The Sailing Market State of the Industry February 2016

Transcription

1 1 The Sailing Market 2016 State of the Industry February 2016

2 State of the Industry We are the sailing division of the Bonnier Marine Group, providing multi-channel marketing solutions for the sailing industry. 2

3 State of the Industry We invest in this annual study of the sailboat business in North America as a service to the industry. 3

4 State of the Industry Agenda 2015 Bareboat Charter Industry Study 2015 Brokerage Data 2015 Sailing Participation Data NEW! Marketing Intel/Consumer Trends 2015 North American Import Sailboat Report 2015 North American Sailing Industry Study 4

5 State of the Industry Without the support and the participation of over 230 boat builders, importers and charter companies -- we would have no data to share, no way to benchmark our industry. Thank you all! 5

6 Bareboat Charter Industry Study 20 th Annual Survey 2015 Bareboat Charter Study

7 Bareboat Charter Industry Study 19 Annual Survey Methodology Study conducted by independent researcher: Diane Chase, Market Research Associates Charter results reflect September August 2015 Mail/Phone/ Survey 55 active Bareboat Charter companies from our database 80% response rate including all market leaders 7 Source: 2015 Bareboat Charter Industry Study

8 Bareboat Charter Industry Study 19 Annual Survey Bareboat Chartering Basics Number of Boats , , , , , boats out of service since 2014 World wide charter fleet decreases slightly, down 95 boats or -3% Charter companies report 1142 multihulls, representing 41% of the fleet 8 Source: 2015 Bareboat Charter Industry Study

9 Bareboat Charter Industry Study 19 Annual Survey Bareboat Chartering Up Again, + 7% in Weeks 26,442 28,206 20,285 19,029 17,869 18,626 21, Still Showing Growth Since 2011, But at a Slower Pace 9 Source: 2015 Bareboat Charter Industry Study

10 Bareboat Charter Industry Study 19 Annual Survey Seasons Share In the Gains Equally Fall/Winter 41% Spring/Summer 59% Fall Winter Spring Summer All seasons see increased business, no major shifts in seasonality 10 Source: 2015 Bareboat Charter Industry Study

11 Bareboat Charter Industry Study 19 Annual Survey North American Sailors Choose The Caribbean and Domestic Destinations at the Expense of Mediterranean and Other Locations (000) Weeks % Chg Bahamas/ Caribbean % USA/Canada % Med & Other % Caribbean destinations enjoy 9% increase in charter weeks The Med and Other Destinations Lose Ground 11 Source: 2015 Bareboat Charter Industry Study

12 Bareboat Charter Industry Study 19 Annual Survey Bareboat Charter Weeks Year over Year by Region Northeast/other North America Chesapeake & NC Great & Inland Lakes Pacific NW & CA 2,325 2,639 2,978 FL & Gulf Coast Pacific Islands/Australia/New Zealand/Indian Ocean Bahamas 1,157 1,272 1,401 Virgin Islands & PR 12,301 15,556 16,649 Leeward Islands 675 1,298 1,428 Windward Islands 1,026 1,267 1,398 Mediterranean 1,030 1,318 1,055 Mexico/Other Source: 2015 Bareboat Charter Industry Study

13 Bareboat Charter Industry Study 19 Annual Survey Estimated Value of Bareboat Charter Fees for 2015 Up 7% Estimated $111.4 million dollars in basic bareboat charter fees in 2015 vs. $104 million in 2014 (not xxxxx including Weeks x $3,500 the Mount = $54,000,000 Gay!) # of Charter Weeks x Average Price $3950 Week = 2015 Market Value 13 Source: 2015 Bareboat Charter Industry Study

14 Bareboat Charter Industry Study 19 Annual Survey Key Charter Market Findings Bareboat chartering reports its 5 th straight year of growth. Charter weeks out of the North American source market total 28,206, up 7% over Charter fleets down slightly, losing 93 boats. Fewer boats and growth of weeks means better utilization. There is no slow season any more. Multihulls are now reported to be 41% of the bareboat charter fleets. North American destinations gained market share as US consumers show concerns about safety abroad. The Caribbean continues to be the favorite destination for North American sailors, taking 74% of bareboat weeks Estimated base bareboat fees in 2015 topped $111 million, reflecting charter week gains, and increasing prices due to more cats in the fleets. 14 Source: 2015 Bareboat Charter Industry Study

