St. Petersburg, FL. (July 27, 2023) – Priority One Financial Services, a full-service retail financing company for marine, RV and trailer dealers, will host a live online question-and-answer session with industry legal expert, Randy Henrick. The session will take place from 12–12:45 p.m. EST, Wed., August 23.
Henrick has nearly 30 years of legal expertise in consumer financial services, bank regulation, compliance, and privacy/data security. He specializes in FTC Safeguards and Red Flag rules. Henrick has authored 11 auto compliance guides for Dealertrack and regularly speaks at industry conferences.
“Compliance, security and Safeguards are hot topics for dealers right now,” said Nicole Armstrong, Vice President of Corporate Initiatives at Priority One. “At Priority One, it is important that we connect our dealers with the industry experts they need to succeed. Mr. Henrick has participated in workshops for Priority One since 2021, and dealers always show up in masses to seek his advice. This complimentary session will provide 45 minutes for dealers to bring some of their most pertinent questions to a dealer expert.”
The topics discussed in this workshop are not intended to be a substitute for seeking legal counsel from a qualified attorney. Operational procedures are unique to each dealership. Priority One encourages dealers to consult directly with a qualified attorney to certify the individual dealership’s compliance with and application of federal financial regulations. If you need a recommendation for legal counsel, Priority One can refer you to a qualified attorney.
About Priority One Financial Services, Inc. Founded in 1987, Priority One Financial Services, Inc. offers flexible, business-ready finance and insurance solutions for marine, RV, trailer and equipment dealers. A division of Forest River, a Berkshire Hathaway company, Priority One’s knowledgeable team brings full-service financing to every customer, helping dealers improve business and move inventory.
Headquartered in Saint Petersburg, Florida, the company also owns and operates Priority One Equipment Finance and Veritas Insurance Group. A Tampa Bay Best Place to Work (2023), One Tampa Bay honoree (2019) and Business of Pride honoree (2017), Priority One values its diverse community of employees, customers, dealers and the surrounding Tampa Bay neighborhood.
• Lenny Sims, VP Business Development/Strategy – Specialty Vehicles for J.D. Power and the MRAA Discuss Insights on the 2023 Q2 Marine Market
Drew Mick
Drew Mick, MRAA: April saw a small decline across all boat types in traffic views. Is there any reason for that dip?
Lenny Sims: When we look at the data, there’s all kinds of comparisons and things that jump out at me; reading between the lines. If you compare it to year-over-year or the last 12 months running, there certainly was a lot more interest in the market than before. There has also been a significant number of new boat sales in the last two years. In most cases we were seeing record-breaking paces and record-breaking demand. A good comparison we’d make in this instance is looking at 2019, prior to COVID. There was a huge jump in interest and volume. It’s starting to level, but it’s still ahead of previous levels that were typical.
Mick: Dealer sentiment may not be as optimistic as a year ago, but values are still holding. What are dealers seeing that is leading to less optimism?
Sims: When you and I were chatting at last Dealer Week, I said how everybody wants to know when this recession is going to hit. When is this hot market going to decline? What should we do now to get ready for whatever is going to happen? A year ago, the market was still on fire at this time, so it’s not going to be as optimistic as then. I think anybody who was considering a recession to happen — myself included — would have thought it would have happened by now. But I want to be careful … I’m not saying it still isn’t going to happen. It’s been holding off longer than most people thought.
Dealers are thankful that it didn’t fall off the cliff. A lot of them still have a lot of inventory that they paid good money for. A lot were wondering if they were going to get caught holding the bag. Dealers now have gone through the bigger part of their selling season. I think they’re cautiously optimistic it didn’t fall off the cliff. I think the big goal for them is getting rid of inventory. There’s a lot more negotiating going on with that. They are seeing interest rates are up as well. And they’re seeing consumers getting back in touch with them to see if they can sell their boat for what they owe on it. Chances are a lot of them overpaid because of the way the market was the past few years. Consumer confidence is dropping and that is leading to this less optimistic feeling.
Mick: In marine categories, there hasn’t been a lot of movement between views this past quarter compared to Q1. Do you ever see drastic movement in that at any point in the year?
