NMMA/Outlook Survey Shows Trade Uncertainties Impacting Boat Manufacturing

Outlook Survey outlines a rising tide of concerns among manufacturers—especially those in the recreational marine industry. Trade uncertainties have surged to the top of industry challenges, cited by 76.2% of respondents—a 20-percentage-point jump from Q4 2024 and 40 points higher than Q3 last year. Meanwhile, increased raw material costs (62.3%) are making it more difficult for marine manufacturers to maintain profitability.

The survey conducted February 11 to 28, underscores growing industry-wide caution. While 69.7% of manufacturers remain optimistic about their company’s outlook, that figure has dipped from 70.9% in Q4 2024—reflecting growing economic uncertainty. If Congress fails to extend the Tax Cuts and Jobs Act, manufacturers warn of major investment slowdowns, including:

• 69.35% delaying capital equipment purchases—impacting shipbuilding and production upgrades.45.23% postponing hiring—limiting workforce expansion.
• 44.72% stalling operational growth—putting facility expansions and upgrades at risk.
• 41.71% curbing R&D investments—slowing innovation in propulsion, sustainability and technology.
• 40.20% restricting wage and benefits increases—affecting workforce retention.

Manufacturers expect product prices to rise by 3.6% over the next 12 months—the highest increase since Q3 2022. Meanwhile, raw material costs are projected to climb by 5.5%, the steepest increase since mid-2022, further pressuring supply chains. Export sales projections are equally concerning. Expected to rise by just 0.1%, this is the lowest forecast since Q2 2020, when global trade nearly collapsed due to the pandemic.

As discussions on trade policy evolve, the National Marine Manufacturers Association urges industry stakeholders to stay informed and involved.