SIC 3732 Boat Building and Repairing

Encyclopedia of American Industries | 2005 | Copyright

SIC 3732
BOAT BUILDING AND REPAIRING

This industry consists of establishments primarily engaged in building and repairing boats. Establishments primarily engaged in operating marinas and that perform incidental boat repair are classified in SIC 4493: Marinas. Membership yacht clubs are classified under SIC 7997: Membership Sports and Recreation Clubs; and outboard motor repair is classified under SIC 7699: Repair Shops and Related Services, Not Elsewhere Classified.

NAICS Code(s)

811490 (Other Personal Household Goods Repair and Maintenance)

336612 (Boat Building)

Industry Snapshot

In the second half of the 1990s, the recreational boating industry in the United States was continuing to recover from a devastating industry-wide slump that began in the late 1980s and continued into the early 1990s. During the industry recession, stretching from 1988 through 1992, constant-dollar product shipments declined at a compound annual rate of approximately 15 percent. The turnaround began in 1993, when the industry cut its decline in shipments to less than 1 percent. In 1996 an unseasonably cool, damp summer in much of the United States cast something of a chill over the domestic market for pleasure boats. However, industry shipments began to climb in 1997, and they continued increasing through the end of the decade, reaching $8.3 billion in 2000.

The outlook for the recreational boating industry in the late 1990s was reasonably bright, according to the marine equipment economist of the Commerce Department's International Trade Administration. Among the factors cited for this cautious optimism were the Environmental Protection Agency's new emissions standards. The standards do not take full force until 2005, but they are being phased in gradually. ITA's economist said many consumers might have postponed purchases because they want to see what this new technology is and how it will affect them.

Organization and Structure

Repairs account for only about a 4 percent share of the boat building and repairing industry's revenue. In 1987, in the thick of the industry's boom period, 151 of the 2,176 establishments in this classification were engaged primarily in repairing boats. These establishments employed 3,500 workers and generated $223 million in shipment value. There was some evidence that slow sales of new boats in recent years have provided a bit of a spark to the repair business. In the early 1990s boat yards specializing in refurbishing older boats charged in the range of $50 to $60 an hour for semiskilled labor on repairs.

Types of Boats Manufactured. Outboard boats make up the largest category of boats built in the United States, accounting for approximately 47 percent of all pleasure boats owned....

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