Sims: If you looked at typical movement in a pre-COVID year, you would see an increase from January 1 to August, peaking there and declining through to the end of the year. Then beginning January again, it would spike back up. What you see here is the general seasonality of things.
Mick: How are you feeling about Q2 and 2023 now that we are halfway through it?
Sims: Overall, I think things are going to continue to gradually decline. It’s not going to be a cliff fall. Demand is down, inventory levels are up. If you look at nothing more than those two things, that generally promotes a decline in used boat pricing. Here we are a chunk of the way into the summer, and I think the bulk of the sales have occurred. It, again, depends on a lot of things, such as the federal reserve and the interest rates. If they leave ratees alone, it’s probably going to maintain itself and prove itself out through the end of the year.
I think we will experience seasonal adjustments in early fall due to school starting and vacation time ending. Often, you see some people trying to sell their boats later in the year since they won’t be using them for 6 months. If the trend still holds for consumers trying to find a way to exit their loans, that will speed things up. However, right now my projection with the team is we need to keep an eye on it. Watch that gradual decline, however I don’t think we will see that cliff fall.
• Governor Walz announces partnership; goal to make Minnesota a top 10 state in outdoor recreation
[ST. PAUL, MN] – Governor Tim Walz today announced a new partnership to expand Minnesota’s $10 billion outdoor recreation industry. The Minnesota Department of Employment and Economic Development (DEED), Department of Natural Resources (DNR), Explore Minnesota Tourism (EMT), and Iron Range Resources and Rehabilitation (IRRR) will partner to enhance and expand Minnesota’s outdoor recreation economy for the social and economic benefit of all Minnesotans.
“Minnesota’s $10 billion outdoor recreation industry drives our local and regional economies. From the North Shore to the Winona bluffs, tourism is central to telling the story of who we are as a state,” said Governor Walz. “This partnership willhighlight ourworld-class natural resources and outdoor recreation opportunities, while creating jobs across the state.”
The Outdoor Recreation Industry Partnership will combine each agency’s individual strengths — natural resource management, economic development, and marketing — to connect individuals and communities to outdoor recreation resources, build coalitions, and communicate significant benefits of outdoor recreation.
The partnership will build on previous work by the Minnesota Outdoor Recreation Task Force and Governor’s Council on Economic Expansion. This will be a first-of-its-kind effort to bring state agencies together in a partnership dedicated to the economic growth of the outdoor recreation sector. Commissioners of the partnership agencies will meet quarterly to plan and track progress. Staff are currently on a statewide tour to gather feedback and form a strategic plan with 1, 3, and 10-year goals.
“Outdoor recreation is not only a vital industry to Minnesota’s economy, but a fundamental part of our everyday lives,”said DEED Commissioner Matt Varilek.“DEED is excited to partner with the DNR, IRRR, and EMT to build on the existing $9.9 billion industry, and to continue growing our vibrant outdoor recreation workforce and economy.”
“Connecting people to the outdoors is a priority for the DNR because it’s good for the state’s economy and the health and wellness of Minnesotans,”said DNR Commissioner Sarah Strommen.“We’re excited to work with partners across state government to grow opportunities for high quality outdoor recreation and foster future stewards of our natural resources.”
Minnesota’s outdoor recreation economy accounts for $9.9 billion in gross domestic product, 91,336 jobs, and $4.7 billion in overall compensation, according to the latest data from the U.S. Bureau of Economic Analysis. The top activities by economic impact are boating and fishing; hunting, shooting, and trapping; and recreational vehicles. Minnesota is currently ranked 15th in the nation for outdoor recreation GDP. The Outdoor Recreation Industry Partnership aims to move Minnesota into the top 10.
“Year-round outdoor recreation is vital for thriving communities. Amenities such as lakes and trails that may be utilized by anglers, snowmobilers, bikers, and riders have important economic impacts,”said IRRR Commissioner Ida Rukavina.“The Outdoor Recreation Industry Partnership was formed to further support our local communities and families and to attract new residents hoping to make Minnesota their home.”
