No quick fix for outboard engine shortages, says Mercury
The pain of Mercury's outboard engine shortages is likely to linger until 2025, the manufacturer saysMercury expects it will be early 2025 before a worldwide shortage of high-performance outboard engines recovers from the effects of war and the pandemic.
Mercury Marine outboard product manager Robin Senger told boatsales.com.au that the production of Mercury’s 250hp and 300hp V8 Verado outboard engines was around 8000 units behind where it should be due to the ongoing impact of the coronavirus.
The pandemic, combined with the war in Ukraine, has interrupted shipping worldwide and created shortages in everything from the wiring looms that connect an outboard engine’s electronics to the microchips that control them.
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However, while engine production for the North American market should start to meet market demand in 2024, for the rest of the world the wait will be a bit longer.
“It looks like the third quarter of 2024 when the [new engine] pipeline should start getting filled and [US] dealers will have availability, where they'll have engines and stock where they can do repairs and stuff like that,” Senger told boatsales.com.au.
“But before we can say we have a substantial warehouse full for the global markets … that’s probably going to be in the first quarter of 2025.”
Production increases
Mercury has already invested in increasing production capacity by 30 per cent at its US-based Fond du Lac engine-making plant, with plans to increase capacity further by a similar amount to help it meet the future demand for outboard engines.
However, that increase in capacity only accounts for the anticipated new demand from boat makers for outboard engines, with nothing left over for anyone considering a repower.
Senger said the outboard engine shortage was also impacting investment companies looking to buy boat-makers.
“We’ve got all these LLCs (limited liability companies) coming to us and making sure we will be able to power their boats, and we’re saying ‘sure, but you’ve got to wait’,” Senger said.
“But all that tells us is that we will need to have even more engines for all that new business.”
More for repowers
Senger said Mercury had put orders for repowers down the bottom of its outboard engine list but had recently elected to dedicate some of its production to helping some boat owners put new engines on their boat – with some owners likely to be placed ahead of others in the queue.
“Basically now, 30 per cent of our production is going to be dedicated to helping dealers with repowers,” Senger said.
“Right now it seems like a lot of the repowers are in saltwater because that's where the people that are spending the money are.
“They’ve got a big investment on a boat, like $US800,000 ($A1.2 million) in the boat, but every three years [when the three-year US warranty runs out] they want to put new engines on it.
“That customer is going to be the type of customer to get the product because of that.
“The guy down in Wisconsin who has an old pontoon boat and wants to put a new 200 on it, or maybe a 250, he probably would have to wait.”
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