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UK LEISURE, SUPERYACHT AND SMALL COMMERCIAL MARINE INDUSTRY KEY PERFORMANCE INDICATORS 2012/13


CONTENTS Introduction

01

Headline Figures

02

Revenue and Value Added

03 – 05

International Trade

06 – 07

Full Time Equivalent Employment

08 – 09

Industry and BMF Membership Profile

10

UK Adult Boating Participation

11

Explanatory Notes

12 – 13

Other Reports Available

14 – 15


INTRODUCTION This report details a range of economic indicators within the UK leisure, superyacht and small commercial marine industry. This includes revenue, value added, international trade and employment. The data is presented at a total UK level, by region and by sector. The BMF industry model providing this data consists of two parts. The first part is based directly on primary data received from BMF Members’ declaration forms for their last annual business performance prior to April 2013. The second part is founded on a comprehensive assessment of non-member marine companies in the UK. The Key Performance Indicators (KPI) report is published annually to enhance knowledge of the industry and identify trends over time. It is only possible to complete the industry model reliably through the time dedicated by BMF Members in completing their forms accurately, for which thanks is extended. All data is held in complete confidence. For further information please call 01784 223615 or e-mail research@britishmarine.co.uk To put the trends of the marine industry into context, the annual change for UK Gross Domestic Product (GDP) for the whole country is shown below against the marine industry trends for revenue. UK Economy GDP V Marine Industry Revenue

8

UK GDP

6

UK GDP Forecast

Annual % change

4

Marine Revenue

2 0 -2 -4 -6 -8 2006

2007

2008

2009

2010

2011

2012

2013

Source: Marine Revenue, BMF; UK GDP, Office of National Statistics and 2013 Bank of England forecast

02 01


HEADLINE FIGURES • Total revenue of the UK leisure, superyacht and small commercial marine industry is £2.905 billion in 2012/13 (+1.7% on 2011/12) • Value added contribution, the principal measure of national economic benefit, is £951.4 million, 32.8% of the total revenue (compared to 31.4% in 2011/12) •  International trade is £1.080 billion, 37.2% of the total revenue (compared to 35.1% in 2011/12) • Full time equivalent (FTE) employment in the UK marine industry is 30,635 (-1.1% from 2011/12) • There are 4,200 marine businesses in the UK NB: Figures quoted are subject to rounding

Industry Revenue & Value Added Over Time (£ billion)

Total Revenue Value Added £2.952

£2.773 +6.5%

£3.100

£3.160

+5.0%

+1.9%

£2.963

£2.901

£2.855

£2.905

-6.2%

-2.1%

+0.3%*

+1.7%

37.6%

35.7%

35.0%

33.0%

31.5%

31.2%

31.4%

32.8%

2005/6

2006/7

2007/8

2008/9

2009/10

2010/11

2011/12

2012/13

A slight uplift of +1.7% is reported for UK marine industry revenue compared to 2011/12, notably in the international market which has recovered to the level reported in 2010/11 while the domestic market is -1.5% from last year. Encouragingly, the proportion of value added contribution has also improved with 32.8% of the total revenue directly supporting the UK economy. Full time equivalent employment has decreased slightly as businesses adapt to current conditions, but was also impacted by the re-structure of one significant company. *the impact of one significant company being sold into overseas ownership during 2010 was removed from the yearly trend comparison in 2011/12

02


REVENUE AND VALUE ADDED Total UK Industry Revenue £2.905 billion Value Added £951.4 million

Industry Revenue by Region

KEY Revenue £ Million Scotland

% of UK Total

£82.6 m (2.8%) VA £27.1 m

VA is Value Added

North East

Northern Ireland

£16.9 m (0.6%) VA £5.5 m

£21.5 m (0.7%) VA £7.1 m

Yorkshire £28.3 m (1.0%) VA £9.3 m

North West £89.1 m (3.1%) VA £29.2 m

Other e.g.

