Marine Industry Expects Sales Increases in 2013, Says GE Capital Survey
GE Capital forecasts 8 percent growth in U.S. marine industry
CHICAGO--(BUSINESS WIRE)-- In light of an improving consumer outlook, more than half (51 percent) of marine industry survey participants say the best time to increase inventory levels is right now to be fully stocked for the spring selling season, according to results released today by GE Capital, Commercial Distribution Finance (CDF).
"Overall, our data indicate sales are improving, costs are down and earnings are up at the dealer level," said Bruce Van Wagoner, president of CDF's marine group, a leading provider of financing to marine dealers. "We believe that 2013 will look a lot like 2012 — slow and steady growth in a smaller, healthier market."
Forty-three percent of survey respondents said they expect sales to increase 5 percent to 10 percent this year, while 30 percent said they expect sales to increase 10 percent to 15 percent.
CDF's forecast, unveiled at the Miami International Boat Show on Feb. 13, calls for the marine industry to grow about 8 percent in the U.S. in 2013. "Of course, positive news on some of the most critical economic factors could kick up consumer demand and drive industry performance beyond current expectations," Van Wagoner noted.
Forty-two percent of survey respondents said that consumer demand was their greatest business concern, down from 64 percent in 2012.
When asked which trend will have the largest impact on the boating industry this year, 32 percent of respondents pointed to the popularity of low-cost or "base" models, up from 23 percent last year. Thirty percent of respondents expect long production lead times, compared to 21 percent last year.
Aluminum boats, fiberglass fishing boats and recreation boats are the top three types, respectively, that the industry believes will be in demand this year.
"Low stocking levels may result in lost sales but, today, shipments are generally aligned with demand," Van Wagoner said. "Many dealers ask for market intelligence to make better informed decisions about brand, segments and stocking levels so they can be sure to stock the products that their customer base wants to buy."
For more than 50 years and through all business and economic cycles, CDF has offered new and pre-owned floorplan programs that enable marine dealers to stock a broad selection of products. Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-dealer business model. Manufacturers and distributors benefit from enhanced product flow and increased sales opportunities, and dealers obtain improved terms and credit availability, and increased sales opportunities.
GE Capital's survey was conducted Feb.13-15, 2013. The respondents are a variety of marine industry participants, including manufacturers, dealers and distributors.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided nearly $31 billion in financing for more than 40,000 manufacturers, dealers and distributors across North America in 2012. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. Customers have access to exclusive online tools and analytics to manage their accounts and inventory. For more information, visit http://www.gecdf.com/ or follow company news via Twitter (https://twitter.com/GEInventoryFin).
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (https://twitter.com/GECapital).
GE (NYS: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.
GE Capital, Americas
Lisa Tibbitts, 203-956-4582
KEYWORDS: United States North America Canada Illinois
The article Marine Industry Expects Sales Increases in 2013, Says GE Capital Survey originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.