Make hay while the sun shines

June 21, 2022

Things have certainly been difficult for Canada’s boating industry lately with unprecedented demand, but severe product shortages and now the apparent certainty of the new luxury tax and the fresh headwinds of record high inflation is being countered by the government quickly raising interest rates.

With so much uncertainty, marinas and dealers have a major challenge to plan product orders and inventory levels, especially given the continued supply chain problems. We just learned that Scotland’s Boat Show 2022, which was due to take place this October, has been cancelled and their 2021 event was also cancelled. 

A post on the event’s Facebook page states: ‘Along with the rest of the country, Scotland’s Boat Show has been subject to rapidly increasing infrastructure costs, some of which have more than doubled, together with a critical shortage of boats available for sale, both new and pre-owned. Given these unfortunate circumstances we have had to take the decision to cancel Scotland’s Boat Show 2022.’

There is a possibility of holding a smaller alternative event but that is yet to be announced.

What will happen in Canada as we think ahead to our shows and what products and inventory levels will be best?

Higher interest rates are not always a problem – some buyers will benefit greatly from that in their investments. New taxes are never welcome but life goes on and if we consider the big demographic changes taking place in Canada, it may make sense to stock up while we can.

Real estate will still be a major support to the growing numbers of baby boom Canadians as they continue to sell out of expensive city properties for a lake-side retirement. A boat would surely be a part of the plan and if big ones are hit with punitive taxes, I bet some buyers will buy something that’s priced below that threshold. The product shortages may be supportive of buyer flexibility.

We are just coming off a near-perfect summer weekend in many parts of Canada. Great weather always gets people dreaming of the water. So, it may take a lot of courage but plan to make hay while the sun shines this summer. I think there will still be good times ahead.

Andy Adams – Editor