Dealer to Dealer: September

What do you do to foster teamwork between dealership departments?

“We provide lunch for our entire crew, every day, 12 months a year. When we are extremely busy, the crew will eat on the run and not leave the dealership. When things are little slower we gather around while eating and have a daily meeting from all departments in order to address problems and listen to suggestions. We work with a local restaurant to provide lunch daily for $60.00. Granted it’s close to $20k a year, but all it takes is a couple missed boat sales or infuriated customers because of the lack of staff over the lunch hour to cost us even more!” – Dennis Robbins, Robbins Marine

 

 

Each month, MRAA connects with dealership management on a timely and relevant topic and publishing their insights at MRAA.com. Tell us what you have to say about this month’s question by commenting below and participating in the conversation. Also, watch for next month’s question.

CMTA Surmounts Outreach, Educational, and Scholarship Programs to Combat Workforce Crisis

Essex, CT. – There are job opportunities within the recreational boating segment that are going unfilled, and hundreds of them are here in Connecticut. Statistics from the Marine Retailers Association of the Americas estimate that by 2019, there will be over 30,000 budgeted positions available nationwide but left open within the sector due to a lack of applicants, appropriate training and educational programs.

“Marine trades are often overlooked as a career, but they do offer full-time, year-round job opportunities, a variety of occupations, certification, degrees, and clear lifetime career paths, especially for those in technical or mechanical positions,” according to Kathleen Burns, Executive Director of the Connecticut Marine Trades Association (CMTA).

To further foster educational and workforce development opportunities in the recreational boating industry in Connecticut, help fill existing positions and prepare the next generation of potential employees, the CMTA is surmounting new initiatives and expanding upon some of its long-running programs. The CMTA and many other boating related state and trade organizations have also supported the development of an instructional piece dedicated to growing the workforce, targeting national, regional and employer-level implementation: Strategy 10+1: A Marine Industry Guide to Growing the Workforce.

The newly formed CMTA Foundation, a 501(C)(3) organization, expands the CMTA’s seven year old scholarship program, now to include grants, and program and curriculum development. It is the sole mission of the Foundation to fill both the skills gap and marine workforce shortage through scholarship, program development and training. The CMTA Annual Golf Tournament held in August at Lyman Orchards Golf Club in Middlefield, Connecticut was the first event to benefit the new foundation, and a $1,500 scholarship from the MRAA was announced which will be awarded in the area of technical training. A joint press conference was held with the National Marine Manufacturers Association (NMMA) opening day of the Progressive Norwalk Boat Show, which NMMA produces, to announce the CMTA Foundation’s formation, its initiatives, and NMMA’s commitment to encourage manufacturers and dealers to participate in its efforts.  

Randy Jennings of Beacon Point Marine is serving as the CMTA Foundation’s Chairman, Shannon McKenzie of the Mystic Seaport Museum is Vice Chairman, Dave Croker of Crocker’s Boatyard is Secretary/Treasurer, and other members include Scott Bowden of Port Niantic Marina, Ron Helbig of Noank Village Boatyard and Lynn Oliver of Brewer/Safe Harbor Marinas. CMTA member input is being sought, and the board is undertaking a needs assessment to further develop the concept of the foundation.

Jennings, a product of Shelton High School and the Bridgeport Aquaculture School is an example of the type of career paths available in boating. His parents owned a boat, and at the age of 12 he started working on the gas dock at a small family run marina in Shelton. He moved on to Beacon’s Shelton yard while in high school, simultaneously finishing high school and the Aquaculture program. He continued to work at Beacon, graduated from New England Institute of Technology with a marine technology degree and has quickly risen through the company from mechanic to now serving as Service Manager.  

“There are many misperceptions about working in our industry and it’s important for us to get the word out that there are plenty of jobs available, and lots of opportunities in various capacities. Working in recreational boating is not just a part time job, but it can be a career for a lifetime,” Jennings said. “The businesses that we work for are not large corporations, and for the most part are family run organizations. It is an industry in which employees are cultivated and treated like family,” he added.

