LA INDUSTRIA NAUTICA EN 2018 Datos economicos y tendencias Palma, 8 Marzo 2018 Stefano Pagani Isnardi UCINA Estudios y estadísticas
1. BOATING INDUSTRY FACTS AND FIGURES
THE RECREATIONAL BOATING WORLD The basic figures 3 In some geographical areas boating is an immensely popular activity: 150 million boaters in the US and Canada 36 million boaters in Europe 5 million boaters in Australia Global fleet of 30 million boats (90% < 8m) 25 000 marinas Effects in industry 100 000 direct companies (primarily SMEs) 1 million direct employees More than 45 billion euro in manufacturing turnover BOATING IS AFFORDABLE FOR A MAJORITY OF MIDDLE INCOME EARNERS The glamourous luxury segment only represents 2% of the industry in volume terms
THE MARINE INDUSTRY IN THE MATURE MARKETS A long and complex supply chain BOATBUILDING + REFIT BOATING TOURISM + SERVICES MARINE EQUIPMENT MAINTENANCE + REPAIR
THE MARINE INDUSTRY IN THE MATURE MARKETS A long and complex supply chain Extensive indirect economic contributions from highly varied supply chain and array of services related to recreational boating 2 examples from 2 different studies: ITALY: For every 1 job in the core boating manufacturing, further 7,4 jobs are supported in the wider boating economy. UK: The total economic contribution of boating tourism in terms of Gross Value Added (GVA) is 14 times larger than the core boating tourism industry.
2. THE GLOBAL BOATING INDUSTRY MARKET
THE GLOBAL BOATING INDUSTRY MARKET Key figures 100 000 direct companies (primarily SMEs) 1 million direct employees More than 45 billion euro in manufacturing turnover (>20 for new boats) 3 leisure marine manufacturing segments + boating tourism sector YARDS + EQUIPMENT + ENGINES MARINAS + SERVICES
TRADITIONAL BOATING MARKETS EUROPE NORTH AMERICA + CARIBBEAN JAPAN AUS + NZ
TRADITIONAL AND DEVELOPING BOATING MARKETS EUROPE RUSSIA NORTH AMERICA + CARIBBEAN JAPAN GULF AUS + NZ BRASIL SOUTH AFRICA
TRADITIONAL, DEVELOPING AND EMERGING BOATING MARKETS EUROPE RUSSIA SOUTH KOREA NORTH AMERICA + CARIBBEAN SOUTH AMERICA GULF CHINA INDIA + SRI LANKA TAIWAN JAPAN SOUTHEAST ASIA AUS + NZ BRASIL SOUTH AFRICA
THE BOATING INDUSTRY Yards localization in the two main manufacturing areas COMPANIES CONCENTRATION MIN MAX source: Orbis database, 30.12 code Year 2015 (or 2014 if n/a)
THE BOATING INDUSTRY Yards localization in the two main manufacturing areas: Focus on EUROPE COMPANIES CONCENTRATION MIN MAX source: Orbis database, 30.12 code Year 2015 (or 2014 if n/a)
THE BOATING INDUSTRY Geographical localization of the boatbuilding companies by turnover source: Orbis database, 30.12 code Year 2015 (or 2014 if n/a)
THE BOATING INDUSTRY Global turnover trends in boat production (bn ) large drop slow recovery 15 23 25 17 20 ~ 1999 2006 2008 2014 2016
2014 GLOBAL PRODUCTION SHARE Boat manufacturing 15 RoW China France Germany Netherlands UK Italy US INBOARD OUTBOARD SAILBOATS RIBs TOTAL source: Deloitte
3. EXPORTS IN THE BOATING INDUSTRY MARKET
M$ BOATING INDUSTRY EXPORT Global export trends in boat production (M$) 3.000 2.500 2.000 1.500 1.000 500 I NL D UK US 0 Italy The Netherlands Germany UK USA source: ITC and UN-Comtrade HS 2012 classification, 890392 code
BOATING INDUSTRY EXPORT 2016 global export in boat production (M$) Rank Country Inflatables Sailboats Inboard Outboard TOTAL 1 Italy 54,8 41,7 1.793,7 35,9 1.926,1 2 The Netherlands 5,0 252,7 1.571,4 15,2 1.844,2 3 Germany 5,0 154,4 1.234,4 16,0 1.409,8 4 US 13,2 41,6 610,4 656,0 1.321,3 5 France 25,6 594,5 488,1 27,4 1.135,7 6 UK 19,0 90,0 871,5 12,1 992,7 7 Mexico 3,8 0,0 509,3 31,0 544,1 8 Poland 4,7 14,0 53,0 301,1 372,9 9 China 123,3 10,8 31,0 136,0 301,1 10 Finland 0,01 88,4 103,7 71,8 263,9 source: ITC and UN-Comtrade HS 2012 classification, 8903 codes
4. A GLANCE AT SUPERYACHTS, AN EXCELLENCE OF THE BOATING INDUSTRY
THE GLOBAL SUPERYACHT FLEET (>30m) Growth trends constant growth 5200 5900 3400 1900 1997 2007 2017 2022 source: The Superyacht Group
