Thom Dammrich President, National Marine Manufacturers Association - - PowerPoint PPT Presentation

President, National Marine Manufacturers Association

Thom Dammrich

Recreational Boating Industry Trends

• 100,000

200,000 300,000 400,000 500,000 600,000

Industry Volume Calendar Year

1965 -1991 Average 400,000 1992 - 2006 Average 309,000

U.S. Industry Retail Powerboats (1965 – 2010)

’06-’10

• 55%

Significant Decline in Demand Bottomed in 2010

Last 5 Years 2006 291,900 2007 267,300 2008 203,000 2009 153,550 2010 139,000

Total Recreational Boats In Use

15.00 15.50 16.00 16.50 17.00 17.50 18.00 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 E

Year Millions

The 1970s and 1980s were very good to boating. And PWCs helped sustain this level of boat ownership through the1990s.

5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 100,000 150,000 200,000 250,000 300,000 350,000

Total Boat Registrations (000) US Population (000) YEAR

US Boat Registrations vs. Population

Including PWCs

Population Boat Registrations

The Boating Boom The PWC Boom

Source: Info-Link Technologies Inc.

But traditional boat ownership (non-PWC) has not kept up with the

• population. It has been relatively flat for the past 20 years.

US Boat Registrations vs. Population

Excluding PWCs

100,000 150,000 200,000 250,000 300,000 350,000

1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

YEAR US Population (000)

5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000

Total Boat Registrations (000) Population Boat Registrations

Source: Info-Link Technologies Inc.

Boats have gotten older. Many of the boats built during the boom are still in use. In 1997 the average boat was 15 years old. Today the average boat is more than 20 years old, and getting older.

5 10 15 20 25 Average Age 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ending

Average Boat Age by Year

Source: Info-Link Technologies Inc.

Meanwhile, boat owners have gotten older. Today there are fewer owners in their 30s and more in their 50s and 60s.

Age Distribution of Powerboat Owners

1998 vs 2011

0% 2% 4% 6% 8% 10% 12% 14% 16% <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+

Age Range

2011 1998

Source: Info-Link Technologies Inc.

This is especially evident among sailors. They tend to be loyal to the sport but grinding winches in your 70s gets old too.

Age Distribution of Sailboat Owners

1998 vs 2011

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75+

Age Range

2011 1998

Many of these people are still sailing

But sailing is physical so…

Source: Info-Link Technologies Inc.

U.S. Boating Participation History

(1990 – 2010)

10 20 30 40 50 60 70 80 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Millions of Participants

• No. of Adults Boating

33.4% 28.3% 30.5% 29.2% 26.6% 26.0% 28.8% 28.9% 30.4% 29.2% 32.3% 33.4% 35.8% 36.0% 33.6% 35.6% 36.2% 36.2% 36.1% 36.3% 36.5% Source: NMMA

% of adults boating

• No. of adults boating (in millions)

2010 reflects highest level of participation since 2000

Total Recreational Boats In Use

15.00 15.50 16.00 16.50 17.00 17.50 18.00 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 E

Year Millions

U.S. Boating Participation History

(1990 – 2010)

10 20 30 40 50 60 70 80 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Millions of Participants

• No. of Adults Boating

33.4% 28.3% 30.5% 29.2% 26.6% 26.0% 28.8% 28.9% 30.4% 29.2% 32.3% 33.4% 35.8% 36.0% 33.6% 35.6% 36.2% 36.2% 36.1% 36.3% 36.5% Source: NMMA

% of adults boating

• No. of adults boating (in millions)

2010 reflects highest level of participation since 2000

Boating Participation – Exposure to Boating as a Child Drives Adult Participation

36.9% 41.2% 1.2% 21.6%

Boated as child and parents

• wned a boat

Boated as child and parents did not own a boat Did not boat as a child and parents owned a boat 9.3% 29.4% 1.2% 60.1% Boated as a child and parents owned a boat Boated as a child and parents did not own a

Childhood Boating Experience

Current Participant Non - Participant

Boat Owner Demographics by Ethnicity 2010 Any Powerboat

90.0% 3.4% 1.1% 0.8% 3.0% 2.1% 1.1% White Black Asian or Pacific Islander Native American/Alaskan Native Mixed Racial Background Other Race Declined to Answer

Percent of United States Population by Age Group and Ethnicity, 2000

Hobby Center for the Study of Texas at Rice University

Percent of United States Population by Age Group and Ethnicity, 2050

Hobby Center for the Study of Texas at Rice University

Numeric Change in the Projected U.S. Population by Race and Hispanic Origin: 2000 to 2050 (in millions)