East Midlands £171.8 m (5.9%) VA £56.3 m

Channel Islands, Isle of Man £19.3 m (0.7%) VA £6.3 m

Wales £66.2 m (2.3%) VA £21.7 m

East of England

West Midlands

£306.0 m (10.5%) VA £100.2 m

£260.6 m (9.0%) VA £85.4 m

London South West £913.1 m (31.4%) VA £299.1 m

£102.1 m (3.5%) VA £33.4 m

South East £827.2 m (28.5%) VA £270.9 m

On the whole, the different regions and countries within the UK are performing at a similar level to the overall average of +1.7%, with the South West increasing the most in value at +5.5% on 2011/12. The slight decrease in the South East is largely due to a company re-structure, and the change in revenue from the East of England to West Midlands is due to the re-location of one company’s head office.

02 03


REVENUE AND VALUE ADDED Industry Revenue by Core Sector (to nearest £ million) 4.2% Boats

36.6%

£1,006

Equipment

£466

Engines / Systems

£248

Consumer Services £1,063

34.6%

Business Services

£122

16.0%

8.2%

UK Manufacture £1,173

Industry Revenue by Sector

Distribution

(to nearest £ million)

Services

£543 £1,184

123

882

210

256

Boats

Equipment

209

Engines/ Systems

260

Hire/Charter/ Training

194

Dealers/ Brokers

176

Marinas/ Moorings

235

199 122

Boat Repairs/ Servicing

Other Consumer Services

Business Services

Revenue for UK manufacture and distribution is +2.2% compared to 2011/12, with boats increasing the most by +2.7% and equipment and engines/systems increasing slightly by +1.6%. Consumer and business services are +1.0% on the previous year. The small commercial workboat (up to 24m) sector continues to be a growing market for the UK marine industry and the superyacht market recovered from the slight decline in 2011/12.

04


REVENUE AND VALUE ADDED Industry Revenue by Detailed Sector (ÂŁ million) ÂŁ million

% of UK total

Motor/Power Boat Manufacture

768.67

26.5

Sail Boat Manufacture

99.93

3.4

Other Boat Manufacture

13.66

0.5

Electronics Manufacture

14.69

0.5

Deckgear/Rigging Manufacture

128.61

4.4

Engines/Systems Manufacture

39.00

1.3

Manufacture in the UK

Other Equipment Manufacture

112.38

3.9

Total Manufacture in the UK

1,176.94

40.5

Distribution Motor/Power Boat Distribution

110.08

3.8

Sail Boat Distribution

11.56

0.4

Other Boat Distribution

1.65

0.1

Electronics Distribution

64.63

2.2

Deckgear/Rigging Distribution

23.80

0.8

Engines/Systems Distribution

209.21

7.2

Other Equipment Distribution

121.80

4.2

Total Distribution

542.73

18.7

Boat Repairs/Servicing/Installation

234.65

8.1

Coastal/Sea Charter/Small Passenger Boats

102.03

3.5

Inland Boat Hire/Small Passenger Boats

90.37

3.1

Watersports Rental

7.38

0.3

Sailing Schools/Training

60.15

2.1

Dealers/New Boat & Craft Sales

122.45

4.2

Brokers/Second-Hand Boat & Craft Sales

71.51

2.5

Chandleries/Online stores

104.83

3.6

Coastal Marinas/Moorings

119.32

4.1

Inland Marinas/Moorings

56.71

2.0

Finance/Insurance/Legal/Surveyors

36.77

1.3

Other Services

57.25

2.0

1,063.40

36.6

Business Consultants

30.13

1.0

Financial/Insurance/Legal

14.30

0.5

Other Services

77.19

2.7

Total Business Services

121.62

4.2

2,904.69

100.0

Consumer Services

Total Consumer Services Business Services

Total

Revenue for manufacture within the UK now represents 40.5% of the total industry, distribution 18.7% and services to consumers and businesses 40.8%. The majority of individual sectors are fairly similar to the overall average compared to 2011/12, however there has been an increase in motor/power boat manufacture in the UK of +5.6% while sail manufacture is on a par. Equipment/engine manufacture in the UK is -2.9% from 2011/12.

05


INTERNATIONAL TRADE Total International Trade £1.080 billion

International Trade by Market (to nearest £ million) 50

45

465

40

% of UK Total

35

30

25

20

138

15

109

91

10

50

5

45

52 5

0

Eurozone

Other EU Member

Other Europe

North America

South America

44

49

Middle East

Rest of the World

29

Australia

3

New Zealand

China

India

Rest of Asia

For the individual countries in the Eurozone, Other EU and Other Europe, see Explanatory Notes (page 13).

