We need to get rid of the guy polishing the wood boat; boats are now made of fiberglass. Use the Party shot from the Bareboating section

Transcription

1 1 We need to get rid of the guy polishing the wood boat; boats are now made of fiberglass. Use the Party shot from the Bareboating section

2 This annual report on the State of the Sailing Industry in North America is produced by The Sailing Company, a division of Bonnier Corporation, which publishes Cruising World and Sailing World Magazines. Copyright 2011 The Sailing Company. For More Information Contact: Sally Helme - Publisher 55 Hammarlund Way Middletown, RI sally.helme@bonniercorp.com 2

3 results showed the biggest declines since the beginning of this annual study in 1988:

4 Looking Back, 2010 Wasn t Great Either The Market was up! Jobs were down! 4.Blah, Blah, Blah; and lots of other problems

5 Let s Look to The Sailing Bards for Inspiration Comforted By The Sailing Bards For Inspiration Men go back to the mountains, as they go back to sailing ships at sea, because in the mountains and on the sea they must face up. -Henry David Thoreau Sailing s been around since time began - and it is here to stay. 5

6 After the Storm; the Turn-A-Round Has Begun 6 Given the givens, here s how things shook out for the Sailing Industry in 2010

7 Agenda 2010 Bareboat Charter Industry Study 2010 North American Import Sailboat Report 2010 North American Sailing Industry Study 7

8 2010 Bareboat Charter Industry Study 15th Annual Survey

9 Methodology Study conducted by independent supplier: Rick Walter Market Research Associates Results reflect September August 2010 activity Mail/Phone/ Survey 66 active Bareboat Charter companies from our database 72% response rate including all market leaders 9 Source: 2010 Bareboat Charter Industry Study; Note: minor adjustments were made to 2009 results to account for companies participating in 10 but not the year before

10 Basic Facts & Figures About Bareboat Chartering Number of Boats: , , , , units since 2009 Fleet size continues to inch downward in search of maximum efficiency down 12% since 2007 Multihulls constitute 22% of the boats reported 10 Source: 2010 Bareboat Charter Industry Study

11 Percentage of Bareboat Fleet That is Multihull Multihulls have increased significantly in the bareboat fleet since Source: 2010 North American Sailing Industry Study

12 Bareboat Chartering Sails Calmer Seas in 2010, -6% Year to Year Since 09-1,256 Weeks After a tumultuous -21% decline in 09 during the depths of a continuing recession, bareboat charters fell just below the 20K week mark in Source: 2010 Bareboat Charter Industry Study

13 First Half of the Season Was More Affected Than the Second Half (000) Weeks Fall/Winter 10% 2010 Spring/Summer 4% Bareboat chartering showed better performance as the year progressed and the economy improved 13 Source: 2010 Bareboat Charter Industry Study

14 North Americans Cruising to Far-A-Way Places Has Diminished Significantly With Only a Third of the Business Booked in 2005 (000) Weeks %Chg Caribbean % USA/Canada % Other % Both Caribbean and North American locations were down only single digit percentages; however, both are significantly below their mid decade highs 14 Source: 2010 Bareboat Charter Industry Study; Caribbean includes Bahamas

15 Market Share for Major Destinations Was Flat in 2010; The Caribbean Commanded 63% of the Business (%) Destination Market Share % Chg Caribbean pt. USA/Canada pt. Other NC North American destinations maintained their five year average of 31% 15 Source: 2010 Bareboat Charter Industry Study; Caribbean includes Bahamas

16 Bareboat Charter Weeks & Market Share by Region in % of Total Northeast/other North America Chesapeake & NC Great & Inland Lakes Pacific NW & CA FL & Gulf Coast Pacific Islands/Australia/New Zealand/Indian Ocean Bahamas Virgin Islands & PR Leeward Islands Windward Islands Mediterranean Mexico/Other Source: 2010 Bareboat Charter Industry Study

17 Virgin Islands and Puerto Rico Were Down -4%; the Other Islands Held their Own in 2010 Windward/Leeward And Bahamas (000) VI & Puerto Rico (000) NC -4% 17 Source: 2010 Bareboat Charter Industry Study

18 North American Locations Were Hit Hardest in the Pacific Northwest & California, -10% compared to 2009 Pacific Northwest & CA (000) The Rest Of North America (000) -10% -4% 18 Source: 2010 Bareboat Charter Industry Study

19 Estimated Value of Bareboat Charter Fees for 2010 # of Charter Weeks x Average Price / Week = 2010 Market Value 19,029 Weeks x $3,000 = $57,000,000 $57 million dollars in basic Bareboat fees in 2010 compare to $60 million a year ago 19 Source: 2010 Bareboat Charter Industry Study

