Diksia.com - The boating industry experienced a remarkable boom during the COVID-19 pandemic, as people sought outdoor recreational activities that allowed for social distancing. This led to a surge in demand and a rise in prices for both new and used boats from 2020 to 2022. However, as the pandemic subsides and the global economy recovers, many potential boat buyers wonder: are yacht prices falling in 2023?
The answer is not so simple, as there are several factors that influence the price of yachts, such as supply chain issues, inflation, interest rates, consumer demand, and oil prices. In this article, we will analyze each of these factors and provide a forecast for the boating market in 2023 and beyond.
Supply Chain Issues
One of the main reasons why yacht prices increased in the past two years was the disruption of the global supply chain caused by the pandemic. Shortages of materials like fiberglass, resin, steel, aluminum, and electronics, as well as labor shortages, hampered the production of new boats and increased the costs for manufacturers. As a result, many boat builders had to raise their prices and extend their delivery times, creating a backlog of orders and a scarcity of inventory.
According to the National Marine Manufacturers Association (NMMA), new boat sales in the US declined by 14% in 2022 compared to 2021, mainly due to supply constraints1. However, the NMMA also reported that the supply chain issues have started to ease in 2023, as manufacturers have adapted to the new challenges and increased their production capacity2. This means that the availability of new boats will improve in 2023, which could lead to a moderation of price growth or even a slight decrease in some segments.
Inflation
Another factor that affects yacht prices is inflation, which is the general increase in the prices of goods and services over time. Inflation reduces the purchasing power of money and makes everything more expensive, including boats. Inflation can be caused by various factors, such as excessive money supply, rising demand, higher production costs, or external shocks.