According to Burns, the workforce pressures affect approximately 537 small businesses across the state which facilitate the purchasing, storing, servicing and caring for boats. “The workforce shortages will potentially stagnate a growing industry from an economic stand point. The realities of our members’ day-to-day struggles are that they are small businesses, averaging between $1 million to $2 million per year in sales, with an average of 15 workers. Without sufficient staffing and technical expertise, they cannot service their customers and run their businesses to the best of their ability.”

The CMTA and NMMA hosted the their third annual Career Day at the Norwalk show, September 21, as an informational “Boating Careers More than a Job” session for students. Burns was joined by Lynn Oliver and manufacturer representatives to discuss the various opportunities in boating and job openings in the state. There are currently significant shortages in filling positions of licensed captains, as well as certified marine technicians and mechanics, with a list of openings available at http://ctmarinetrades.org/education/.

The Strategy 10+1 guide outlines the challenges facing the boating segment; that as an industry, recreational boating provides a fun, lifestyle based career pathway that can be very attractive to the rising employment pool, but that cultivating a talent pipeline requires that current marine industry, employers commit to an active role in training for the potential workforce, for new hires and for their existing workforce.   

According to McKenzie, who serves as Director of Watercraft Programs at the Mystic Seaport Museum, collaborating with school districts and technical schools across the state is going to be a key initiative for the CMTA Foundation. “We need to create career awareness, provide support of training programs through hands on assistance and publicity, as well as support STEM programs that compliment boat building, construction or mechanical training programs,” she said.  

CMTA Foundation outreach and engagement has already been made with The Sound School (New Haven), the J. M. Wright Technical High School (Stamford), Norwalk Community College, Bridgeport Aquaculture School, Ella T. Grasso Southeastern Technical High School (Groton), and Waterford High School. In the past, the CMTA’s Hartford Boat Show has also hosted student boat building programs from the Thompson Public School District and A Piece of the Pie (Hartford), as well as conducted career fairs at the show.

Both Burns and Jennings noted that since the July 1 sales tax reduction on boats, motors and trailers, Connecticut is seeing boaters return to its waters, an influx of new boaters, and dealers and marinas are reporting brisk sales. But the activity of the season has created a void in the workplace that the CMTA is trying to fill. “While many of our members already had budgeted open positions, the brisk business has exasperated the demand, and we want to help foster as many individuals as we can that are interested in pursuing opportunities in recreational boating to help them find a career path, hone their skills and to be able to fill these positions,” Burn said.

In addition to the CMTA Foundation initiatives, The CMTA is working with many of the participants of the Strategy 10+1 guide and other associations to build national and regional networksthat include marine employers, schools, related industries and suppliers that can spread the word as to the current openings and future possibilities of career development in the recreational boating sector. At its 50th Annual Hartford Boat show in January 2019, the CMTA is also planning to highlight boating workforce opportunities, school and training programs through its second annual Windows to the Future section within its exhibit hall.  

As a 501(C)(3) organization, The CMTA Foundation is accepting donations and endowments. For more information, contact Kathleen Burns at kathleen@ctmarinetrades.org.

MRAA and ORR Support Sound Trade Policies, Warn Against Tariff Impacts

While the outdoor recreation industry supports fair international trade policies and efforts to protect U.S. business interests in the global market, recent trade policy developments have threatened continued growth in this critical $673 billion industry. We understand the Administration’s efforts to safeguard U.S. intellectual property and balance unfair trade deficits, however recent tariffs have prompted significant cost increases from our steel, aluminum and component part suppliers leading to reduced domestic sales while putting our export-based businesses at risk. These tariffs ultimately result in higher consumer prices for outdoor recreational products, as well as tightened profit margins for the growing industry.

