USA - background market data

Population – 296 million. 

Currency – US Dollar (US $): UK£1=US $1.8587, €1=US $1.2725.  The US Dollar has rallied a little over the past year, which has helped those exporting to the US, but dented slightly the US’ competitiveness globally.  The dollar however, is still relatively weak.

Government – Republican.  President George Bush began his second term in office in autumn 2004, but his ratings have reached new lows with the continuing violence in Iraq and the high price of petrol at home.  The Republican party has been weakened by a series of criminal investigations, but a Democratic victory in November’s congressional elections is far from assured – the party has no leader and has had trouble coming up with a compelling platform.

Economy – A healthy economy grew by an estimated 5 per cent in the first quarter.  GDP is estimated to have grown by around 3.5 per cent during 2005, and OECD forecasts suggest a 3 per cent growth through 2006.  GDP per capita is around US $42,000, while unemployment lies at 5.1 per cent.  The inflation rate remains under 2.5 per cent, and interest rates remain low, although not as low as they have been.  The big negatives in the US economy are trillions in enforced tax cuts and the billions in continuous spending in Iraq.  The massive deficits will have to be paid for fiscally at some stage.

Boating Geography – In the northeast, boating tastes are more established and traditional.  Sailing registers above average interest and even power tastes are more traditional.  Down the eastern seaboard or the inter-coastal waterway from Maine to Florida the boats begin to reflect the warmer climes.  While the northern half of the US reflects a more European season with warm summers and cold winters, the southern end of the country is a little different.  In southern California one could go boating all year round, while in Florida the season is still all-year round but the nicest weather is usually during the winter, as summers are generally very hot and humid.  There is also the hurricane season to contend with from August-November.  Interest in sports-fishing gets stronger the further south you go, and around the Carolinas fishing in all its forms is the major attraction.  The real boat volumes can be found inland in the US – Michigan especially hosts boating on Lakes Michigan, Superior, Erie and Huron.  To the north around Seattle, the climate is much wetter and tastes tend to favour the more rugged motor cruisers and sailing cruisers.  In southern California the boating interest becomes far smaller – much more a trailer boat market – as there are not so many places to visit, with few natural harbours and very few marinas.

Boat Park – Boat ownership per capita is 1:23 based on a boat park figure of 17,000,000.

Industry Body – National Marine Manufacturers Association, 200 East Randolph Drive, Suite 5100, Chicago, Illinois 60601, USA.  Tel: +1 312 946 6200.  Fax: +1 312 946 0388.  Website: www.nmma.org.  Contact: President Thom Dammrich. ICOMIA member organisation with over 1,400 member companies.

Market Outlook – The US market remains in good health, despite one of the worst hurricane seasons on record and its military still on active service in the Middle East. Boat sales continue to be strong overall, although entry-level has probably taken some knocks.  Conversely the big-boat end of things is still doing extremely well, thanks to a still weak dollar.