20 Key Findings After a tumultuous -21% decline in 09, bareboat charter weeks were down only -6% in 2010, Bareboat chartering showed better performance as the year progressed and the economy improved While Caribbean and North American locations were down only single digit percentages, both are significantly below their mid decade highs Virgin Islands and Puerto Rico were down -4% in 2010, while the Leeward, Windward and Bahamas as a group were flat with the previous year North American locations were hit hardest in the Pacific Northwest & California, -10% compared to Source: 2010 Bareboat Charter Industry Study

21 5 Minute Marketing Keys Some insight into how your customers might be thinking 21

22 GREEK The Futures Company 22

23 GEN X Individualistic and independent Technologically adept Flexible but ambitious Value work/life balance GEN Y Team oriented Tech savvy Attention craving Family-centric 23

24 A.C. Nielsen; AOL

25 25 Smart Company, AU

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28 2010 North American Import Sailboat Report 11th Annual Survey

29 Survey of Imported Sailboats to North America * Also includes importers who did not import any sailboats in 2010 but reported importing sailboats in the Source: 2010 North American Import Sailboat Report

30 Last Year, Importers Were Optimistic About 2010 Imports 20 and over 2009 Actuals 2010 Forecast Forecast Prediction Year - to-year Change +95 units.didn t happen! 30 Source: 2010 North American Import Sailboat Report

31 Imports Into North America Declined Again, -21% In 2010 Sailboats 20 feet and over - 50 Units Complicated by a lack of custom orders and inherently longer lag times, disappointing credit markets and a dose of economic upheaval in respective ports of origin, overseas builders took another time out in Source: 2010 North American Import Sailboat Report

32 Despite Gains, Small Cruisers Under 36 Accounted for Only 1 in 8 Boats Imported Into North America for 2010 Units % Change vs % % 46 or more % Compared to the hay days of , imports of larger cruisers have retrenched significantly, down -49% compared to Source: 2010 North American Import Sailboat Report

33 After Saving The Day In 2009 Imported Multihulls Declined Dramatically In 2010, -44% Multihulls 20 feet and over (Units) After being propped up by new models in 09, Multihull imports fell back in line in 2010; accounting for one-third of all cruiser imports in 2010, compared to nearly 50% in 2009! 33 Source: 2010 North American Import Sailboat Report

34 Importers Forecast a Much More Positive Scenario in Predicting a Substantial Increase of +134 Sailboats for Forecast Unit Change 20' - 35' units units 46' or more units Total units Very optimistic expectations for 2011 by are driven by significant percentage increases across the board; and notably cruisers under 36 which have been out of the importing equation in recent years 34 Source: 2010 North American Import Sailboat Report

35 Study Observations Complicated by a lack of custom orders and inherently longer lag times, overseas builders imported -21% fewer sailboats of 20 or more in length in 2010 Small cruisers under 36 increased +9% but accounted for only 1 in 8 boats imported into North America in Imports of larger cruisers to North America have retrenched significantly in 2010, -24% versus a year ago and -49% compared to After holding course in 2009, Multihulls declined significantly in 2010, off -45%. Very optimistic forecasts for 2011 by are driven by significant increases across the board, especially cruisers under Source: 2010 North American Sailing Industry Study

36 2010 North American Sailing Industry Study 22th Annual Survey

37 Methodology & History Mail/Phone/ Survey International Marine Produced by The Sailing Company, Research by The New York Times Magazine Group Produced by The Sailing Company, Research by Rick Walter MarketResearch Associates, Hilton Head, SC 111 out of 119 North American Builders responded and provided their production data; including all the market leaders; 93% response rate 37 Source: 2010 North American Sailing Industry Study

38 Number of North American Sailboat Builders in the Study NA Builders have declined by -25% since 2002/03; most notably smaller companies with 25 or fewer employees. 38 Source: 2010 North American Sailing Industry Study

39 Full Time Sailing Production Workforce +3% in 2010 Estimated number of full time employees Involved in sailboat production 2010: 1, : 1,632 Company Size: 81% have 25 or less employees 19% have more than 25 employees 39 Source: 2010 North American Sailing Industry Study

40 Number of Fulltime Employees in North American Sailboat Production Technology, efficiency, out-sourcing and recession have all combined to dramatically shrink the sailboat production employee force since the beginning of the decade 40 Source: 2010 North American Sailing Industry Study; estimates are rounded to the nearest hundred