The outdoor recreation sector is comprised of a diverse collection of U.S. and foreign manufacturers of an array of products frequently used by outdoor recreationists. These products – including hiking and camping equipment, as well as a variety of other motorized and non-motorized recreational products – are engineered and designed to meet exacting U.S. environmental and safety standards, many of which have been adopted by our trade partners. Some of these products/components are manufactured in the U.S. and exported to foreign markets, while others are produced abroad and imported to the U.S. Given this reality, these manufacturers are significantly impacted by the imposition of domestic and retaliatory foreign tariffs on both component parts and finished products. Further, price increases and supply chain disruptions that result from tariffs will likely make U.S. manufacturers less competitive in the global marketplace.

Combined, the robust outdoor recreation industry comprises 2% of the U.S. GDP – surpassing other sectors such as agriculture, petroleum and coal, and computer and electronic products. The Department of Commerce’s Bureau of Economic Analysis (BEA) reported in February 2018 that the outdoor recreation sector is an economic powerhouse that supports 4.3 million jobs, and accounts for $673 billion in annual gross domestic output. In addition, BEA found the outdoor recreation economy grew by 3.8 percent in 2016, exceeding the 2.8 percent growth of the overall U.S. economy during the same period. Numerous initiatives and efforts of the Administration have helped fuel the outdoor recreation industry’s growth, but current trade policies now pose significant challenges.

ORR continues to work with the Administration and Congress to emphasize the impact of trade policy on the growing outdoor recreation industry as policymakers strive to address a structural, global issue and legislate in this arena. It is clear that outdoor recreation is one of the largest engines of economic growth that consistently creates many jobs for hardworking rural Americans while also reducing the trade deficit; however, trade uncertainty is threatening this trajectory. ORR will be a valuable resource to the Administration and the Congress in the development of impactful and sound trade policies.

Learn More.

 

If you have any questions about legislative issues, or something happening in your state, please contact Will Higgins.

Communication Is Key, Right?

How many times have we heard the cliché that “communication is key”? Or, that it’s better to over-communicate to avoid misunderstandings?

In customer relationships, it is not enough to merely communicate.  Here’s a recent experience of mine that I believe proves that how often you are communicating with your customers and what you are actually saying, is even more important. Is your message sincere? Or is it just lip service?   

Last summer, a storm rolled through Minneapolis and caused damage to our siding and roof. After many “storm chasers” knocked on our door to offer services, my husband and I decided to go with a contractor who was recommended from a friend, and who lived in our area. We had an initial meeting to discuss the work that was needed, and decided to add-on some additional home improvement items. Our contract was signed and we were excited to have the work begin.

And then we waited. And waited. And waited.

Just waiting for the work to begin was agonizing. We signed our contract in August, with the promise that the work would be completed in time for Thanksgiving. But we waited. Waited for materials to be delivered, for a dumpster to be delivered, for any communication of a timeline. Anything.

We finally reached out to our contractor, who instead of taking a proactive approach and communicating with us a plan about the work schedule, left us hanging with multiple excuses of “I haven’t heard from the siders yet” or “I’m waiting for the shingles to be delivered” or “the materials were delayed from the factory” or “I ordered the wrong garage door,” or … or … or. At one point, we actually received a message that said: “We haven’t forgotten about you. Sorry about my crummy communication skills. I’ll let you know as soon as I know a better timeline.”

After every excuse, we waited days to weeks with no communication or updates, which caused us to become upset and frustrated. It seemed as if we were always the ones to be reaching out to him, instead of him contacting us first. But more importantly, when he did finally respond to us, he’d make promises he wouldn’t deliver on. So we lost faith in his words.

So the question here is, how do you stay in touch with your customers? When their boat is in for service, do you wait hours, days, a week or even a month before providing an update? When that part finally shows up, do you let the customer know, or do you just let the technician know? When your customer’s new boat is on order, are you diligent about communicating updates from the factory with them?

