recreational boating industry trends stem to stern ii...the 1970s and 1980s were very good to...
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Recreational Boating Industry Trends Stem to Stern II
Dusty E. McCoy
Chairman and CEO
Brunswick Corporation
May 15, 2012
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1965 -1991
Average 400,000 1992 -2006
Average 309,000
Sources: NMMA, includes all 50 states and total sterndrive, inboard and outboard boats. Excludes jet boats.
U.S. Industry Retail Powerboats (1965 – 2011E)
Last 6 Years
2006 291,900
2007 267,300
2008 203,000
2009 153,550
2010 138,830
2011E 139,250
In 2011, outboard boats reflect modest recovery;
inboard/sterndrive boats continued to decline
-
100,000
200,000
300,000
400,000
500,000
600,0001965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011E
Calendar Year
Ind
us
try
Vo
lum
e
Outboard
Inboard / Sterndrive
Total Power Boats
3
0
10
20
30
40
50
60
70
80
90
100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
34.8%
32.4%
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%
No. of adults boating (in millions) % of adults boating
Source: NMMA
2011 Reflects Highest Level of
Participation Since 1997
U.S. Boating Participation History (1990 – 2011)
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Market Demand Dynamics Remain Intact
Each 1% Change in
Used/New Mix Equals
Approx 8,000 to 9,000
Units
Th
ou
sa
nd
Un
its
Pre-owned Sales and Annual Licenses Remain Stable
Note: All data in thousand units
Source: Pre-Owned Boat Market Study conducted for NMMA by Info-Link Technologies.
Used Boats
New Boats
Licenses
10,521
10,906
10,389
10,605
10,340
10,466
10,230
10,532
10,397
10,658
10,161
10,100E
0200400600800100012001400
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011E
New Boats 344 312 304 296 308 306 292 267 203 154 139 140
% New 29 27 26 26 27 27 26 25 22 16 16 16
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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
To
tal B
oat
Reg
istr
ati
on
s (
000)
US
Po
pu
lati
on
(000)
YEAR
US Boat Registrations vs. PopulationIncluding PWCs
Population Boat Registrations
The Boating Boom
The PWC Boom
Source: Info-Link Technologies Inc.
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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. PopulationExcluding 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
Po
pu
lati
on
(000)
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
To
tal
Bo
at
Reg
istr
ati
on
s (
000)
Population Boat Registrations
Source: Info-Link Technologies Inc.
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0
5
10
15
20
25
Avera
ge A
ge
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.
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.
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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 Owners1998 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.
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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 Owners1998 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.
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32.4%36.5%
31.1%Current Participant Past Participant Non-Participant
Past boating participants and people who do not boat total about 150 million
adults in the U.S.
Recreational Boating Participation 2010
36.5% 32.4%
31.1%
Current Participant Past Participant Non- Participant
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32.4%
22.6%
17.3%
17.1%16.2%16.0%
14.7%
14.2%
12.1%
11.5%
11.4%11.1%
10.5%
Don't know anyone
w ho ow ns a boat
Reduced income
Time constraints
Higher cost of living
Sold my boat
No longer participate
in boating-related
activitiesDon't/no longer live
near w ater
Health reasons
Lost interest
Unemployed
Lost my boating
partner (friend)
Change in w ork
circumstances
Cost of fuel for boat
More than 50% of reasons are non-monetary
Reasons Past Participants Have Not Boated in Past 12 Months
12
23.9%
58.9%
17.2%
Yes No Not Sure
Have you ever considered going recreational boating?
Non-Participants Consideration of Boating
13
64.9%
39.9%
39.6%30.7%
30.1%
25.5%
24.6%
21.0%18.5% 8.7%
6.0%
No interest
Don't know anyone who owns
a boat
Don't participate water-based
recreational activities
Afraid of the water
Health reasons
Did not boat as a child
Time constraints
Cost of boat maintenance
Don't live near water
Other reasons
Cost of fuel
Cost of boating
Why have you not considered going recreational boating?
75% of reasons are non-monetary
Reasons Why Some Do Not Consider Boating
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36.9%
41.2%
1.2%21.6%
Boated as child and parents
owned a boat
Boated as 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
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 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
Childhood Boating Experience
Current Participant Non - Participant
Boating Participation – Exposure to Boating as a Child
Drives Adult Participation
21.6%
1.2%
41.2%
36.9%
60.1%
9.3%
29.4%
1.2%
15
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
Boat Owner Demographics by Ethnicity 2010 Any Powerboat
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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
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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
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