An Industry Adrift - Trade Associations, Right Whales, and Youth Development
Merrill Homann-Charette
Chief Marketing Officer - NauticEd | Marine Marketers of America | SuperYacht Steering Council | Business of Boating Podcast
The boating industry is navigating through challenging times. At its core, trade associations play a crucial role, envisioned as the beacons of guidance for navigating regulatory landscapes and enhancing market understanding.
(The core message of this article is to inspire individual stakeholders within the industry to embrace a more active role, because we can't only rely on trade associations. This narrative, shaped by my experiences and those unvoiced by others, seeks to foster dialogue and drive change in our community).
First off, before I light this fire ??, the industry currently faces two somewhat large immediate threats - each with its own set of challenges:
The proposal to limit boat speeds over 35ft to 10 knots up to 90 miles offshore along the East Coast (certain months of year) will drastically shift the industry's dynamics, placing almost all boat manufacturers in a challenging position. This measure, impacting virtually every stakeholder in the marine sector, will also significantly affect coastal communities when the boating traffic reduces.?
Ironically, the speed restriction proposal could potentially rejuvenate sailing's popularity or enhance the viability of electric boats as alternatives.
2. Service Side of the Industry
Conversations on Youth Development in the marine industry predominantly center on the service sector. With the continuous entry of new boats into the market and the enduring nature of existing ones, the need for maintenance and repair services is on the rise.
Yet, the responsibility for these crucial services often falls to independent technicians, a significant number of whom are approaching retirement age without having established a succession strategy.?
While some might argue that the challenge of attracting skilled labor is universal across all industries, the situation within the boating industry is especially critical. Compared to sectors like home or auto, there are markedly fewer training programs available for marine service, and general awareness about the industry and its career opportunities remains low.
Boats becoming more of a burden than a source of joy due to maintenance challenges will lead to a decline in boating. Addressing this gap in skilled labor, particularly in the service domain, is not just about sustaining operations but ensuring that the industry lasts.
This situation also intersects with environmental initiatives emerging from the "Blue Economy". As this sector burgeons with innovative ideas and concepts, many will necessitate marine services, yet the current scarcity of existing businesses equipped to meet this demand poses a significant challenge. The undefined future role of the service side of the marine industry in supporting the Blue Economy and its environmental innovations remains an area yet to be seen.?
The challenges facing service businesses in the boating industry are poised to make boating more cumbersome, affecting every segment of the industry as well as the broader economy.
An Industry Adrift: The Inefficacy of Trade Associations
National and State trade associations collect dues with the promise of advocating for our interests at both national and state levels, yet the clarity and transparency of their efforts remain ambiguous. While it's better to have these organizations than not, and they do contribute, there's a growing sentiment that we should demand more from them. Personally, I believe they fall short of fully committing to or caring about the broader industry at this juncture, ought to be our primary concern (the national associations in particular).
In theory, state associations are envisioned as crucial links between local businesses and the overarching goals of the industry. Yet, the number of businesses represented by these associations is significantly (by magnitudes) lower than the actual number of enterprises operating within an area. This gap highlights a clear issue with outreach—these associations have not proactively sought out and invited these unaffiliated businesses to join their ranks. Consequently, this lack of comprehensive representation fosters a siloed perspective on industry matters, including critical topics such as youth development, which are not adequately addressed or understood.
A year ago I went through every trade associations directory and web pages in the United States, however after an exhaustive analysis, my findings revealed most are inactive, with several states lacking any such organization. A vast amount of members are not marine industry professionals but external entities, exploiting their association membership as a marketing tool. A notable few, including the Marine Industries Association of South Florida, Massachusetts Marine Trades, and North West Marine Trades, demonstrate some level of commitment. However, the broader picture is of disjointed efforts. These organizations largely operate in silos, undermining potential collaborative efforts like youth development.??
Legislative Lapses: The Whales?
The proposed right whale bill highlights the critical importance of proactive and vigilant advocacy in the marine industry, serving as a prime example of how legislative measures can significantly impact our operations. The industry tends to react rather than anticipate, as evidenced by our surprise at this development. This situation reveals the recreational boating sector's disconnect from the broader maritime world.
I've interacted with numerous leaders from environmental organizations (including NOAA), and it's clear that the boating industry has not engaged with them. Consequently, is it a surprise how they could impose certain regulations on us??
While NOAA is doing extensive research on numerous topics in the marine world, there is a clear lack on their data on existing boats. This is problematic because boat owners and small businesses are suffering the consequences.
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Moreover, the NMMA's testimony in June of 2023 didn't fully capture the situation. The details on economic impact were somewhat vague. It seems like a missed opportunity to not consult with entities like Dockwa or Snag-a-Slip for more concrete data on boater travel patterns. It's also ambiguous whether their analysis was limited to data from the United States Coast Guard, without incorporating data from State boating agencies. Also it seemed like they purely spoke in terms of Salt Water Fishing Boats.