It is not enough to just communicate. That is the basic expectation. What you say and how you say it is just the first step. If you wait until the customer asks, you’re not meeting expectations. You need to be proactive with your communication. Think through what it’s like to be the customer and how you can exceed expectations and deliver an incredible buying and ownership experience. And never forget that your follow-through — what you do after you make the promises – is what truly defines the quality of the customer experience.

To attend or not attend MDCE

According to science making a decision is a 7-Step process. Let’s say that’s true for deciding whether to attend MDCE or not. But really, it shouldn’t be that hard. The answer is yes. To humor you and ourselves, we’ll empower you with the information to make this decision, step…by…step…

Step 1: Identify the Decision

  • Not attend MDCE (Not probable)
  • Attend MDCE (Probable)
  • Attend and bring teammates along (strongest probability)

Step 2: Gather relevant information

  • Like world-class education? > 
  • Like in-depth workshops? >
  • Like Dealer-to-Dealer Roundtable discussions for moving the industry forward by working through obstacles and opportunities with other dealers? >
  • Like the current MDCE schedule, event list, educational line-up, and a grand list of testimonials both written and spoken?

Step 3: Identify the alternatives

  • None?
  • Name something bigger, more dynamic and beneficial than MDCE

Step 4: Weigh the evidence

  • We went out and hired super-secret personal detectives to investigate the MDCE, this is what they said… just kidding, we didn’t hire fake detectives, these are REAL people, REAL attendees and these are their stories.

Step 5: Choose among alternatives

  • The alternative: sit at home in your dealership while your competitors better themselves for 3 days straight
  • The alternative: sit at home in your dealership and listen to customers complain that you don’t have the ZL-4 in electric blue.
  • PS: we have the tools to manage situations like this like the customer-centric dealership that you are and should be.
  • PPS: ZL-4 is not a real boat model, we googled it and Jay-Z came up.

These may be great, but how cool would it be to step away, engage with world-class education, connect with over 1,000 attendees looking to make the industry the best it can be and discover your dealership’s true potential?

Step 6: Take action

  • REGISTER
  • Or keep reading and then register

Step 7: Review your decision and its consequences

  • You go, meet new people, gain new insights and learn a ton to help your dealership be successful in 2019.
  • You don’t go and you risk asking yourself what you could have been if you had attended.

After all this reading, was it worth it? Or was your decision made before you even read the list? We think you probably knew you were meant to attend and the answer is yes. Yes, to engaging with the opportunities offered at the MDCE to challenge and drive you and your dealership to improvement. Yes, to connecting with dealers and partners that will change the way you view your dealership. Yes, to discovering what you and your dealership can do in 2019 and beyond.

See you there.

MRAA History: Phil Keeter

The 2011 MRAA Annual Conference celebrated the career of Phil Keeter, who retired as MRAA President. Keeter was one of the founders of MRAA and was employed by the association for more than 20 years.

Outdoor Recreation Roundtable Welcomes Final Release of First-Ever Government Statistics on Industry

Washington, D.C. – The Outdoor Recreation Roundtable (ORR) today welcomed the final report on the first-ever government statistics recognizing the outdoor recreation industry as a significant contributor to the U.S. economy.

The report, federally funded by the Departments of the Interior, Agriculture and Commerce, was released today by Commerce’s Bureau of Economic Analysis (BEA). The new measurement – called the Outdoor Recreation Satellite Account (ORSA) – would not have been possible without steadfast leadership from U.S. Senators Corey Gardner (R-CO) and Jeanne Shaheen (D-NH). It finds that the outdoor recreation industry had a U.S. GDP contribution of 2.2 percent and annual gross economic output of $734 billion in 2016 (the last available year of data). This economic contribution level is greater than other key economic sectors, including the mining, utilities and chemical products manufacturing industries. In addition, with 4.5 million jobs, the outdoor recreation sector generates similar employment as other major job creators in the United States, including hospitals, transportation and warehousing, and educational services.

