Post on 03-Jun-2020
STATE OF THE INDUSTRY
Presented to Wisconsin Marine Association
2 Source: USITC, SSI, RMRC
RECREATIONAL BOATING
95% of boats sold in the U.S. are made in the U.S.
97% of U.S boat manufacturers are family owned and operated
small businesses.
3
BOATING’S ECONOMIC IMPACT
$121.5 Billion annual Economic Impact
($37.5 Billion in direct sales)
Employs 472,593 direct
jobs
Sustains 34,833
businesses
Source: Infogroup, RMRC
# of Boats 613,516
# of Jobs 18,211
# of Businesses 798
Economic Impact
$4.8 Billion
Wisconsin
5
Healthy Economy
Job Creation
Consumer Spending
Housing Growth
Consumer Confidence
State of
the IndustryES
BOATING NEED TO GROW?
Source: BEA, Philadelphia Fed
REAL GDP
1.4%
-2%
-1%
0%
1%
2%
3%
4%
5%
2012 2013 2014 2015 2016 2017
Pe
rce
nt
Ch
an
ge
fro
m P
rece
din
g P
eri
od
Forecasts
REAL GDP
7
Source: BEA, SSI
GDP V. BOAT SALES
4Q-15, 0.7%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
-9%
-7%
-5%
-3%
-1%
1%
3%
5%
7%
9%
1Q
-00
4Q
-00
3Q
-01
2Q
-02
1Q
-03
4Q
-03
3Q
-04
2Q
-05
1Q
-06
4Q
-06
3Q
-07
2Q
-08
1Q
-09
4Q
-09
3Q
-10
2Q
-11
1Q
-12
4Q
-12
3Q
-13
2Q
-14
1Q
-15
4Q
-15
Re
tail
Bo
at
Sa
les
, R
12
M Y
OY
Ch
an
ge
GDP Boats
Re
al G
DP, P
erc
en
t C
han
ge
fro
m P
rece
din
g P
eri
od
8
U.S. CONSUMER CONFIDENCE V. BOAT
SHIPMENTS
0
20
40
60
80
100
120
-
50
100
150
200
250
300
Co
nsu
mer
Co
nfi
de
nce R
12M
Ave
rag
e
R12M
Tra
dit
ion
al
Po
werb
oat
Wh
ole
sa
le
Sh
ipm
en
ts
Thousands
Boat Shipments Consumer Confidence
Source: NMMA, The Conference Board
9
-10
40
90
140
190
240
290
340
390
440
490
Feb -13
May Aug Nov Feb -14
May Aug Nov Feb -15
May Sept Dec
(Th
ou
sa
nd
s o
f E
mp
loye
es)
Nonfarm Payrolls
Manufacturing
200
MONTHLY CHANGES IN
EMPLOYMENT
Source: BLS
10
U.S. HOUSING STARTS V. BOAT
SALES
Source: U.S. Census Bureau, SSI
-
500
1,000
1,500
2,000
2,500
11/1
/2001
5/1
/20
02
11/1
/2002
5/1
/20
03
11/1
/2003
5/1
/20
04
11/1
/2004
5/1
/20
05
11/1
/2005
5/1
/20
06
11/1
/2006
5/1
/20
07
11/1
/2007
5/1
/2008
11/1
/2008
5/1
/20
09
11/1
/2009
5/1
/20
10
11/1
/2010
5/1
/20
11
11/1
/2011
5/1
/20
12
11/1
/2012
5/1
/20
13
11/1
/201
3
5/1
/20
14
11/1
/2014
5/1
/20
15
11/1
/2015
-
50
100
150
200
250
300
350
Housing Starts, SAAR R12M Retail Powerboat Sales
11
RV V. BOAT SALES
Source: SSI
-40%
-30%
-20%
-10%
0%
10%
20%
30%
1999Q2
2000Q3
2001Q4
2003Q1
2004Q2
2005Q3
2006Q4
2008Q1
2009Q2
2010Q3
2011Q4
2013Q1
2014Q2
2015Q3
R1
2M
Re
tail
Sale
s Y
OY
Ch
an
ge
Traditional Powerboats RVs
12
LIGHT VEHICLE V. BOAT SALES
Source: Autodata Corp., SSI
-40%
-30%
-20%
-10%
0%
10%
20%
30%
R1
2M
Re
tail
Sale
s Y
OY
Ch
an
ge
Traditional Powerboats