The Transcript of NMMA's Testimony- https://naturalresources.house.gov/uploadedfiles/testimony_hugelmeyer.pdf
My opinion: The speed restriction creates a chain reaction that underscores the interconnectedness of the boating industry, its mechanics, and environmental groups. By imposing speed restrictions on boats, you're not just targeting the boating industry in isolation. These restrictions threaten to reduce the demand for boating, which in turn jeopardizes the livelihood of mechanics who depend on a thriving boating economy for their main driver of income. As the industry contracts, the ripple effects extend to environmental groups. These organizations rely on boats to conduct research and conservation efforts. Without access to properly maintained vessels—due to the economic strain on the mechanics who service them—the capacity of these groups to operate effectively is compromised. Essentially, by undermining the boating industry with stringent speed restrictions, you inadvertently undermine the mechanics' careers and, by extension, the operational efficacy of environmental groups. I feel like the associations don't see how interconnected everything really is. To be clear, I'm not against the protection of right whales as they are endangered species, however I miss the dialogue between who is imposing the rules and the people effected by it.
The only reference to boating and the environment in the testimony was related to taxes, what a wasted opportunity. When discussing the contributions of the boating industry to environmental groups, these organizations point out that the excise tax on boats contributes to a clean waterways fund, positioning us as stewards of the ocean. However, this claim is not entirely true. For instance, in one of the large New England states, the bills for excise taxes have not been sent for years, so the taxes haven't been collected for most of the state. Seems like no one is paying attention. I had a chance encounter with this state's Commissioner of Fish and Game, and during our conversation, I inquired about the Clean Waterways Fund. When I asked him who was responsible for collecting the taxes for it, there was a moment of pause. He seemed momentarily taken aback, responding with a reflective, "Wait a minute, who is collecting the taxes!?".
The overall tone of the testimony struck me as defensively weak for an official document to the government. The approach of shifting between blame, concession, and criticism, is unlikely to persuade government officials—or anyone, for that matter, including myself.
It feels akin to a game of hot potato, where NOAA, unsure about handling whale protection, passes the responsibility to the unprepared and fragmented boating industry. In turn, the boating industry, caught off guard, attempts to toss the responsibility back, suggesting NOAA could leverage technology instead. This leads back to the lack of communication which could be a lost opportunity for the industry to mobilize grassroots support through all possible channels. Hence, I believe that it would be both logical and beneficial for these associations to form partnerships with individuals or entities that boast a considerable and inclusive audience.
When I first learned about the right whale speed restriction, I was curious and slightly skeptical. Interested in more details, I reached out to the NMMA's King on his post to inquire about the deadline for the petition. To my surprise, he actually replied, indicating the deadline was the next day—a revelation that caught me off guard. Motivated by the urgency, I contacted the CEOs of nearly 30 major marine companies, many of whom were completely unaware of the regulation. I also persuaded administrators of many large boating Facebook, Linkedin, and Reddit groups to promote the petition, which they agreed to highlight and share with their members. This situation raises questions about the effectiveness of the organizations responsible for communication within the industry, as it's apparent that a critical message was not being disseminated effectively. Again, my argument should not imply that the issue of right whale extinction is irrelevant, I rather criticize the way it is addressed. Therefore, I would like to encourage the people involved and the decision-makers to think about how the other potential solutions listed in the document to protect the whales could be implemented. Collaboration should be the key to find the most sustainable outcome to protect both the right whales and the industry.
Youth Development: The Peril of Prioritizing the Immediate
The lack of collaboration between trade associations and outsiders also becomes clear when we look at the numerous school programs trying to make a difference.
Given the knowledge that many school programs are developed by individuals deeply passionate about both the industry and youth education, and the fact that these programs desperately seek industry professionals to demystify career paths for students, it's perplexing that trade associations haven't seized the opportunity to support these educational efforts more vigorously. If schools are practically imploring for industry engagement, then figure a way to give it.
Through my content and efforts, I've assisted nearly 50 individuals in entering this industry, matching the annual influx of newcomers in the entire state of Massachusetts. Not a single penny I have ever made or been given in support. Given this contribution, it's bewildering to face such a challenging situation where reaching someone within a trade association becomes a year-long endeavor. They claim to be extremely busy, scheduling meetings two months out, only to cancel days before and cease all communication thereafter.
I find myself compelled to advise students that forging their own path by starting a business may be the most viable route to success in this industry. I wish that these young talents will receive more support from established entities. It is our job to prepare the Youth for a challenging journey that requires resilience and determination because they are the one's that will keep the industry alive.
Charting a New Course: Recommendations for Reformation
I've yet to encounter widespread discussions on the issues plaguing our trade associations. Perhaps there's a fear of confronting the perceived power these entities hold—a power that, in reality, we have inadvertently endorsed. However, considering everything, the industry ought to be frustrated with them. Despite being funded by the industry, their attitude comes across as arrogant and detached, a situation that I, and you should too, find wholly unacceptable.
Predicting what the future holds is inherently difficult, yet optimism seems scarce without a collective move towards engagement. A possible route to rejuvenation might involve introducing new leaders, who want the marine industry an attractive field to be in. As the world progresses rapidly, infusing young, skilled, and innovative minds into leadership positions isn’t just advantageous; it's imperative. Another simple yet impactful action could be reaching out to educational institutions to discuss the industry, which costs literally a few hours of your time. Also, it would be beneficial to have a liaison who can facilitate communication across the diverse segments of the marine industry, acknowledging our interconnected nature.
Nonetheless, it might require a significant industry shake-up to disrupt the current equilibrium. This catalyst could stem from an impending crisis in the service sector or an environmental predicament, epitomized by the whales. Such pivotal events may be necessary to pave the way for energetic and visionary leaders to take the helm, guiding the industry towards a sustainable and flourishing future.
For want of a Nail
Yours Merrill Homann-Charette