Outdoor recreation benefits Minnesota communities, with 93% of Minnesotans reporting outdoor activity to be “very” or “somewhat” important, according to the DNR’s 2017 Minnesota Outdoor Activities Survey. It attracts entrepreneurs, skilled workers, retirees, investment income, manufacturing facilities, and new residents. Outdoor recreation also increases traffic to local businesses, tax revenue, local health outcomes, and satisfaction of current residents.
“Minnesota is a great place to visit to enjoy the natural beauty and world-class outdoor opportunities,”said EMT Director Lauren Bennett McGinty.“From fishing for walleye on LakeWinnebigoshishto biking the Root River and Harmony-Preston Valley trails in the driftless region to lake-hopping and urban hiking in the Twin Cities. We will continue to promote these opportunities for the enjoyment of all and the economic benefit of local communities.”
Since launching the Dealer Finder in the U.S. last summer, DiscoverBoating.com has seen nearly 20,000 pageviews and more than 11,000 users of the Dealer Finder, which indicate the interest and need for consumers to be able to easily connect with dealers in their area.
The Dealer Finder tool, which features easy search and mapping functionality to quickly locate local dealers through postal code or city search, as well as a one-touch option to visit a dealer’s website or call the dealer directly, is powered by the MRAA’s database of certified and verified boat dealers. The database, which has been compiled and is refined on a daily basis by the MRAA team, includes brick-and-mortar dealerships located throughout Canada, that have been verified by MRAA.
Dealers looking to update their listing or be added to the Dealer Finder tool, can simply fill out this form and MRAA will reach out to help make changes.
“Our mission at the Sea Tow Foundation is to provide access to education, tools and resources to eliminate preventable recreational boating accidents,” said Gail R. Kulp, Executive Director of the Sea Tow Foundation. “The National Boating Safety Awards epitomize our ongoing commitment to fostering a safety-conscious boating culture by recognizing the remarkable achievements of businesses who make a profound impact on boating safety.”
The Awards recognize efforts to promote boating safety within the for-profit sector of the boating industry, and the Sea Tow Foundation has announced that two new award categories have been added this year. The full list of all of the categories includes:
Marine Manufacturer (Boat & Engine)
Marine Gear/Equipment/Accessories Manufacturer
Marine Media Outlets
Marine Public Relations and Marketing Efforts
Marine Retailer/Distributor with up to 3 Locations/Dealerships
Marine Retailer/Distributor with 4 or more Locations/Dealerships
Marine Social Media Influencer
Marine Trade Association – NEW
Community Boating/Boating Educational Programs (for profit) – NEW
Participants are welcome to submit multiple applications for various initiatives. To be considered, boating safety efforts must have taken place anytime between January 1, 2022 through June 1, 2023. Applicants are welcome to apply for efforts that have previously earned them an Award, but the applicant will be required to document enhancements or new additions to the effort and ensure it took place during the given dates.
Possible examples that could be considered for entry include email or social media campaigns, advertising that showcases safe boating behaviors, an in-store display, hosting an event, showcasing a product that provides added safety features for boaters, or any number of additional ways that boating safety could be promoted by a for-profit company.
There is no cost to enter, and applications take less than 10 minutes to complete. The Sea Tow Foundation’s National Boating Safety Awards will be presented on Monday, Oct. 2 during the Soundings Trade Only event in Tampa, Fla., prior to the start of IBEX.
For information about the National Boating Safety Awards, including a list of winners from previous years, and to apply, please visit www.boatingsafety.com/awards. The entry deadline is Friday, Sept. 1, 2023.
It’s been a wild ride for your business these past few years. For a while there, the boat market was incredibly favorable (when you could get boats in inventory), and you were enjoying some healthy profit margins.
But today, it’s time to face the reality of a changing market. If you’re anything like your peers, your dealership has a surplus of model-year 2023 inventory. And 2024 units are headed your way soon. With interest rates climbing, inflation lingering and consumers displaying greater hesitancy about big dollar purchases, it’s crucial for you to adapt your business to this softening market.
Speaker and inventory expert David Parker, of Parker Business Planning, currently facilitates seven marine industry 20 groups and does one-on-one dealership consulting.
