Boating Industry Trends and Marketing Strategies

2. Riding High on the Water • According to the National Marine Manufacturers Association (NMMA), 2018 was the best year for the industry since 2007, with new powerboat unit sales of 276,000, a 4% increase from 2017. • Total 2018 marine spending – boats, engines, trailers, accessories and related services – was $42 billion, a 7% increase from 2017, and an all-time record. Almost all (95%) boats in operation are less than 26 feet in length. • 2018 sales of pre-owned boats (powerboats, personal watercraft and sailboats) totaled 976,200, a 1% decrease from 2017.

3. 2019 Forecasted to Throttle Back a Bit • After a 5.7% decrease in new-boat registrations for March, April was a welcomed improvement, with registrations increasing 2.7% for the entire industry and 0.4% for the main powerboat segments. • As during March, pontoons boats, ski wake boats and personal watercraft were the top segments in April registrations. The slight concern about elevated inventory during March was alleviated during April, but dealers must manage their inventory carefully. • The most registrations were in Florida, at 3,880, but that was 108 fewer than April 2018. Total registrations in four other states were greater than April 2018: Texas, 2,723; Michigan, 2,190; North Carolina, 1,441; and Alabama, 1,167.

4. Dealers Remain Optimistic, but Have Concerns • In Boating Industry’s most recent (January 2019) Industry Index, dealers remained optimistic about current conditions, 52.3, and future expectations, 55.8, but the January indices had declined from December 2018. • Of dealers participating in the survey, 50% said they were very concerned about ethanol and the Renewable Fuel Standard (RFS), but 46% were also very concerned about tax policy and 41% about tariffs and trade. • A slight majority, or 51%, said the 2018 tax cuts resulted in no change to their revenues while 38% said they experienced slightly increased revenues, with just 5% saying “greatly increased.” Just 6% said it had slightly/greatly decreased revenues.

5. A Safe Journey into the Next Decade • According to Global Market Insights, the US recreational boating market is forecast to increase 40% from a 2017 total of $20 billion to $28 billion by 2024, with the outboard boats segment accounting for approximately a 70% volume share. • With 2018’s industry-wide sales increase being the 7th consecutive year of growth, 2019 is projected to be the 8th, according to Statistical Surveys, but the increase will be a bit less, in the 3% to 4% range. • As with many industries and retail segments, 72% of dealers stated for a December 2018 Boating Industry survey that overall economic conditions were a “very important” factor impacting 2019 sales, with consumer confidence second at 55%.

6. Marketing Changes Are Required to Rescue the Yacht Segment • Other than electric boats and house boats, yacht registrations (41–65 feet) decreased the most during March and April 2019, and at double-digit rates, compared to the same months of the previous year. • Still trying to sell yachts with traditional methods is one of the trends that has likely contributed to these significant negative sales, as the use of social media must replace listings in magazines and relying solely on broker listings. • Yachts (and boats of all kinds) must be sold with more detailed information and the use of drone videos, Facebook live showings and YouTube videos.

7. Charting a New Course into the Future • As more Baby Boomers end their boating lives and fewer Millennials can afford new boats, boat clubs and membership programs, similar to Airbnb, are becoming more popular. These ownership options claim they are not affecting boat sales. • A demographic trend that doesn’t bode well for the future of sailing is the 1.3% to 1.5% of the US population 6+ who participated in sailing from 2007 through 2017, with 2008 the peak, at 1.5%, and the most recent year, 2017, at 1.3%. • Boating safety continues to be a top concern, as 80.6% of 2017 boating deaths occurred on vessels where the operator had no “official” boating safety instructions, compared to just 14% of all deaths when operators had approved safety education certification.

8. Advertising Strategies • Much like automotive dealers, local boat dealers will receive value from TV advertising to elevate their brand recognition in the minds of local consumers and announce/promote seasonal specials. • With many older Americans still representing the bulk of boat owners (and having the income to afford this luxury), TV is still the prime medium to reach this audience. • Local dealers in markets with the appropriate high schools and/or universities may garner substantial good will and community recognition by supporting school-based boating clubs and/or teams.

9. New Media Strategies • Revealing and sharing the enjoyment of boating and boat ownership is a perfect social media topic, so dealers can only benefit from proactively asking customers (even if an incentive is required) to share their boating stories with short videos. • Boating clubs and other ownership options may not be able to afford meaningful TV advertising, but they could generate interest with ads on your station’s Website and if the station would like to become involved in non-profit or charitable events of these clubs. • As indicated in the Profiler, yacht sales, considering their ownership and maintenance costs, must take advantage of social media in the form of multiple or long-form videos to promote the lifestyle and explain in-depth a yacht’s amenities, and as an adjunct to broker listings.