With many summer recreational activities out of the question due to the COVID-19 pandemic, many people have turned to things they can do at the lake. Boat and camper sales have been brisk this year, according to three dealers across Saskatchewan.
At Carlyle RV & Leisure, owner Ron Mitchell said on Aug. 17, “Campers are really selling.”
Carlyle is an oil town, and the downturn of in the oil industry over the last five years have had an effect on the recreational market. “Things had slowed down with oil. Then COVID hit,” Mitchell said, but then added, “It’s really gone crazy since.”
He said camper sales usually taper off by early- to mid-July. But not this year. “It hasn’t slowed down at all,” he said.
Asked if it was the lower and mid-range units selling, he replied, “It’s just everything. Lots of trades coming in. Lots of trades selling.”
They have a limited selection of boats, with just four pontoons at the start of the season, but three have sold so far.
Mitchell said they are staying really busy with boat maintenance.
Yorkton
In Yorkton, Evan Labas owns Discovery Motorsports, which carries marine, ATVs and side-by-sides.
He said, “The boat market has been strong this year.”
But, he noted, the boat industry has had a tough two years leading up to it. The first round of American tariffs on aluminum and steel led to Canada imposing a 10 to 15 per cent tariff on American-made boats. (President Donald Trump just announced another round of tariffs on aluminum, after imposing them earlier in his presidency.) The initial tariff round meant that prices jumped 10 to 20 per cent overnight. Those tariffs have since eased, but the downturn in the oil economy has also been felt, even in Yorkton.
As a result, boats weren’t moving much and inventory built. The years of 2018 and 2019 were very tough years in the boating industry in Saskatchewan and Alberta, he noted. A number of Saskatchewan boat dealers closed down.
For Discovery, much of their boat sales usually take place in February and March, but not this year. When the pandemic took hold and people started to realize in late spring many of their summer recreation options were closed to them, they started buying boats. Labas noted their inventory went “very quick” and their supplier was able to resupply them with more inventory until the end of June, which also sold. But then factories shut down due to COVID, and the supply chain for manufacturers was impacted.
That supply chain also hit boat repairs, with finding parts being a challenge across North America, Labas explained.
“We’re not going anywhere this summer, so we might as well dig out our old boats,” Labas said many people concluded. That led to a push for repairs, and a shortage of parts affected by the same supply chain issues.
“The used market has been very hot,” Labas said.
On the ATV side, Labas said those sales have also picked up. “People bought stuff because they wanted to do stuff outdoors, and have family time,” he said.
But there, too, repairs have been affected by a shortage of parts, and subsequent delays.
North Battleford
Mike Adams has never seen a year like this one. He’s a partner in Freedom RV and Marine in North Battleford.
He, too, noted the softness in the oil economy and its impact on the boat market over the last two years. That combined with tariffs to hurt the industry. He noted boat dealers had closed in Rosetown, Meadow Lake, North Battleford, Lloydminster and Saskatoon.
Additional dealers closed in Weyburn and Yorkton.
Adams noted that several of those dealers wanted to retire, but didn’t see much prospect of selling out, so they closed their doors.
Freedom’s strongest months are usually April to June, but this year, that was when COVID hit. “Lots of dealers, including ourselves, backed off on inventory,” he said, regarding ordering new stock.
But then sales picked up, and soon much of their inventory was cleared out. “We have two quads, one boat, and five pontoons left,” he said. Personal watercraft and side-by-side ATVS sold out, as did one line of boats.
Parts and supplies are short, too. Even the toilet paper crisis, which has faded for much of the economy, took hold. Campers use special toilet paper meant to not clog their plumbing. Adams said due to demand, “We can’t keep toilet paper for RVs, or a toilet, either.”
That’s because RV parts are also in short supply.
Freedom usually has a substantial stock of boating tubes carried over year-to-year. They sold out of three-person tubes in late July and only have a pair two-person tubes left. Adams said they’re selling out across Saskatchewan.
Before working with recreational products, Adams worked in automotive. He said never in his lifetime has he seen such a year.
How long will this last? Adams said, “My prediction – for sure, another year. My suppliers think another two years.”