It’s time to sharpen your inventory management skills! And to help you do that, we turned to inventory expert David Parker of Parker Business Planning, who has more than 5 decades in the marine industry. In our interview with him, he shared one rule and a few best practices to help you advance your inventory management and give your dealership an edge in this ever-evolving marine business environment.
MRAA: David, we know dealers feel the pressure of moving their 2023 inventory because they have more inventory on hand compared to the last couple of selling seasons, AND the 2024s are on the way. But we’ve heard you mention that moving all of their 2023 non-currents is not necessarily the right mindset, how so?
David Parker: Occasionally, I run into dealers whose philosophy of unit inventory management is to be completely out of stock by the end of July, so they are ready for next year’s model boats to arrive. I believe this philosophy costs these dealers considerable amounts of money because it ignores one of the four types of buyers: the Bargain Buyer.
These buyers are looking for the “bargain boat,” specifically a leftover, non-current model — brand new, with a full warranty, but at a reduced cost. They will typically bypass dealers who don’t have what they are looking for.
MRAA: So is there a good rule of thumb to ensure you turn boats but also retain some of your non-current inventory to satisfy these bargain hunters?
Parker: This is the reason I believe in the 20/10 rule. This means a correct amount of inventory for a dealer is to have no more than 20 percent of their annual purchases of a particular brand or category in stock by the end of July and no more than 10 percent after Labor Day. This allows you to have something to sell to the Bargain Buyers I mentioned. (Please note this rule does not apply to yachts, as stocking levels for this type of boat would be different.)
For example, if you bought 100 boats of a particular brand or category, say pontoons, then a “right-sized” inventory level for this category would be no more than 20 boats remaining by July 31. You then want that reduced to 10 units after Labor Day.
MRAA: While we could probably find a dozen mistakes dealers make in terms of managing their inventory, you said there are some more common missteps with inventory management that deserve a lot of attention within this softening market.
Parker: Of course, we spoke about the misconception of attaining zero status, but pricing is another area where dealers can misstep. Many dealers take a very aggressive approach to getting rid of non-current inventory by pricing their non-currents right up front at cost or near cost amount. The approach of leading with price turns your boat into a commodity where price is the primary point of consideration. This approach also costs the dealer too much money, in my opinion.
Another mistake is not knowing your customers. It is important to recognize each of these types of buyers and to have a strategy to attract and sell to them. There are four primary seasonal types of buyers:
Bargain Buyers – Again, these customers are looking for “bargain deals” of a brand-new, non-current boat with a full new warranty at a reduced price.
Early Adopters – These buyers are looking for the latest and greatest and are willing to pay for it. So don’t disappoint them!
Smart Buyers – These buyers were planning to buy at the boat show or in the springtime but could be sold earlier in the model year, typically the fall through December, if provided good reasons to do so. These reasons include: 1. Better pricing: By avoiding the typical new-year price increase, their trade is one year newer than next spring, so it is worth more now and they can spec out their new boat exactly like they wanted it; 2. Priority delivery dates in the springtime, and a few others. The only caveat is they have to pay for it within 7 days of arrival. It is not uncommon to show savings of $10,000-$20,000 on boats greater than $100,000 in price.
Impulse buyers – These buyers come out when the weather warms and want to go boating this weekend. They will not wait for an ordered boat; they want it now!
MRAA: You covered the seasons of buyers, but how much of inventory management, whether it’s ordering or clearing out non-currents, is about truly knowing the different types of buyers?
Parker: Within those seasons there are four types of buyers: Cash, Trade, Difference and Payment Buyers. That’s why it’s important to talk in their terms, not yours!
MRAA: Pricing is being discussed heavily these days by dealers, including trade-in value and new boat prices curbing some consumers’ purchasing decisions. How do you combat the high pricing and balance the boating lifestyle in all of this?
Parker: It is extremely important to have a solid pricing philosophy in your dealership. Here is the one I suggest you consider: When the new models come into your dealership, put them in the showroom and put the non-currents in back. Give each prospect the full sales pitch, selling yourself, the dealership, the lifestyle, then the product and lastly the price. Recognize your buyers are buying a lifestyle, not just a boat. That lifestyle includes your dealership’s ability to service them, and how much fun they can have with your boat and events provided.