15 Sailboat Brokerage Data 2015 Sailboat Brokerage Data 15

16 Sailboat Brokerage Data Sailboat Brokerage Sales 2015 Data provided by YachtWorld, compiled from reports of YachtWorld member brokerages in SoldBoats.com. US sales data for calendar years 2012 through Our thanks to YachtWorld and Dominion Marine Media. 16

17 Sailboat Brokerage Data 2015 Sailboat Brokerage Sales in the US, in Units < Total Change % -2% -2% -1% -9% -33% -2% Unit brokerage sales down slightly across the board, most notable dips for segments over year trend shows stability in the range of units annually. 17 Source: YachtWorld

18 Sailboat Brokerage Data 2015 Sailboat Brokerage Sales in the US, Average # Days to Sale < All Sizes Change % +5% -6% +1% -1% +46% +1% Average time on the market increased across the board except for the mid range, boats 18 Source: YachtWorld

19 Sailboat Brokerage Data 2015 Sailboat Brokerage Sales, Average Value of Units Sold % Change YoY <26 $13,429 $14,575 $14,468-1% $38,242 $39,363 $38,445-2% $107,524 $108,850 $102,355-6% $227,458 $232,978 $213,175-8% $413,065 $397,275 $550, % 80 + $4,757,741 $5,140,956 $2,441,865-52% Total $83,201 $84,264 $77,769-8% Brokerage boats lose some ground in terms of average value, except for the size segment. Overall decline in average value driven largely by huge price drop in 80 + units. 19 Source: YachtWorld

20 Sailboat Brokerage Data 2015 Sailboat Brokerage Market vs. Total Brokerage Market Sailboats Sold 5,456 5,752 5,503 5,367 All Boats Sold 29,817 31,652 30,191 30,013 Sailboats Days on Market All Boats Days On Market Sailboats consistently represent about 18% of the brokerage units sold annually in the US, and they are generally on the market days longer than the national average. 20 Source: YachtWorld

21 Sailboat Brokerage Data Key 2015 Sailboat Brokerage Data Findings Unit sales were flat, off 2% to 5367 units from 5503 in Average # days on the market increased 1%, from 304 days in 2014 up to 306 days in The average sale price for all brokerage sailboats was off 8% in 2015, driven by a 52% drop in the value of boats over 80. Sailboats represent about 18% of all brokerage boats sold in the US, averaging units per year vs. the average annual total of 30,000 units per year. Sailboats are on the market longer than the average of all brokerage boats, days longer. 21 Source: YachtWorld

22 Sailing Participation

23 State of the Industry Sailing Participation Data Source: SFIA, Sports & Fitness Industry Association SFIA produces about 100 annual reports on sports participation, everything from cheerleading to wrestling. They track several water sports, including fishing, diving, windsurfing, wakeboarding etc. Only national data available on sailing participation. These figures are from their 2015 report. 23

24 State of the Industry Sailing Participation Data 3,924,000 sailing participants in the US. (sailed 1+ times per year) 2,699,000 casual sailing participants (sailed 1-7 times per year) 1,225,000 core sailing participants (sailed 8+ times per year) 24 Source: SFIA Sailing Sports Participation Report

25 State of the Industry Sailing Participation Trends 3,924,000 total sailing participants ,915,000 total sailing participants ,841,000 total sailing participants ,225,000 core sailing participants ,233,000 core sailing participants ,276,000 core sailing participants Source: SFIA Sailing Sports Participation Report

26 State of the Industry Sailing Participation Trends (in 000 s) Core Participants All Participants Source: SFIA Sailing Sports Participation Report

27 State of the Industry Sailing Participation By Region Region Total Sailors Casual Sailors Core Sailors New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific Source: SFIA Sailing Sports Participation Report

28 State of the Industry Sailing Participation By Region (in 000 s) 28 Source: SFIA Sailing Sports Participation Report

29 Marketing Intel 29 Marketing Intel and Trends

30 State of the Industry 2016 North American Consumer Trends 30 Source: Mintel

31 State of the Industry Outlook for 2016 Affluents Affluents still want to spend more time with family They still want to indulge in special vacations or experiences Luxury interests are trending up, desire to splurge on themselves and their loved ones Affluent goals have broadened, they still want personal growth, to do more, do better, live better Divergent Optimism - Their primary drive is looking for personal satisfaction despite an uncertain world. 31 Source: The IPSOS Mendelsohn Affluent Survey