41 Last Year Builders Forecast on the Plus Side for 2010 Total Production 2009 Actuals 2010 Forecast Forecast Prediction 7,076 8,301 Year - to-year Change +1,225 units.some were right and some were wrong 41 Source: 2010 North American Import Sailboat Report

42 Aggregate Sailboat Production Down Single Digits in 2010, -8% -584 Sailboats Total North American sailboat production was down -8% in 2010, as compared to -38% in 2009 during the deepest valley of the worldwide recession. 42 Source: 2010 North American Sailing Industry Study

43 Sailboats Under 20 Declined -12% Overall; the Segment Was Affected the Least, -3% Small Sailboats % Chg Boats under 20 12,601 11,592 11,255 9,160 6,055 5,329-12% 11 and under 4,449 3,212 3,538 3,052 2,457 1,844-25% 12' - 19' 8,152 8,380 7,717 6,108 3,598 3,485-3% A course correction for last year s steep dive in the segment, illustrates the cyclical nature of the boat building business The small boat category accounted for 82% of all production compared to 85% last year! 43 Source: 2010 North American Sailing Industry Study

44 Cruiser Production Sailed Forward in 2010, +14% vs. Last Year Sailboats 20 feet and over +142 units After a tumultuous -55% plunge last year, builders began to update and replenish inventories in order to stay a float 44 Source: 2010 North American Sailing Industry Study

45 Long Overdue, the Segment Was +19% in 2010 Driving a +14% Increase for Cruisers Under 36 Sailboats Under Feet Feet +19% +2% 45 Source: 2008 North American Sailing Industry Study

46 Cruisers Led the Way in 2010, +19% Cruisers % Chg , % 46 or more % New models, a response to the huge decline in the previous year and, perhaps, reflective of a more mindful luxury consumer, cruisers were up +19% in 2010 The largest cruiser segment was flat in contrast to their heady days before the big R; but the bleeding appears to have stopped 46 Source: 2010 North American Sailing Industry Study

47 Total Multihulls Were Down -14% for 2010 and are Relying More on Overseas Builders to Meet Consumer Needs American made Multihulls account for 16% of total production, with the great majority coming from the under 20 recreational market segment. 47 Source: 2010 North American Sailing Industry Study

48 Estimated Value of 2010 North American Sailboat Production is $272 Million, Up +6% from 2009 Category Est. Value # of Boats $ Millions 48 Source: 2010 North American Sailing Industry Study

49 Builders Are Optimistic That the Worst is Over; Predicting +26% Growth in 2011 and +35% Gains for Bigger Cruisers 2010 Actual 2011 Forecast % Change 0' - 19' 5,329 6, % 20' - 35' % 36' or more % Total 6,492 8, % Better days for sure with 1,654 more sailboats in 2011; almost sounds like that wild exuberance we saw in the 90s 50 Source: 2010 North American Sailing Industry Study

50 Study Observations Total North American sailboat production was down -8% in 2010, as compared to -38% in 2009 during the deepest valley of the worldwide recession. Sailboats were relatively flat, -3% in 2010 vs. -48% a year ago; Overall the under 20 category was off -12%, accounting for 82% of total sailboat production. Updating and replenishing inventories, cruiser production sailed forward in 2010, +14%, after a tumultuous -55% plunge in Source: 2010 North American Sailing Industry Study

51 Study Observations Long overdue, the pocket cruiser segment increased +19% driving increases in production of +14% for cruisers under 36 in length Smaller bigger cruiser's led the way in 2010, with an increase of +19% among units 36-45, while the biggest segment of 46 and over was down marginally, -2% versus 2009 Builders are optimistic that the worst is over; predicting +26% growth in 2011 and a +35% gain in the 36 and over segment 52 Source: 2010 North American Sailing Industry Study

52 Looking to Next Year Getting ready for the recovery

53 2011 Sailing Outlook Signs Look Promising Durable Goods were up +23% in the 4 th quarter 2011 Luxury spending forecast is up +7% Builders and Importers are on board reporting very positive forecasts for 2011 Consumer confidence has been steadily building Beware of inflation creep 54

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55 56 After the Storm; Let s Make the Turn-A-Round Continue

56 Take Pride in Sailing s Rich Heritage - Spread the Word It is not the ship so much as the skillful sailing that assure the prosperous journey. - George William Curtis Sailing will be here forever 57

57 This annual report on the State of the Sailing Industry in North America is produced by The Sailing Company, a division of Bonnier Corporation, which publishes Cruising World and Sailing World Magazines. Copyright 2011 The Sailing Company. For More Information Contact: Sally Helme - Publisher 55 Hammarlund Way Middletown, RI sally.helme@bonniercorp.com 58