CHICAGO — Die-hard water-skier and wake-boarder Jay Fieser has his sights set on buying a boat in a few years but the super-tricked-out, six-figure models he’s been eyeing just aren’t in the 20-year-old’s budget.
Not only is this a problem for Fieser, but it’s also a challenge for the boating industry, whose typical customer is the more deep-pocketed baby boomer.
Like most consumer-driven industries, boat manufacturers and dealers are working hard to reel in that coveted 18-to-34-year-old set.
U.S. retail sales of recreational boats, marine products and services totaled $36 billion in 2015. Recreational boat sales plunged 60 percent during the recession but are now 20 percent shy of pre-recession levels, according to Thom Dammrich, president of the National Marine Manufacturers Association, a trade group.
Boat makers want to leave those kind of numbers in their wake, and hope to do so by upgrading boat design and technology and promoting boat clubs and boat sharing to appeal to a generation that in recent surveys has shown more interest in cycling and camping than fishing and water sports.
But there’s one problem the industry acknowledges it can’t fix: Many millennials are saddled with college debt and still living at home. They are marrying and buying homes later, and some are in no rush to buy a car, much less a discretionary item like a boat. While some models can be had for as little as $15,000, prices can easily jump to $95,000 with all the bells and whistles.
That’s where boat sharing, part of the so-called sharing economy, comes in.
“What we are seeing — boat rentals, boat clubs, boat sharing — are ways that we are working to get millennials on the water,” Dammrich said. “If we get them hooked on boating now, sooner or later they’ll want to buy a boat.”
John Giglio, CEO of Freedom Boat Club, a boat-sharing club with 117 locations across the country — the nearest to Northern New York are Buffalo and Lake George — has seen his millennial membership grow from 5 percent five years ago to 20 to 30 percent last year.
“Millennials in general have a rap as a group that don’t want to own anything,” Giglio said. While baby boomers are focused on ownership as a status symbol, millennials are “content with having access to boats or cars because the endgame is usage,” he added. “If they have access to it, they don’t necessarily need to own it.”
Millennials make up about one-third of the clientele for Fleet Boat Club, Webster, said owner Kenneth J. Dens.
Mr. Dens said the number of young boaters who purchased his rental memberships have increased in the past five years because they only have to pay for the membership and fuel, saving them thousands of dollars. Memberships, according to the company website, range from $2,525 to $3,825 depending on the number of reservations at a time.
“It gives them a lower-cost option for boating,” Mr. Dens said. “Lower cost, less hassle.”
Mr. Dens said his open-bow style boats are popular with his millennial customers because of their speed, comfortable lounge seating and “snappy” design. Mr. Dens offers 20 rentals across his three marinas at Canandaigua Lake, Irondequoit Bay and Braddock Bay, Rochester.
“That millennial group — I think — tend to be more active,” Mr. Dens said. “(Open bow is) a bit more of a versatile boat.”
Tagged the “Uber of boats,” boat rental website Boatbound offers boat rentals from roughly $200 per day for a fishing boat to as high as $7,500 per day for a captained powerboat, with a galley and shower, that fits up to 12.
When it does come to considering a purchase, younger buyers are discovering these aren’t their parents’ boats.
Manufacturers are creating sexier products, such as wake sport boats built specifically for an active, younger generation.
The Clayton Chamber of Commerce will feature several new models with these upgrades at its 43rd annual Clayton Spring Boat Show.
Michael G. Hooson, event coordinator for the chamber, said about 20 dealers from across the state, primarily in the Thousand Islands region, will showcase anything from $6,000 jet skis to $70,000 runabouts. A few popular brands dealers will feature with some of the latest technology include Avalon pontoon boats, G3 Suncatcher pontoon boats, Boston Whaler runabouts and Yamaha runabouts.
The Clayton Spring Boat Show will run from 1 to 8 p.m. April 7, from 10 a.m. to 6 p.m. April 8 and from 10 a.m. to 4 p.m. April 9 at the Cerow Recreation Park Arena, 615 East Line Road.
“We’ll have so many different kinds of boats and a wide range of styles that would be appealing to millennials,” Mr. Hooson said.
Updated technology on sport boats includes large state-of-the art speakers and models that come with a wristwatch that allows someone on a wake board or water skis to control the boat’s wake.
Fewer millennials browse north country boat dealerships because they have less disposable income and more debt, many dealers claim.
Larry C. Foster, who owns Chalks Marina and Boat Sales LLC, Fishers Landing, and Schermerhorn Harbor, Hammond, with his brother, Robert T., said only 20 percent of their customers are millennials, citing debt and a lack of stable jobs in the area. Wendy L. LaLone, who owns Hutchinson’s Boat Works, Alexandria Bay, with her husband, Mark C., said millennials make up only 10 percent of her customer base.
“While they don’t have disposable income, they grew up with a boat.” Mrs. LaLone said. “We’re not seeing the young crowd, but they come back when they’re settled,”
Tyler J. Forger, who owns Clayton Marina Sales and Services Inc., with his father, Jerry T., said the nationwide issue of attracting young customers has not affected his business.
The dealership’s proximity to Fort Drum and the Thousand Islands region provides his dealership with enough customers of all ages to sustain his business, he said. Mr. Forger also said he believes more millennials are pursuing trade careers, relieving them of college debt and allowing them to spend more disposable income.
