Though the industry will recover over the next five years, growth will be slow
Los Angeles, CA (PRWEB) August 23, 2012
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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