Boat Building
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Industry Overview
The US boat building industry includes about 1,000 companies with combined annual revenue of about $10 billion. Major companies include Brunswick, Genmar, and Yamaha Motor Corporation, USA. The industry is concentrated: the largest 50 companies generate about 75 percent of revenue.
Companies in the industry make boats intended primarily for consumers' personal use. Construction of military vessels, cruise ships, and commercial freighters is covered in the Shipbuilding and Repair industry profile.
Competitive Landscape
Demand depends on growth in consumer income. The profitability of individual companies is linked to manufacturing efficiencies. Large companies have advantages in marketing and distribution. Small companies can compete by specializing in niche markets.
Products, Operations & Technology
Major product segments are outboard motorboats (40 percent of revenues); inboard motorboats (35 percent); and inboard-outdrive boats (20 percent). Other product types include sailboats and canoes. Some boat builders also do repair work, operate marinas, and sell auxiliary equipment and supplies on premises.
Boat building facilities vary from a few thousand square feet to more than 100,000, and outside storage areas may extend to several acres. Most manufacturing locations for larger boats are on navigable waterways, as the finished product can't be shipped over road. Other boat manufacturers locate as close to primary markets as possible to minimize transportation costs.
Manufacturing facilities are set up with custom-built molds, jigs, and fixtures designed for the particular makes and models. Most boats are made of fiberglass requiring carefully controlled use of resins, epoxies, and coatings. Basic construction consists of the multiple layering of fiberglass mesh over molds. Strength and flexibility characteristics are achieved by the specific combination of fiberglass with resins and epoxies, which are generally sprayed on. Custom builders perform this process by hand; high-volume manufacturers use robotics.
Smaller, less expensive boats are frequently made of aluminum. Structural components are made from extrusions while exterior coverings are made from formed sheet.
The largest single material cost is the engine. Large boat builders, such as Brunswick and Century, typically use engines (Mercury and Yamaha) made by operating divisions of the same parent company.
In larger facilities, computers are used extensively in design and manufacturing. Companies compete through new design offerings that provide improved performance, passenger comfort, fuel efficiency, and cost-effectiveness. Many small boat builders still rely on “craftsmen” to produce custom-built boats.