32 North American Import Sailboat Report 15 th Annual Survey 32

33 North American Import Sailboat Report 15 th Annual Survey Survey of Imported Sailboats to North America Mail / Phone / Survey Data reported for 70 active importers 88 % participation Major importers included in results * Also includes importers who did not import any sailboats in 2015 but reported importing sailboats in previous years 33 Source: 2015 North American Import Sailboat Report

34 North American Import Sailboat Report 15 th Annual Survey Sailboat Builders Worldwide Aim at the US Market 2015 IMPORTS CAME FROM 16+ COUNTRIES France Argentina Finland Germany Sweden United Kingdom Poland Turkey Denmark Taiwan South Africa Italy China Australia Dubai Slovenia 34 Source: 2013 North American Import Sailboat Report

35 North American Import Sailboat Report 15 th Annual Survey Imports Declined in 2015, Off Slightly 6% Units Unit Change 2015 vs % Change 2015 vs Under % % % 46 or more % Total Imports % 35 Source: 2015 North American Import Sailboat Report

36 North American Import Sailboat Report 15 th Annual Survey Imports Over 20 Into North America Up 11% in 2015 Imported Sailboats 20 feet and over +37 units After a 10% increase in 2014, importers rack up another 11% gain in Source: 2015 North American Import Sailboat Report

37 North American Import Sailboat Report 15 th Annual Survey Over 20, Mid Size and Large Boats Lead The Way Units Unit Change vs Correction in the segment after a strong showing in Source: 2015 North American Import Sailboat Report

38 North American Import Sailboat Report 15 th Annual Survey Larger Multihulls Down 2015 vs. 2014, Off 14% Imported Multihulls 20 feet and over, Units Units Multihulls Represented 16% of All Imports in Source: 2015 North American Import Sailboat Report

39 North American Import Sailboat Report 15 th Annual Survey Importers, Like Domestic Builders, Had Projected Strong Growth in 2015, +25% 2014 Actual 2015 Forecast 2015 Actual Under ' - 35' ' or more Total Importers Missed Their Forecast By 25% 39 Source: 2015 North American Import Sailboat Report

40 North American Import Sailboat Report 15 th Annual Survey Importers Forecast Strong Growth in 2016, Projecting +24% 2014 Actual 2015 Actual 2016 Forecast Under ' - 35' ' or more Total Source: 2015 North American Import Sailboat Report

41 North American Import Sailboat Report 15 th Annual Survey 2015 Import Study Observations Imports overall were down 59 units to 888 units in 2015 for a modest decline of 6%. Imports under 20 drove the decline, off 16%. Imports over 20 were up 11%. Imported multihulls were down 14 units and 14%. Multihulls accounted for 16% of all imports in Importers missed their 2015 forecasts by 25%. Importers are once again projecting a strong year in 2016, looking for 24% gains. 41 Source: 2015 North American Import Sailboat Report

42 North American Sailing Industry Study 28th Annual Survey 42

43 State of the Industry Methodology & History Mail/Phone/ Survey International Marine Industries The Sailing Company, New York Times Magazine Group 1998 to 2012 The Sailing Company, Rick Walter Market Research Associates 2013 to present The Sailing Company, Diane Chase, Market Research Consulting 92 out of 105 North American builders that were contacted responded and provided their production data; including market leaders; 88% response rate 43 Source: 2015 North American Sailing Industry Study

44 State of the Industry # of Active North American Sailboat Builders The market continues to take a toll on domestic sailboat builders. 44 Source: 2015 North American Sailing Industry Study

45 State of the Industry Number of Fulltime Employees Building Sailboats Takes A Major Hit, Off 25% in ,000 1,950 1,569 1,531 1,396 1,432 1, Company Size in 2015: 51% have 10 or less employees 70% have less than 25 employees 45 Source: 2015 North American Sailing Industry Study

46 State of the Industry Domestic Sailboat Production Finds a New Low Off 27% in Units 11,427 7,076 6,492 6,321 6,963 6,078 7,115 5, Total North American production decreases by 1889 sailboats 46 Source: 2015 North American Sailing Industry Study

