MIDNIGHT STUDIO - STOCK.ADOBE.COMWe have experienced some headwinds in the past few years as higher costs of credit drove an oversupply in key boat segments, and as larger inventory carrying costs reduced open-to-buy for dealerships. On top of that, just as companies faced greater costs of doing business, consumers faced inflated costs of living and became far more cautious about discretionary purchases like boats. And then we faced a difficult and uncertain regulatory environment — for more than two years, the National Oceanic and Atmospheric Association’s proposed vessel speed rule alone posed an existential access threat to many businesses and consumers in our industry.
But the year ahead offers opportunities to overcome many of these challenges. Ahead of the election, the Federal Reserve slashed its benchmark interest rate by half a point, back in the fall. It was an important sign about the battle against inflation and the potential for lower borrowing costs. With a new incoming administration and Congress, the National Marine Manufacturers Association prepared for every outcome. We strengthened our D.C. advocacy team, built out capabilities in state capitals, made strategic adjustments to our industry-owned Discover Boating boat show portfolio, and prepared game plans for myriad scenarios.
Now, we’re in the process of executing on our plans. Here’s the latest on the advocacy and market-expansion fronts.
Taxes
This is the first big issue that’s going to take up much of the oxygen in Washington in 2025. Many of the tax cuts that passed in President Trump’s first term, known as the Tax Cuts and Jobs Act of 2017, or TCJA, are set to expire at the end of this year. The NMMA is going to be right in the middle of that charge to ensure we maintain a pro-growth tax code that keeps U.S. marine manufacturing globally competitive.
Protecting marine businesses organized as pass-throughs, maintaining a competitive corporate rate for manufacturers, and supporting incentives for greater innovation and reinvestment are all critical to the boating industry’s strength against overseas competitors. We also want to keep rates low for individuals so consumers have access to capital for our product purchases.
Trade
Boat manufacturers have an impressive “Made in America” story: 95% of boats sold in the United States are made in the United States. As the new administration considers tariffs that could raise prices on critical inputs to our domestic manufacturing and consumers, the NMMA will be working to shape the policies so our recreational boating industry is protected and poised for continued growth.
The marine industry relies on resilient supply chains and a stable business environment to remain competitive and to support well-paying jobs here in the United States. At a key inflection point, the United States-Mexico-Canada Agreement, or USMCA, will be up for a review in 2026. That process will actually start in 2025. With Mexico as a key manufacturing partner and Canada as our industry’s top export market — making up more than $800 million in boat and engine exports — we’ll be advocating to ensure that any adjustments made to USMCA are the right ones, and that the benefits of the agreement are protected into the future.
Infrastructure
We also see opportunities to play offense on other key issues for our industry, such as improved recreational water access and marine infrastructure. The Sport Fish Restoration and Boating Trust Fund is a successful federal program that directs excise taxes to support conservation, habitat restoration and boating access programs. It is up for congressional reauthorization next year. It’s in its 75th year, and we’re focused not just on its passage, but also on ensuring that it is modernized to last another 75 years because it’s a user fee supported by the boater — paid by a portion of the gasoline fuel tax and other excise taxes.
Regulations
Some of the most onerous regulatory threats of the past few years are likely to lessen significantly in 2025, at least at the federal level. The NOAA vessel speed rule, for example, stalled at the last stage of the rulemaking process within the Biden-Harris Administration. This stall was due to the enormous two-year campaign the recreational boating and fishing industries led to educate the White House, members of Congress, and state officials on the harm of the rule.
We maintain that technology is the future-forward solution, but we should be prepared for this issue to move to certain states.
Market Expansion
Discover Boating continues to play an incredibly important role in reaching our boaters and customers of the future — a role one company or one brand is challenged to play on its own. It’s critical that we engage these target audiences through multiple marketing platforms, paid media and partnerships, including social media, influencers, P.R. and the Discover Boating boat shows.
Boat shows have a critical part in fostering sales, providing a hub to showcase the latest models and products, engage potential buyers, move inventory, and connect with future customers. This particular winter boat show season is an important one for industry recovery.
We have significant, untapped potential to bring more people into our industry. It’s why we’ve made substantial new investments to drive more consumers to the Discover Boating boat shows. It’s why we’re in the process of expanding our Discover Boating boat show portfolio to further engage new markets. And why we’re driving thousands of new consumers to dealer sites through our Dealer Finder Tool.
We are well-positioned for the opportunities before us thanks to the boating industry’s reputation as a thoughtful and collaborative partner to policymakers on both sides of the aisle. This nonpartisan reputation is hard won, and the relationships we’ve made with both parties during this election cycle — not to mention the years preceding it — will be critical as we take on some massive policy priorities in the months ahead, from taxes and trade to the state-based regulatory shifts mentioned earlier.
It’s time to roll up our sleeves and continue that collaborative work with the new administration, Congress and statehouses across the country. We want to advance policies that support our Made in the USA industry and the millions of Americans who create memories on our shared waterways.