Hold your pricing up on the new models to about 28-30 percent margins. If the prospect asks for a discount, you can say something to the effect of: “I can’t give a discount on the new model, because they are hard to get, but I can get you a ‘smokin’’ deal on a brand new non-current with a full warranty.” Price the non-current model about 10-12 percent less than the new model.
If further negotiation is needed, do so. Start by giving away additional trade value, if applicable, or providing goods and services such as a credit in your dealership’s store for $1,000+, 2 years of worry-free boating – include annual maintenance and/or winter storage if you’re able, etc.
The key here is, if it is a non-current you need to move, do not let the customer get away. Keep negotiating all the way to your cost, if you must. Remember, you have a depreciating asset that is costing you more and more money in interest and curtailments.
You can even add extra incentives by increasing the commission or adding a flat spiff amount to help get rid of the boat.
MRAA: Why is it important for dealers to attend industry events, join a 20 group and continue to do marketing even in an unsure market? All three seem to be catalysts for staying in tune with local, regional and national perspectives while promoting their brand and continued areas for growth.
Parker: Business is dynamic, meaning it is always changing. The best way to stay abreast of these changes is to join a 20 group and attend industry events such as MRAA’s Dealer Week.
A 20 group is a venue of up to 20 non-competing marine dealers who are committed to helping each other identify issues and find solutions at the same time. It is statistically proven to help the participants increase professionalism and profitability.
Dealer Week is a fantastic event to learn more about running your business and rub shoulders with other industry professionals.
Sound Decision Making & Strength
Improving in these areas will contribute to making your dealership more fundamentally sound in inventory management. Parker has more inventory management tips and best practices you can implement to make your dealership stronger so it can withstand the challenges brought on by an evolving market.
As a highlighted speaker and subject matter expert, Parker will host an educational session about inventory management during MRAA’s Dealer Week 2023 Conference & Expo to be held July 4-7, in Tampa, Fla. Learn more at DealerWeek.com.
In the meantime, check out tips for conducting a mid-season inventory audit as part of MRAA’s Spotlight on Inventory Management).
About the Author: David Parker’s marine career began at 15 when he gained employment with his family’s Parker Boat Company business, a Sea Ray dealership based in Orlando. Over 17 years, he rotated through the ranks from lot boy to rigger, mechanic, parts/service manager, posts in sales and sales management, F&I and eventually accounting. This hands-on experience in virtually all aspects of retail operations provided unique insight that has served him well throughout his stellar 50-year career. He currently facilitates seven marine industry 20 groups and does one-on-one dealership consulting. Visit: www.parkerbusinessplanning.com/
July 18, 2023, Alpharetta, Georgia – The American Boatbuilders Association (ABA) has just announced the three-year contract renewal of Northpoint Commercial Finance as one of two preferred floorplan lenders for its organization representing leading independent boat manufacturers and their respective dealers.
“The ABA is pleased to renew its agreement with Northpoint Commercial Finance and greatly appreciate the benefits that Northpoint provides for ABA members and our dealers,” said ABA President Jay Patton. “We value our strategic partnership with Northpoint and look forward to continued success.”
Added ABA member and Monterey/Blackfin CFO Mark Ducharme, “Our experience with Northpoint as a floorplan lender has, and continues to develop, as a true partnership. With the unprecedented growth in the boating industry over the last several years, Northpoint has reacted and provided worthwhile, creative solutions to us and our dealership network that has allowed floorplan availability in a cost-effective manner. Northpoint is an invaluable resource and a well-respected ABA vendor. Their personnel continue to provide timely responses to issues and questions we encounter, both internal and dealer initiated.”
Northpoint Sr. VP of Business Development Russell Baqir is equally enthusiastic about the contract renewal and the continued opportunity to support ABA members.
“We are very pleased for the vote of support and renewed opportunity to continue supporting the ABA in our role of a valued finance lender,” said Baqir. “The ABA Group remains a key partner with Northpoint and represents a significant segment of our marine portfolio. We look forward to continuing to provide innovative finance programs and solutions along with excellent customer service and communications, to benefit the ABA membership.”