Proportion of International versus Domestic Trade Domestic Trade

International Trade

Boat Manufacture in the UK

37.0%

63.0%

Equipment Manufacture in the UK

65.7%

34.3%

Engines/Systems Manufacture in the UK

66.0%

34.0%

Boat Distribution

35.7%

64.3%

Equipment Distribution

77.8%

22.2%

Engines/Systems Distribution

80.6%

19.4%

Consumer Services

82.3%

17.7%

Business Services

67.8%

32.2%

Total UK Industry Revenue

62.8%

37.2%

International trade has increased in revenue by +7.7% on 2011/12 reflecting a recovery from the downturn of -6.5% reported last year. This uplift is particularly evident in Europe which is +9.6% on 2011/12 when it had seen a decrease of -12.6%. International trade has also increased in North America (+9.9% on 2011/12) and the emerging market of Rest of Asia has improved significantly. The apparent decline from last year in ‘Rest of the World’ and increase in South America is due to a change in one company’s reporting only.

06


INTERNATIONAL TRADE International Trade by Product/Service (to nearest £ million)

78

UK Manufacture

£620

Distribution

£165

Services

£217

556

Boats

39

53

30

41

69

Electronics

Deckgear/ Rigging

Other Equipment

Engines/ Systems

Hire/Charter/ Training

40 Dealers/ Brokers

80

39

Other Consumer Services

Business Services

International Trade by Product / Service and Market (£ million)

Boat UK Manufacture

South Aus/New Middle Other EU Other North East Members Europe America America Zealand

Total

Euro Zone

555.74

181.29

29.29

29.86

Asia

Rest of World

85.54

18.89

21.16

32.92

124.49

32.30

Electronics UK Manufacture

10.43

6.17

0.29

0.62

0.86

0.79

0.53

0.16

0.56

0.44

Deckgear/Rigging UK Manufacture

53.04

24.34

1.81

1.50

15.53

0.36

3.77

0.58

1.23

3.91

Other Equipment UK Manufacture

29.51

17.71

1.81

1.30

4.33

0.21

0.78

1.34

1.13

0.90

Engine/Systems UK Manufacture

13.24

8.10

0.64

1.34

0.93

0.37

0.37

0.43

0.45

0.62

Boat Distribution

78.16

47.66

0.41

28.51

0.56

0.03

0.38

0.08

0.43

0.10

Electronics Distribution

38.57

31.10

0.80

2.36

2.88

0.05

0.14

0.70

0.27

0.25

Deckgear/Rigging Distribution

4.94

3.13

0.33

0.35

0.43

0.04

0.10

0.13

0.30

0.14

Other Equipment Distribution

27.35

16.73

1.73

1.80

3.38

0.17

1.16

0.79

0.69

0.92

Engine/Systems Distribution

40.61

8.77

1.06

17.33

3.88

0.08

0.12

0.35

8.17

0.84

Hire/Charter/Training

68.53

43.36

1.37

12.79

6.23

0.25

0.85

1.67

1.03

0.98

Dealers/Brokers

40.41

21.37

3.23

4.64

4.90

1.92

0.77

0.92

1.80

0.87

Other Consumer Services

80.21

35.19

3.90

3.99

5.83

21.65

1.86

1.92

2.63

3.24

Business Services

39.13

20.58

3.28

2.68

3.10

0.39

1.56

1.59

2.67

3.29

1,079.86 465.50

49.96

45.19

33.54

43.57

145.84

48.81

Total

109.07 138.38

Manufacture in the UK accounts for 61.3% of all international trade, while distribution represents 17.6% and services 21.1%. The recovery in international trade from last year is mainly due to the increase in revenue of boats manufactured in the UK being exported (+7.9% compared to -8.3% in 2011/12). This positive trend is across all the markets, but especially trade in Europe, North America and Asia. The increase in “other consumer services” is through refit work.

