CIBS Online

Canadian International Business Strategy

Recreational Boats and Equipment

• Canadian Position
• International Environment
• Main Challenges
• Strategic Direction
• Contacts

The recreational boat and equipment industry is composed of manufacturers of boats such as sailboats, powerboats, personal watercraft and human-powered boats. It also includes companies that make marine equipment for boats of all sizes, docks and mooring equipment, marine and safety clothing, maintenance and cleaning products, and marina equipment.

Canadian Position

In 1999, the industry consisted of approximately 230 boat manufacturers and employed about 5 500 people. Annual shipments were $925 million for boats and $100 million for marine equipment and accessories. Of the total, $561.3 million was made up of boats export shipments, which gives the industry a trade surplus of $236 million.

Most companies are Canadian-owned. They vary from relatively modest operations to major internationally competitive companies with the resources and management skills to withstand competition from the leading brands.

Source: Statistics Canada

Canadian companies supply specialty markets, usually producing a narrow product line. They are generally known for product quality, design and performance in specific segments of world markets.

Canadian companies have made a name for themselves on the basis of specialty products such as personal watercraft, catamarans, pedal boats, aluminum rowboats, sailboats and powerboats. In addition, the Canadian industry is internationally known for its strength in marine-equipment subsectors.

Exports now account for nearly 63 percent of total shipments, the increase being driven by exports of personal watercraft, aluminum/fibreglass powerboats, sailboats and canoes. In 1999, total exports decrease 18 percent since 1997, mainly explained by personal watercrafts activity.

Source: Statistics Canada

The main market is the United States, accounting for 91.5 percent of Canadian exports, followed by Western Europe with 5.6 percent and the rest of the world, primarily Japan and South America, with 3 percent.

Exports to the United States are expected to continue to increase substantially in the coming years, given the diversity in types of boats exported.

There is also significant international growth in marine products and accessories. The Canadian recreational boat industry has major manufacturers in all of these categories, and is benefiting from this international growth. Growing demand is expected for open-air equipment such as canoes, pedal boats and kayaks.

The advent of market economies in Eastern Europe should create new markets for marine products. Western Europe will also become a major market for this sector. Significant potential is also seen for maintenance and cleaning products, marina equipment, safety equipment, navigation systems and specialty marine clothing.

Although the industry anticipates new market outlets in Europe and in other industrialized regions, competition in these markets from U.S., French, British and Dutch products is a concern. Many companies see significant opportunities in western U.S., Caribbean and South American markets, especially Mexico, Brazil, Argentina and Chile.

Canada is well positioned to take advantage of the growing popularity of small boats and outdoor activities. It should maintain its enviable position in the personal-watercraft sector, and occupy a lesser but still competitive position in fibreglass and aluminum powerboats; pontoons and deckboats; inflatables; and such human-powered craft as canoes, kayaks and pedal boats. Canada also enjoys a good reputation as a supplier of quality specialty products. However, transport costs remain a major handicap in developing export markets for small boats.