THE GLOBAL SUPERYACHT ORDER BOOK (>24m) Top building yards, 2018 773 SY on order in 2018 source: Boat International Top 5 building countries: Italy (353), Turkey (75), Netherlands (65), Taiwan (61), UK (55) Top 3 builders are Italian
5. BOATING INDUSTRY MARKET TRENDS
THE BOATING INDUSTRY Trends in the global market After a constant growth, the 2008 global crisis suddenly hit the sector Many manufacturing countries registered turnover drops over 60% and 50% decline in new boat registrations Recovery in the US market since 2011 and in Europe since 2015 WILL IT LAST? The positive signals from the operators and from the boat shows show a structural improvement in all the traditional markets
MARKET TRENDS IN THE GLOBAL MARKET 2016-2017 key figures Italy 2016 Total turnover: +18,6% Internal market: +21,8% Direct employees: +1,9% 2017 Expected a 2 digit growth 2018 Survey December 2017 on UCINA members Source: UCINA
MARKET TRENDS IN THE GLOBAL MARKET 2016-2017 key figures Europe France: +8,2% in registrations (2016/17); sailing boats -4% in last quarter of 2017 France registrations Croatia: Positive trends for 2017 (+5-6%) as in 2016; very popular destination for charter; new taxation on boats could have a strong impact Germany: 4,2% increase; services sector very dynamic The Netherlands: small growth (+1-2%) in most segments Poland: production is continuously increasing, with the issue of lack of capacity and skilled workers; internal market still small Finland: Small reduction in registrations (-1%) in 2017, especially for motorboats (-4%) and sailing boats (-56%); PWC imports +30%; exports +4%. UK: Brexit caused uncertainty in the market but industry revenues increased by +3,4% in 2017 ( 3.12bn); 6 th consecutive year of growth; weak pound: exports +4,7% ( 924M) Source: EBI + ICOMIA
MARKET TRENDS IN THE GLOBAL MARKET 2016-2017 key figures Overseas US: TRADITIONAL POWERBOAT RETAIL SALES United States: Consumer confidence stronger than in 2008 142 million boaters; 15,8 million boats in use 95% of boats sold in the US are made in the US annual spending for boating in the US: 86 billion $ (36bn$ just for boats, engines, accessories and their related costs) Boatbuilding growth in 2017: +7% and expected to continue in 2018 24% exports to Europe Canada: great market improvement following recession; 2016/2017 very flat, with no particular sign of growth for the current year; PWCs +10% Australia: buoyant domestic market; exports +8%, especially towards US; significant charter growth; interest in Asian markets has dropped Source: NMMA, ICOMIA
AVERAGES 2-3 YEAR INDUSTRY OUTLOOK: 2013-2017 ICOMIA s annual mid-2017 survey of MIAs, representing 24 countries Progression in industry sentiment from 2013 to 2017 The most recent responses show the highest average assessment (+1.04) received from MIAs in 5 years source: ICOMIA International Council Of Marine Industries Associations
MARKET TENDENCIES 1 ST SEMESTER 2018 World source: ICOMIA International Council Of Marine Industries Associations
MARKET TENDENCIES 1 ST SEMESTER 2018 Europe source: ICOMIA International Council Of Marine Industries Associations
6. MARKET ORIENTATION
THE BOATING INDUSTRY Future trends in the global market KEY FACTORS I global economic and political situation II consumer and business confidence III boaters/owners demography IV boat ownership patterns V design trends demand
I. GLOBAL ECONOMIC AND POLITICAL SITUATION North America: US acts as a boost to the global marine industry, representing half of the global market US economy improvement since 2011 + strong $ since 2015 beneficial effects, lifting sales for US and int l manufacturers New US policies in trade and tariffs could have effects in the global market Europe: Slower improvements of the economy in the majority of EU countries Heavy recession effects in sales, leading to production overcapacity and multiple acquisitions and mergers to realign industry to lower demand Recovery of domestic sales in strategic markets Return to profitability for companies Brexit uncertainties RoW: Disappointing economic fundamentals and political instability in countries with emerging markets: boating sales generally stalled Decline in Russia, Brasil, China Good potential for Colombia, Panama, Singapore
