Research Can Help Set the Course

1. Research Can Help Set the Course Ed Mahoney Michigan State University

2. Founded by National Marine Manufactures Association (NMMA) and Michigan State University (MSU), the Recreational Marine Research Center (RMRC) conducts original industry research, analyzes the data and publishes final reports (only available to members). RMRC conducts special studies (e.g., market analysis, economic impact assessments) for recreational boating agencies, organizations and marine businesses.

3. During 2003- 04’ RMRC was involved in a number of different studies including: (1) the economic impact of boating in Great Lakes states, (2) wage and salary study of Michigan marine businesses, (3) attitudes toward required wear of life preservers by adults in all boats that are underway, (4) boat owner annual spending, (5) trips spending profiles for different size boats and, (6) the impacts of fuel prices on boaters.

4. RMRC also conducts quarterly surveys of marine business leaders from different sectors to gauge performance (e.g., sales, inventories) and optimism regarding the future.

5. To efficiently monitor consumer patterns, the RMRC maintains and regularly surveys a nationwide survey panel of almost 10,000 boaters The panel data helps identify trends in boater preferences, levels of involvement, spending, life cycles of ownership and related behaviors. Panel data can be segmented by type and size of boats owned, boating activity, anglers, geography, marine customers, access sites, and more.

6. RMRC Focuses on Research Focused on Industry Needs and Challenges

7. Challenge: Recruitment andRetention of Boaters • Minority persons • “Never have been’s” • Women

8. Challenge: Aging of boating We must be concerned about the “aging of recreational boating.” • Aging of owners • Aging of employees • Aging of boaters • Aging of infra- structure

9. The Number of Up-side Down Boaters • High(er) prices • Depreciation rate • Low down payment and low interest financing

10. Perceptions of Boating • Too expensive and getting more so? • Product quality ??? • Complicated • Dangerous • Not environmentally friendly

11. Challenge: Enhancing the perception of marine businesses To continue to “raise the bar” as to how marine businesses are managed and perceived: • Service(s) • Environment • Safety • Community relations

12. Challenge: Keeping Boating Fun Making boating safer without taking away the fun and feeling of independence that is so important to boaters.

13. Challenge: Acquiring and maintaining public access To acquire and maintain publicly owned and privately provided recreational boating access

14. Federal, state and local agencies Courts Communities? = Dredging & Low water Cumulative & Accelerating Loss Closures: Environment Home Security Regulations & Permitting The Overlapping Impacts of Different Factors on Access

15. Challenge: Losing Marinas Increasingly marinas are being converted to other land-uses including residential or retail developments, or being converted to condominium ownership. The number of new marinas is relatively small

16. Challenge: Encouraging Investment in Boating Facilities and Services To create an environment needed to encourage public and private investment and re-investment in recreational boating access, facilities and services

17. Challenge: Taking it forGranted! Most human beings have an almost infinite capacity for taking things for granted."   --  Aldous Huxley

18. Challenge: Perception that boating is a rich persons sport and industry A common perception is that “all” boaters and therefore the businesses that serve them are all wealthy! It follows then that the industry does not require public support?

19. Challenge: Preventing the Killing of the Golden Goose To discourage federal, state and local governments from taxing and/or regulating marine businesses out of business!

20. Challenge: Educating Elected Officials To educate and re-educate elected officials concerning the importance of the industry and its future potential!

21. Employment – jobs • Income • Sales • Profit and rents Economic (market) value(s) + Preservation of blue space Access - Active and passive Reclamation Community Development Non-market value(s) Challenge: Determining and Communicating the value(s) of recreational boating

22. To Encourage Investment We Must Document and Communicate REC BOAT VALUE(s)

23. Monitoring Recreational Boating To identify and monitor key indicators of the “health” of recreational boating: • Boating access • #’s Registered boats • #’s Boating businesses • Boating facilities and services

24. Boaters Communities Industry Public and Private Boating Infra-structure Access Boater Recruitment Industry Characteristics Boater Safety and Enforcement Challenge: A strategic state-wide recreational boating plan. Sustainable Boating System

25. Keeping and making marine industry associations effective spokespersons and role models • Participation • Follow-though • Altruism • The courage to the right things By far the best state association with the smartest and most effective executive … V Snider, 2004

26. Challenge: Industry Togetherness We must come together as an industry and focus on issues of strategic importance to the future potential of the industry

27. Challenge: Developing Future Industry Leaders The industry must work hard to develop and nurture the next generation of industry leaders! It's hard to lead a cavalry charge if you think you look funny on a horse. --Adlai Stevenson

28. DRAFT Great Lakes Recreational Boating Economic Benefits Study November, 2004

29. Impetus for a Great Lakes recreational boating study was the Commission’s concern about the Army Corps of Engineers Cost Savings Initiative Process and its implications for the maintenance of federally-authorized Great Lakes Harbors. The Commission’s primary concern was with the shallow draft navigation and the fact that recreational harbors did not fare well when assessed by the Corps’ cost-benefit method. Benefits that accrue from recreational boating were not considered in evaluating the cost of dredging. Many of these harbors, particularly those that were built exclusively for smaller craft, could ultimately lose their periodic maintenance dredging.

