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State of the Recreational Boating Industry

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Presenter: Sara Anghel, National Marine Manufacturers Association

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State of the Recreational Boating Industry

  1. 1. State of the Recreational Boating Industry SARA ANGHEL, PRESIDENT – NMMA CANADA
  2. 2. Outdoor Recreation is BIG Business  An overlooked economic giant, outdoor recreation makes up 2% of GDP, contributing $374 Billion of value added each year to GDP  Boating and Fishing Gross Output is $38.2 Billion  Outdoor recreation contributes more to the economy than such industries as mining and agriculture. source: BEA
  3. 3. source: USCG Nearly 12 Million Boats Registered in 2017
  4. 4. State Rankings – Boat Registrations source: USCG
  5. 5. A Truly American Industry
  6. 6. National Trends
  7. 7. AMERICAN RETAIL SPENDING ON BOATING source: NMMA
  8. 8. source: NMMA, Info-Link Retail Expenditure Estimates
  9. 9. TRADITIONAL POWERBOAT RETAIL SALES source: Info-link
  10. 10. Powerboat, PWC & Sailboat Sales: New vs. Pre-owned source: Info-Link, Bonnier
  11. 11. NEW POWERBOAT RETAIL UNIT SALES source: Info-Link
  12. 12. Total Canadian Recreational New Boat Retail Sales (Units) 56,946 45,749 45,971 44,851 39,573 37,233 37,349 39,094 41,729 2010 2011 2012 2013 2014 2015 2016 2017 2018 Units sources: NMMA Canada, Transport Canada, .
  13. 13. Total Canadian Recreational Boat Pre-Owned Sales (Units) 79,712 56,469 64,197 62,489 59,778 64,021 63,505 61,164 62,089 2010 2011 2012 2013 2014 2015 2016 2017 2018 Units sources: NMMA Canada Transport Canada
  14. 14. Canadian Boating Industry by the Numbers  The Canadian recreational boating industry has an annual GDP impact $5.6 million (includes direct, indirect & induced spending)  Supporting 75,000 direct & indirect Canadian jobs  Supporting more than 5,000 businesses  2018 sales of new boats and engines $2.82 billion  2018 sales of pre-owned boats $1.08 billion  Total industry revenue of $10 billion
  15. 15. What Boating Requires to Grow Healthy Economy Job Creation Consumer Spending Housing Growth Consumer Confidence
  16. 16. Real GDP source: BEA, Philadelphia Fed
  17. 17. Unemployment Rate: 3.6% - April 2019 U.S. Job Creation source: BLS
  18. 18. Consumer Confidence Index source: The Conference Board
  19. 19. U.S. City Retail Gas Prices source: EIA
  20. 20. Real Disposable Income source: BEA
  21. 21. source: BEA Consumer Spending
  22. 22. Participation and Ownership
  23. 23. BOATING PARTICIPATION source: NMMA 2016 Recreational Boating Participation Study 12.4 MILLION CANADIANS
  24. 24. 17 Million First-Time Boaters in 2016 8.5 million first-time participants were children Different demographic profiles: First time boaters were more likely to be • Male • Hispanic • Renters • Less likely to have a college degree or more • Median incomes of $60,775
  25. 25. Boats In Use source: NMMA
  26. 26. U.S. Boat Registrations Source: USCG
  27. 27. About Those Registered Boats…
  28. 28. Source: USCG 1% of boats are 40’ and larger
  29. 29. Canadian Boating Participation By Region 0% 10% 20% 30% 40% 50% Atlanticprovinces Alberta BritishColumbia Manitoba/Saskatchewan Ontario Quebec 201 1 201 2 source: Research House
  30. 30. What’s in our fuel? How does trade impact our business? Where we can fish? How are boats registered and titled? Are boat ramps accessible? In need of a trained and skilled workforce? Impacts on Boating Industry Seen at Every Level of Government
  31. 31. Top Boating Issues Trade Fishing Ethanol Infrastructure Workforce
  32. 32. Tariffs Impact All of the Marine Industry Component s Raw Materials Exports • Tariffs on aluminum total 210% this year! • In 2017, 117,000 or 44% of boats sold were primarily aluminum based. • Increase costs YTD = 30% • Section 301 tariffs impact more than 300 commonly used marine components and products from China - including inflatables, engines, propellers, navigation, fiberglass, and trailer tires. • Tariff ranges from 10-25% depending on product • This could increase costs for consumer upwards of $2000 • Canada (10%), Europe (25%), Mexico (15%) have put a tax on ALL US boats in retaliation for US actions on steel and aluminum • 69% of boat exports and total value of $982.6 million are destined for these 3 markets
  33. 33. The Tariff War – no stone unturned!  3 letters to Prime Minister Justin Trudeau (June); Minister of Foreign Affairs Chrystia Freeland (July), Minister of Finance Bill Morneau (August) and copied to relevant Members of Parliament (MPs)  Attended House of Commons International Trade Committee Hearing (June 25th)  3 written submissions to the House of Commons Standing Committee on International Trade (June, July & October) to express industry concerns  Dozens of meetings/discussions and emails with MPs and their staff to express the industry concerns  Question Period – Erin O’Toole, MP calls out the government on the boat tariff
  34. 34. Canadian Retaliatory Tariffs on U.S. Boat Imports Removed  NMMA mentioned six times in House of Commons Trade Report on Tariffs  Boating industry mentioned in Ontario provincial budget  Retaliatory tariffs on U.S. boat imports removed April 30, 2019
  35. 35. Recreational Fishing  70% of all boaters fish  Increasing saltwater fishing access brings more people out on the water to enjoy a sustainable resource  2018 WIN! Red snapper season in federal waters increased from 3 to 40 days!  More work to be done: we need better recreation management and improved data collection. The Modern Fish Act is critical legislation to make fishing fair by fixing marine fisheries management and making sure fisheries remain a truly public resource for all Americans  The House of Representatives has passed this critical legislation, now its time for the Senate to take a vote and get it to the President’s desk  How you can help? Text FISH to 50457
  36. 36. Stop the Spread of E15 and Educate Consumers! Introduced by Rep. Austin Scott (R-GA) and Rep. Lois Frankel (D-FL)
  37. 37. Infrastructure  Land and water infrastructure is important to ensuring easy, reliable, and safe access for boaters to get out on the water.  Pass Water Resources Development Act, providing critical funding for:  Dredging for critical waterways like the ICW  Everglades restoration  Aquatic Invasive Species management  Ensure boat registration and titling dollars are put towards in state infrastructure improvements
  38. 38. Workforce Development  Supporting career and technical education will ensure a pipeline of marine industry workers  Grant funding available through state workforce agencies to incentivize trade and apprenticeship programs  What works? Internal apprenticeship programs focused on integrating trainees with your business and workforce needs
  39. 39. Your Boating Voice in Congress Congressional Boating Caucus is a bipartisan club of 125 members in the House and Senate supporting pro- boating causes
  40. 40. Industry headwinds
  41. 41. 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
  42. 42. 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
  43. 43. RISING STUDENT DEBT Source: NY Fed Consumer Credit Panel/Equifax
  44. 44. Reaching Future Boaters
  45. 45. Thank You!

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