Hobby Center for the Study of Texas at Rice University

7.6 17.5 23.0 11.6 97.2 156.9 Non-Hispanic White alone Non-Hispanic Black alone Non-Hispanic Asian alone Non-Hispanic all

• ther races

Hispanic (any race) Total

Source: U.S. Census Bureau, 2008 National Projections

Creating a Robust Future for Recreational Boating

Developing a shared industry ten year growth action agenda based on a shared vision of success in 2021

Visions for 2021

• 1. Unified Industry Cross Sector Collaboration

Brings Results—Boating Now Preferred Recreation Choice

• 2. Boating participation soars! New Generation and

Greater Diversity attracted to boating

• 3. Expanded Access to the Water and the Lifestyle

Has Been Achieved

• 4. Smarter and Fewer Regulations, and Better

Boating Education Results in Safe, Affordable and Enjoyable Boating

Joint Actions to be Considered

• Encourage boaters to invite friends on the water
• Each stakeholder group commits to deliver collaborative

efforts to their stakeholders

• Encourage universal support of Discover Boating’s

Welcome to the Water Campaign

• Focus recreational boating recruitment more on kids and

minorities

• Improve efforts on providing better boater education
• Form and strengthen industry partnerships
• Encourage greater diversity within the industry
• Expand American Boating Congress to all stakeholders

So…What’s Happening Today

Boating remains big business $30+ billion

Estimated New Boat and Engine Sales by Key Global Markets

$7.6 $2.1 $0.3 $7.0 $1.0 $1.0 $1.0 $2.0 $0.5 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0

Estimated New Boat/Engine Sales

in U.S. $ (Billions)

U.S. Recreational Boat Trade

$- $200 $400 $600 $800 $1,000 $1,200 $1,400 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000

2005 2006 2007 2008 2009 2010 2011

Trade Balance Millions Exports/Imports Millions Exports Imports Trade Balance

Source: USITC

Info-Link’s Bellwether: Retail Sales are Growing for the First Time in 5 Years

Source: Info-Link Technologies Inc.

So…What’s Happening

• Boating remains big business - $30 billion
• North America remains 44% of Global Market

and a Net Exporting Industry

• Retail Sales are Growing for First Time in 5

Years

• Wholesale Shipments of New Boats Up 23% in

Units and 33% in Dollars in 2011

ITR Economics’ Forecast of Shipments:

Continuing Growth through 2015

• 80
• 40

40 80 120

• 80
• 40

40 80 120 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Rates-of-Change

3/12 12/12

Source: ITR Economics

Comparison of Consumer Confidence to Wholesale Boat Shipments as of February 14, 2012

Jan-12, 57.8 Nov-11, 139,489 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 20 40 60 80 100 120 140 160 Dec-67 Dec-71 Dec-75 Sep-78 Sep-80 Sep-82 Sep-84 Sep-86 Sep-88 Sep-90 Sep-92 Sep-94 Sep-96 Sep-98 Sep-00 Sep-02 Sep-04 Sep-06 Sep-08 Sep-10 Rolling 12-month Boat Shipments Consumer Confidence rolling 12-month Rolling 12-month CCI Rolling 12-month Wholesale Shipments

CP1 BP1 CV1 BT1 CP2 BP2 CV2 BT2 CP3 BP3 CV3 BT3 CP4 BP4 BT4 CV4 CP5 CV5 BP BT CP6 BP6 BT6 BP7 CV 6

Consumer Spending Back On Track

2011-Q4, 2%

• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 2000-Q1 2001-Q1 2002-Q1 2003-Q1 2004-Q1 2005-Q1 2006-Q1 2007-Q1 2008-Q1 2009-Q1 2010-Q1 2011-Q1 PERCENT CHANGE FROM PRECEDING PERIOD

Real Personal Consumption Expenditures on Goods and Services

source: Bureau of Economic Analysis

So…What’s Happening

• Boating remains big business - $30 billion
• North America Remains 44% of Global Market and a Net

Exporting Industry

• Retail Sales are Growing for First Time in 5 Years
• Wholesale Shipments of New Boats Expected to be Up

23% in Units and 33% in Dollars in 2011

• ITR Economic Forecast of Shipments Shows Continuing

Growth through 2015

• Consumer Confidence, Light Vehicle Sales and Consumer

Spending Improving

• 2012 Boat Shows Off to a Good Start

2012 Objectives.

• Grow awareness of Discover Boating/Welcome

to the Water among our target community.

• Increase positive perceptions of the boating

lifestyle.

• Increase participation in the boating lifestyle.
• Increase desire to own a boat.
• Deliver qualified leads to manufacturers and

dealers.

Point of Sale

New – Coming Soon

Beginners Guide To Boating Brochure Window Clings

Thank you for your continued support. Have a great show!