Speaking at the recent Miami International Boat show, which wrapped on February 20th, Thom Dammrich, President the National Marine Manufacturers Association (NMMA), said he expected the next two years to be very good for boat sales, and for the marine industry in general.
Addressing a crowd of nearly 500 at the event’s Innovation Breakfast, Dammrich stated, “Consumer confidence is at a 10-year high. Real disposable income continues to grow. Consumer spending continues to grow. Gasoline prices remain low. We’ve got two, two and a half years of real prosperity ahead.”
He added, however, that the industry had to do more outreach to younger people, who may be entering the boating market for the first time. “The interesting thing is that research is showing us people between the ages of 25 and 34 have a very high interest in the boating lifestyle. In fact, [they have] a higher interest than any other age group,” Dammrich said.
By all accounts the show itself was a reflection of Dammrich’s confidence. First-day attendance at the Miami International Boat Show was up 8 percent from last year.
President Trump, Taxes, and Consumer Confidence
As a wealthy business person, Donald Trump is certainly no stranger to yachts and the value of the yachting lifestyle. In fact he once owned one of the Top 10 Superyachts in the world. So, certainly we can expect President Trump to be friendly to yacht makers and the yachting industry. Who knows, he may be the first POTUS in decades to recommission a Presidential Yacht, to replace the USS Sequoia, now wallowing in disrepair!
Dammrich’s observation of record high-consumer confidence may have a lot to do with moves already being made by the nascent Trump administration.
If there is one aspect of a Trump presidency that would seem to bode very well for yacht sales, and the yachting industry, it is what his tax proposals should mean for the economy and consumer confidence.
Let’s look at what Trump’s tax plan will really mean for consumers, the economy, and “purchasing power.” If Trump accomplishes his tax reforms as presented during the campaign, for 2017, tax rates should drop for both C corporations and individuals.
The most significant change proposed would cut “tax brackets” from the current number of seven, down to three.
- Those making less than $75K would pay 12%.
- Those earning from $75K-$225K would pay 25%.
- Those earning $225K or more would pay a maximum of 33%.
Lower taxes across the board means more cash in the pockets of more individuals and businesses, which will add jobs. More cash and more jobs, means more boat and yacht sales.
It is very likely that high-net worth individuals, entrepreneurs and businesses will thrive, and enjoy a comfortable level of success under the new administration. The more that people are successful, the harder they are working, and the more they are earning, the more they are likely to want to take some down time, and enjoy the finer things that success brings, such as a charter yacht vacation, and for some, the ultimate personal reward of luxury yacht ownership!
It’s not always easy to stay on top of what’s new in motor yachts. If you would like to benefit from our expertise in these areas, or if you have any questions or comments about this blog post, do not hesitate to contact our Sales Specialists, or call us at (855) 318-6328.