1.
State of the
Recreational
Boating Industry
SARA ANGHEL, PRESIDENT, CANADA

2.
National Trends

3.
A Truly American Industry
source: NMMA

4.
Outdoor Recreation is BIG Business
 An overlooked economic giant,
outdoor recreation makes up
~2% of GDP, contributing
$374 Billion each year
 Outdoor recreation exceeds
such industries as mining and
agriculture, which combined,
have a lower contribution than
outdoor recreation
source: BEA

5.
American Retail Spending on Boating
$31
$35 $35
$33
$31
$28 $27
$29
$31 $31
$33
$35
$37
$39
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
USD(BILLIONS)
source: NMMA

6.
source: NMMA, Info-Link
Retail Expenditure Estimates
—
$5
$10
$15
$20
$25
$30
$35
$40
‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17
PRE-OWNED BOAT/ENGINE
AFTERMARKET ACCESSORIES

7.
Traditional Powerboat Retail Sales
—
100
200
300
400
500
600
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
UNITSThousands
1980s
Recession
911
Asian Financial Crisis
Desert Storm Iraq War
Great Recession
source: Info-Link

8.
Powerboat, PWC, and Sailboat Sales,
New Versus Pre-owned
source: Info-Link, Bonnier
910
969 955 941 958 982 988
174
190 200 219
239
256 267
2011 2012 2013 2014 2015 2016 2017
UnitsThousands
Preowned New

9.
New Boat Retail Unit Sales
0
50
100
150
200
250
300
350
400
450
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Thousands
Sailboat
Powerboat
source: Info-Link, Bonnier

10.
New Powerboat Retail Unit Sales
-7%
-24%
-27%
-10%
-2%
9%
5%
10% 10%
7%
5%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
YOYChange
source: Info-Link

11.
2017 Retail Unit Sales
2%
5%
8%
4%
-1%
7%
9%
1%
YOYChange
High Unit Volume
source: Info-link
Low Unit Volume

12.
Growth in Outboard Sales

13.
Trends to Watch in 2018
1. Versatile family fun boats
2. Fishing Boats – 3-4% increase for saltwater, 1-2% for freshwater
3. Cruisers – Boats between 21-32 feet estimate gains of 9-10% in 2017
4. More boating experiences for new boaters

14.
What Boating Requires to Grow
Healthy Economy
Job Creation
Consumer Spending
Housing Growth
Consumer
Confidence

15.
U.S. Market Outlook
U.S. GDP
expected to
grow 2-3%
through
2020
5% growth
in new
powerboat
sales in
2018
Gas prices
remain at
historical
lows

16.
Unemployment Rate: 3.8% - May 2018
U.S. Job Creation
source: BLS

17.
Consumer Confidence Index
May-18, 124.5
0
20
40
60
80
100
120
140
160 '68
'70
'72
'74
'76
'78
'80
'82
'84
'86
'88
'90
'92
'94
'96
'98
'00
'02
'04
'06
'08
'10
'12
'14
'16
R12MAVERAGE
26 mo.
24 mo.
51 mo. 35 mo.
35 mo.
24 mo.
20 mo.
40 mo.
82 mo.
96 mo.
47 mo.
104 mo.
Average duration from peak to valley: 33 mo.
Average duration from valley to peak: 57 mo.
source: The Conference Board

18.
June 4, 2018,
$2.85
$0
$1
$2
$3
$4
1/7/2013 1/7/2014 1/7/2015 1/7/2016 1/7/2017 1/7/2018
Regular,ConventionalWeeklyU.S. City Retail Gas Prices
source: EIA

19.
RV v. Boat Shipments
source: NMMA, RVIA

20.
source: ITR Economics
Wholesale Forecasts
0
40
80
120
160
200
240
280
0
40
80
120
160
200
240
280
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
12MMA3MMA
12MMA 12MMA Forecast 3MMA
QUARTERLY PRODUCTION
(3MMA)
ANNUAL PRODUCTION
(12MMA)
OUTLOOK
MANAGEMENT NOTE
134.5
147.6
Production will rise through
2018 and subsequently
decline through 2019,
edging below the current
levels. Rise will return in
2020.
Conserve extra cash this
year in anticipation of
Production decline next
year.

