Marine inventory turns in EMEA up 28 per cent in Q1

Marine inventory turns in EMEA up 28 per cent in Q1

GE Capital sees utilisation of finance facilities at highest level in two years

According to the most recent release of the GE Capital EMEA Marine Index, the pace of sales for motorboats, yachts and outboard engines across Europe, the Middle East and Africa improved by 28 per cent through the end of March 2011 compared to the same period a year ago.

Based on the duration of inventory funding for marine manufacturers and dealers financed by GE Capital, the Index provides a quarterly view of consumer demand for marine products across the EMEA region.

Average inventory holding periods ended the first quarter at approximately 150 days across the EMEA area with some underlying volatility due to seasonal boat show stocking as well as geographic differences across Europe, in line with the wider macro-economic environment.

“We estimate the overall market continued to exhibit gradual growth of around 2-3 per cent during the period,” said Andrew Stafferton, Marine Industry Leader for GE Capital in EMEA. “Year-over-year comparison suggests the market has seen approximately double digit growth of new boat sales in the 10-14 per cent range,” he added.

As further evidence of market improvement, Stafferton said dealer inventory levels expanded during the first quarter and utilisation of inventory finance facilities in March 2011 were at the highest level seen in two years.  “In general, confidence is steadily improving across the EMEA marine sector, driven by stronger consumer appetite to commit to product orders,” commented Stafferton.


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