About Northpoint Commercial Finance Northpoint Commercial Finance, with offices in Alpharetta, GA, and Burlington, ON, is owned by LBC Capital, a subsidiary of Laurentian Bank of Canada. Northpoint combines experience with advanced technologies, fresh ideas, streamlined processes, and a customer focus formed specifically for the varied needs and goals of each business. Northpoint’s inventory finance offerings drive sales, enhance cash flow, and improve profitability for both manufacturer and dealers. More information about Northpoint and their offerings is available at www.northpointcf.com.
• Annual marine industry event in Tampa, Florida, engages & educates dealerships to help recalibrate their businesses
MINNEAPOLIS, July 19, 2023 — Marine dealerships across North America continue to evaluate the current marketplace, trying to manage growing inventory levels while adapting to continued inflation, higher interest rates and fluctuating consumer confidence. That’s why it’s crucial for dealership leaders to gather market intelligence and adapt their approach in order to transform their businesses for success in 2024 and beyond.
To support dealerships in reshaping their business model, the Marine Retailers Association of the Americas announced today that dealer registration for the 2023 MRAA Dealer Week Conference & Expo, to be held Dec. 4-7 in Tampa, Florida, is now open.
Dealer Week 2023 registration opened today, Wed. July 19., for the MRAA’s annual conference & expo.
Under the theme of “RECALIBRATE: Learn. Adapt. Transform.”, Dealer Week 2023 provides dealers with educational programs, up-to-date training from industry experts, as well as exclusive access an expansive expo hall packed with boating’s leading manufacturers, suppliers and service providers. With abundant opportunities to connect, Dealer Week attendees can network with industry peers and share successful best practices.
Liz Walz
“We know that the industry has transitioned into one highlighted by surplus inventory levels and economic uncertainty. Consumers have regained the power of negotiation and price objection and a have plethora of choices when purchasing boats,” explains Liz Walz, MRAA’s Vice President of Education. “Every department of the dealership is feeling the added pressure and stress to turn more boats and generate profits even with a growing list of challenges to overcome. It’s imperative for dealers to adapt their business to stay ahead of the curve, to forecast more clearly and evolve to match the marketplace so they can keep their customers boating. The Dealer Week 2023 ‘Recalibrate’ theme reinforces the transformative growth learning provides when you use it to revise yourself and your business.”
Attendees will learn about current business trends, optimal strategies and proven processes from a packed lineup of Dealer Week educational sessions, helping them to prepare for 2024. These critical tools and implementable solutions — provided in three educational pathways covering Leadership, Sales & Marketing, and Service & Parts — deliver substantial value to attendees.
The 2023 Dealer Week educational line-up helps dealerships formulate an effective plan to withstand obstacles through adaptation to revamp their sales processes, strengthen their service departments and enhance customer engagement. They’ll gain more confidence for making leadership-driven decisions in order to adapt to what lies ahead. Attendees can explore the Dealer Week Expo Hall, which will feature more than 100 exhibitors displaying boats, engines, software solutions, financing and insurance options as well as various other products and services from industry-leading suppliers. The program includes networking events, including cocktail receptions, an awards ceremony, luncheons and the popular MRAA Industry Celebration.
View the list of 2023 Dealer Week Exhibitors here “The boating industry’s only event focused on dealer success, Dealer Week lets dealers learn, connect and grow at one location for multiple days,” Walz says. “This one-stop program not only helps dealerships ascend to new heights, but Dealer Week’s proven educational design has guided these businesses through economic downturns, severe unpredictability and unprecedented challenges. This premier event is arranged and positioned to help guide dealers to success by building a bridge over the next difficult chasm. Dealer Week 2023 is about transformational change.” Dealer Week 2023 opens with a networking reception the evening of Monday, Dec. 4, at the Tampa Convention Center, followed by a keynote speaker and a compelling line-up of educational sessions Dec. 5-7.
Dealer Week registration is now open. You can save big if you are an MRAA Member and register during the early-bird period, running July 19 through the end of September. See your options for registration.
