state of the industry - sailing world · pdf filethe sailing market 2016 state of the industry...

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The Sailing Market 2016

State of the Industry • February 2016


State of the Industry

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We are the sailing division of the Bonnier Marine Group, providing

multi-channel marketing solutions for the sailing industry.



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We invest in this annual study of the sailboat business in North

America as a service to 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

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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!

2016 Bareboat Charter Industry Study

20th Annual Survey 2015 Bareboat Charter Study

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Bareboat Charter Industry Study – 19 Annual Survey

Methodology

◙ Study conducted by independent researcher:

Diane Chase, Market Research Associates

◙ Charter results reflect September 2014- August 2015

◙ Mail/Phone/Email Survey

– 55 active Bareboat Charter companies from our database

– 80% response rate including all market leaders

7 Source: 2015 Bareboat Charter Industry Study



95 boats out of service since

2014

Bareboat Chartering Basics


► World wide charter fleet decreases slightly, down 95 boats or -3%

► Charter companies report 1142 multihulls, representing 41% of the fleet

2015 2,794

2014 2,889

2013 2,839

2012 3,122

2011 2,700

Number of Boats



Bareboat Chartering Up Again, + 7% in Weeks

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►Still Showing Growth Since 2011, But at a Slower Pace

20,285 19,029

17,869 18,626

21,495

26,442 28,206

2009 2010 2011 2012 2013 2014 2015

Source: 2015 Bareboat Charter Industry Study



Fall Winter Spring Summer

2012 2013 2014 2015

Seasons Share In the Gains Equally

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► All seasons see increased business, no major shifts in seasonality

Spring/Summer 59% Fall/Winter 41%




North American Sailors Choose The Caribbean and Domestic

Destinations at the Expense of Mediterranean and Other Locations

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(000) Weeks

► Caribbean destinations enjoy 9% increase in charter weeks

► The Med and Other Destinations Lose Ground

2011 2012 2013 2014 2015

’14-’15

% Chg

Bahamas/

Caribbean 10.9 12.0 15.0 19.1 20.8 +9%

USA/Canada 6.1 5.4 4.3 4.5 4.9 +9%

Med & Other .9 1.2 2.2 2.8 2.4 -14%




Bareboat Charter Weeks Year over Year by Region

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2013 2014 2015

Northeast/other North America 419 330 343

Chesapeake & NC 535 619 727

Great & Inland Lakes 776 542 554

Pacific NW & CA 2,325 2,639 2,978

FL & Gulf Coast 231 381 348

Pacific Islands/Australia/New Zealand/Indian

Ocean 669 721 839

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 351 499 486




Estimated Value of Bareboat Charter Fees for 2015 Up 7%

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xxxxx Weeks x $3,500 = $54,000,000

# of Charter Weeks x Average Price $3950 Week = 2015 Market Value


Estimated $111.4 million dollars in basic

bareboat charter fees in 2015 vs. $104 million

in 2014 (not including the Mount Gay!)



Key Charter Market Findings

◙ Bareboat chartering reports its 5th straight year of growth. Charter

weeks out of the North American source market total 28,206, up 7%

over 2014.

◙ 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.


Sailboat Brokerage Data 2015 Sailboat Brokerage Data

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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 2015.

◙ Our thanks to YachtWorld and Dominion Marine Media.

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2015 Sailboat Brokerage Sales in the US, in Units

<26’ 26’-35’ 36’-45’ 46’-55’ 56’-79’ 80’+ Total

2015 497 2452 2030 335 49 4 5367

2014 516 2513 2074 340 54 6 5503

2013 524 2721 2111 335 52 9 5752

2012 595 2603 1924 279 51 4 5456

Change 2015 - 2014 -4% -2% -2% -1% -9% -33% -2%

17 Source: YachtWorld

Unit brokerage sales down slightly across the board, most

notable dips for segments over 56’. 4 year trend shows

stability in the range of 5400-5500 units annually.



2015 Sailboat Brokerage Sales in the US, Average # Days to Sale

<26’ 26’-35’ 36’-45’ 46’-55’ 56’-79’ 80’+ All Sizes

2015 295 283 307 422 656 1022 306

2014 258 269 327 419 663 699 304

2013 233 261 317 389 666 313 290

2012 249 270 313 467 650 873 297

Change 2015 - 2014 +15% +5% -6% +1% -1% +46% +1%


Average time on the market increased across the board except

for the mid range, 36’-45’ boats



2015 Sailboat Brokerage Sales, Average Value of Units Sold

2013 2014 2015 % Change YoY

<26’ $13,429 $14,575 $14,468 -1%

26’-35’ $38,242 $39,363 $38,445 -2%

36’-45’ $107,524 $108,850 $102,355 -6%

46’-55’ $227,458 $232,978 $213,175 -8%

56’-79’ $413,065 $397,275 $550,369 +40%

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 56’-79’ size segment. Overall decline in average value driven

largely by huge price drop in 80’+ units.



2015 Sailboat Brokerage Market vs. Total Brokerage Market

2012 2013 2014 2015

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

297 290 304 306

All Boats Days On Market

262 260 269 263


Sailboats consistently represent about 18% of the brokerage units

sold annually in the US, and they are generally on the market 35-40

days longer than the national average.



