, “adding to the industry's fragmented nature.” A significant majority of establishments in the Marinas industry employ less that 20 people. The low level of concentration within the industry is not expected to change significantly over the next five years. Due to the small size of most firms and the limited resources generally available to them, IBISWorld expects few significant mergers and consolidations in the future.

Over the next five years, firms will seek to increase revenue by adding to their core services of slip rental. A number of marina operators will look to expand revenue by offering sales of food and beverages through full-service restaurants, while others will focus on growing equipment rental offerings and merchandise sales, which have dwindled in recent years. Boat repair and maintenance will continue to lift sales, becoming an increasingly large service segment, with associated profit margins among the best of the industry's segments. This segment makes up about 15.0% of revenue, providing the industry with an opportunity for growth. Over the five years to 2017, IBISWorld forecasts that revenue will grow marginally, as is the number of employees. The growth rate will remain low as operators face the challenge of retaining employees due to the industry's potentially dangerous and grueling work.

For more information, visit IBISWorld’s Marinas in the US industry report page.

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IBISWorld industry Report Key Topics

Marinas provide docking and storage for pleasure craft owners. Marinas may also sell fuel and marine supplies and provide services such as repairing or renting boats. Many marina operators offer sailing instruction in addition to recreational boat rental.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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