The British Marine Industry
Howard Pridding Chief Executive British Marine Federation
What I will cover BMF Breadth & diversity of sector State of the industry & trends Increasing participation Surviving the economic downturn
BMF is the Trade Federation for the UK Leisure, Superyacht and Small Commercial Marine Industry established in 1913
Our members provide the boats, equipment, facilities and services that enable nearly 3 million people to enjoy boating and watersports on the coasts and inland waterways of our country
Who are our members 1548 member companies Boatbuilding Marine Equipment Engines Electronics Marinas Hire Fleets Brokers Chandlers Wholesalers Sea Schools Yacht Charters Financial Services
BMF Membership Numbers 1650 1600 1590 1550 1550 1540 1525 1548 1500 1450 1470 1454 1485 1400 1350 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 To date this year
Provide member services Represent the industry Organise leading UK boat shows
BMF Member Services Environment & Boating Facilities International Marketing Statistics & Market Research Technical Training
Representation Politicians Government Departments & Agencies European Boating Industry (EBI) International Council of Marine Industry Associations (ICOMIA) Inland Waterways The Media
National Boat Shows Limited Wholly Owned Subsidiary of BMF
Boat Shows are Vital Sales platform Grow boating market Build Political profile BMF revenue stream
PSP Southampton Boat Show Europe s Largest On-Water Boat Show 582 Exhibitors Hundreds of Boats (over 300 afloat) 110,000 Visitors
London Boat Show Europe s First 400 Exhibitors 93,000 Visitors
British Marine Excellence The UK Leisure Marine Industry
World Leaders in Power Boats
Sail Boat Builders
Marine Equipment (Supply Chain Companies)
Marine Electronics
Clothing
UK Leisure Marine Industry Economic Situation Impact Statistical Trends
Industry Overview 2011/12 Total Revenue 2.855 bn International Revenue 1.003 bn (35.1%) Employees (FTE) c. 31,000 UK Businesses c. 4,200
Marine Industry Structure Size Category (FTE Employees) No. of Businesses UK Employees FTE) Revenue ( million) Small <1 to 5 3,076 7,149 448.29 >5 to 10 612 4,739 366.40 >10 to 25 335 5,229 433.94 Medium >25 to 50 99 3,473 435.53 >50 to 100 36 2,553 319.06 >100 to 250 14 2,000 202.67 Large >250 6 5,844 649.54 Total 4,178 30,987 2,855.42
UK Marine Industry by Sector ( million)
% of UK Total International Trade by Market ( million) 420 International Trade by Market (to nearest million) 35 115 126 21 33 7 71 4 44 41 86 Eurozone Other EU Member Other Europe North America South America Australia New Zealand China India Rest of Asia Middle East Rest of the World
UK Boat Production Estimate 2012 2011 Sailboats Inboard/ sterndrive motor boats Other rigid boats incl outboard motor boats Inflatable boats 2.5m+ and 20kg+ Total 2.5m (8ft) up to 7.5m 7.5m (26ft) up to 12m 12m (40ft) up to 24m (80ft) 450 180 350 600 1,580 50 170 10 25 255 65 680 0 0 745 above 24m 3 50 0 0 53 Totals 568 1,080 360 625 2,633
UK Economy GDP v Marine Industry Revenue (annual % change) % 10 5 Annual % change: UK Economy GDP v Marine Industry Revenue UK GDP Marine Revenue 0-5 -10 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12
The Boating Market Participation in Boating
UK Boating/Watersports Participation While in decline since 2002, more recent years of 2010-2012 have shown less variation than previously implying a growing stability Declines are most evident amongst casual boaters (1-5 times a yr) and 16-34 year olds; recession, weather, change in habits/lifestyle Enthusiasts boaters are fairly stable over time
Participation in 2012 5.8% of UK adults went boating c. 2.8 million adults 17.6 million boating experiences 62.3 % inland 37.7 % coastal
Boat Ownership 2010-2012 2.8% of UK households own a boat/craft which equates to c. 750,000 households owning 1.2 million boats/craft 1.1 million of the 1.2 million boats/craft are kept in the UK Kept overseas most likely to be canoes/kayaks (29% of those owned) and personal watercraft (18% of those owned) Most boating participants used a boat owned by themselves, family or friends when they last participated 47% of canal boats were chartered 28% of motor boats for cruising were chartered 25% of small sail boats used for racing were owned by a sailing club
How It Works 1) Taster sessions at events 2) Engage with people and talk with them 3) Data collection 4) Drive users to appropriate members 5) Encourage participation 6) Keep website content fresh 7) Deliver them to a Boat Show 8) Highlight boating opportunities 9) Seasonal/celebration marketing opportunities.
New Website www.onthewater.co.uk is packed with guides, events, tips, information - Everything that people need to get started, whether they have just one day, a weekend or longer. The site offers novices good quality information that is simple to understand and offers a neutrality: Warm Neutral Welcoming Jargon free Informative Guiding
E-Newsletter & Social Media Database 3.5k & growing Monthly email Warm audience Events, competitions, BMF member offers, news...
Members Events Toolkit Leaflet Template (Pre-Event) Poster Template (Pre-Event) Leaflet (Post Event) Press Release Template Static Website & Email Banners Rotating Website & Email Banners Insurance
Surviving the Economic Downturn
Impact on Industry Sectors Powerboats Sailing boats Sports boats/ribs/pwc s Brokerage Boat service and repair Boating holidays Marinas
Action Review everything Cut costs Grow revenue Manage cashflow Downsize to match current market needs
Our industry is still here It has an underlying strength and has demonstrated resilience Companies took action early Companies will be in a position to prosper and grow as the upturn comes
My Conclusions The World has changed... It will not be the same again We must adapt and structure our businesses to meet current market conditions There will be gradual market growth... Not significantly in 2013