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www.BoatingIndustry.com 16 | Boating Industry | April 2017 MARKET INTELLIGENCE BY JONATHAN SWEET Most in the boating industry are hopeful a new Trump administration will be good for the indus- try, but are still concerned about the role of the government in their businesses. That's according to the latest survey of Boat- ing Industry readers, conducted via email in Feb- ruary 2017. Respondents were a mix of dealers, marinas, engine and boat manufacturers, service providers and others working in the industry. More than half of respondents – 55 percent – said they are very concerned about how gov- ernment regulations and issues will affect their business. Another 34 percent are at least some- what concerned about it. See more on government issues and the Ameri- can Boating Congress on p. 20. At the same time, many are hoping that a new Republican administration will reduce some of that regulatory burden, with 64 percent saying they expect the Trump presidency to be positive for the boating industry. Only 6 percent expect it to be negative, while 15 percent expect it to be neutral and 15 percent are unsure what the impact will be. Ethanol top concern As it has been for the last three years, ethanol and the Renewable Fuel Standard was the top regulatory concern for Boating Industry readers. Nearly 60 percent of respondents said they are very concerned about the issue and another 34 percent are at least somewhat concerned. Twenty-six percent of readers said it was the most important policy concern for their business, down slightly from 28 percent last year and 30 percent in 2015. Tax policy continues to grow in importance to survey respondents. This year, 21 percent said it was their most important issue, up from 17 percent in 2016 and 14 percent in 2015. Forty-fi ve percent said they were very concerned about the issue, and only 4 percent were not concerned at all. Environmental regulations (13 percent) and water access (12 percent) were the only other issues identifi ed by more than 10 percent of readers as their top concern. More than 90 per- cent were at least somewhat concerned about both issues. A majority of readers – 56 percent – said that business regulations have hurt their abil- ity to grow their business within the last year. Those readers cited a number of different issues, but some of the most common were lending regulations, environmental rules and water ac- cess challenges. "California has closed a large area of the coast to fi shing, therefore reduced demand for fi shing style boats," said a California dealer. Other rules that limit fi shing access, such as Magnuson-Stevens, are also making fi shing and boating less attractive for many. "Why pay $100,000 for a boat to take your kids fi shing when the season stays closed to all but guides and commercial fi shermen?" asked a New Jersey dealer. An Oregon manufacturer echoed that con- cern: "Fishery regulations are in constant fl ux and impossible to protect more than a few months out. Consumers are extremely wary of losing additional angling opportunities, which directly correlates to their desire to purchase marine products." Several companies also mentioned challenges of ethanol, worrying that damage to engines and other parts is driving people out of boating. Taking action With these issues in mind, many Boating Industry readers said they are taking action to share their opinions with elected offi cials More than 70 percent said they have made an effort of some sort to affect public policy. Forty-six percent said they have contacted an elected representative or regulatory offi cial to share their opinions, while 38 percent have met with a representative or offi cial in person. Thirty-four percent have responded to a "call to action" from a trade association such as NMMA, MRAA, ABYC or some other group. Nineteen percent have attended a state Boating industry optimistic about Trump administration Ethanol, tax policy are top worries CURRENT CONDITIONS February 57.6 January 73.2 FUTURE EXPECTATIONS February 75.1 January 80.3 We also asked readers about their views on the current health of the market as we do every month. In this regular monthly feature, we track the optimism of Boating Industry readers to help us get a read on the industry. A reading of zero means equal numbers of people are expe- riencing or expect growth as contraction, so any number above zero is a positive. February's results indicated continued year- over-year growth for Boating Industry readers, although not as strong as in January. Readers also continue to be very optimistic about the future, although again not quite as optimistic as they were in January. BOATING INDUSTRY INDEX