21.
4/1/2018, 1.90%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
YOYChange
Real Disposable Income
source: BEA

22.
source: BEA
Consumer Spending
-6%
-4%
-2%
0%
2%
4%
6%
8%
2001-Q2
2001-Q4
2002-Q2
2002-Q4
2003-Q2
2003-Q4
2004-Q2
2004-Q4
2005-Q2
2005-Q4
2006-Q2
2006-Q4
2007-Q2
2007-Q4
2008-Q2
2008-Q4
2009-Q2
2009-Q4
2010-Q2
2010-Q4
2011-Q2
2011-Q4
2012-Q2
2012-Q4
2013-Q2
2013-Q4
2014-Q2
2014-Q4
2015-Q2
2015-Q4
2016-Q2
2016-Q4
2017-Q2
2017-Q4
ANNUALIZEDRATE
Q1-2018, 1.1%

23.
source: ISM, USITC, IHS Markit
Manufacturing PMI
59.3
55.5
51.6
58.3
53.5 53.8 54.4
58.1
53.9
60.7
51.1
53.8 52.3
55.1
48.4 49.1 48.9
52.3
49.1
54.5 54.7
ContractionExpansion
Top U.S. Boat Export Destinations (In Order)
50

24.
Participation and Ownership

25.
2016 Boating Participation
source: QSA Research

26.
17 Million First-Time Boaters in 2016
First-time boaters are more likely than other active boaters to be:
• Male (75% vs. 54%)
• Hispanic (32% vs. 10%)
• Lower income (Median incomes are $60,775 for first-time boaters and
$102,925 for other active boaters)
• Renters (58% vs. 25%)
• Less likely to have a college degree or more (19% vs. 35%)

27.
Paddlesports Participation
 21.7 Million participants
nationally
 7 outings/year on
average
 Continued YOY
increasing participation
rates
source: ACA

28.
= 75,000
15.8 MILLION BOATS IN USE
source: NMMA

29.
Registered Boats
source: USCG

30.
U.S. Boat Registrations
0
2
4
6
8
10
12
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Millions
Source: USCG

31.
2016 U.S. Boat Registrations
Outboard
boats, 62.1%
Sterndrive
boats, 11.6%
Inboard boats,
8.7%
PWC, 9.5%
Sailboats, 0.9%
Other, 7.2%
Source: USCG

32.
About Those Registered Boats…
Source: USCG, Foresight

33.
source: USCG
40' and
larger
1%
2016 Powerboat Registrations
1% of boats are 40’ and larger

34.
Industry Headwinds

35.
Aging Boater Population
0%
2%
4%
6%
8%
10%
12%
14%
16%
18 to 19 25 to 29 35 to 39 45 to 49 55 to 59 65 to 69 75 to 79 85+
Age Range
2015 Boat Owner / FTB Age Distribution
Current Owners First-time Buyers
Avg. = 45yrs
Avg. = 55yrs
source: Info-Link

36.
And Do What We Can to Keep Them
T
O
D
A
Y
FIRST-TIME
Boat Buyers
in 2005
(564,000)
54%
32%
14%
Still own
same boat
source: Info-Link

37.
Because It Pays Off *
REPEAT
Boat
Buyers in
2005
(838,000)
38
%
35
%
27
%
T
O
D
A
Y
Still
own
same
boat
* And gets better with each subsequent boat purchase

38.
Rising Student Debt
Source: NY Fed Consumer Credit Panel/Equifax

39.
Reaching Future Boaters
“Weekends on the water really
bring us together. We’re creating
all these great memories.”
- The Vasquez Family