State of the U.S. Recreational Boating Industry Thom Dammrich, President, NMMA

Economic impact

Industry make up

U.S. Boat Registrations

2016 U.S. Boat registrations

2016 boating participation 71.5 boating hours per season 17 million first-time boating participants 32% of first-time boaters were Hispanic 8.5 million first-time participants were children Source: QSA Research

U.S. Retail Sales: powerboats, Pwcs & Sailboats

American retail spending on boating 37B in 2017 expected 17.9 B in NEW retail sales

New powerboat retail unit sales

Florida: $2.5 billion, ⬆ 5% Texas: $1.4 billion, ⬆ 5% Michigan: $868 million, ⬆ 9% Minnesota: $710 million, ⬆ 9% North Carolina: $689 million, ⬆ 11% New York: $688 million, ⬆ 14% Wisconsin: $622 million, ⬆ 9% California: $615 million, ⬆ 15% Georgia: $551 million, ⬆ 11% South Carolina: $544 million, ⬆ 10%

Trends to watch in 2018 Versatile family fun boats Fishing Boats – 4% increase for saltwater, 2% for freshwater Cruisers – Boats between 22-32 feet estimate gains of 9-10% in 2017 More boating experiences for new boaters Versatile family fun boats: As manufacturers continue to build more accessible and versatile watercraft to attract new and younger boaters, sales are expected to be up for ski and wake boats (seven percent), pontoons (7-8 percent) and personal watercraft (5-6 percent) in 2017. Fishing boats: Fishing boat sales are a major driver of the industry’s sustained momentum. Sales estimates for 2017 show saltwater fishing boats up four percent and freshwater fishing boats up two percent. Cruisers: Boats between 22 and 32 feet are on the rise with estimated gains of 9-10 percent in 2017. With consumer confidence and consumer spending at strong levels, sales of these mid-sized powerboats are expected to continue the upward trend in the year ahead. More boating experiences for new boaters: Boat clubs, rentals and fractional use companies continue to grow in popularity as new boaters explore ways to get on the water. Boating experiences provide a gateway to ownership and companies like Boatsetter, Freedom Boat Club, SailTime and Carefree Boat Club help beginners find ways to go boating.

What boating requires to grow Healthy Economy Job Creation Consumer Spending Housing Growth Consumer Confidence

u.s. market outlook U.S. GDP expected to grow 2-2.5% through 2020 6% growth in new powerboat sales in 2018 Gas prices remain at historical lows source: EIA, NMMA, Info-Linnk, BEA

Real gdp source: BEA, Philadelphia Fed

Unemployment Rate: 4.1% - Dec 2017 U.S. Job Creation Source: BLS

Real disposable income Source: BEA

Consumer confidence index Source: The Conference Board

Consumer spending Key Points Consumer spending have grown at or more than 2% for a while now Boating should get its fair share

u.s. new home sales vs. boats

u.s. City retail gas prices

2018 policy priorities 1. Recreation Saltwater Fishing: Modern Fish 2. Trade: NAFTA 2.0 and Aluminum Imports 3. Infrastructure and WRDA 4. Boating Safety: USCG Authorization 5. Workforce Development

The modern fish act Introduced Bills: H.R. 2023 (incorporated into H.R. 200) S. 1520 Thanks to our BIPARTISAN co-sponsors (13 Senators and 24 Representatives)

What does MFA do? Allows for recreational fisheries to be managed using more appropriate management tools Modifies the annual catch limit requirement to allow for more adaptive approaches Requires managers in the southeastern U.S. to perform long-overdue examinations of fisheries allocations Limits the spread of catch share programs that have negatively impacted anglers Modernizes data collection methods that could improve fisheries management and conservation Ensures exempted fishing permits help fisheries management and conservation – rather than the status quo

Mfa next steps Floor vote in the House Senate committee markup Senate passage President’s signature

Trade: aluminum sheet imports On November 28, 2017, Secretary of Commerce Wilbur Ross announced the “self-initiation” of an AD/CVD case against Common Alloy Aluminum Sheet from China 1xxx, 3xxx, 5xxx aluminum sheet Could see import duties of 60% + as early as April

Aluminum boating statistics Used for pontoon boats, engines, components, trailers and more $3 billion segment and growing 22,000 direct jobs 111,000 aluminum powerboats sold in 2016 Average length 19 feet, 43% market Pontoon Boats: 35,000 units sold, 14% market Boat trailers: 205,000 units, $351 million in sales

Thank you!