July 31, 2018

NMMA Full LogoThis past week, NMMA Canada in cooperation with Canada’s marine trade associations sent this very carefully worded letter to minister Chrystia Freeland on behalf of the marine industry across Canada. The letter outlines our position regarding the new retaliatory tariffs as applied to boats coming in from the United States and also this seeks compensation for the damages our industry is and will suffer. We encourage you to read this carefully.

“Dear Minister Freeland,

On behalf of the National Marine Manufacturers Association, I would like to thank you for your hard work and continuous efforts on behalf of Canada in light of the ongoing trade dispute with the United States. While the entire recreational boating industry in Canada understands the broader trade dispute with the U.S. and the need for Canada to retaliate, you can appreciate we were extremely disappointed that recreational boats were kept on the final tariff list announced on June 29. One of the main messages coming from the Government of Canada was that the list was designed to target products which can be domestically supplied/sourced and minimize the impact to Canadian consumers and jobs; however this is not the case for recreational boats.

According to information we obtain from Statistics Canada, last year, close to 200,000 boats were imported into Canada. Nearly 2 in 3 of those boats were from the U.S. U.S. imports represent 81% of total import dollars. The value of boats imported into Canada last year from the U.S totaled $667.8 million. In particular, for outboard boats, which are the most popular, 95% were imported from the U.S. We simply do not have a domestic manufacturing sector in Canada that can replace our reliance on U.S. sourced boats.

Apart from these significant import figures, 75,000 Canadians are employed in the core of the industry and should sales slowdown as a result of the tariff, those jobs will be impacted. Indeed, the greatest impact of maintaining the four proposed tariffs on recreational boats will be mostly felt by middle-class Canadians. Of the more than 43% of Canadian adults who enjoy boating each year, nearly 60% of them have an average household income of under $100,000. In addition, boaters in Canada spend about $7.35 billion each year when they are on boating trips. These tariffs would have a significant impact on middle- class communities across Canada as prices of boats are expected to increase by more than 25%.

In speaking with financing providers to the marine industry, they are concerned that the additional upfront cost of the tariff may have an adverse effect on the financial health of boat dealers. Many dealers are small, family-owned businesses and will likely be unable to carry the tariff given insufficient cash flow and limited liquidity. Financial products available to dealers are not geared to address costs imposed by third parties outside of the normal product distribution channel.

On behalf of our members and the jobs they are desperately trying to keep, we would ask that you again consider removing recreational boats from the list. Should this not be an option, we would request:

1. For boats that have already been ordered from U.S. manufacturers but not yet delivered to the customer, that they be exempted from the tariff.
2. Should the tariffs be removed in the short-medium term, we request the tariff be paid back to boat dealers.
3. Since the product is primarily imported before it is sold we ask that the tariff not need to be paid at the border and rather after the boat has been sold.
4. Seeing there has been compensation offered to the aluminum and steel industry, we would ask to have you consider some compensation options which Canadian dealers could benefit from in the wake of lost sales and jobs.

Furthermore, there is currently significant confusion across our industry on how the tariff framework will be rolled out and, accordingly, how our members are to manage their business and cash flow. I would like to request a discussion with your advisors and also your departmental officials as soon as possible to determine the specific facts and information which you are able to provide us, to share with our industry stakeholders.”

The letter was signed by the six leaders of the marine associations mentioned at the beginning of the article. We will be following up, and sharing the results or responses to this letter.
For more information on NMMA Canada please visit here.

Western Marine Trade Show

Changing Scene

  • Prev
Mercury Marine was presented a Wisconsin Business ‘Friend of the Environment’ Award on ...
With a more streamlined approach the nomination process is now simpler than ever! The Boating ...
The latest NMMA Canada member newsletter sent this positive story about ethanol use and the threat ...
The marine industry has really come together over the sudden imposition of a 10% retaliatory tariff ...
Since March, the US has imposed a 25% tariff on steel imports and 10% on aluminium. Rebalancing ...
In an investor relations call June 25th, 2018, Brunswick Corporation announced that the Sea Ray ...
Creditors have been notified that on the fifth day of June 2018, Grant Thornton Limited was ...
At the June 6th Boating Ontario Golf Tournament, Rick Layzell CEO of Boating Ontario announced a ...
In its first-ever venture into the recreational boating market, Forest City, Iowa-based camper ...
Across Canada, all the marine trades associations and NMMA Canada are taking action on the 10% ...

MERCURY MARINE’S CAPITOL ENGINEERING NAMED BRUNSWICK CHAIRMAN’S SAFETY AWARD SITE

Mercury Marine Named Brunswick Safety Award SiteCapitol Engineering, a division of Mercury Marine has been awarded the 2017 Brunswick Chairman’s Safety Award, honoring more than five consecutive years without lost time.

The award, presented annually to sites that achieve excellence in safety while reducing injuries and enhancing safety programming, is one of only four facilities across all of Brunswick to receive the award for 2017. To qualify, sites must also demonstrate a sustainable cultural commitment to safety, along with broad-based employee engagement in safety activities.

“Safety in everything we do is a message that is built into the fabric of our culture at Mercury Marine,” said Jim Sutton...READ MORE

 

SKIPPERBUD’S JOINS BENETEAU POWERBOATS DEALER NETWORK

Beneteau Logo

 

Beneteau’s Powerboats Division. SkipperBud’s will add the Gran Turismo, the Monte Carlo and the Swift Trawler lines to dealership portfolios in Eastern Michigan and Ohio.

“This is a natural evolution for SkipperBud’s, Beneteau is already a wonderful partner. SkipperBud’s has been a large Four Winns, Glastron, and Scarab dealer throughout the Midwest for many years. We are excited to expand our product offerings in these markets.” Mike Pretasky, JR., President.

The 2019 model year inventory is on the way! Look for the Gran Turismo 40 and 46 in showrooms very soon. This fall the Swift Trawler 35 will make her debut in SkipperBud’s Midwest locations. READ MORE

TRANSDUCERS USA INTRODUCES EXPANDEDLINE OF TONELIGHT™ SERIES WARNING INDICATORS

Tonlight Warning Indicators

 

 

Transducers USA, has announced the expansion of their Tonelight™ Series of warning indicators to include a family of new models with stainless steel housings. These panel-mounted devices feature a unique combination of audible and LED warning signals. Tonelight annunciators emit both sound and flashing lights, which is especially desirable in environmental conditions with high levels of ambient noise. 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 ...