Today’s release was the final, revised report, following prototype statistics released in February. The updated report reflects expert comments and feedback solicited by BEA and submitted by a wide range of organizations in the outdoor recreation economy.

The release of the data is a significant milestone for the outdoor recreation industry, which has long called for its sector to be formally included in government economic analysis. To mark the announcement, ORR held a Capitol Hill briefing today with key federal officials, including Commerce Secretary Wilbur Ross, Bureau of Economic Analysis Director Brian Moyer, Department of Interior Senior Advisor Rick May, and a video message from Sen. Steve Daines (R-MT).

“Today’s report provides official government recognition of the outdoor recreation industry as a powerful force in the American economy,” said Thom Dammrich, ORR chair and president of the National Marine Manufacturers Association. “As one of the nation’s largest economic sectors, it is critical that our national leaders do everything they can to keep the economic engine running at full speed. That includes common sense policies to expand public access, modernize infrastructure and remove barriers to efficient and effective public-private partnerships. We thank the teams at the Bureau of Economic Analysis and the Outdoor Recreation Satellite Account for their tireless work in making today’s report possible.”

The BEA’s analysis also found outdoor recreation to have a strong wage growth rate of 4.3 percent between 2015-2016, which surpasses the overall U.S. wage growth of 2.7 percent during the same period.

The analysis also concluded that recreational boating and fishing produced the highest economic output of all of the recreational areas considered in the study, accounting for nearly $37 billion in real gross output in 2016.

“The importance of this study cannot be overstated,” said Matt Gruhn, President of the Marine Retailers Association of the Americas. “The fact that boating and fishing is an outright leader in the recreation economy legitimizes a belief that those of us in the industry have long held: Recreational boating is not just a great American pastime, it is also an integral and important part of the American economy at large.”

“The outdoor recreation industry contribution to our nation’s GDP has more than pulled its weight, and we’ve been a major engine behind the recent economic growth rate.” said Frank Hugelmeyer, ORR vice chair and president of the RV Industry Association. “Due to its importance to the overall economy and especially rural communities, outdoor recreation deserves to be a priority at national and state levels. ORR looks forward to working collaboratively with leaders to implement growth-oriented policies that will ensure our industry remains a strong GDP contributor and jobs generator for years to come.”

ORR strongly supports continuing and expanding ORSA. Senate legislation funding the Department of Commerce operations for fiscal year 2019, beginning October 1, 2018, specifically includes on-going funding for ORSA and its expansion to generate state-level projections. ORR has called upon the House to follow the Senate’s lead on ORSA and thus implement the Congressional direction contained in the Outdoor Recreation Jobs and Economic Impact Act of 2016.

The full report issued by BEA can be found here.

The Outdoor Recreation Roundtable is the nation’s premier coalition of outdoor recreation trade associations. Please visit www.RecreationRoundtable.org for more information on the coalition’s activities and membership.

Member Spotlight: Shawn Easton

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This industry leader is the chairman of the MRAA’s Young Leaders Advisory Council, the owner of Norris Marine, and a new dad. We had the privilege to learn about his background and what he is contributing to the future success of the marine industry.


Q: Your family has been in the marine industry for years. Tell us about that and how you ended up where you are today.

Easton: My father has been in the boat business since 1965.  He still owns and operates a dealership in southwest Oklahoma.  I certainly grew up around the business, but actually didn’t jump right in after college.  After college, I working as a mortgage banker for 6 years.  An opportunity came up to acquire Norris Marine and I am 7+ years in.

Q: It seems to be a year for growth at Norris Marine. What are you doing differently today versus this time last year that has helped you stay competitive in your market?

Easton: I can’t say there is any one thing that stands out this year over last year, moreover I believe our growth is a culmination of our strategic plan put in place 3 years ago.  Our team is always striving to be better and we are far from where we want to be.   But with hard work and a commitment to delivering first class service we look to continue to build our brand within our market.