Key 2015 Sailboat Brokerage Data Findings

◙ Unit sales were flat, off 2% to 5367 units from 5503 in 2014.

◙ Average # days on the market increased 1%, from 304 days in 2014

up to 306 days in 2015.

◙ 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 5400-5500 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, 35-40 days longer.


Sailing Participation



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.

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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)

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Source: SFIA Sailing Sports Participation Report



Sailing Participation Trends

◙ 3,924,000 total sailing participants 2014



◙ 1,225,000 “core” sailing participants 2014



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Sailing Participation Trends (in 000’s)

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0

1000

2000

3000

4000

2012 2013

2014

Core Participants

All Participants



Sailing Participation By Region

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Region Total Sailors Casual Sailors Core Sailors

New England 332000 212000 123000

Middle Atlantic 729000 542000 170000

East North Central 515000 316000 209000

West North Central 87000 64000 22000

South Atlantic 833000 552000 292000

East South Central 134000 77000 58000

West South Central 339000 238000 102000

Mountain 204000 153000 47000

Pacific 751000 546000 202000



Sailing Participation By Region (in 000’s)

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Marketing Intel

Marketing Intel and Trends 29



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2016 North American Consumer Trends

Source: Mintel



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Outlook for 2016 – Affluents

Source: The IPSOS Mendelsohn Affluent Survey

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.

North American Import Sailboat Report

15th Annual Survey

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North American Import Sailboat Report – 15th Annual Survey

Survey of Imported Sailboats to North America

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• Data reported for 70 active importers

• 88 % participation

• Major importers included in results

Mail / Phone /

Email Survey

Source: 2015 North American Import Sailboat Report

* Also includes importers who did not import any sailboats in 2015 but reported importing sailboats in previous years



Sailboat Builders Worldwide Aim at the US Market

34 Source: 2013 North American Import Sailboat Report

France

Argentina

Finland

Germany

Sweden

United Kingdom

Poland

Turkey

Denmark

Taiwan

South Africa

Italy

China

Australia

Dubai

Slovenia

2015 IMPORTS CAME FROM 16+ COUNTRIES



Imports Declined in 2015, Off Slightly 6%

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Units 2013 2014 2015

Unit Change 2015 vs.

2014

% Change

2015 vs.

2014

Under 20’ 241 613 517 -96 -16%

20’- 35’ 101 96 122 +26 +27%

36’- 45’ 93 95 132 +37 +39%

46’ or more 109 143 117 -26 -18%

Total

Imports 544 947 888 -59 -6%




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240 190

236 195

303 334

371

2008 2009 2010 2011 2012 2013 2014 2015

Imports Over 20’ Into North America Up 11% in 2015

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► After a 10% increase in 2014, importers rack up another 11% gain in 2015

+37 units Imported Sailboats 20 feet and over




Over 20’, Mid Size and Large Boats Lead The Way

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Units 2011 2012 2013 2014 2015 Unit

Change vs. ’13

20’- 35’ 55 32 101 96 122 +26

36’- 45’ 109 89 93 95 132 +37

46’ -59’ 66 72 102 134 98 -26

60’+ 6 2 7 9 19 +10


Correction in the 46’-59’ segment after a strong showing in 2014



Larger Multihulls Down 2015 vs. 2014, Off 14%

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► Multihulls Represented 16% of All Imports in 2015

Imported Multihulls 20 feet and over, Units

113

63

101

68

105 99 85

2009 2010 2011 2012 2013 2014 2015


- 14 Units



Importers, Like Domestic Builders, Had Projected

Strong Growth in 2015, +25%

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2014

Actual

2015

Forecast

2015

Actual

Under 20’ 553 766 517

20' - 35' 96 134 122

36‘ - 45’ 95 138 132

46' or more 143 145 117

Total 947 1183 888


Importers Missed Their Forecast By 25%



Importers Forecast Strong Growth in 2016, Projecting +24%

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2014

Actual

2015

Actual

2016

Forecast

Under 20’ 553 517 684

20' - 35' 96 122 143

36‘ - 45’ 95 132 158

46' or more 143 117 116

Total 947 888 1101




2015 Import Study Observations

41 Source: 2015 North American Import Sailboat Report

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 2015.

Importers missed their 2015 forecasts by 25%.

Importers are once again projecting a strong year in 2016, looking

for 24% gains.

North American Sailing Industry Study

28th Annual Survey

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Methodology & History

◙ Mail/Phone/Email Survey

– 1988 – 1993 International Marine Industries

– 1994 – 1997 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



139 131 113

104 97 99 92

2007 2009 2011 2012 2013 2014 2015

# of Active North American Sailboat Builders

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The market continues to take a toll on domestic sailboat builders.

