THOMAS DAMMRICH PRESIDENT, NMMA VIRGINIA MARINE TRADE ASSOCIATION NOVEMBER 10, 2015

2 EVERY SATURDAY & SUNDAY!

3 BEST OF ALL TIMES

STATE OF THE U.S. RECREATIONAL BOATING INDUSTRY

5 WHAT CONCERNS YOU ABOUT OUR INDUSTRY TODAY?

6 BOAT REGISTRATIONS Source: USCG

REGISTRATIONS BY BOAT TYPE (MILLIONS) Source: USCG

POWERBOAT REGISTRATIONS BY SIZE

9 Source: USCG 1%

10 FISHING LICENSE HOLDERS Source: U.S. Fish and Wildlife Service

11 FISHING LICENSE SALES Fishing is adding and losing participants at a high rate. –Nearly half, 46% do not renew their licenses regularly –Average angler renews their license 3 out 10 years –70% of boats used for fishing

12 DAYS OF USE OF BOAT Source: Foresight Research

13 AGING DEMOGRAPHICS The primary factor influencing the future growth of boating is that our most loyal, core market is aging Average Age 47 Mostly Males Source: Info-Link

14 AGING DEMOGRAPHICS Every year the average age of a boat owner has increased by half a year Source: Info-Link

15 AGING DEMOGRAPHICS We must start to better understand how to motivate younger consumers to buy boats Source: Info-Link

16 THE PROBLEM WITH MILLENIALS RISING STUDENT DEBT Source: NY Fed Consumer Credit Panel/Equifax

17 BOAT OWNERSHIP IN 2014 Source: Foresight Research, U.S. Census Bureau

18 HISPANIC BOAT OWNERSHIP IN 2014 Source: Foresight Research, U.S. Census Bureau

19 PERCENT OF UNITED STATES POPULATION BY AGE GROUP AND ETHNICITY, 2050 Hobby Center for the Study of Texas at Rice University

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21 STAGNANT MIDDLE CLASS Source: EPI

22 GOVERNMENT REGULATIONS GROWING Acquatic Invasive Species Regulation Growing Ethanol—Pressure to Increase % in Gasoline Access to the Water—National Parks (Biscayne, Everglades) Access on the Water—Red Snapper, MSA EOL Boat Recycling or Dismantling Tax Reform Threats? Sport Fish and Boating Trust Fund Funding

23 WHAT’S HAPPENING?

24 U.S. RETAIL SPENDING ON BOATING Source: NMMA

BOATING EXPENDITURES IN BILLIONS OF DOLLARS Source: NMMA

26 BOATING PARTICIPATION Source: Foresight Research, U.S. Census Bureau*Adults 18 years of age and older

27 3 billion boating exposure hours More than 300 million boating trips in 2012 Source: USCG BOATING IS PERVASIVE

28 Source: NMMA, Foresight Research, U.S. Census Bureau AN AMERICAN INDUSTRY 95% of boats sold in the U.S. are built in the U.S. 97% of U.S. boat manufacturers and dealers are small businesses 72% of boat owners have a less than $100K HHI

29 Source: RMRC ECONOMIC VALUE OF BOATING 34,833 boating industry businesses Employing 472,594 people in the U.S. in boating- related manufacturing, services and sales

30 VIRGINIA ECONOMIC VALUE OF BOATING Virginia $2.9 billion total economic impact 15,547 jobs 756 businesses 237,551 recreational boats registered

31 TRADITIONAL POWERBOAT RETAIL UNIT SALES Source: NMMA, SSI

UNIT SALES GROWTH SINCE RECESSION source: SSI

33 BOUNCEBACK source: SSI

34 source: SSI PONTOON BOAT RETAIL SALES

35 SALTWATER FISHING BOAT RETAIL SALES source: SSI

36 source: SSI OUTBOARD BOAT RETAIL SALES

37 SKIBOAT RETAIL SALES source: SSI

38 STERNDRIVE BOAT RETAIL SALES source: SSI

39 GROWTH IN 2015 source: SSI

40 Healthy EconomyJob Creation Consumer Spending Housing Growth Consumer Confidence WHAT DOES BOATING NEED TO GROW?

41 Source: BEA, Philadelphia Fed REAL GDP

42 U.S. Job Creation Unemployment Rate: 5.0% Source: BLS

43 MONTHLY CHANGES IN EMPLOYMENT Source: BLS

44 Virginia Job Creation Unemployment Rate: 4.3% Source: BLS

45 REAL DISPOSABLE INCOME Source: BEA

46 CONSUMER SPENDING source: BEA

47 U.S. CONSUMER CONFIDENCE V. BOAT SHIPMENTS Source: NMMA, The Conference Board

48 U.S. NEW HOME V. BOAT SALES Source: SSI, U.S. Census Bureau

49 RV V. BOAT SALES Source: SSI

50 LIGHT VEHICLE V. BOAT SALES Source: Autodata Corp., SSI

51 MOTORCYCLE V. BOAT SALES Source: MIC, SSI

52 U.S. CITY RETAIL GAS PRICES Source: EIA

53 Source: Info-Link

54 BOAT BUILDING PRODUCTION INDEX ITR Economic Boat Building Production Forecast Source: ITR Economics

55 ECO-SYSTEM OF THE MARINE INDUSTRY

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QUESTIONS?

61 POWERBOAT, PWC, AND SAILBOAT RETAIL SALES source: NMMA, SSI, SailAmerica, MIC