07


FULL TIME EQUIVALENT EMPLOYMENT Total UK Employment (FTE) 30,635

UK Employment (FTE) by Region 30

9,066 8,364

25

% of UK Total

20

15

3,664 10

1,668

1,705

5

1,444

1,415

999

952 269

475

331

283

Northern Ireland

Other

0

South West South East

London

East of England

East Midlands

West Midlands

North West

North East

Yorkshire

Wales

Scotland

UK Employees (FTE) by Core Sector 5.0%

27.8%

Boats

8,532

Equipment

5,417

Engines/Systems

1,319

Consumer Services 13,836 Business Services

1,531

45.2%

17.7% 4.3% The decrease of –1.1% in marine employment from 2011/12 is mainly accounted for by two core regions, the East Midlands and the South East. The East Midlands is -5.9% from last year due to employment changes in one major company, while the -2.3% decrease reported in the South East is largely due to a company re-structure and does not reflect a real trend for the whole region. Other regions and countries are relatively stable in their employment levels.

08


FULL TIME EQUIVALENT EMPLOYMENT UK Employment (FTE) by Detailed Sector UK Employees (FTE)

% of UK total

Motor/Power Boat Manufacture

6,934

22.6

Sail Boat Manufacture

1,040

3.4

229

0.7

Manufacture in the UK

Other Boat Manufacture Electronics Manufacture

264

0.9

Deckgear/Rigging Manufacture

1,686

5.5

Engines/Systems Manufacture

472

1.5

Other Equipment Manufacture

1,577

5.1

12,202

39.8

Motor/Power Boat Distribution

241

0.8

Sail Boat Distribution

57

0.2

Other Boat Distribution

30

0.1

Electronics Distribution

664

2.2

Deckgear/Rigging Distribution

260

0.8

Engines/Systems Distribution

847

2.8

Other Equipment Distribution

967

3.2

3,066

10.0

Boat Repairs/Servicing/Installation

3,624

11.8

Coastal/Sea Charter/Small Passenger Boats

1,018

3.3

Inland Boat Hire/Small Passenger Boats

1,524

5.0

101

0.3

1,130

3.7

Dealers/New Boat & Craft Sales

768

2.5

Brokers/Second-Hand Boat & Craft Sales

853

2.8

Chandleries/Online stores

1,642

5.4

Coastal Marinas/Moorings

1,450

4.7

Inland Marinas/Moorings

800

2.6

Finance/Insurance/Legal/Surveyors

458

1.5

Other Services

468

1.5

13,836

45.2

Business Consultants

387

1.3

Financial/Insurance/Legal

169

0.6

Other Services

974

3.2

1,531

5.0

30,635

100.0

Total Manufacture in the UK Distribution

Total Distribution Consumer Services

Watersports Rental Sailing Schools/Training

Total Consumer Services Business Services

Total Business Services Total

There have been slight decreases in employment levels across most sectors in the UK marine industry, with boats and equipment/engines manufacture and distribution -2.8% from 2011/12, of which boats is -2.4% and equipment/engines is -3.8%. A large extent of the decrease from last year in sail distribution and manufacture is due to a company re-structure only. The trend for consumer and business services is relatively stable at +0.6%, including an increase in the boat repair sector due to more refit work from manufacture.

09


INDUSTRY & BMF MEMBERSHIP PROFILE Total Industry Structure The BMF estimate the total UK leisure, superyacht and small commercial marine industry to have the following structure and size for both Members and non-members.

Small

Medium Large

Size Category (FTE employees)

No. of Businesses

UK Employees (FTE)

Revenue (ÂŁ million)

<1 to 5

3,103

7,162

441.13

>5 to 10

615

4,743

358.41

>10 to 25

332

5,127

452.18

>25 to 50

88

3,095

408.84

>50 to 100

37

2,544

303.69

>100 to 250

13

2,046

233.43

>250

Total

6

5,919

707.01

4,194

30,635

2,904.69

The industry comprises a majority of companies with five or less employees (74.0%) who provide 23.4% of all employees and 15.2% of all revenue. There are 56 companies with over 50 employees which account for 34.3% of all employees and 42.8% of the total industry revenue.

BMF Membership BMF Membership is highly representative of the UK leisure, superyacht and small commercial marine industry, accounting for 70.1% of the total UK marine revenue. Of the total Member revenue, 73% is related to leisure marine, 16% superyacht and 6% small commercial, with a remaining 5% undisclosed. BMF Members employ 55.1% of all the marine labour force and are 31.7% of all marine businesses. The majority of larger companies in the marine industry are represented within BMF Membership, 80.4% of those with over 50 employees. Within membership, there are an estimated 35.9% of all companies with between five and 50 employees and 29.4% of those with five or less employees.

