Boating Industry

July 2017

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14 | Boating Industry | July 2017 www.BoatingIndustry.com MARKET INTELLIGENCE BY JONATHAN SWEET Despite efforts to educate boaters about con- cerns over ethanol in general and E15 in particu- lar, those in the industry are seeing a growing number of problems caused by the fuel. That's according to the latest Boating Industry reader survey. We surveyed our readers via email in May to fi nd out more about their views on ethanol and other service department challenges. Respondents were a mix of individuals working in the industry including dealers, manufacturers, marina personnel and more. Ethanol repairs increasing Boating Industry readers continue to report see- ing more problems with engines and other boat components caused by ethanol. Ninety-two percent of our respondents said they have seen damage in their business caused by ethanol. That was up from 87 percent last year and 73 percent in 2015. That damage can mean bigger repair bills – and more business for the service department – but the long-term effect may be to drive people out of boating, many respondents said. "Ethanol fuels are great for our service depart- ment but bad for our customers!" said a Minne- sota boat dealer. According to our readers, ethanol is also the cause of a signifi cant number of boat repairs in their businesses. More than 15 percent of read- ers said that based on what they are seeing in their business, more than half of the necessary repairs are being caused by ethanol-related is- sues. Nearly 62 percent said that more than 20 percent of problems are caused by ethanol. Those numbers have held basically steady over the last three years. Concerned over E15 Boating Industry readers continue to be worried about the use of E15, with 85 percent saying they are very concerned about it. An additional 14 percent were somewhat concerned. It's worth noting that the federal government and the boating industry both say fuels contain- ing more than 10 percent ethanol (E10) should not be used in boats or other recreational equip- ment such as ATVs or PWC. The larger concern identifi ed by many in the industry is the danger of misfueling by boaters that fi ll up at a roadside gas station and may not be aware of the potential danger. For example, a 2015 BoatUS survey of its members found that 40 percent of its members said they fueled their boats at a roadside gas station. Said a Missouri marina owner: "Ethanol is a great profi t area for us however it is a shame that customers are so ignorant to the facts. We instruct them time after time; some get it, some don't." Other surveys have also illustrated that prob- lem. Earlier this year, Harris Poll conducted a survey of U.S. consumers on behalf of the Out- door Power Equipment Institute. In that study, 63 percent of consumers said they assumed that any fuel sold at a gas station was safe for all of their equipment and vehicles. Additionally, only 55 percent said they read la- bels on gas pumps, such as those that would warn against using E15 in a prohibited application. Most Boating Industry readers consider themselves to be fairly well informed about ethanol issues. More than 60 percent said they know a lot about the pros and cons of ethanol, while an ad- ditional 37 percent said they know something. Only 2 percent said they know a little bit about the issue. That's improved from last year when 8 percent of readers said they knew nothing or a little bit about ethanol. On the other hand, respondents believe there's still work to be done in educating con- sumers about potential ethanol challenges. Only 6 percent said their customers now a lot about the issue, while 26 said their customers know some about ethanol. Twelve percent said their clients know nothing about ethanol, while 57 percent know a little bit about it. That represents a slight improvement from 2016, when a total of 74 percent said their customers knew nothing or only a little bit about ethanol. Ethanol still a signifi cant challenge, survey says Growing number of readers report ethanol-related problems CURRENT CONDITIONS May 62.1 April 69.7 FUTURE EXPECTATIONS May 74.8 April 86.2 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. May's results indicated continued year- over-year growth for Boating Industry readers, although not as strong as in April. Readers also continue to be very optimistic about the future, although again not quite as optimistic as they were earlier in the year. BOATING INDUSTRY INDEX Ethanol continued on page 16

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