Industry Information
Total marine-product sales were expected to decline by as much as 5 percent in 1985. The Florida market, however, was expected to increase by 5 percent annually for the next several years. The recreational market, which accounted for most sales of Olympus outboard engines and Olympia boats, was highly seasonal and cyclical. Sales of stern-drive and sea-drive engines, which were used primarily for larger recreational and commercial boats, were less seasonal and slightly less cyclical.
The outboard-engine market was concentrated among three major manufacturers—Outboard Marine Corporation (Johnson and Evinrude), Brunswick (Mercury), and Olympus. Japanese manufacturers, such as Yamaha, were just beginning to market outboard engines in the United States. Olympus competed against Volvo, Mercury, and Chrysler in the stern-drive and sea-drive markets. Olympia boats, on the other hand, faced a much more fragmented market; over 20 national and regional manufacturers competed for the recreational-boat dollar.