Mar 7

Mar 7 The Economics of Small Boat Building

Anyone who has read Wave to Wave knows I love smaller boats. I grew up around smaller boats and I think some of the coolest boats from the old days are small, under 22’ and at the time reasonably affordable. To this day, I still would rather have a single engine under 25’ boat than a larger twin; mostly because of the ease of use and cost benefit. There has been a small resurgence in new build small boats, and a great resurgence in restoring older small performance boats. Everyday I get emails and see projects popping up online from garage builds to high end professional restorations, it’s great to see. The question is, do the economics of building boats prevent smaller boats from being built? Let’s look at interesting small boats, boat prices and why boat building is so expensive.

After cruising around the Miami Boat Show a few weeks ago, one thing I realized is that there are a ton of really cool small boats in all price ranges but basically all of them are fishing boats. You can get any kind of fishing boat from 13’ to 25’ in so many configurations and hull designs it’s amazing. People really like fishing. Tow boats are popular as well and next in popularity would be small jet boats which are typically priced really well. There are more and more family boats as outboards replacing sterndrive runabouts. When it comes to small performance sport boats, they are mostly custom.

In small boats, fishing boats and tow boats run the table at most boat shows. There many great options at all price ranges. This Intrepid 20’ flats boat was pretty cool.

Some of the coolest boats I saw under 20’ were the technical skiffs and flats boats. I really like the Hell’s Bay Boat Works Marquesa because of the build quality, lines and the layout is great for the type of fishing it is designed for. It looks fast, is 18’ and only weighs 695 Lbs but it’s really not that fast, the flat hull design and added fishing features definitely slow it down. There are many companies that make skiffs and flats in the 18’ range that are very cool, well built and can run anything from a 90 to a 150. This is where the 115 ProXS and 115 Vmax SHO shine. When I see the Mavericks, Beavertails, Hell’s Bay, Hewes and others I think why can’t there be a few little sport boats in this size? The reason is partly price but not entirely.

Many small fishing boats use high end build materials, have amazing fit and finish, custom aluminum trailers and the fish basically jump into the boat. Specialty skiffs and flats boats can have incredible price ranges.

For a nice 17’ or 18’ technical skiff with a 115 HP, you’re looking at a huge range in prices, from jaw dropping to reasonable. Like many things in life, the brands with the quality and reputation also have incredible resale. The initial price tag is one thing but how much can you sell it for 8 years later? Some boats really hold their value because they really last a lifetime. Part of the reason you see crazy used prices on really old sport boats is because the options for new ones is so limited, making the market really overvalued.

Hell’s Bay builds a premier skiff. Heavy duty fit and finish, you pay for it, but it holds its value incredibly well.

When it comes to boat building, the common thing I hear from builders all the time is that the incremental cost increase to build a bigger boat, garners a far greater profit on the market. Essentially, a 25’ boat only costs slightly more in materials than a 21’ and a very similar cost in labor, so economically you want to build the bigger one. Same situation every time you move up in size to a point, bigger boats are bigger profits essentially. If you’re a smaller builder, you want to be on the high end of the quality and price spectrum too. When you see the price of a high end bay boat or CC in the 25’ to 27’ range it’s insane how expensive they can get. But there are some bargains too.

I talked to the guys at SeaVee Boats at the Miami Boat Show and the smallest boat they make is a 27’ bay boat which is definitely a premier boat with incredible fit and finish. They used to make smaller models a long time ago but for them the economics weren’t there. They have specific product catered to a very specific market.

The smallest SeaVee is their 270Z, a beautiful bay boat, built to an incredible standard, the economics of building smaller models didn’t work for them.

The truth is, not every boat has to be built using only the most expensive materials and finished with most expensive rigging and hardware. Even with advances like vacuum bag lamination, reducing the total labor and improved results, lower prices of composite materials and other factors, building boats is still really expensive. Man hours are high, especially when you add so many custom elements and options. The key to keeping prices lower is simplicity. Miami based Concept Boats is a great example of keeping it simple but offering a high quality product at a very competitive price.

There are many center consoles in the 21’ to 25’ range that fit this category as well, high quality and a great price. Most come from small factory direct builders. The least expensive ones are the high volume mass producers, often owned or contracted with a major engine builder, where every effort is made to cut cost, including under-powering the boat.

Mako has nice looking boats exceptionally priced. The scale of economy works, being owned by White River Marine Group, a Bass Pro Shops company. You can basically walk into a Bass Pro buck naked, walk out dressed head to toe in the latest outdoor ge… — Mako has nice looking boats exceptionally priced. The scale of economy works, being owned by White River Marine Group, a Bass Pro Shops company. You can basically walk into a Bass Pro buck naked, walk out dressed head to toe in the latest outdoor gear, coolers, gear, and a brand new Mako; all on a credit card for less than competitors can sell you a hull.

Most of the time it’s not the materials that differentiate the cost, although it can be part of it, often it is the man hours of labor into the product. This takes manufacturing prowess and or an effort to simplify the build, spending less time on certain elements. This doesn’t necessarily come at the expense of quality, but it can mean less options, less high end hardware and less customization.

Sea Pro has done a nice job with their sleek smaller bay boats. Great prices and they look nice.

Standardization and simplicity are what keep prices lower generally. When a boat company gets bigger, so do the costs of running the shop and the cost of labor. This is when you get bigger more expensive boats. In the past, some brands have avoided this by contract manufacturing their boats, where a larger manufacturer builds it to the first stage, the end company then finishes it and rigs it, lowering overhead and focusing the value they offer.

Carrera Powerboats of Miami is one of those builders that makes center consoles and fishing boats like this 210 flats boat, a low profile center pod tunnel design.

When we think about the builders still building sport boats of all sizes, many have built fishing boats to stay in business and to afford to continue making sport boats. Some have come and gone and others just moved right over to fishing boats alone. Allison Boats has made bass boats their bread and butter to continue making sport boats. Even the powerhouse of offshore performance boats, Cigarette Racing, only showed their center consoles in Miami this year. That’s telling.

My inclination is there is such a strong growing interest in small performance boats coming back that we will see more and more on the market soon. New innovative designs will help. Lots of people don’t want a fishing boat and don’t like center consoles. The time is ripe for some innovation.