Q: We know that the Young Leaders Advisory Council is currently working on a few projects to help combat our industry’s workforce crisis. As the YLAC Chair, what are some of the ideas being discussed by our young leaders that you feel will have a positive effect on our industry?

Easton: It’s no secret that our industry has a skilled labor shortage, specifically a technician shortage.  The reality of most dealerships is that its nearly impossible to simply hire an experienced technician at will.  YLAC is focused on helping the MRAA potentially create a ‘blueprint’ for dealers on how to implement an apprenticeship program within their dealership and/or service department.  There are certainly talented young people that are willing to learn and by successfully implementing an apprenticeship program dealers can grown their own workforce.

Q: To stay on the hot topic of workforce, what advice would you give to prospective Norris Marine employees?

Easton: Our focus within our dealership is to delivery world class service.  If you want to succeed within our dealership, you must by in to the culture of delivering the best experience for the customer everytime.  If we can do this as a team, everything else will take care of itself.  I tell prospective hires that our customers write our paychecks, I just happen to sign them.  In order to succeed, new employees must buy into working as a team to deliver for our customers.

Q: To end the interview, tell us 5 things that people may not know about you!

Easton:

  1. My wife Ashley and I have a 9 month old boy who keeps us busy.
  2. I’m a huge Oklahoma Sooners fan… probably to a fault
  3. I enjoy the mountains and love to snow ski.
  4. I love to cook and am an aspiring chef in my dreams.
  5. Jesus is my lord and savior.

If you have a nomination for the Member Spotlight section of our newsletter, please send an email to mickaela@mraa.com.

MRAA History: Supporters

We can count more than a dozen organizations that were supporting MRAA and its Annual Conference way back when that continue to support us today. That list of leading members has grown tremendously, but our appreciation remains the same.

MRAA and Boating Ontario Join Forces to Extend Reach

The Marine Retailers Association of the Americas and Canadian counterpart Boating Ontario have launched a collaborative effort to expand the delivery of resources and tools across borders.

In 2011, the MRAA Board of Directors voted to change the MRAA bylaws in efforts to provide more opportunities to Canadian members. First, by changing the name of the association from Marine Retailers of America to the Marine Retailers Association of the Americas. In addition to the name change, an 11th member region — Canada — was recognized and represented on the MRAA Board in order to represent member needs there.

“We’ve desired for this formal, board-level evolution to take on more of a real world application,” explains Matt Gruhn, MRAA President, “and while we’ve taken some initial steps in the right direction, we believe this partnership will help us do an even better job of delivering tools, resources and educational programming to Canadian dealers and their employees.”

To begin with, MRAA is extending a $100 discount off any level of MRAA membership for dealers who are members of Boating Ontario. The groups are focused on extending the benefits of MRAA educational programs, be it MRAA’s annual conference, its online course catalog that features more than 100 educational programs, or the Dealership Certification Program.

“Two of the pillars from our strategic plan are Business Development and Workforce Development,” says Rick Layzell, CEO of Boating Ontario. “Boating Ontario committed to becoming a conduit to the best education programs in the industry.  The MRAA relationship is a great step forward in delivering on that commitment to our members.  Boating Ontario is also excited to announce that our MarineWorx Development Fund will provide $100(CDN) to the first 25 Boating Ontario Association members who begin their education journey with MRAA programs.”

Boating Ontario plans to extend MRAA’s Dealership Certification Pilot Course, an in-depth course on how buyer motivation is they key to building value in a sale, as an introduction to MRAATraining.com education for Boating Ontario members. MRAA’s Silver Membership offers all-inclusive access to MRAATraining.com, where MRAA’s educational programming is housed. Future plans for collaboration are already underway, as well.

“We, as associations, are working to provide opportunities for improvement to our dealer networks and through partnering with one another, we can combine efforts to share the best resources available,” says Nikki Duffney, MRAA Member Development Manager. “Working together like this will allow for the pooling of resources and the elevating of not just the individual businesses we support, but the industry at large.”