Welcome to the Southwick Associates March 2013 newsletter focusing on the economics, business and statistics of fish, wildlife, and their associated outdoor recreations.

In This Issue:

• Hunting in America: New Economic Report Released by NSSF
• The Economics of Sportfishing: ASA Releases Report
• Top Hunting and Shooting Brands
• Spending on Outdoor Recreation Drives State Economies
• States Can Structure Sporting License Pricing for Maximum Sales

Hunting In America: New Economic Report Released by NSSF

Between 2006 and 2011, the number of hunters in the United States grew by nine percent, while their spending on hunting-related products and services grew by more than 30 percent, according to the U.S. Fish & Wildlife Service (USFWS). However, the total economic impact of the activity may go much further. The National Shooting Sports Foundation (NSSF), in conjunction with the Association of Fish & Wildlife Agencies (AFWA), recently released the report, “Hunting In America: An Economic Force for Conservation,” which offers a unique glimpse into the real economic impact that hunting has on states and communities across the country.

Citing data compiled and analyzed by Southwick Associates, the report details not only the overall economic reach of hunters, but breaks numbers down by types of expenditures, and types of hunting including hunting for deer, migratory birds or upland birds. The report also examines hunter numbers by state, as well as participants’ unwavering support for conservation.

Hunting Quick Facts

• 13.7 million hunters
• $38.3 billion in total expenditures
• $86.9 billion in overall economic output
• $26.4 billion in salaries and wages generated
• 680,937 jobs supported
• $5.4 billion in state and local taxes generated
• $6.4 billion in federal taxes
• Over $1.6 billion annually in dedicated wildlife conservation funding

View more facts and figures, as well as the full report.

The NSSF’s report provides part of the foundation for a similar report, “America’s Sporting Heritage: Fueling the American Economy,” released by the Congressional Sportsman’s Foundation (CSF). The CSF reports provide compelling data on both hunting and fishing and provides abundant facts and figures that every American can appreciate.

The Economics of Sportfishing: ASA Releases Report

Southwick Associates was also recently busy working with the American Sportfishing Association (ASA) to highlight another financial pillar of conservation, fishing, as described in the report, “Sportfishing in America: An Economic Force for Conservation.” With the USFWS reporting that 33 million Americans age 16 or older went fishing in 2011, and ASA estimating there are potentially as many as 60 million Americans of all ages who consider themselves anglers in the country, fishing at least once every five years, the sportfishing community is undoubtedly vital to the economy and conservation.

In fact, it is estimated that anglers spend approximately $48 billion annually on equipment, licenses, trips, and other fishing-related items or events with an economic multiplier effect of $115 billion impacting our nation’s economy. Each angler spends roughly $1,441 per year supporting 828,000 jobs that account for as much as $35 billion in salaries and wages. Plus, through excise taxes on fishing tackle, fishing licenses and personal donations, anglers contributed nearly $1.5 billion in dedicated funding to fisheries conservation in 2011. And these numbers promise to grow with the population of anglers growing 11 percent between 2006 and 2011.

More Fishing Quick Facts

• More Americans fish than play golf  (21 million) and tennis (13 million) combined.
• If fishing were a company, the amount spent by anglers to support fishing-related retail sales would rank number 51 on the Fortune 500 list.
• Fishing generated more revenue  ($48 billion) than Lockheed Martin  ($47 billion), Intel ($44 billion), Chrysler ($42 billion) or Google ($38 billion).
• The economic activity generated  by sportfishing is greater than the economies, measured in Gross State Product, of 17 states.

View more facts and figures, as well as the full report.

Top Hunting and Shooting Brands
Every sportsman has his or her favorite brands that serve well in the field. But have you ever wondered exactly which brands are the most popular and if your favorites are among them?