10


UK ADULT BOATING PARTICIPATION The Watersports & Leisure Participation 2012 survey was commissioned by British Marine Federation (BMF), Royal Yachting Association (RYA), Maritime and Coastguard Agency (MCA), Royal National Lifeboat Institution (RNLI), British Canoe Union (BCU) and the Marine Management Organisation (MMO). The annual survey gives an accurate view on UK adult participation levels in the UK and overseas, the sample size being a robust 12,000. The latest survey found 5.8% of UK adults went boating in 2012, which equates to around 2.8 million adults, compared to 5.9% in 2011, 5.6% in 2010 and 7.2% in 2009. The wet weather in 2012 impacted on the number of casual boaters but enthusiasts increased marginally from the previous year. The 2010-2012 variations have been smaller than those seen in previous years which may imply increased stability in participation rates. Average % of UK adult population

Estimate of number of adults

Any boating activity

2012

5.8

2,837,000

Canoeing

2.5

1,214,000

Motor Boating/Cruising

0.8

414,000

Small Sail Boat Activities

0.8

388,000

Yacht Cruising

0.7

329,000

Power Boating

0.6

290,000

Canal Boating

0.6

287,000

Rowing/Sculling

0.4

200,000

Water Skiing/Wakeboarding

0.4

189,000

Small Sail Boat Racing

0.3

166,000

Using Personal Watercraft

0.3

136,000

Windsurfing

0.3

128,000

Yacht Racing

0.2

106,000

To download the full report providing detailed demographics and behaviour about 12 boating and watersport activities, and boat/craft ownership, please visit www.britishmarine.co.uk/research

11


EXPLANATORY NOTES Marine Trading Activities The UK leisure, superyacht and small commercial marine industry comprise over 4000 businesses and sole traders. The figures presented relate to all the leisure, superyacht (over 24m) and small commercial (up to 24m) marine industry, including the manufacture and supply of craft, equipment, engines/systems and accessories as well as all the services related to consumers and businesses. Activities represented are drawn from both coastal and inland sectors of the marine industry which encompasses all privately owned and charter/hire/small passenger boats and craft, superyachts and small commercial workboats. This includes all motor/power boats, sailing yachts/dinghies, narrowboats/barges, RIBs/inflatables, personal watercraft, windsurfers, canoes and other speciality boats and craft. This report does not currently include the Passenger Boat Association data, who joined the BMF in October 2013.

Sample & Methodology The methodology combines primary data from BMF Members through completion of the Declaration of Turnover Form which is circulated each year for their last financial performance prior to April. This data is provided for company headquarters when there are multiple sites. To determine the remaining marine companies outside of membership, a list of marine companies was obtained from reputable business list provider, Experian. Desk research was conducted on each company to ensure they were relevant i.e. leisure, superyacht and small commercial marine and not shipping, naval etc. This provided non-member company names, sizes, locations and sectors.

Industry Revenues The revenue for Members has been taken directly from information provided by them and this accounts for just under three-quarters of the total revenue for the industry. The non-members revenue is determined via a data model which has been based on the factual information provided by Experian with assumptions on revenue by company size based on Members. To ensure â&#x20AC;&#x2DC;double countingâ&#x20AC;&#x2122; is minimised the handling fees and commissions or earnings have been provided by BMF Members as their revenue, where relevant. This is applicable to brokerage and agents, insurance companies and underwriters, finance houses, finance brokers and solicitors. There will be an element of double counting in boatbuilding and distribution/dealership revenue when the boat is built in the UK then sold within the industry before selling to the end consumer. However all double counting has been eliminated by measuring the value added contribution of the marine industry which is the principle measure of national economic benefit i.e. the revenue the Treasury is interested in. This figure represents the absolute contribution to the economy and eliminates double counting. The value-added approach used in this model is the Output Approach (sales minus the costs of intermediate inputs i.e. goods and services) of the total revenue. 12


EXPLANATORY NOTES International Trade Activities Countries within Europe are grouped as follows for the purposes of international trade: •  Eurozone: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain. •  Other EU Member Countries: Bulgaria, Czech Republic, Denmark, Hungary, Latvia, Lithuania, Poland, Romania, Sweden. •  Other European Countries: Croatia, Gibraltar, Monaco, Norway, Switzerland, Turkey.

