F e b r u a r y 1 7 t h 2 0 1 7

Thom DammrichPresident

National Marine Manufacturers Association

Going to Even

Greater Lengths

$3 Billion in Product + 550 Boats In-Water

800 Boating Courses and 200 Sea Trials

10,000 Steps While Browsing 3 Miles of Docks

More than 8 Miles of Tent Carpet

1.5 Million lbs. of Freight Transported for Exhibitors

22 Miles of Electrical Cable

10 Miles of Steel for Boat Show Structures

96 Buses and 25 Water Taxi Boats Used Daily

90 First Responders on Duty Every Day

3,000 lbs. of Rice for Sushi

4,800 Fresh Squeezed Lemonades, 10,750 Sodas and 1,750 Bottles of Champagne

The Largest 100% Temporary Marina in The World!

A year-round show: Set up started in December, we’ll dismantle until March 15, and have contracts out by April 1 to begin planning for 2018!

2018: More Boats + Continued Improvements + Prospering Industry

= Even Bigger and Better Show!

Thom DammrichNational Marine Manufacturing Association

Recreational Boating Industry Update

Traditional Powerboat Retail Sales

source: Info-link

—

100

200

300

400

500

600

1980198219841986198819901992199419961998200020022004200620082010201220142016

UNITS

Thousands

1980sRecession

911Asian FinancialCrisis

DesertStorm

IraqWar

GreatRecession

2017

Forecast

High Unit Volume Low Unit Volume

source: Info-link

Growth In 2016

Outboard Boat Retail Sales

-18%

-27%

-6%

4%

10% 9%7%

9%7%

Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Sept-13 Sept-14 Sept-15 Sept-16

YOY

Ch

ange

12 Months Ending SeptemberSource: Info-Link

Saltwater Fishing Boat Retail Sales

-27%

-31%

-19%

-2%

11%13% 12% 11%

9%

Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Sept-13 Sept-14 Sept-15 Sept-16

YOY

Ch

ange

12 Months Ending September

Source: Info-Link

Sterndrive Boat Retail Sales

Source: Info-Link

-33% -34%

-29%

-11%

-4%

-8%-9%

-4%

-2%

Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Sept-13 Sept-14 Sept-15 Sept-16

YOY

Ch

ange

12 Months Ending September

Inboard Cruiser Retail Sales

Source: Info-Link

-34%-33%

-22%-19%

-5%

4%

-2%

12%

3%

Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Sept-13 Sept-14 Sept-15 Sept-16

YOY

Ch

ange

12 Months Ending September

Ski Boat Retail Sales

Source: Info-Link

-24%

-27%

-23%

-4%

9%

14% 14% 13%12%

Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Sept-13 Sept-14 Sept-15 Sept-16

YOY

Ch

ange

12 Months Ending September

PWC Retail Sales

Source: Info-Link

-23%-26%

-11% -11%

6%3%

22%

16%

7%

Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Sept-13 Sept-14 Sept-15 Sept-16

YOY

Ch

ange

12 Months Ending September

source: BEA, Philadelphia Fed

Real GDP

Q4, 1.9%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2012 2013 2014 2015 2016 2017

Pe

rce

nt

Ch

ange

fro

m P

rece

din

g P

eri

od

Forecasts

Consumer Confidence Index

source: The Conference Board

Jan-2017, 101.0

0

20

40

60

80

100

120

140

160'6

8

'70

'72

'74

'76

'78

'80

'82

'84

'86

'88

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

'12

'14

'16

R12M

AV

ER

AG

E

26 mo.

24 mo.51 mo. 35 mo.

35 mo.

24 mo.

20 mo.40 mo.

82 mo.

96 mo.

47 mo.

88 mo.

