Southwick Associates June 2013 Newsletter

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

In This Issue:

• Economic Impacts of Conservation Investments
• Hunter Education: How Many Graduates Actually Hunt?
• Hunting and Fishing Excise Taxes: Big Benefits for American Businesses
• Southwick Offers Specialized Industry Reports to Help Your Business
• New member to join the Southwick team in Washington, D.C.

Economic Impacts of Conservation Investments

The money invested in supporting natural resource conservation, specifically for those programs designed to manage wildlife and fish populations along with their habitat, provide much more than mere recreational benefits for those who hunt, fish or watch wildlife. These investments actually serve as a powerful driver of economic benefits that generate a positive ripple effect throughout the American economy. The report, “The Conservation Economy in America: Direct Investments and Economic Contributions,” written and researched by Southwick Associates for The National Fish and Wildlife Foundation sheds light on the true nature and impact of these investments.

Altogether, an estimated $38.8 billion is spent annually on conservation in the United States, with the federal government leading the way, accounting for approximately 60 percent of all spending. State and local governments followed, accounting for 29 percent of total spending, while private donations and funds made up 11 percent of spending. This $38.8 billion of direct investment in conservation translates to an astounding $93.2 billion of total economic activity in the United States, which can be measured in the creation of more than 660,000 jobs, $41.6 billion in salaries and wages, $12.9 billion in tax revenues and more.

 

By providing abundant fish and wildlife and quality natural habitats open to public use through these investments, Americans in turn spend billions to enjoy these opportunities, greatly compounding the economic benefits of the original investments. A 2012 study by Southwick for the Outdoor Industries Association (OIA) reveals Americans annually spend $646 billion to enjoy the outdoors, of which $120.7 billion is spent on gear and vehicles and $524.8 billion is spent for travel and related expenses.

View the complete NFWF report here or visit the OIA website for more detailed information on conservation impacts and consumer recreational spending.

Hunter Education: How Many Graduates Actually Hunt?

Hunter education has been credited with creating a generation of more knowledgeable young and new hunters who are statistically safer in the field when it comes to the handling of firearms and taking other precautions against accidents. Some form of hunter education is now required in every state, but how many of these course graduates actually continue to hunt? Most people would assume that virtually all of them do, but that assumption would be incorrect.

In the National Shooting Sports Foundation (NSSF) report, “Hunter Education Graduates’ Proclivity to Purchase a License” produced by Southwick Associates, graduation rates were compared to license sales in 12 states. Research found that surprisingly, the percentage of graduates who purchased a license averaged only 67.7 percent and that many of those hunters who did take the course still needed help in making the leap to becoming an actual hunter. In fact, the pool of hunter course grads buying licenses actually shrunk by 34.5 percent five years after completing their courses.

For more details as well as reasons why these drops may occur, view the full report.

Hunting and Fishing Excise Taxes: Big Benefits for American Business

Imagine a business investment that yields a return of more than 1,000 percent. If you were to guess the industry where such a return on investment (ROI) was possible, most people would guess energy, technology, defense or medical industries or even that historic standby, real estate. But they would be wrong. Such investments are a reality, however, in the sportfishing, hunting and shooting sports industries courtesy of the Wildlife and Sport Fish Restoration programs. Thanks to those programs, hunting manufacturers have enjoyed a 1,100 percent return on funds invested in generating improved hunting opportunities, while sportfishing-based companies have witnessed an amazing 2,157 percent.

Through excise taxes collected on many hunting, fishing and shooting products as part of these restoration programs, monies are returned to states to increase and improve outdoor opportunities. As a result, sportsmen and women have more outdoor opportunities in which to engage and ultimately spend more on products made by the same companies who pay the tax. Between 1970 and 2006, excise tax collections averaged $251 million per year with all of these funds invested into fish and wildlife efforts. In that same time frame, hunters and shooters alone purchased an average of $3.1 billion in taxable outdoor items per year.

For more details on how excise tax investments are yielding big returns across America, check out the full report produced for the Association of Fish and Wildlife Agencies.

Southwick Offers Specialized Industry Reports to Help Your Business

Whether your business, agency or organization is focused on a specific type of fishing or your efforts are more focused on a particular aspect of hunting or shooting, Southwick Associates can now pull from its depth of data to generate industry- or interest-specific trend and market size reports such as its annual Bass Angler Report, Rod Reel Combo Report, Deer Hunter Report, Turkey Hunter Report, Waterfowl Hunter Report and more. Each report looks at market trends within the consumer segment and time spent on the activity and total expenditures, including the top gear brands purchased and money spent on trips.

These reports are designed to give companies and organizations the type of immediate data necessary about their consumers to help them not only react to market trends, but anticipate them as well.

2012 trend reports are currently available for Archery (including bow and crossbow), Whitetail Hunting, Waterfowl Hunting, Turkey Hunting, Bass Angling, the Rod and Reel Market and the Firearms and Ammunition Market.  There is also a report that accurately shares the size and depth of today’s hunting market.

Southwick Associates staff will be available to discuss these specialized reports during ICAST in Las Vegas July 9-12 or contact Southwick directly at 904-277-9765 or email Rob Southwick at rob@southwickassociates.com.

A New Member to Join the Southwick Team in Washington, D.C.

We’re pleased to announce we have retained Resolute Strategies, led by Matt Shilling, to represent Southwick Associates in Washington, DC. This exciting addition to the Southwick team expands our presence in the nation’s capital and provides an increased level of service to our clients and partners.

Many of you may already know Matt, who has previously served as President of OCEARCH, Associate Director of the Office of Public Liaison in The White House, Deputy Director of External and Intergovernmental Affairs at USDA and as an advisor in the Agricultural Marketing Service. Please feel free to contact him at:

Resolute Strategies

1455 Pennsylvania Avenue NW, Suite 400

Washington, DC 20004

mshilling@resolutestrategies.com

202.280.2011

 

In Our Next Issue:

• Dollars and Jobs Associated with Target Shooting in the U.S.
• Outdoor Recreation, Conservation and Historic Preservation Provide Great Value to America
• Key Reasons Behind Rise and Fall of Hunting/Fishing License Sales

 

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

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

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

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