Texans' love of boats remains afloat
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Recreational boating in the Lone Star State remains popular, despite what industry experts call a "normalization" of boat sales.
Driving the news: High interest rates and low water levels have slowed demand, but recreational boating in the state is projected to generate $11.8 billion in annual economic activity this year, per the National Marine Manufacturers Association.
- That figure, which includes sales, jobs and other spending related to boating, is up from $7.7 billion in 2018, the last time the group performed the study.
Why it matters: The continued demand is good news for boat manufacturers and technicians, as well as the marinas and hospitality businesses that feed off the boating industry.
- Boating has long been a popular pastime in Central Texas, where residents can get on the water at one of the area's surrounding lakes, such as Lake Buchanan, Lake LBJ, Lake Travis or Canyon Lake.
What they're saying: NXTLVL Marine Austin parts and service director Chris Wigham said the Lakeway boat dealership's sales have also normalized, reflecting the national shift.
- Sales are up for wake surf boats and pontoons, while interest in fishing boats has declined, which Wigham attributes to Austin's influx of out-of-state and younger residents.
Flashback: Demand for boats surged across the country and in Central Texas during the pandemic, but supply chain issues made it difficult to sell boats quickly, according to Wigham.
- Supply chain issues have lessened this year, although NXTLVL still deals with back-ordered parts.
- "There was so much demand nationwide," Wigham. "This is definitely a softer market than it was in the last couple years."
Between the lines: It's not the yacht-owning one-percenters responsible for America's booming boat economy.
- Nationally, 800,000 first-time boat buyers entered the market in 2020 and 2021, NMMA senior vice president Ellen Bradley told Axios. Many are regular folks fishing, water-skiing, sailing and jet-skiing.
- Roughly 61% of Texas boat owners have an annual household income of $75,000 or less, per NMMA.
Zoom in: Wigham fears that shrinking water levels could lead to a further slowdown in sales at NXTLVL, which also has dealerships in San Antonio, New Braunfels, Fort Worth and Dallas.
- The boat ramp at Austin's Mansfield Dam Park closed just before the holiday weekend.
- "If customers can't get in the water, that doesn't give us confidence that people are going to want to buy boats, bring boats in for service, upgrade boats."
- Meanwhile, Fort Worth and Dallas dealerships have seen stronger sales and service numbers because "customers can use their boat a lot easier" thanks to near-normal water levels, Wigham said.
What we're watching: Sales nationally are expected this year to remain flat or increase slightly.
Dig deeper: What's happening in other states