Mercury marine

Mercury marine laying off 1700 more employees short term in addition to the 300 permanent lay offs last month. Wonder if Mercury is joining “Juan” Deere in Mexico

Wasn’t Deere just on strike in the last year or two?

Juan deere

That’s a lot of workers. Outboard motor business must not be great right now.

Brand new 80-100K boats must not be flying off the showroom floors! Repowering with a new engine is a second option to used or rebuilding? And the companies cant allow inventory to get too high or they will lose profit by marking down prices. This may be temporary, however, i dont see a big jump back up for awhile with the economy at a bit of a stand still. Maybe the election will fire things up some?

Anyfish2 wrote:

Brand new 80-100K boats must not be flying off the showroom floors! Repowering with a new engine is a second option to used or rebuilding? And the companies cant allow inventory to get too high or they will lose profit by marking down prices. This may be temporary, however, i dont see a big jump back up for awhile with the economy at a bit of a stand still. Maybe the election will fire things up some?

They priced themselves out of work

Anyfish2 wrote:

Brand new 80-100K boats must not be flying off the showroom floors! Repowering with a new engine is a second option to used or rebuilding? And the companies cant allow inventory to get too high or they will lose profit by marking down prices. This may be temporary, however, i dont see a big jump back up for awhile with the economy at a bit of a stand still. Maybe the election will fire things up some?

I doubt it until interest rates fall back in line. No one buys boats in that price range with cash. Until they can finance them for eternity again, they will sit.
Time for some of these companies to get back in line with what this stuff is really worth, not what you can gouge someone to pay on a 20 year loan.

There are buyers who like me, choose to live well within their means and save money until they can pay cash for their toys. Probably not typical now. It’s turning into a boom or bust economy as consumer demand fluctuates much more rapidly.

I’ll say one thing for Merc, I haven’t heard to many complaints about their Verado’s. I know both the 200 & 300 had were good the short period of time I ran them.

I think the market has slowed and nobody can afford recreational toys right now. I saw an add for a Polaris dealer who said he has 100 2024 Rangers Northstars (which average around $30K each) for sale. That’s a whole lot of inventory to sell I would think.

The dealer I bought my Alumacraft boat from added a fiberglass brand last year. They took 3 boats initially last fall. They still have all 3. Not good times in the marine business.

I’ll believe the marine industry is in trouble when I see dealerships folding up. Until then it’s the interest rate and election year thats slowing sales in my mind.

I was just at a marine dealer today, they had a new bass boat on the floor, $ 153,000 who can afford that for less than 6 mounths of the year?

Dutchboy wrote:

I’ll believe the marine industry is in trouble when I see dealerships folding up. Until then it’s the interest rate and election year thats slowing sales in my mind.

I think Mercury/Brunswick will be ok.

Ripjiggen wrote:

<div class=”d4p-bbt-quote-title”>Dutchboy wrote:</div>
I’ll believe the marine industry is in trouble when I see dealerships folding up. Until then it’s the interest rate and election year thats slowing sales in my mind.

I think Mercury/Brunswick will be ok.

Yeah absolutely they will be fine as a hole. But giant layoffs is never a sign of good things.

4 years ago, there was barely a boat or ATV to be found on the lot. That will lead to some kind of correction. My local online marketplace is flooded with boats. It has probably been a long time since some of them have seen the water. The companies also got used to high profits. Now interest rates are up Maybe someone at a dealer can tell us how many people do the 12 to 20-year financing on toys?

I wonder also if the boomer generation is aging out of their toys? They don’t use them anymore and the number of young people replacing them in outdoor activities isn’t as high. An example, the average age of deer hunters is about 60. Deer hunting could look very different in a few years.

I was at Olson Power in North Branch yesterday. Sales guy told me that they gave up their entire boat line including the Seadoo Switch due to the lack of sales and the market being dead.
All powersports brands right now have huge inventory and the future looks bleak for the short term. Polaris, BRP, Merc, and Deere have all had layoffs.
It’s a good time to fetch a new sxs though if your in the market due to the discounts.

Most big companies that boomed during COVID are laying people off. We did. How many of those jobs were added when production was at the max.

Ripjiggen wrote:

<div class=”d4p-bbt-quote-title”>Dutchboy wrote:</div>
I’ll believe the marine industry is in trouble when I see dealerships folding up. Until then it’s the interest rate and election year thats slowing sales in my mind.

I think Mercury/Brunswick will be ok.

I consider them manufactures. Those that sell their products I consider dealers.

Market boomed, lots of spendable cash/interest rates, makers took advantage, boom is over, back to baseline. Ups and downs of our economy.

Deuces you might be right however I would caution that these companies will just wait until excess inventory is sold and then fire up again. I don’t expect to ever see drastic price reductions going forward. They will just adjust the amount of inventory to keep the pricing stable.

candiru wrote:

I wonder also if the boomer generation is aging out of their toys? They don’t use them anymore and the number of young people replacing them in outdoor activities isn’t as high. An example, the average age of deer hunters is about 60. Deer hunting could look very different in a few years.

Might be, but I think prices are just so high on almost everything that there isn’t much money left to spend much on toys anymore. Especially those with a family.

Until taxes, insurance on everything, gas and food come down some, this will likely continue for quite some time I would think.

candiru wrote:

4 years ago, there was barely a boat or ATV to be found on the lot. That will lead to some kind of correction. My local online marketplace is flooded with boats.

Yeah, the used boat is quickly returning to some normalcy. Prices are coming down and even then they are sitting for awhile
 

Jason wrote:

All powersports brands right now have huge inventory and the future looks bleak for the short term. Polaris, BRP, Merc, and Deere have all had layoffs.

Same thing happened to Mortgage Brokers, everyone and their sister bought/refi’d at historic lows and now lots of people looking for work. The smart ones made hay when the sunshine’d and saved it for a rainy day, which is now.

I just saw a new bare bones 1436 jon boat. No motor or trailer. $2300 Seems kind of spendy to me.

My brother sells campers and fish houses. When interest rates went up he said the finance guy figured it out to only $20 a month more on a 40k camper and if you didn’t have the extra 20 you shouldn’t be buying a camper. Problem was the 40k camper of pre Covid was now 60k. I think things are slowing across the board and toys are just the first market to see it.

Part of the inventory surplus is caused at some dealers that are still trying to make the BIG $$$$$ profits that they made 2 to 4 years ago. Some forgot how to make a deal. The days of “This is the price, take it or somebody else will” are over.

Consumers have less discresioary money for boats, rvs fish houses ect. Bidenomices,

Brunswick/Mercury will be fine long term, but its definitely tough times for dealers right now. The dealer near me still has a few brand new 2022’s on the lot and the price’s have not come down much.

If you think the boat market is bad I cannot imagine being in the snowmobile business right now after last winter.