About Dealer Week
For more than 50 years, the Marine Retailers Association of the Americas has delivered world-class educational programming to dealers, retailers and service operations that power the boating industry and serve today’s boaters. Dealer Week exists to engage, energize and empower the dealer community. The MRAA envisions a brighter future for marine retail, and Dealer Week is the preeminent means for bringing that vision to life. Learn more at DealerWeek.com.
About the Marine Retailers Association of the Americas At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.
• Collaboration Needed in Conserving Rice’s Whales
WASHINGTON, D.C. July 18, 2023 – The Marine Retailers Association of the Americas and other leading organizations representing the recreational fishing and boating industry urged the National Oceanic and Atmospheric Administration (NOAA) to reject a petition to establish a year-round 10-knot (11 mph) vessel speed limit and other vessel-related measures in the Rice’s whale “core” habitat area in the Gulf of Mexico.
The petitioners are asking NOAA to use their authority under the Endangered Species Act and Marine Mammal Protection Act to establish a “Vessel Slowdown Zone” from approximately Pensacola, Fla., to south of Tampa, to protect the newly discovered Rice’s whale. To learn more, read the MRAA blog here.
The red represents the proposed area where the 10-knot mandatory vessel speed limit, and additional mitigation measures, will be in place.
On top of the mandatory 11-mph speed limit for all vessels transiting the proposed zone, the petition proposes the following additional restrictions:
No vessel transits at night;
Vessels transiting through the zone must report their plans to NOAA, utilize trained visual observers, and maintain a separation distance of 500 meters (1,640 feet) from Rice’s whales;
Use and operate an Automatic Identification System, or notify NOAA of transits through the zone;
Report all non-compliance to NOAA within 24 hours.
There is zero evidence that a recreational vessel has ever struck a Rice’s whale.
Matt Gruhn, MRAA President
“While the MRAA appreciates NOAA’s focus on conservation and ensuring that our nation’s oceans and marine habitats are healthy, there must be consideration for the impact vessels speed restrictions will not only have on boaters, but on marine dealers throughout the Gulf Coast,” said Matt Gruhn, Marine Retailers Association of the Americas President. “Regulations like this can absolutely influence consumers, disincentivizing someone from getting into boating, upgrading to a larger vessel, or causing them to sell their boat. With the health of both the Rice’s whale and the marine industry at heart, the MRAA calls for better solutions as opposed to these unfounded, unnecessary restrictions.”
“Once again, proponents of vessel speed restrictions are acting as if small recreational boats are the same as large cargo ships; they are not,” said Jeff Angers, President, Center for Sportfishing Policy. “We invite NOAA to join with us in identifying 21st century technological advances that can help tell mariners where whales are instead of effectively barring public access to America’s marine waters.”
“As more is learned about the recently discovered Rice’s whale, it is critical that NOAA focus from the outset on collaborating with stakeholders instead of leaping to drastic restrictions,” said Glenn Hughes, American Sportfishing Association President. “As an industry that cares deeply about conservation of the marine environment, the recreational fishing and boating industry is ready, willing and able to help develop solutions to support whale conservation. Relying on massive speed restrictions that effectively shut down boating and fishing is not a viable path forward for the Rice’s whale or the economy.”
“The recreational boating and fishing community is committed to marine wildlife protection and ensuring our cherished waters are safe for wildlife, including the Rice’s whale, and boaters alike,” said Frank Hugelmeyer, National Marine Manufacturers Association President. “A blanket approach such as vessel speed restrictions covering large swaths of the Gulf will do little to address the protection of the Rice’s whale population and puts recreational boaters, anglers, and communities that rely on economic activity from these industries at risk.
“As NOAA considers its next steps on addressing the Rice’s whale recovery and protection, the boating and fishing industry looks forward to working alongside the agency, and all impacted stakeholders, to determine a holistic approach to protect this vulnerable species while maintaining access along the Gulf Coast.”
In summary, the groups recommend that NOAA does not initiate any rulemaking action based on the petition for the following reasons:
The petitioners fail to put forward any evidence that recreational vessels pose a risk to Rice’s whales that would justify the significant rules proposed in the petition.
The petition fails to propose action to address the greatest sources of mortality to the Rice’s Whale.
