Challenging year for Finnish boating industry

The weakened purchasing power of consumers and the uncertain economic situation were reflected in the sales of the Finnish boating industry in 2023, according to the industry association Finnboat.

According to statistics for registrations and wholesale deliveries, the number of new boats sold decreased by almost thirty per cent from the previous year. In comparison, the net sales of boating industry companies decreased by 7 per cent.

Finnish Marine Industries Federation Finnboat is the national industry and trade association for the boating industry in Finland. The boating industry employs approximately 3,500 people in Finland, and according to preliminary estimates, the net sales of Finnboat’s member companies exceeded €800m in 2023.

The association says its member companies cover almost 100 per cent of the industry’s domestic turnover and Finnish boat exports.

The key indicator for the Finnish boating industry is the number of boat registrations, which saw a positive upturn after the financial crisis starting in 2013 and peaked in the pandemic year of 2021. All boats over 5.5 metres in length or powered by engines with power ratings in excess of 15 kilowatts (20 horsepower) must be registered.

The pandemic years of 2020 and 2021 provided an exceptional boost to boat sales. Sales began to decline again already in 2022, and last year saw a return to a more normal rhythm with registrations decreasing by 11 per cent compared to the previous year. The number of registrations in 2022 was still clearly higher than in 2019, before the pandemic, while 2023 was clearly the weakest of the 2000s in terms of new boat registrations.

“Last year was one of the most challenging for the boating industry in the 21st century, and according to the boating industry barometer conducted among Finnboat’s member companies at the turn of the year, the challenges will continue this year,” says Jarkko Pajusalo, CEO of Finnboat.

“The purchasing power of consumers in Finland and nearby markets has weakened, and it will probably take this year to recover, as reflected especially in the demand for small and medium-sized outboard motor boats. Approximately 90 per cent of the boats sold in Finland are no more than 7 metres long.”

Finnish brands still the most popular

Buster retained the number one spot in the statistics for new registrations of motor boats (387 new registrations), Suvi was in second place (234) and Terhi in third (189). The top brands among the ten most popular motor boats were all domestic.

For all watercraft, including personal watercraft (PWC), Sea-Doo retained the number one spot with 673 new registrations.

Total number of registrations fell by nearly 30 per cent

The total number of watercraft registrations in Finland amounted to 3272 in 2023 (4,589 in 2022), including 2,359 (3241) motor boats, 51 (79) rigid inflatable boats (RIBs) and 785 (1,179) personal watercraft.

The range of watercraft registered in Finland is huge: a total of 126 different brands were entered in the register. After the most popular brands, however, the number of registrations among other brands is low: the top ten covers 69 per cent of all registrations and the top 20 as much as 87 per cent of all registrations. Among motor boats, 88 per cent are no bigger than seven metres in length.

Just 17 new sailing boats were registered in Finland in 2023, which is four fewer than in the previous year. The most popular brands in this segment were Beneteau from France (three boats), the Lagoon catamaran, also from France (two boats) and X-Yachts from Denmark (two boats)

The slowdown in the sale of summer cottages and related accessories was also reflected in boat sales. For example, wholesale deliveries of rowing boats amounted to just 2,100, compared to 4,000 rowing boats reported by Finnboat members in the previous year.

Sales of used boats continued to be brisk. According to the boat register maintained by Traficom, the Finnish Transport and Communications Agency, more than 23,604 changes of boat ownership were registered, almost a thousand more than in the previous year.

The Helsinki International Boat Show, which opens on Friday

The Helsinki International Boat Show opened on Friday (9 February 2024)

Sales of sailing boats drive exports of watercraft

According to customs statistics, the value of Finnish boat exports increased by approximately 22 per cent in January-November 2023 compared to the previous year. Almost 5,000 boats were exported to 52 different countries. In terms of the number of boats, exports fell by half, although the value of exports increased by 22 per cent.

The most important export market was Sweden. Although the value of exports decreased by 16 per cent, more than 2,100 boats with a total value of €66m were delivered there. The second most important export market was Norway, where the number of boats exported decreased by 40 per cent, but the value remained at the previous year’s level at almost €57m.

A total of 68 sailing boats were exported during the first 11 months of the year, with a total value of almost €164m. Both the number of sailing boats and the customs value increased significantly from the previous year.

The most important markets for exports of Finnish sailing boats were Spain (three boats / €37.9m), Norway (two boats / €22.8m), Sweden (one boat / €20.7m), France (one boat / €16m) and Switzerland (seven boats / €15m).

A total of 68 sailing boats were exported during the first 11 months of the year.

Most imports from Mexico

Mexico continued to be the leading market for boat imports into Finland last year, supplying 2,234 watercraft, all of which were personal watercraft. Most of these were imported into the EU via Finland before being exported to other parts of Europe, as only around 700 new PWCs remained in Finland. The value of imports from Mexico fell by 42 per cent.

The second most important import market was Poland. Between January and November, the value of imports from Poland fell by 17 per cent to €11.9m and 205 units. The third biggest import market was Sweden, from where 230 boats were imported with a total value of €4.2m, representing an increase in value of 4.6 per cent.

Uusimaa and Varsinais-Suomi leading boating regions in Finland

The leading boating regions in Finland are Uusimaa in Southern Finland and Varsinais-Suomi in Southwestern Finland. These two regions accounted for 40 per cent of all watercraft registrations in Finland in 2023: 832 (1,248) in Uusimaa and 468 (682) in Varsinais-Suomi.

The leading boating cities in Finland last year were Helsinki, Turku and Espoo, where watercraft registrations totalled 223 (386), 138 (190) and 129 (181), respectively. Kuopio was not far behind Espoo, with 117 (170) registrations.

Boating industry barometer anticipates challenging market situation will continue

Finnboat once again compiled estimates from its member companies regarding their net sales and number of employees at the turn of the year. The boating industry barometer for 2024 anticipates that the challenging market situation will continue this year: 49 per cent of member companies expect their net sales to remain at the same level in 2024, 33 per cent expect net sales to increase and 19 per cent expect net sales to decrease.

Despite industrial layoffs, employment in the entire boating industry is still expected to remain at a good level, which indicates faith in the industry’s future: 76 per cent of member companies expect the number of employees to remain at the same level in 2024, 17 per cent expect the number of employees to increase, and 8 per cent expect the number of employees to decrease.

Voilier Océanis 30.1,shooting Groupe Bénéteau en Finlande

Number of employees in 2024

Overall, 17 per cent of member companies expect the number of employees to increase (21 per cent in the previous year). A total of 8 per cent of member companies say they expect the number of employees to decrease (9 per cent in 2023). And 75 per cent of member companies say they expect the number of employees to remain at the same level (70 per cent in 2023).

Net sales in 2024

Overall, 33 per cent of member companies expect net sales to increase (compared to 35 per cent in the previous year). A total of 19 per cent of member companies are expecting net sales to decrease (compared to 25 per cent). Some 48 per cent of member companies expect net sales to remain at the same level (40 per cent in 2023). Among the member companies that responded to the barometer, 15 per cent reported temporary layoffs in 2023 (vs 11 per cent in the previous year).

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