II. CONSUMER AND BUSINESS CONFIDENCE Consumer confidence as a barometer of boat markets health Consumer index booming in the US, increasing in the majority of Asia/Pacific, slowly recovering in Europe, decreasing in South America However consumer and businesses are getting more immune to the world s unpredictable environment Positive industry sentiment in a 2-3 years horizon: only 11.5% of MIAs express a negative outlook Very good results for the bigger boat manufacturers groups in the 2 last financial years Other key factors out of the boating industry s control: Tariffs Taxation of boats as luxury goods New restrictive legislation (boat use or environment)
III. BOATERS AND OWNERS DEMOGRAPHY A new potential demand for the boating sector World HNWI population 15.4 million Annual HNWI global growth rate +4.9% target for bigger yachts Higher growth in Asia-Pacific GLOBAL 15,4 +4.9% Geographical localization of HNWIs (millions, 2015) 4.8 +2% 0.5 4.2 +5% 0.2 0.9 5.1 +9% source: Capgemini (HNWI have investable assets of US$1 million or more)
III. BOATERS AND OWNERS DEMOGRAPHY Ageing in traditional markets If new markets can bring new buyers to the industry, traditional markets as Europe, are facing the ageing of customers and the demographic loss DEMOGRAPHIC CHALLENGE Many Marine Industry Associations (MIAs) are responding with specific grow boating campaigns aimed at bringing newcomers into boating. GERMANY 2015 source: BVWW
IV. BOAT OWNERSHIP PATTERNS New models for boating MATURE BOATING MARKETS SHIFT IN BOAT OWNERSHIP PATTERNS new challenges and opportunities Habits of newcomers to boating: interested in sailing (growing boat licenses) BUT spending less time on the water preference towards renting than owning Flexible concepts of boat use: chartering boat sharing peer to peer boat rental
IV. BOAT OWNERSHIP PATTERNS Sharing economy models PAYING FOR USE, NOT FOR PROPERTY Fast-growing number of companies in the boating sector How can the industry face the changes? A new counterpart in the sale contract? Will manufacturers manage fleets?
V. DESIGN TRENDS DEMAND Basic boat design features SHAPE and ASPECT exteriors deck and interior layout customization level PERFORMANCE hull type propulsion life-cycle REGULATORY REQUIREMENTS are increasingly difficult to meet and impact on all the design features of a boat: technical standards (e.g. ISO or ABYC) and certification systems environmental regulations (e.g. RCD, IMO) safety issues (e.g. stability, fire protection) equipment compliance
V. DESIGN TRENDS DEMAND Shape and aspect DECK and INTERIOR LAYOUT More limitations for charter boats due to social issues (ILO crew accommodation parameters) Bigger engine rooms needed (SCR systems for SY) New exigencies from new markets (e.g. karaoke rooms) Increasing importance of the fly deck Redefining spaces: kitchen areas Wider glazing CUSTOMIZATION LEVEL Interior furniture and materials Entertainment systems, domotics and IT Larger stern cockpit and beach platforms Tender & toy garages for SY
V. DESIGN TRENDS DEMAND Performance HULL TYPE Growing interest in long-range boats R&D on efficiency to reduce fuel consumption Growing market for catamarans Higher performances of sailboats PROPULSION New strict emission levels (RCD, EPA, NOx) Pod engines / joysticks Hybrid inboard engines Electric outboard engines LIFE-CYCLE Higher expectation of service levels in every step: Smart manufacturing and IoT (Internet of Things) Continuous post-delivery assistance End-of-life managing (repair, refit, scrapping)
Gracias! pagani@ucina.net