July 10, 2018

Sara-Anghel-Tracey-Hart-Tom-McNair-400.jpg

Photo: Tracey Hart of Discover Boating, Sara Anghel NMMA Canada president and Tom McNair NMMA Chairman and VP Fresh Water Boat Sales - Brunswick Boat Group, travel to Ottawa annually in the NMMA “Day on the Hill” to lobby the government on behalf of the marine industry. Government insiders were heard to comment that recreational boating was the most vocal group opposing the tariffs.

The marine industry has really come together over the sudden imposition of a 10% retaliatory tariff on recreational boats and equipment coming into Canada from the U.S.A.

I was included in an important NMMA conference call on July 5 organized by NMMA Canada President Sara Anghel. On the call were the NMMA Canada board members and the the heads of Canada’s marine trade associations.

Sara Anghel lead off the discussion with the goal of developing a formalized submission to Finance Minister Bill Morneau’s Office seeking industry compensation for damages resulting from the imposition of the new tariffs.

Among the many important points raised in the discussions was the fact that the government should not have levied tariffs on an industry where there was effectively no Canadian supply as this penalizes the entire industry.

Only Campion Boats is a Canadian fiberglass boat builder of significant size and in aluminum, we have Princecraft Boats owned by Brunswick and already shipping much of their production to the U.S.

Another point was that considering the wide-ranging list of goods now subject to the 10% tariffs, the impact on a bottle of ketsup will be roughly $0.35 cents at retail while the same 10% on a boat will be thousands of dollars in many cases so, the impact is very badly out of proportion.

The heads of the marine trade associations stated that they knew of many of their members who are cancelling boat orders, but it was also noted that dealers were already short of product and were loosing sales.

Failure to order new boats this fall risks leaving dealers without boats to show at the winter boat shows and for inventory to sell in the spring of 2019. The very strong demand in the American market at present adds to the challenge.

The most dire aspect of the new tariffs and how they are expected to be applied is that most dealers have little or no free cash or retained earnings to pay the 10% tariffs as their boats cross the border. Tariffs and other taxes cannot be covered in the dealer’s floorplan or other credit facilities. Tax payments are not an asset that can be used as collateral for loans.  This seriously curtails the ability of smaller dealers to order boats for inventory.

For the boat show season, there was discussion about bringing boats into Canada in Bond and earlier that day in a separate phone call, Boating Industry Canada had interviewed Linda Waddell of Canadian Boat Shows on this. She is familiar with this process and has often had boats in Bond on the show floor in the past.

A key question dealers should investigate for their specific businesses, is to contact their OEM’s and Customs Brokers for guidance on shipping boats in Bond.

Other important questions delved into detail about whether or not engines could be ordered separately to minimize the tariff impact. Some engines are shipped from countries other than the U.S. directly to Canada. The group needs clear rules from the Government as to exactly what products get hit, under what circumstances and when. There is very little information available from the Government so far.

In a time of such great uncertainty, every marine industry business should be members in their marine associations and should be in regular contact with their OEMs and suppliers.NMMA Canada is leading the charge for the industry.

For the bigger picture, we encourage the industry to follow Boating Industry Canada by reading News Week to check for new developments in this difficult situation.

Andy Adams

Featured Articles

Featured Articles
  • Prev
We had the pleasure of speaking to Mike Gridley, Show Chairman of the Gravenhurst Antique Boat ...
On June 6th, 2018, Boating Ontario welcomed a sold-out field of 124 golfers at Innisbrook Golf ...
The Boating Industry Canada Employer of Choice (BICEOC) Award is the industry's only Made-in-Canada ...
It’s true…research has discovered that 40% of boaters set out without legally required safety ...
Interest in Boating Ontario’s 2018 spring regional meetings appears to be very high among marina ...
As enjoyable as our shows are here at home, a trip over to Dusseldorf, Germany for the biggest ...
On Friday, January 12th, at the Toronto International Boat Show, the Boating Industry Canada ...
The Boating Ontario Conference held in Collingwood, Ontario November 25 to 27, included a number of ...
Last night Boating Ontario presented BIC’s Andy Adams with the W.J. Robertson ...
History was made in Amsterdam, Netherlands on November 15 as Campion Marine became the first ...

MIKE GRIDLEY: SHOW CHAIRMAN OF GRAVENHURST’S ANTIQUE BOAT SHOW

Mike GridleyWe had the pleasure of speaking to Mike Gridley, Show Chairman of the Gravenhurst Antique Boat Show, which took place this past weekend, on July 7th as part of the Toronto Chapter of the Antique and Classic Boat Society. 

Mike reports that Another Vintage Boat Show is in the books. By all accounts and the feedback and comments that we have received thus far it was a fantastic show. An absolute sell-out with 120 boats on display in the water and more on land, including fiberglass boats! ACBS President Tom Crawford was in attendance. READ MORE

 

 

Marine Products

  • Prev
Canada Metal (Pacific’s) brand, Titan Marine Products has a clever anchor flip swivel to make ...
NavPod, manufacturer of waterproof housings for marine electronics, has announced an all new ...
Xtreme Boat Proof is dedicated to providing new generation durable coatings and sealants for the ...
Using red lighting onboard at night has significant practical and safety attributes, providing ...
New WS300 Series of High Precision Wind Sensors Offer Improved Accuracy and Performance
The IPX6 waterproof 12/24V Qi certified waterproof wireless charging range enables charging for the ...
When nature calls, an onboard toilet beats a bucket, bottle or backstay any day. Albin Pump Marine ...
For years, Furuno's SC30 Satellite Compass has provided highly accurate and stable heading, as well ...
Two years ago we tested the waters of upholstery fixings by introducing the Textile Range to offer ...
Star brite Nosguard Sg Boat Odor Eliminator removes foul odors permanently.

XTREME BOAT PROOF MAY BE THE LAST COATING YOU WILL EVER HAVE TO APPLY

Xtreme Boat Proof

 

 

Xtreme Boat Proof is dedicated to providing new generation durable coatings and sealants for the marine industry applied using our Fusion Gun. Products like fastest curing polysulphide teak sealers and anti-graffiti silicone coatings are just a few of the unique offerings for this market. The hottest seller is the Fusion Gun applied polyurea which is used for extreme waterproofing, reinforcing, corrosion proofing and abrasion proofing boat bottoms and also used in many... READ MORE 

 

 

People

People
  • Prev
We are delighted to tell you that Les Sparks is celebrating his 45th anniversary with Mercury ...
“The wind is coming up. Tell the boys they can commence with the race.” Fittingly, these would be ...
BRP, a world leader in powersports, has announced that Tracy Crocker has been appointed to the ...
CMP has announced that Gerald Dyck has joined the firm to further enhance their growing portfolio ...
Lars Ljungström has been appointed to vice president of finance and chief financial officer (CFO) ...
John Alexander Roy passed away quietly at home on August 12 after a short battle with cancer. He ...
Torqeedohas announced that Greg Jung has been appointed vice president of marketing. In ...