52nd Annual Meeting of National Association of State Boating Law AdministratorsSeptember 2011Dustan McCoyChairman and Chief Executive OfficerBrunswick Corporation
Boating in the United States – Common Issues
September 2011 2
Accomplishing Your Mission – Recreational Boating Safety
0
5
10
15
20
25
30
35
40
45
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Federal Boating Act of 1958
Initial ABYC voluntary manufacturing standards
Federal Boat Safety Act of 1971 enacted
Federal mandatory manufacturing standards
Aquatic Resources Trust Fund created 1984
Intoxicated boating laws and enforcement enhanced
States begin enacting education mandates
Wearable life jackets required carriage on smaller boats
1958, 1971 & 1984 Acts led to significant enhancements of state boating laws and enforcement
Fatalities / 100,000 Boats
September 2011 3
-
100,000
200,000
300,000
400,000
500,000
600,00019
6519
6619
6719
6819
6919
7019
7119
7219
7319
7419
7519
7619
7719
7819
7919
8019
8119
8219
8319
8419
8519
8619
8719
8819
8919
9019
9119
9219
9319
9419
9519
9619
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
0920
10
Calendar Year
Indu
stry
Vol
ume
1965 -1991
Average 400,0001992 -2006
Average 309,000
’04-’10 -55%
Last 5 Years
2006
291,900
2007
267,300
2008
203,000
2009
153,550
2010
139,000
Significant Decline in Demand Bottomed in 2010
U.S. Industry Retail Powerboats (1965 – 2010)
September 2011 4
Total Recreational Boats In Use
15.00
15.50
16.00
16.50
17.00
17.50
18.00
89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10E
Year
Mill
ions
September 2011 5
Boat Owner Demographics by Boat Type – Any Powerboat
12.4%
22.5%
14.8% 14.1%
36.3%
41.1%
37.1%
30.8%
40.3%
34.1%35.6%
38.4%
11.0%12.3% 12.5%
16.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
2007 2008 2009 2010
18-30
31-49
50-64
65 plusRes
pond
ent's
Age
September 2011 6
Average Age of Boats in Use
16 17
13
1617 18
14
1718 19
1517
21 21
1820
0
5
10
15
20
25
All Boats* Outboard Sterndrive Inboard
1997 2000 2005 2010
* All Boats includes Outboard, Sterndrive, and Inboard (excludes jet and other forms of propulsion)
The average age of boats has increased by 5 years since 1997• Increase is due to higher mix of older boats as industry sales declined from the 70s & 80s. Also
reflects people holding on to their boats longer (lower scrappage) through the economic downturn
September 2011 7
0
10
20
30
40
50
60
70
80
90
100
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
33.4%
28.3%30.5%
29.2%26.6%
26.0%
28.8%28.9%30.4%
29.2%
32.3%
33.4%35.8%
36.0%
33.6%35.6%
36.2%
36.2%
36.1%
36.3%
36.5%
No. of adults boating (in millions) % of adults boating
Source: NMMA
2010 Reflects Highest Level of Participation Since 2000
U.S. Boating Participation History (1990 – 2010)
September 2011 8
Recreational Boating Participation - 2010
32.4%
31.1%
36.5%
Current Participant Past Participant Non-Participant
Past boating participants and people who do not boat total about 200 million people in the U.S.
September 2011 9
Reasons Past Participants Have Not Boated in Past 12 Months
More than 50% of reasons are non-monetary
Don't know anyone who owns a boat 32.4%
Reduced income 22.6%
Time constraints 17.3%
Higher cost of living 17.1%
Sold my boat 16.2%
No longer participate in boating-related activities 16.0%
Don't/no longer live near water 14.7%
Health reasons 14.2%
Lost interest 12.1%
Unemployed 11.5%
Lost my boating partner (friend) 11.4%
Change in work circumstances 11.1%
Cost of fuel for boat 10.5%
September 2011 10
Non - Participants Consideration of Boating
23.9%
58.9%
17.2%
Yes No Not Sure
Have you ever considered going recreational boating?
September 2011 11
Reasons Why Some Do Not Consider Boating
Why have you not considered going recreational boating? 75% of reasons are non-monetary
No interest 64.9%
Don't know anyone who owns a boat 39.9%
Don't participate water-based recreational activities 39.6%
Afraid of the water 30.7%
Health reasons 30.1%
Did not boat as a child 25.5%
Time constraints 24.6%
Cost of boat maintenance 21.0%
Don't live near water 18.5%
Other reasons 8.7%
Cost of fuel 6.0%
Cost of boating 0.0%
September 2011 12
Boating Participation – Exposure to Boating as a Child Drives Adult Participation
Childhood Boating ExperienceCurrent Participant Non - Participant
9.3%
29.4%
1.2%
60.1%
Boated as a child and parents owned a boat
Boated as a child and parents did not own aboatDid not boat as a child and parents owned aboatDid not boat as a child and parents did not owna boat
36.9%
41.2%
1.2%
21.6%
Boated as child and parents owned a boat
Boated as child and parents did not own aboatDid not boat as a child and parents owned aboatDid not boat as a child and parents did not owna boat
September 2011 13
Boat Owner Demographics by Boat Type – 2010 Any Powerboat
90.0%
3.4%1.1% 0.8%3.0% 2.1% 1.1%
White Black Asian or Pacific IslanderNative American/Alaskan Native Mixed Racial Background Other RaceDeclined to Answer
September 2011 14
Key Take Aways
• New boat sales are at historical lows
• Boats in use have started to decline after a 15 year up cycle
• Powerboat owner’s average age is increasing
• Age of boats is increasing
• But – participation is up and growing
• Opportunity to convert 200 million people to boating participation
• Focus –• Attracting younger people• Remove reasons not to participate• All races and ethnic backgrounds
September 2011 15
Achieving Industry Focus
• We all must work together to make boating easy and safe
• Safe boating• 2010 – accidents, injuries and deaths were down versus 2009• Accident factors
− Operator inattention− Improper lookout− Operator inexperience− Excessive speed− alcohol
September 2011 16
Achieving Safety
• Boating is inherently safe
• Education a key safety accelerator
• Value of boating safety education• 9% of deaths occur when education occurred• 6% of deaths occur when NASBLA approved course provided involved
• All of us in the industry must continue to focus on education
September 2011 17