As part of its continual efforts to monitor and provide service to the businesses and organizations involved in the outdoors, each year, Southwick Associates polls sportsman to determine which brands of goods they are buying most and what the motivations are behind purchasing those brands. Southwick recently released  findings for the top brands of 2012. Some of the top choices include for Hunting and Angling:

• Top rifle brand: Remington, Ruger (both 11.5 percent of all purchases)
• Top shotgun brand: Remington (19.7 percent of all purchases)
• Top muzzleloader brand: CVA (31.0 percent of all purchases)
• Top handgun brand: Sturm, Ruger (17.7 percent of all purchases)
• Top crossbow brand: Barnett (21.7 percent of all purchases)
• Top air rifle brand: Crosman (29.6 percent of all purchases)
• Top rifle ammunition brand: Remington (21.4 percent of all purchases)
• Top shotgun ammunition brand: Winchester (32.1 percent of all purchases)
• Top rod brand: Shakespeare (10.0% of all purchases)
• Top reel brand: Shimano (21.1% of all purchases)
• Top combo brand: Shakespeare (18.3%of all purchases)
• Top fishing line brand: Berkley Trilene, PowerPro (each 11.2% of all purchases)
• Top hard bait brand: Rapala (23.5% of all purchases)
• Top soft bait brand: Berkley Gulp, Zoom (12.8%, 12.6% of all purchases)
• Top fly rod brand: Sage (23.1% of all purchases)
• Top fly reels brand: Cabelas (19.2% of all purchases)
• Top fly combo brand: Cabelas (18.5% of all purchases)
• Top fly line brand: Scientific Angler (3M) (15.4% of all purchases)

View the full press release and learn how you or your company can obtain the full, detailed 200+ page report.

Spending on Outdoor Recreation Drives State Economies
When looking at overall state-by-state economies, outdoor recreation as a whole provides a magnitude of economic benefits across the country. These are the findings of the Outdoor Industry Association (OIA), which, alongside Southwick Associates, tallied up the spending of outdoorsmen on their recreation in each state to include direct spending, jobs, salaries and tax revenues generated. The association found that nationally, Americans spend $646 billion a year on outdoor recreation, supporting more than 6 million jobs and generating $80 billion in tax revenue.

“Outdoor recreation is a growing American industry that produces significant economic benefits,” said Will Manzer, chair of the OIA Board of Directors and former CEO of Eastern Mountain Sports. “For example, Americans spend almost twice as much on outdoor recreation as they spend on pharmaceuticals each year. And outdoor recreation supports more than twice as many jobs as the oil and gas industry.”

The national report, as well as a one page fact sheet for each state is available on the OIA website at outdoorindustry.org/recreationeconomy.

States Can Structure Sporting License Pricing for Maximum Sales

With shrinking budgets and fewer revenue streams available to governmental agencies at the top of the headlines recently, every agency must look at how to improve funding to improve services expected by constituents. For fish and wildlife agencies around the country, that often requires restructuring hunting and fishing licenses and permits.

Southwick Associates works with many fish and game agencies to boost revenues by scientifically identifying optimal license prices and new license types that anglers and hunters are more inclined to purchase. They do this through two primary ways:

License Pricing Models

Southwick uses a multivariate-based approach to scientifically identify which agency licenses can generate greater revenue, how much revenues can be expected to vary at different price points, which licenses should be left alone and the anticipated change in the number of buyers should price changes be enacted.

New Licenses

Our second approach examines which new license types will generate greater demand by hunters and anglers, how much they would be willing to pay for each proposed license, and the estimated net effect on agency revenue.

Interested agencies should contact Southwick Associates at 904-277-9765 or email rob@southwickassociates.com. You can also visit the “Specialties” section of our website for a complete view at the services we provide.

Correction to Previous Article:

In the November newsletter, we incorrectly reported that spending on outdoor recreation increased 6.1% since 2006. The correct growth rate is 5.0%. We regret the error and any confusion it may have caused.

In Our Next Issue:

• Economic impacts of Conservation Investments
• Jobs and Contributions from USFS Long Leaf Pine Restoration in Florida
• Hunter Education: How Many Graduates Actually Hunt?
• State-Level Economic Impacts from Outdoor Recreation of all Types
• The Dollars and Jobs Associated with Target Shooting in the U.S.

Southwick Associates, Inc. specializes in natural resource & environmental economic, business and statistical research.  Our staff is comprised of economic, business and statistics professionals throughout the U.S. who have in-depth experience measuring the values, benefits and revenues possible from fish, wildlife, and water-related natural resources plus their associated industries.  We can help clients better address many business, legal, legislative and public communication issues through the practical application of reliable and accurate economic information and statistics.

For information and other reports, visit our Web site at www.southwickassociates.com

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Newsletter Editor: Source Stream Media, LLC, Virginia Beach, VA

Photos: Bill Winke, Doug Howlett, Coleman, National Shooting Sports Foundation