Accuracy Accurate statistics are vital to the BMF’s function as the national representative body for the industry in the UK. The BMF checks and verifies each Member declaration of turnover and carries out random checks via Companies House. The non-member list was investigated thoroughly to ensure all businesses included in the model are relevant, i.e. leisure, superyacht and small commercial marine. Extensive quality assurance of the data model on both the source data and subsequent analysis has been conducted. The large majority of Members complete their declaration form annually and data for non-returned forms (< 5%) is based on previous years’ figures. The Member data represents the majority of the revenue (c. 70%) and data for the remaining non-member companies is based on a business list, with revenue based on a model by company size. It is important to note that non-member companies whose core business is not listed as marine have not been included, therefore our figures are a conservative estimate. Overall, the confidence level is estimated to be c. 95% for the headline industry figures.

Disclaimer BMF takes no responsibility for decisions taken using the information provided in this report.

13


OTHER REPORTS AVAILABLE UK Markets New: Economic Benefits of UK Boating Tourism The report builds on the previous studies on Economic Benefits of Marinas and Boating to provide an assessment of the size, importance and contribution of boating-related tourism to the economy. It outlines all tourism related expenditures and impacts for individual leisure boating sub-sectors and activities for both day visits and those involving an overnight stay at a total UK and regional level. BMF Members – Complimentary Non-BMF Members - £300 BMF Boaters & Boat Owners survey report BMF Boaters & Boat Owners Survey sponsored by MDL Marinas and the RYA was published in September 2012. This comprehensive report details the usage, behaviour and purchasing dynamics of enthusiast boat owners and boaters, across 14 different activities. The report covers recreational boating and watersports for both private owned and hire/charter across inland and coastal waters. BMF Members – Complimentary Non-BMF Members - £150 BMF Economic Benefits of Coastal (2007) and Inland Marinas 2008 These two reports assess and document the economic significance and impact of coastal and inland marinas in the UK at a country and regional level. Each report details the contribution of individual marinas at a local level through a series of case studies, based on primary research. BMF Members – Complimentary Non-BMF Members - £150 (discounted from £300)

Other BMF research published each year includes: - 6 Monthly Marine Industry Trends reports - Annual Watersports & Leisure Participation report, including boat ownership - Superyacht UK Annual Industry report - Boat park and boat production estimates by type and size Please visit www.britishmarine.co.uk/research to download the reports above or for more details contact research@britishmarine.co.uk or call 01784 223615

14


OTHER REPORTS AVAILABLE International Markets ICOMIA Global Boating Industry Statistics Book 2011 â&#x20AC;&#x201C; Free for BMF Members Normally a cost of â&#x201A;Ź300 to Federation Members, BMF purchased publishing rights to this edition of the report so Members can download it for free from www.britishmarine.co.uk/research. The 2010, 2007 and 2008 versions are also held in archives. This annual report by ICOMIA (International Council of Marine Industry Associations) contains a summary of data from 23 major marine leisure markets in the world, estimated to represent over 90% of the global sector. It also includes trade data for 35 countries, superyacht statistics courtesy of ShowBoats International/Boat International Media and marine outboard and personal watercraft sales. The 2012 report can be purchased direct from ICOMIA www.icomia.com Individual Country Reports - Free for BMF Members Please visit www.britishmarine.co.uk/international for individual reports providing market information and key contacts to maximise exporting potential on the following: - Published new this year: Germany, France, Middle East, Brazil - European Emerging Markets (Croatia, Poland, Russia, Slovenia, Turkey, Ukraine) - China - Mexico - Superyacht markets of Holland, Germany, Italy and USA UK Trade & Investment (UKTI) commissioned reports are also available providing generic information on different countries.

15


Š Copyright British Marine Federation.

British Marine Federation, Marine House, Thorpe Lea Road, Egham, Surrey TW20 8BF Tel: 01784 473377 Fax: 01784 439678 e: info@britishmarine.co.uk w: www.britishmarine.co.uk For further information on this report please call 01784 223615 or e-mail research@britishmarine.co.uk


British Marine Federation KPI Report 2012/13