Millennials are “no big market share” for Tyler Forger’s dealership, he said, adding that his primary customer base consists of middle-class families.
“It doesn’t seem to affect us that much,” he said.
Having stereo speakers, Bluetooth, USB ports, plugs and other equipment that attract potential millennial buyers have become standard for several models sold by boat dealers in Upstate New York.
Robert Foster said he and Larry Foster sell Grady White brand runabouts with stereo speakers and dashboard GPS navigation and Boston Whaler brand roundabouts with updated center console technology. Mrs. LaLone said her dealership sells the SLX line of Sea Ray brand boats that feature stereo speakers, Bluetooth and USB ports.
Bruce M. Walker, who owns Reiter’s Marina Inc., Sandy Creek, said most of his fishing boats, which range from $20,000 to more than $100,000, contain USB ports, Bluetooth, MP3 player connectivity and monitors that can connect with his customers’ phones.
“I haven’t seen a boat built today that doesn’t have USB connections,” Larry Foster said.
In addition to these modern installations, Mrs. Lalone and Tyler Forger both sell models that have LED lighting, which is popular with millennials who can afford more expensive models. Monk A. D’Agata, CEO of Fremac Marine Sales and Service Inc, Bridgeport, said one of his company’s $70,000 Yamaha turnabouts has a solar-powered battery.
“This is the stuff millennials want,” Mr. D’Agata said. “It’s expensive.”
In addition to the latest bells and whistles, Larry and Robert Foster said several of their newer models have more efficient engines and additional lounge seating, which attract more active young customers.
“(Newer boats are) a lot more fuel efficient,” Larry Foster said. “A lot more dependable.”
The latest design trends also come with several models sold at north country boat dealerships.
Tyler Forger said his Yamaha models have sharp designs and Nautic Star models have bright baby blue and white designs. Mrs. LaLone said her Sea Ray and Starcraft models come in several vibrant colors that appeal to her millennial customer base.
“People buy with their eyes,” Tyler Forger said.
While speedboats and turnabouts have the latest technology and sleek designs, several upstate New York boat dealers say their few millennial clients with less disposable income purchase pontoon boats, a type of boat they recommend to entry-level boaters.
Larry Foster said he and Robert Foster sell affordable pontoon boats, including Misty Harbor brand pontoon boats at about $30,000, that also feature bright orange and green designs that appeal to younger customers, as well as affordable personal watercraft boats. Mr. Walker said he sells Grumman brand pontoon boats that start at $20,000.
Mr. D’Agata said his least expensive boats are pontoon boats, including 20-foot Sunrise model pontoon boats that he sells for $19,999.
“Pontoons have taken off,” Tyler Forger said. “It’s like driving a living room down the river.”
Looks matter, too — many of the newer models geared toward millennials come in bold colors with sparkles and bright stripes meant to turn heads on the water. The newest sporty model from MasterCraft has sleek silver racks meant for holding equipment such as water skis and wake boards.
At the same time, for younger consumers who are not yet in their prime earning years, manufacturers are making more affordable personal watercrafts. Some water scooters, such as BRP’s Sea-Doo Spark, start around $5,000.
Among the exhibitors at the show was SkipperBud’s, a Northern Illinois boat dealer.
“We do have millennial customers,” said Betsy Arvai, the dealer’s director of marketing. “They are just finding out that they can own a boat and live in Chicago and be able to do what they want and enjoy themselves for not so bad an entry price,” she said, pointing to a $16,000 Bayliner speedboat.
Slightly less expensive models can mean monthly payments of between $150 and $170, depending on the down payment. “I was talking to a customer the other day who said, ‘I spend $150 a month at Starbucks,’” Arvai said.
Dealers and industry watchers compare buying a speedboat to buying a car, with financing and low interest rates.
That’s promising for Fieser, who grew up boating near his family’s home in Hebron, Ind.
His plan is to buy his own boat in the next two years or so, something faster and cooler than what his parents have, he said. He’s considering buying a boat in the $15,000 range and probably a used one, he Fieser said.
“It depends on what I can find,” he said. “Some of the bigger boat companies are coming out with boats that are more ... affordable ... with good technology at a good price.”
Manufacturers and dealers hope that strategy — equipping snazzy-looking boats with technology — catches the eye of more consumers like Fieser.
On some craft, iPads control lights, the speedometer, fuel gauges and other essentials. Some models are synced for Bluetooth and include extra USB plugs for passengers’ devices. And in some, a joystick is installed to make docking easier.
MasterCraft just introduced a watersport boat that will allow wake-boarders, wake-surfers and water-skiers to create or “sculpt” their own wakes from software on the boat. Still, at an aspirational starting price of $80,000, it is more likely to be purchased by parents of water-loving young people than the millennials themselves, according to Chris Sullivan, MasterCraft’s business development manager for the Northwest region.
The recession was crushing to the boating industry, according to Jeff Nielsen, sales manager at Nielsen Enterprises in Northern Illinois.
Since the election, however, Nielsen has seen a spike in sales, he said. “They are climbing. They are coming back.”
Times staff writer Marcus Wolf contributed to this report.