30. Recreational Harbor Dredging The perceived rationale is that commercial navigation is clearly in the federal interest, while recreational boating activities are not. This rationale reflects a narrow perspective on the value of recreational harbors to the nation as a whole, and one that, in light of the economic data contained in this study, may not be accurate.

31. Dredging priorities in recent years has focused on maintaining commercial navigation channels and recreational and shallow draft harbors are getting dredged less frequently or not at all. Dredging recreational harbors has become increasingly piecemeal and reactionary. Recreational harbor dredging is usually done in the areas of greatest need, where a member of Congress has complained, or where it is conveniently located near a commercial dredging operation.

32. 94 Great Lakes recreational harbors have been federally authorized. FOUR have never been built [Kelly’s Island (Lake Erie); Black River/Alcona (Lake Huron); Cedar River Harbor (Lake Michigan); and Northport Harbor, (Lake Michigan); FOUR have been de-authorized or are classified as inactive (Beaver Bay and Lutsen Harbors on Lake Superior and St. Joseph River and Washington Island on Lake Michigan); and one is on an inland lake (Little Lake near Lake Superior).

33. There are currently 85 federally-authorized recreational (shallow draft harbors)harbors and channels on the Great Lakes maintained by three U.S. Army Corps of Engineers Districts: Chicago, Buffalo and Detroit Districts. Sixty-five federally authorized recreational harbors are managed by the Detroit District, which covers Lakes Superior, Michigan and Huron (the shores along the states of Michigan, Minnesota and Wisconsin). The Buffalo District maintains 21 shallow draft harbors along the shores of Lake Erie and Ontario (shores of states of Ohio, Pennsylvania and New York).

34. Of the 85 federally authorized recreational harbors in the Great Lakes managed by the Corps, nearly one fifth (17) are also harbors of refuge (20 %). Harbors of Refuge

35. For the Detroit District, which covers three of the Great Lakes, there are 54 such harbors, and some of them could be in jeopardy unless a new measure is devised to account for benefits. With the possibility of a new harbor funding program resulting from the Supreme Court’s invalidation of part of the Harbor Maintenance Tax, tonnage thresholds may be considered in the dredging decision process. Some of these ports and harbors have also experienced increased recreational boating and any prioritization process for dredging pegged to minimum commercial tonnage could jeopardize timely dredging at those places.

36. It is estimated that there are more than a quarter million marina slips available in Great Lakes states. Most (89 percent) are seasonal rental slips. An average of 93 percent of the accessible seasonal slips in Great Lakes counties were occupied the summer of 2004, which means that about 107,000 boats were kept in Great Lakes county marinas during the boating season.

37. List of Recreational Harbors

38. Not all recreational harbors are necessarily shallow draft harbors. Some deep draft harbors once used for commerce no longer support commercial activities. These harbors are likely to benefit from the former commercial status and not require dredging for many years. List of Deep Draft Recreational Harbors

39. Detroit District Current authorities and appropriations supports shallow draft harbor dredging of 2,046,825 cubic yards at a cost of nearly $11 million The Detroit District estimates that, in FY05 alone there remains about 555,000 cubic yards of material that needs to be dredged to fully maintain shallow draft harbors. The cost to complete the unmet dredging needs in these 30 Detroit District shallow draft harbors is $6.9 million which is not now available.

40. Buffalo District The Buffalo District supports 20 active recreational harbors. One recreational harbor, Kelly’s Island Harbor in Ohio, is yet to be constructed. Of the active recreational harbors, 77% of those located on Lake Erie have unmet dredging needs. Three harbors with dredging frequency needs of 10 years have unmet dredging frequency needs.

41. Buffalo District Four of the six harbors with a dredging frequency of four years or less have unmet dredging frequency needs. Half-- 50% (4 out of 8) of the recreational harbors located on Lake Ontario have unmet dredging needs. In FY05 alone there remains about 200,000 cubic yards of material that needs to be dredged to fully maintain shallow draft harbors and the cost to complete the unmet dredging needs is estimated at $710,000. .

42. DRAFT Step 1: Registered Boats

43. Watercraft Registration Trends in Great Lakes States.

44. Number of Currently Registered Watercraft by State of Registration and Boat Length, 2003.

45. Number of Watercraft by State of Residence and Registration.

46. Number of Watercraft Currently Registered to Residents of Great Lakes Counties in Great Lakes States, 2003

47. Registered Watercraft by Segment and State of Registration.

48. DRAFT Step 2: Spending Profiles