Recreational Boating Industry Trends

Transcription

1 Recreational Boating Industry Trends Stem to Stern II Dusty E. McCoy Chairman and CEO Brunswick Corporation May 15, 2012

2 E Industry Volume U.S. Industry Retail Powerboats ( E) 600, ,000 Outboard Inboard / Sterndrive Total Power Boats 400,000 Last 6 Years 300, , , , Average 400, Average 309, , , , ,830 Calendar Year 2011E 139,250 In 2011, outboard boats reflect modest recovery; inboard/sterndrive boats continued to decline Sources: NMMA, includes all 50 states and total sterndrive, inboard and outboard boats. Excludes jet boats. 2

3 U.S. Boating Participation History ( ) No. of adults boating (in millions) % of adults boating % 36.1% 36.2% 36.3% 36.2% 35.6% 36.0% 35.8% 33.6% 32.3% 30.4% 30.5% 28.8% 29.2% 28.3% 33.4% 29.2% 28.9% 26.6% 26.0% 34.8% 32.4% Reflects Highest Level of Participation Since 1997 Source: NMMA 3

4 E Thousand Units Market Demand Dynamics Remain Intact Pre-owned Sales and Annual Licenses Remain Stable 10,906 10,605 10,466 10,532 10,658 10,100E 10,389 10,521 10,340 10,230 10,397 10, Used Boats New Boats Licenses Each 1% Change in Used/New Mix Equals Approx 8,000 to 9,000 Units New Boats % New Note: All data in thousand units Source: Pre-Owned Boat Market Study conducted for NMMA by Info-Link Technologies. 4

5 US Population (000) Total Boat Registrations (000) The 1970s and 1980s were very good to boating. And PWCs helped sustain this level of boat ownership through the1990s. US Boat Registrations vs. Population Including PWCs 350,000 15,000 14, ,000 13,000 12, , ,000 The PWC Boom 11,000 10,000 9,000 8, , ,000 The Boating Boom 7,000 6,000 5,000 YEAR Population Boat Registrations Source: Info-Link Technologies Inc. 5

6 US Population (000) Total Boat Registrations (000) 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 350,000 15,000 14, ,000 13,000 12, ,000 11,000 10, ,000 9,000 8, ,000 7,000 6, ,000 5, YEAR Population Boat Registrations Source: Info-Link Technologies Inc. 6

7 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. Average Age Average Boat Age by Year Year Ending Source: Info-Link Technologies Inc. 7

8 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 % 14% 12% 10% 8% 6% 4% 2% 0% < Age Range Source: Info-Link Technologies Inc. 8

9 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 % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% < Source: Info-Link Technologies Inc. Many of these people Age Range are still sailing But sailing is physical so 9

10 Recreational Boating Participation 2010 Past boating participants and people who do not boat total about 150 million adults in the U.S. 36.5% 36.5% 32.4% 32.4% 31.1% 31.1% Current Participant Past Participant Non-Participant Current Participant Past Participant Non- Participant 10

11 Reasons Past Participants Have Not Boated in Past 12 Months More than 50% of reasons are non-monetary Don't know anyone w ho ow ns a boat Reduced income Time constraints 11.4% 11.1% 10.5% 32.4% Higher cost of living Sold my boat 11.5% 12.1% 22.6% No longer participate in boating-related activities Don't/no longer live near w ater Health reasons 14.2% 17.3% Lost interest Unemployed 14.7% 16.0% 16.2% 17.1% Lost my boating partner (friend) Change in w ork circumstances Cost of fuel for boat 11

12 Non-Participants Consideration of Boating Have you ever considered going recreational boating? 17.2% 23.9% 58.9% Yes No Not Sure 12

13 Reasons Why Some Do Not Consider Boating Why have you not considered going recreational boating? 75% of reasons are non-monetary No interest Don't know anyone who owns a boat Don't participate water-based recreational activities Afraid of the water 21.0% 6.0% 18.5% 8.7% 64.9% Health reasons 24.6% Did not boat as a child Time constraints Cost of boat maintenance 25.5% 39.9% Don't live near water Other reasons 30.1% 30.7% 39.6% Cost of fuel Cost of boating 13

14 Boating Participation Exposure to Boating as a Child Drives Adult Participation Childhood Boating Experience Current Participant Non - Participant 1.2% 1.2% 21.6% 36.9% 36.9% 21.6% 60.1% 9.3% 9.3% 29.4% 29.4% Boated as child and parents owned a boat Boated as child and parents did not own a boat 41.2% 41.2% 60.1% Boated as a child and parents owned a boat 1.2% 1.2% Did not boat as a child and parents owned a boat Did not boat as a child and parents did not own a boat Boated as a child and parents did not own a boat Did not boat as a child and parents owned a boat Did not boat as a child and parents did not own a boat 14

15 Boat Owner Demographics by Ethnicity 2010 Any Powerboat 3.4% 3.0% 2.1% 1.1% 1.1% 0.8% 90.0% White Black Asian or Pacific Islander Native American/Alaskan Native Mixed Racial Background Other Race Declined to Answer 15

16 Key Take Aways New boat sales are at historical lows Boats in use have started to decline after a 15 year up cycle Powerboat owner s average age is increasing Age of boats is increasing The primary boater demographic is shrinking as % of population Slow growth projected for next 2-4 years But-participation is up and growing Opportunity to convert 150 million people to boating participation 16

17 If You Think You Can or You Can t You re Right How can we work together to: Grow Participation Welcome more people to the boating lifestyle 17

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