Virus created shortage in boating industry
Demand is exceeding production capacity, boating experts say
More Canadians are looking to spend their time on water as the COVID-19 pandemic continues. The demand of boats have dealers anticipating a drought in inventory.
In a press statement issued Thursday, organizers of the Toronto International Boat Show, said the majority of exhibitors at the 2021 show, which kicked off virtually on Monday, anticipate inventory will be sold-out or in low supply by spring.
It’s a matter of supply and demand, says Rick Layzell, CEO of the Boating Ontario Association, which represents over 500 members of the recreational boating industry in the province.
“We are very much a skilled trade sector. There’s a lot of experience and skill that’s involved in crafting a vessel, cruiser or any specific boat. So you can’t just flip the switch overnight. For about the last six months (there’s a shift) of how many would like to buy versus how many we can actually build.”
Steve Tait, general manager of Walkers Point Marina, a marine dealership in Muskoka, agrees.
“The demand is exceeding the capacity the manufacturers have to produce boats for us,” Tait explained.
“We’re basically trying to get consumers who do want to have something for the season to lock it down right now and pick their options (in advance). Last minute changes really disrupt the supply chain that’s already experiencing a lot of turmoil.”
Layzell says the high demand is because boating season is approaching and many are looking for a staycation.
“We’re probably into the spring before a bit of mass availability (of COVID-19 vaccines) comes available for Canadians — that’s boating season. Consumers aren’t necessarily going to be comfortable to go back to international travel so we’re seeing a continued push now at the retail level in the industry.
Adriana Molina, communications manager at Credit Canada, says that the consumerism trends have pivoted to increase people’s comfort at home.
While debt repayment is sometimes placed on a back burner, Molina says that there was an increase in more activity-focused items that help people cope with the pandemic regardless of their income.
“We’re seeing lots of purchases of motorcycles, RVs, off-road vehicles, anything that would make being at home more enjoyable because people aren’t going on vacation anymore,” Molina said.
“So, they take that money that they normally would have spent for vacationing and use it to buy recreational equipment and vehicles here just to make things at home more enjoyable. A lot of our clients earn less than 70K a year, but even if they don’t necessarily have the funds to invest in something like an RV or a boat, there are smaller purchases that are still significant to them being at home.”
Last summer, in the thick of the COVID-19 pandemic, a
2020 Moneris spend trend report shows that boat dealers across the country saw a spending volume increase in 17 per cent with a notable uptick of 26 per cent by Ontario dealers.
Lisa Hutcheson, a retail analyst of J.C. Williams Group, her organization observed a shortage of kayaks, paddle boards and fitness equipment in the summer and the sporting goods category was still seeing an uptick as of November.
“Outside of groceries, our big spending categories are sporting goods and home improvement,” Hutcheson said. “It really speaks to the fact that people don’t have other ways that they’re spending their disposable income if they have any
left, depending on their economic situation. They’re spending it on these things that they can get some satisfaction from.”
Layzell says for people who can afford them, boats are a way for families to be together in difficult times.
“This really is about that moment of (staying home and developing) things for the family,” he said. “Some of my absolute favourite memories are my kids on a tube behind an 18-foot runabout, laughing to their heart’s content. There’s so much doom and gloom in society right now. We’re all working our way through this thing. (On a boat in the water) is a time to get away from it.”