NOAA has failed to engage with the recreational fishing and boating industry on Rice’s whale recovery planning or to better understand how their vessels may interact with Rice’s whales.
NOAA needs to fully investigate and report on the likelihood of recovering Rice’s whales given documented concerns about its population size.
Instead of moving forward with the petition for rulemaking, NOAA should instead:
Work with partners to address knowledge gaps on this rarely observed species to inform future recovery planning and strategies.
Allow the recreational fishing and boating industry to meaningfully contribute to Rice’s whale recovery plan.
Develop a Recovery Implementation Strategy with input from all Gulf of Mexico stakeholders.
The MRAA submitted comments that focused solely on the impact of the proposed regulations on marine dealers in Gulf Coast states. Through surveying its members throughout the Gulf States, the MRAA found that if implemented, the proposed regulations would have a substantial impact on dealers, with dealers estimating they will lose on average 96 boat sales a year if the regulations are implemented. To understand the impact on marine industry stakeholders, the MRAA requested NOAA to conduct a comprehensive and in-depth economic analysis. To read MRAA’s comment, click here.
The issue of vessel speed restrictions was recently the subject of a congressional hearing on the impacts of the NOAA’s proposed changes to the North Atlantic Right Whale Vessel Strike Reduction Rule. Impacted stakeholders from the $230 billion recreational fishing and boating industry testified on the devastating impacts NOAA’s flawed rule would have on businesses, jobs and coastal recreation across the Atlantic seaboard. As a result of numerous stakeholder concerns with NOAA’s lack of engagement ahead of the rulemaking, U.S. Senators Joe Manchin (D-W.Va.) and John Boozman (R-Ark.), introduced the bipartisanProtecting Whales, Human Safety, and the Economy Act of 2023 to prohibit NOAA from issuing a rule that modifies or replaces the North Atlantic Right Whale vessel strike reduction regulation until technological solutions recently authorized by Congress can help better track whales and avoid strikes.
About the Marine Retailers Association of the Americas At the Marine Retailers Association of the Americas, we believe that for the marine industry to thrive, the retail organizations that interact with the boaters in their community must thrive. With that in mind, MRAA works to create a strong and healthy boating industry by uniting those retailers, providing them with opportunities for improvement and growth, and representing them with a powerful voice. For more information, visit MRAA.com or contact us at 763-315-8043.
• Boat loan delinquency performance increased by .28 percent in 2022, but still outperforms all other consumer installment loans
The National Marine Lenders Association (NMLA) just launched their 2023 Annual Statistical Report (ASR). The ASR is a critical business tool, and the only report on the market, for developing, understanding, and supporting quality recreational marine loan production and profitability. This powerful publication benefits all businesses and associates involved in marine lending, and the entire recreational boating industry by supplying data, management tools, and summaries that can be compared to peer performance.
For 43 consecutive years, the ASR has provided detailed information and trends relating to the two major business line entities in the industry:
Banks, credit unions and private lenders who originate and hold recreational boat loans
Service companies who originate, outsource and broker boat loans to portfolio lenders
Selected highlights include:
The changing state of boat loan downpayment requirements
Current boat loan borrower demographic characteristics
Delinquency, charge-off and yield performance
Boat loan acquisition channels used by lenders
Operational data for loan fees, lien perfection, floor plan, repossession and remarketing
The ASR is complimentary for participants, and is available for purchase to all non-participants and anyone interested in marine finance by visiting the NMLA website at www.marinelenders.org
About NMLA The National Marine Lenders Association is a 501-C non-profit organization that began operations in 1979. Their mission is simple: Promote and improve recreational marine lending in the United States. Membership is open to commercial banks, credit unions, private financing firms, and service companies who extend or originate credit to consumers, dealers, retailers, and manufacturers of recreational boats. Membership is also open to businesses associated with the marine industry such as documentation services, marine insurers, recovery agents, trade associations, admiralty attorneys, software firms, valuation services, surveyors, media, and consultants. NMLA actively creates and supports networking opportunities for its members.
Hi, I'm Aimie!
I can help you navigate the site, find resources, and answer dealership questions. Feel free to type your question below or select one of the options to get started!
