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Marine market in the US

The United States marine industry can be broadly split into two separate areas: Ship Building (for commercial/military purposes) and Boat Building (for recreational purposes). The United States is a relatively small participant in the global commercial Ship Building market,

Overshadowed by the dominance of Ship Builders in South Korea, Japan, Europe and China. However, Ship Building generates approximately 4.5 times more revenue than that of the Boat Building sector.

High consumption levels and affluent lifestyles are reflected in the high level of participation in recreational boating: more than 60 million Americans (around one in five) take to the water each year, resulting in around 500 million boating days. Boat ownership stands at a ratio of around 1:18 (based on the above estimate of 16.7 million recreational boats in use). This sector has however been affected by downturn in consumer spending in the United States.

Total marine imports shrank from a peak of US$3.4 billion in 2007 to US$2.8 billion in 2010.

Imports fell at a compound average growth rate (CAGR) of 2.6 percent between 2006 and 2010. Significant import items include floating or submersible drilling or production platforms (23 percent), outboard motors (21 percent), and motorboats (17 percent).

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Competitive Environment

Of the 572 firms within the Ship Building industry, Northrop Grumman and General Dynamics are estimated to hold just under 70 percent of industry revenues. The Boat Building industry is highly fragmented with around 750 companies.

In 2009, the two biggest players, Brunswick and Genmar Holdings, held approximately 40.8 percent of industry revenue, however Genmar filed for bankruptcy in 2010 and parts of the business were sold off separately.

Market Entry

Trade shows, such as the annual Fort Lauderdale Boat Show (held in October), and the Marine Aftermarket Accessories Show (MAATS) (held in July, Las Vegas), are where industry buyers do much of their marine parts and accessories shopping for the upcoming year.

Additionally, there are other shows more specific to boatbuilding throughout the year. Attendance or representation at these shows is important to New Zealand exporters seeking to increase awareness of their brands.

The United States is a highly competitive and established market with some product sectors dominated by major players. New Zealand products need discernible and valuable points of difference.

In addition to the quality and value proposition, United States partners will need to be convinced that New Zealand companies can satisfy demand and be an efficient and effective business partner, despite their location on the other side of the world.

This is especially so where the New Zealand company is a small, family-owned company, and may be under-resourced in the event of a large order.