Average duration from peak to valley: 33 mo.Average duration from valley to peak: 57 mo.

source: BEA

Real Disposable Income

2.1%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

Feb

-13

Ap

r-1

3

Jun

-13

Au

g-1

3

Oct

-13

Dec

-13

Feb

-14

Ap

r-1

4

Jun

-14

Au

g-1

4

Oct

-14

Dec

-14

Feb

-15

Ap

r-1

5

Jun

-15

Au

g-1

5

Oct

-15

Dec

-15

Feb

-16

Ap

r-1

6

Jun

-16

Au

g-1

6

Oct

-16

Dec

-16

YOY

Ch

ange

Q4-2016, 2.5%

-6%

-4%

-2%

0%

2%

4%

6%

8%2

00

1-Q

2

20

01

-Q4

20

02

-Q2

20

02

-Q4

20

03

-Q2

20

03

-Q4

20

04

-Q2

20

04

-Q4

20

05

-Q2

20

05

-Q4

20

06

-Q2

20

06

-Q4

20

07

-Q2

20

07

-Q4

20

08

-Q2

20

08

-Q4

20

09

-Q2

20

09

-Q4

20

10

-Q2

20

10

-Q4

20

11

-Q2

20

11

-Q4

20

12

-Q2

20

12

-Q4

20

13

-Q2

20

13

-Q4

20

14

-Q2

20

14

-Q4

20

15

-Q2

20

15

-Q4

20

16

-Q2

20

16

-Q4

AN

NU

ALI

ZED

RA

TE

source: BEA

Consumer Spending

U.S. City Retail Gas Prices

source: EIA

National Average: February-2017, $2.22

$1.6

$2.1

$2.6

$3.1

$3.6Ja

n-1

3

Ma

r-1

3

Ma

y-1

3

Jul-

13

Se

p-1

3

No

v-1

3

Jan

-14

Ma

r-1

4

Ma

y-1

4

Jul-

14

Se

p-1

4

No

v-1

4

Jan

-15

Ma

r-1

5

Ma

y-1

5

Jul-

15

Se

p-1

5

No

v-1

5

Jan

-16

Ma

r-1

6

Ma

y-1

6

Jul-

16

Se

p-1

6

No

v-1

6

Jan

-17

Reg

ula

r, C

on

ven

tio

nal

Gas

–W

eekl

y P

rice

RV vs. Boat Sales

source: NMMA, RVIA

Jun-2016, 3.5%

Dec-2016, 15.1%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

AU

G-0

8

NO

V-0

8

FE

B-0

9

MA

Y-0

9

AU

G-0

9

NO

V-0

9

FE

B-1

0

MA

Y-1

0

AU

G-1

0

NO

V-1

0

FE

B-1

1

MA

Y-1

1

AU

G-1

1

NO

V-1

1

FE

B-1

2

MA

Y-1

2

AU

G-1

2

NO

V-1

2

FE

B-1

3

MA

Y-1

3

AU

G-1

3

NO

V-1

3

FE

B-1

4

MA

Y-1

4

AU

G-1

4

NO

V-1

4

FE

B-1

5

MA

Y-1

5

AU

G-1

5

NO

V-1

5

FE

B-1

6

MA

Y-1

6

AU

G-1

6

NO

V-1

6R1

2M

WH

OLE

SALE

SH

IPM

ENTS

Y/Y

CH

AN

GE

Traditional Powerboats RVs

source: ITR Economics

Wholesale Forecasts

source: ITR Economics

-60

-40

-20

0

20

40

60

-60

-40

-20

0

20

40

60

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

3/1212/1212/12 Forecast

QUARTERLY GROWTH (3/12)

Boat Building Production IndexRates-of-Change PHASE C

Decelerating Growth

NEXT 12/12 LOW

Post 2Q17

NEXT 12/12 HIGH

1Q18

ANNUAL GROWTH (12/12)

9.8%

4.9%

Challenges

• Average age of boat owner is 55

• 20% fewer boat owners under 50 than 18 years ago.

• More people between 25-34 are interested in boating than any other age group

• 66% of people who stopped shopping for their first boat said they did not have a helpful experience at the dealer, citing hidden costs of ownership leading to dealer mistrust

source: Info-Link, Discover Boating

Attracting Younger Buyers

Attracting Diverse Buyers

Greater Transparency

Workforce Shortage

Protecting Boating: 2017 Policy Agenda

• Transportation & Infrastructure

• Access

• Taxes & Tax Reform

• Recreational Fishing

• Fuel Policy

• Workforce Shortage

• Boating Safety

• Conservation

• Trade

Make a Difference

American Boating Congress May 15-17

Sign up to learn about BoatPAC at NMMA.org

Sign up for action alerts from Boating United at NMMA.org

F e b r u a r y 1 7 t h 2 0 1 7

Thank you and enjoy the show!