47 State of the Industry Once Again, Sailboats Under 20 Swing The Market They Led The Rebound in 2014 and They Cause The Crash in 2015 Small Sailboats % Change % Change 11 and under 1,150 1, % 1,483 1,438-3% 12' - 19' 3,764 4, % 4,792 3,142-34% Boats under 20 4,914 6, % 6,275 4,580-27% Sailboats Under 20 Make Up 88% of The Market, the same as in Source: 2015 North American Sailing Industry Study

48 State of the Industry Sailboats Over 20 Are Off 23% in 2015, Following A 28% Hit in ,267 Sailboats 20 feet and over units 1,021 1,163 1,043 1,086 1, We can t climb back up to the 1000 unit threshold after holding there for 5 years in Source: 2015 North American Sailing Industry Study

49 State of the Industry Breaking Out The Segments Over 20 Sailboats Over % Change % % % % % Boats % 49 Source: 2015 North American Sailing Industry Study

50 State of the Industry Combining North American Production with Imports in the Heart of the Market, Sailboats Change 2015 vs North American % Imports % Total % 50 Source: 2015 North American Sailing Industry Study

51 State of the Industry Combined Domestic Production and Imports, 30 to Imports Domestic For the first time imports outsell domestic built boats in units in the heart of the market 230 imports vs. 215 domestic. 51

52 State of the Industry Domestic Multihull Production Improves At Least One Bright Spot! Multihulls % Chg Under 30 1,139 1,210 1, % Over % Total 1,181 1,228 1,226 1,011 1,046 +3% Multihulls represented 20% of overall domestic production in one in five sailboats built in North America was a multihull 52 Source: 2015 North American Sailing Industry Study

53 State of the Industry Estimated Value of 2015 North American Sailboat Production is $182 Million, Down 26% From 2014 Category Est. Value # of Boats $ Millions 11 feet or under $3,900 1,438 $ $11,500 3,142 $ $55, $ $215, $ $299, $ $450, $ or more $1,100, $18.7 Estimated Retail Value Decreases Due to Decline in Larger Boats 53 Source: 2015 North American Sailing Industry Study

54 State of the Industry North American Builders Predicted Solid Gains in 2015, But The Reality Was Very Different 2015 Forecast Predicted Increase vs Actual Actual Change vs ' - 19' 7, % 4,580-27% 20' - 35' % % 36' or more % Total 8, % 5,226-27% Smallest swing in large boats over Source: 2015 North American Sailing Industry Study

55 State of the Industry North American Builders Are Once Again Optimistic About Next Year, But More Cautiously So Actual 2016 Forecast Projected Change 0' - 19' 4,580 4,964 +8% 20' - 35' % 36' or more % Total 5,226 5,720 +9% 55 Source: 2015 North American Sailing Industry Study

56 State of the Industry Study Observations North American sailboat production was off 27% in 2015, hitting a new baseline of 5,226 units. Small boats under 20 drove the decline, off 27% and nearly 1700 units. Boats over 20 also took a significant hit, off 23% following a 28% decline in There were two size segments which posted gains in Boats feet were up 2%, and boats over 60 were up 40% on the strength of two additional units. 56 Source: 2015 North American Sailing Industry Study

57 State of the Industry Study Observations Multihulls were another bright spot in 2015, gaining 3% in unit production and once again comprising 20% of domestic sailboat production. The estimated retail value of sailboats produced in North America followed the unit decline and was down 26% to $184 million in North American sailboat builders had been very bullish on 2015, predicting an +18% growth in The sobering reality of a 27% decline has encouraged much more cautious optimism for 2016 where they predict a more moderate increase of 9%. 57 Source: 2015 North American Sailing Industry Study

58 Looking to 2016 Where are We Headed?

59 State of the Industry 2016 Sailing Outlook Challenges Opportunities Presidential election gives consumers the jitters. Stock market sputters in 4 th Q 2015 and 1 st Q Global terrorism, ISIS, refugee crisis. Positive economic fundamentals Consumer confidence near record highs Affluent trends and mindsets favorable for sailing Olympics, and the 2017 America s Cup will keep sailing on the front page If we can sustain the market and work together to grow the sailing lifestyle there are positive trends toward a bigger and better future! 59

60 State of the Industry For More Information Contact: Sally Helme Cruising World & Sailing World 55 Hammarlund Way Middletown, RI

61 61 The Sailing Market 2016 State of the Industry February 2016