Matt Ginsburg, Managing Director, Huntington Distribution Finance†, an MRAA Education Champion

The marine industry has long relied on a global supply chain to source key components and materials. That international reach brings efficiency, but it also means that shifts in trade policy, such as tariffs, can introduce cost variability and operational uncertainty.

Recent tariffs on materials such as aluminum and steel have added new cost considerations for many marine businesses. But it’s not just the tariffs themselves that are prompting caution. The uncertainty surrounding when, where and how they’ll be applied can slow purchasing, delay hiring and complicate long-term planning.

While no one can predict exactly how tariff policy will evolve, businesses have options. By focusing on financial flexibility, cost control and inventory management, leaders can put themselves in a stronger position regardless of how policy unfolds.

A Brief Primer on Tariffs

Tariffs are essentially import taxes that raise the cost of bringing certain goods into the U.S. They may target specific materials, such as steel or aluminum, or apply to components from specific countries. While imposed on importers, the added cost often flows downstream to customers.

For U.S. policymakers, tariffs can serve as tools to influence trade partners or shield domestic industries. The goals of tariffs — protection, leverage and revenue — can have wide-ranging effects on businesses that rely on global supply chains.

How Could Tariffs Impact the Marine Industry?

Tariffs can create cost uncertainty for marine manufacturers and dealers. Key components such as engines, electronics and aluminum are frequently sourced overseas. When tariffs drive up input costs, production becomes more expensive. That pressure often pushes prices higher at retail, which can soften demand in a market already contending with inflation and higher interest rates.

Recent data reflects this pressure. The National Marine Manufacturer’s Association (NMMA)’s latest industry data shows new powerboat retail unit sales declined by 9.1% in 2024, and early 2025 data suggest continued softness. Consumer confidence has also weakened, with February marking the steepest monthly drop since 2021.

While the long-term impact of tariffs remains uncertain, the near-term implications are clearer. Businesses that prepare now could be better positioned to manage cost fluctuations and maintain stability in a shifting environment.

Proactive Moves to Help Manage Tariff Uncertainty & Unknowns

Here are a few practical steps businesses can consider to help absorb financial shocks and stay agile amid policy ambiguity:

Secure Access to Capital

• Liquidity remains a key buffer against cost swings tied to imported parts and materials. Whether through internal reserves or established credit lines, having capital available allows businesses to absorb price changes without disrupting operations. This flexibility is especially valuable when managing high-value inventory, such as navigation electronics or inboard engines that may sit in storage longer before being installed or sold.

Reassess Cost Structures

• Revisit supplier agreements and review the margin of slower-moving product lines. In some cases, outsourcing non-core functions may offer efficiency gains. A tighter, more focused cost structure can help mitigate external pressures without compromising delivery or quality.

Streamline Inventory

• Carrying fewer slow-turning SKUs can free up cash and reduce storage costs. A leaner inventory model also allows teams to respond more quickly if supplier lead times shift or input pricing becomes less predictable.

Model Tariff Scenarios

• Even without knowing what changes may come, scenario planning can help identify where your business is most exposed. Understanding how different tariff structures might affect costs, cash flow or pricing can support more confident decisions on sourcing and sales strategy.

Build Operational Resilience

• Tariffs are just one of many external forces shaping the marine supply chain. Consider using this opportunity to improve planning discipline, shore up financial flexibility and check the efficiency of core operations. These steps can help strengthen resilience whether you’re facing policy shifts, pricing swings or demand slowdowns.  

Staying Ready in an Uncertain Market

Uncertainty isn’t new for the marine industry. What sets stronger operations apart is how they prepare. Keeping capital accessible, tracking inventory performance and managing overhead with intention can help make the difference between reacting to pressure and navigating it with control.

At Huntington Distribution Finance®, we believe that preparation and patience go hand in hand. Dealers and manufacturers who take proactive measures now will likely be better positioned for what’s next.

About The Author

Matt Ginsburg serves as the Marine Vertical Sales Leader at Huntington Distribution Finance, where he leads a national sales team focused exclusively on the marine industry. Based in Nashville, Tenn., Matt brings nearly 20 years of experience in inventory finance and relationship management to his role.

Since joining Huntington in October 2024, Matt has been dedicated to delivering customized financial solutions that drive growth and success for marine dealers and OEMs nationwide. While his experience spans multiple sectors, the majority of his career has been concentrated in the marine space, where he has developed deep expertise in floorplan lending and solution-based sales.

Matt has held key positions in business development, portfolio management, and sales strategy, giving him a comprehensive understanding of OEM and dealer financing needs as well as evolving market dynamics. He is known for his commitment to building strong partnerships, fostering innovation and supporting sustainable growth within the marine finance ecosystem.

Outside of work, Matt enjoys fishing, golfing and spending quality time with his wife and two young children.

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Disclosures

^†Huntington Distribution Finance means either Huntington Distribution Finance, Inc. in the United States or Huntington Commercial Finance Canada, Inc. in Canada, as applicable. Huntington Distribution Finance, Inc. Is a separate legal entity which operates as a subsidiary of Huntington National Bank (HNB).

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