The Ebb and Flow of an Industry: An Econometric Analysis of Employment and Sales within the United States Recreational Boating Industry

Abstract

This study investigates how fluctuations of input costs within the boat manufacturing process and movements of national economic indicators affect employment levels and sales performance within the United States recreational boating industry. Econometric analysis reveals that increases in average annual compensation levels have a negative impact upon industry employment. This reflects a shift in preference towards high skill labor within the recreational boating industry. Furthermore, this study finds that the Consumer Confidence Index has a positive relationship with boat sales. Movements in the Consumer Confidence Index today have the strongest impact upon recreational boat sales two months in the future.