Light Vehicles
13
MOTORCYCLE V. BOAT SALES
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
2001Q4
2003Q1
2004Q2
2005Q3
2006Q4
2008Q1
2009Q2
2010Q3
2011Q4
2013Q1
2014Q2
2015Q3
R1
2M
Re
tail
Sale
s Y
OY
Ch
an
ge
Traditional Powerboats
Motorcycles
Source: MIC, SSI
14
2014 BOATING EXPENDITURES
IN BILLIONS OF DOLLARS
[CATEGORY NAME], [VALUE]
[CATEGORY NAME], [VALUE]
New Outboard Engine Sales,
$2.5
[CATEGORY NAME], [VALUE]
Aftermarket Accessory Sales,
$5.6
[CATEGORY NAME], [VALUE]
Source: NMMA
15
2014 REGISTRATIONS BY BOAT TYPE
(MILLIONS)
Outboard Boats, 7.3
Inboard Boats, 1.2
Sterndrive Boats, 1.4
PWCs, 1.0
Sailboats, 0.3
Other, 0.7
Source: USCG
16
OUTBOARD ENGINE RETAIL UNIT SALES
-3.3%
-8.7%
-17.6%
-20.4%
-1.0%
-0.2%
8.2%
8.2%
4.5%
8.7%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
YOY Change
Source: NMMA
17 Source: USCG
Under 26' 95%
26' and larger
5%
2014 POWERBOAT REGISTRATIONS
BY SIZE
18 Source: USCG
40' and larger
1%
2014 Powerboat Registrations
1%
19
$27.7
$32.0
$34.2
$30.2
$33.8 $35.6
$37.6 $35.7
$32.3
$29.6 $29.1 $30.5
$32.6 $33.3 $35.4
$37.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
US
D (
Bill
ion
s)
$36B
U.S. RETAIL SPENDING ON BOATING
Source: NMMA
20
POWERBOAT, PWC, AND SAILBOAT
RETAIL UNIT SALES
408 394 366
279
207 188 190 202 206 227 241
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Un
its
(T
hou
sa
nd
s)
* Projected Estimates
source: NMMA, SSI, MIC
BOUNCEBACK
0% 20% 40% 60% 80% 100%
Pontoon
Aluminum Outboard 26'+
Aluminum Outboard <26'
Fiberglass Outboard <26'
PWC
Jet Boat
Ski Boat
Fiberglass Outboard 26'+
Sterndrive Cruisers
Bass Boat
Deck Boat
Inboard 26'+
Inboard <26'
2014 Retail Sales as Percentage of Pre-recession Sales
source: SSI
22
GROWTH IN 2015
source: SSI
15.3%
5.2% 6.6% 9.3%
-6.4%
11.2%
27.5%
8.2%
-6.6%
-22.2%
11/1
5 Y
TD
YO
Y C
han
ge
- B
ellw
ehte
r R
eta
il S
ale
s
23
POWERBOAT, PWC, AND SAILBOAT
SALES NEW VERSUS PRE-OWNED
910 969 955 941
188 199 202 222
2011 2012 2013 2014
Th
ou
sa
nd
s
Preowned New
Source: SSI, Info-Link
BOAT OWNERSHIP IN 2014
82.9%
5.4% 5.3%
3.4% 3.0%
Boat Owners
11.8% 5.1%
63.8%
14.5%
4.8%
U.S. Population
African-American AsianCaucasian HispanicOther
Source: Foresight Research, U.S. Census Bureau
Industry is facing some headwinds
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+
Pe
rce
nta
ge o
f A
ll B
uye
rs
Age Range
Boat Owner Age Distribution - 1997
Source: Info-Link
Boat Owner Age Is Increasing
Source: Info-Link
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+
Pe
rce
nta
ge o
f A
ll B
uye
rs
Age Range
Boat Owner Age Distribution - 2013
Future Boaters?
