2024 Forecast: Higher interest rates slow new boat orders slightly
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Scott Bryant of Hinckley Yachts says higher interest rates affected new-boat orders slightly, but trends are strong.
In 2022, Hinckley Yachts saw record orders, retrofits and new builds, the launch of its first luxury hybrid model — but also a squeezed labor market.
Based in Southwest Harbor, with locations in Trenton and along the East Coast, the high-end builder’s production trends through 2023 remained strong, with greater demand for its larger models — the Picnic Boat 40, Talaria 43, Talaria 48 and Talaria 57 — as compared with its smaller products.
Higher interest rates affected new-boat orders slightly, says Scott Bryant, vice president of sales and marketing. But a two-year backlog of orders was the larger contributor to slower new-boat sales. Consequently, demand was strong for pre-owned Hinckleys, with associated refurbishment and personalization. Demand for pre-owned Hinckleys throughout the service network was strong in 2023.
For the coming year, “2024 will be similar to 2023 with slightly higher demand for new boats as interest rates begin to change,” Bryant says.
Interest in the company’s hybrid models is strong.
Still, he adds, “All-electric boating will remain niche due to range and technology limitations.”
With 240 employees in Maine and about 700 altogether, a goal is to expand the workforce. In 2022, the company launched the Hinckley Yachts Student Loan Assistance Program, in conjunction with the Landing School in Arundel and other trade schools. Hinckley reimburses students over the course of the first two years of employment.
The program is still in an early stage but has so far resulted in employing one or two Landing School alums, with more expected.
“I see these types of programs being more effective over the next year as we create more training partnerships with regional trades schools,” says Bryant.
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Interesting forecast indeed! As someone passionate about boating, I'm curious about how these projected higher interest rates might specifically impact the types of boats being ordered. Do you anticipate any shifts in demand towards smaller, more affordable vessels, or perhaps a greater emphasis on used boat sales? It seems like there could be some intriguing trends emerging in the marine industry as a result of these changes. Looking forward to hearing more insights!
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