Source: 2015 North American Sailing Industry Study



3,000

1,950 1,569 1,531 1,396 1,432

1,073

2007 2009 2011 2012 2013 2014 2015

Number of Fulltime Employees Building Sailboats

Takes A Major Hit, Off 25% in 2015

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• 51% have 10 or less employees

• 70% have less than 25 employees

Company Size in 2015:




11,427

7,076 6,492 6,321

6,963 6,078

7,115

5,226

2008 2009 2010 2011 2012 2013 2014 2015

Domestic Sailboat Production Finds a New Low –

Off 27% in Units

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► Total North American production decreases by 1889 sailboats




Once Again, Sailboats Under 20’ Swing The Market – They Led

The Rebound in 2014 and They Cause The Crash in 2015

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Small

Sailboats 2013 2014

‘13-’14

%

Change

2014 2015

‘14-’15

%

Change

11‘ and

under 1,150 1,483 +29% 1,483 1,438 -3%

12' - 19' 3,764 4,792 +27% 4,792 3,142 -34%

Boats under

20’ 4,914 6,275 +28% 6,275 4,580 -27%


Sailboats Under 20’ Make Up 88% of The Market, the same as in 2014



Sailboats Over 20’ Are Off 23% in 2015,

Following A 28% Hit in 2014

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Sailboats 20 feet and over

- 194 units

We can’t climb back up to the 1000 unit threshold after holding there for 5

years in 2009-2013

2,267

1,021 1,163 1,043 1,086 1,164

840 646

2008 2009 2010 2011 2012 2013 2014 2015




Breaking Out The Segments Over 20’

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Sailboats

Over 20’ 2010 2011 2012 2013 2014 2015

’13-’14 %

Change

20’-29’ 521 422 496 637 385 283 -26%

30’-35’ 193 215 204 167 138 141 +2%

36’-40’ 256 273 184 178 202 108 -46%

41’-45’ 104 75 154 146 111 97 -13%

46’-59’ 81 52 41 28 18 10 -44%

Boats 60’+ 8 7 7 8 5 7 +40%




Combining North American Production with Imports

in the Heart of the Market, 30’-59’

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Sailboats

30’ – 59’ 2011 2012 2013 2014 2015

Change

2015 vs.

2014

North

American 615 583 519 469 215 -54%

Imports 204 172 230 276 230 -17%

Total 819 755 749 745 445 -40%




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0

200

400

600

800

1000

1200

1400

1600

1800

2008 2010 2012 2014 2015

Imports

Domestic

Combined Domestic Production and Imports, 30’ to 59’

For the first time imports outsell domestic built boats in units in the

heart of the market – 230 imports vs. 215 domestic.



Domestic Multihull Production Improves –

At Least One Bright Spot!

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Multihulls represented 20% of overall domestic production in 2015 - one in

five sailboats built in North America was a multihull

Multihulls 2011 2012 2013 2014 2015 ’14-’15

% Chg

Under 30’ 1,139 1,210 1,177 990 1010 +2%

Over 30’ 42 18 49 21 36 +71%

Total 1,181 1,228 1,226 1,011 1,046 +3%




Estimated Value of 2015 North American Sailboat Production is

$182 Million, Down 26% From 2014

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11 feet or under $3,900 1,438 $5.6

12’ - 19’ $11,500 3,142 $36.1

20’- 29’ $55,000 283 $15.6

30’ - 35’ $215,000 141 $30.3

36’ - 40’ $299,000 108 $32.3

41’ - 45’ $450,000 97 $43.7

46’ or more $1,100,000 17 $18.7

Category Est. Value # of Boats $ Millions


Estimated Retail Value Decreases Due to Decline in Larger Boats



North American Builders Predicted Solid Gains in 2015, But The

Reality Was Very Different

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2015

Forecast

Predicted

Increase

vs. 2014

2015

Actual

Actual

Change

vs. 2014

0' - 19' 7,337 +17% 4,580 -27%

20' - 35' 696 +38% 424 -19%

36' or more 339 - 222 -34%

Total 8,372 +18% 5,226 -27%

Smallest swing in large boats over 36’




North American Builders Are Once Again Optimistic About Next

Year, But More Cautiously So -

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2015 Actual 2016

Forecast

Projected

Change

0' - 19' 4,580 4,964 +8%

20' - 35' 424 517 +22%

36' or more 222 239 +8%

Total 5,226 5,720 +9%




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 2014.

◙ There were two size segments which posted gains in 2015. Boats

30-35 feet were up 2%, and boats over 60’ were up 40% on the

strength of two additional units.




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 2015.

◙ North American sailboat builders had been very bullish on 2015,

predicting an +18% growth in 2015. The sobering reality of a 27%

decline has encouraged much more cautious optimism for 2016 –

where they predict a more moderate increase of 9%.


Looking to 2016

Where are We Headed?



2016 Sailing Outlook

◙ Presidential election

gives consumers the

jitters.

◙ Stock market

sputters in 4th Q

2015 and 1st Q

2016.

◙ Global terrorism,

ISIS, refugee crisis.

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◙ 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

Challenges Opportunities

If we can sustain the market and work together to

grow the sailing lifestyle there are positive trends

toward a bigger and better future!



For More Information Contact:

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Sally Helme

Cruising World & Sailing World

55 Hammarlund Way

Middletown, RI 02842

401-845-4405

[email protected]

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State of the Industry • February 2016

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