Source: Info-Link
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+
Pe
rce
nta
ge o
f A
ll B
uye
rs
Age Range
Boat Owner Age Distribution - 1997 vs 2013 1997 Owners
2013 Owners
28
RISING STUDENT DEBT
Source: NY Fed Consumer Credit Panel/Equifax
The purpose of Discover
Boating is an industry-wide effort
to promote the boating lifestyle
and improve the boating
experience to increase
participation and ultimately sales
of marine products and services.
Our mission is to inspire
and excite,
share knowledge and
motivate people
to spend time on the
water.
32
WE SELL THE “ING”
33
THE CAMPAIGN
Our Stories of Discovery
videos were viewed
over 30 million times.
A 335% increase over 2014
and 44% increase over goal.
But it’s not just
the views that matter:
it’s the message, too.
Our message positively
influenced peoples’ perceptions
of boat ownership.
90% Of Social Anchors said the
work made them think
boating’s benefits are worth its
costs.
88% Of Social Anchors said the
work made them feel better
about
the boating lifestyle.
93% Social Anchors who said
our videos made them feel more
positive about boat ownership.
36
THEIR STORIES
31
ASHLEY RAE
WE WILL DELIVER OUR STORIES VIA
10,000 WEBSITES
Sites like:
SOCIAL
MEDIA
40
41
42
PUBLIC RELATIONS
2,442 Stories
J
Jake Owen – Discover Boating Ambassador
DISCOVERBOATING.COM
DISCOVERBOATING.CA
FR.DISCOVERBOATING.CA
Record Year for Discover Boating Websites
5.3
Million
Visits
8.4
Million
Pages
Up 17% Up 51%
We are educating and
providing resources to
boaters.
Audience trends:
Visits from 25-34 year-olds increased by 48%
Visits from 35-44 year-olds increased by 26%
Visits from 45-54 year-olds still represent largest
segment
(FY15 versus FY14)
Top Pages:
Boat selector tool (12.6% of visits)
Stories of Discovery Videos (9.6% of visits)
Loan calculator (9.2% of visits)
Boat brands (5.6% of visits)
75% of
Discover Boating
web traffic is comprised
of new site visitors
21% of Discover Boating
website visitors choose to click
thru to connect directly to
stakeholder websites
Reach new audiences
who are not yet boaters,
and inspire them to
explore the boating
lifestyle
Create and leverage key
content like the
‘Get On the Water’
section of our website
EVOLUTION OF A
LEAD
The Discover Boating Lead System
Discover Boating LEAD Path
1. Integrated marketing campaign
drives consumers to
DiscoverBoating.com
2. Consumers visit Boat Selector
Tool or request a BGTB
3. Consumer opts into DBLS for
manufacturers & dealers contacting
them
4. DBLS notifies manufacturers &
dealers of their new leads
5. Manufacturers retrieve leads from
DBLS
6. Manufacturer contacts consumer
to nurture them
7. Consumer visits manufacturer
site to search dealer locator
8. Consumers visit local
dealership to shop
5. Manufacturers retrieve
leads from DBLS
6. Manufacturer passes lead
directly to dealer
7. Dealer reaches out to invite
consumer to dealership
8. Consumer visits
dealership
Discover Boating REFERRAL Path
Discover Boating in 2016
• Discover Boating is our best resource bringing in new consumers
• Refining metrics so they are more meaningful to stakeholders
• Consumers are choosing web referral path over lead path 250 to 1
• Further analysis to be done on the value of a web referral
• Research to understand gateways to boat ownership
• Research to optimize our approach to consumers life stages – emphasis on getting
consumers into boating
VIDEO VAULT: EDUCATIONAL HOW-TO’S
61