Boat ownership has increased as traditional vacationing takes a back seat during the recent pandemic months. With many people opting for boating as a means for recreation, OneWater Marine Inc. (NASDAQ:ONEW) is poised to capitalize.
Like many companies that were faced with the uncertainty of the initial days of the pandemic, OneWater Marine put in place defensive measures to combat a potential industry wide downfall. So in early April, OneWater announced a preemptive strike to reduce expenses and preserve liquidity.
Defense to offense
The April 2, 2020 press release, OneWater Marine Inc. Announces Actions to Strengthen Financial Flexibility in Response to the COVID-19 Pandemic laid out a plan which included both CEO and COO to forego base salaries with other executives and board members either foregoing or taking reductions in compensation.
As early spring made way for warmer weather, many families were searching for activities that fit the social distance bill. People began looking to the great outdoors for options such as hiking trails, walking paths and rail trails. Additionally, people recognized the water as another avenue for outdoor recreation that offers the space for inherent social distancing.
Courtesy of OneWater Marine presentation
An article published on prnewswire.com Rollick Reports an Acceleration of First Time Boat Buyers During the Heart of the Pandemic on September 8, 2020 reported,
Based on Rollick data, the percentage of first-time boat buyers increased from 15% in Q2 2019 to 20% in Q2 2020. This represents a 33% Year-Over-Year (YoY) growth during the busiest quarter of the selling season. The data was collected from actual boat owners who purchased a boat from OEMs and dealers who participate in the National Marine Manufacturer Association's (NMMA) Marine Industry Customer Satisfaction Index (CSI) Program administered by Rollick.
Low Inventory with high demand
In fact the boating industry in
