INSIDE THE J.D. POWER RESEARCH p. 38
®
INSIDE: A five-year-old boatyard on the Taunton
River in Somerset, Mass., has managed to put
“every marine trade” under one roof. p. 54.
THE BOATING BUSINESS NEWSPAPER VOL. XLV, NO. 10
APRIL 2008
$5.00
www.tradeonlytoday.com
Some independents
defy the soft market
Workers at Bryant Boats
iin Sweetwater,, Tenn..,, cut
a holle iin a transom to
accommodate the engiine..
By Melanie Winters / Associate Editor
m.winters@tradeonlytoday.com
Amid the gloom of production cutbacks, layoffs and plant closures, some
independent boatbuilders say they are
bucking the downtrend, citing increases
in production, staff and sales.
Several others have curtailed production, looking ahead to a healthier 2009.
Some manufacturers have expanded
into new markets, taking on new business opportunities and enticing consumers with new models.
“There are still a lot of untapped markets; that’s something we’ve been trying
to take advantage of,” says Joe Bryant,
president and co-founder of Bryant
Boats with his father, Jim Bryant.
The Sweetwater, Tenn.-based boatbuilder is strongest in markets east of
Mississippi, but the company is work-
ing to break into the western half of
the country.
Peter Truslow, president of Florida-based Edgewater Power Boats, says his
company has increased its export business and almost doubled its commercial
sales this past year. And with a dealer
base concentrated on the East Coast,
Edgewater, too, has been working to expand its recreational business into other
U.S. markets.
“The big guys who have a lot of market share have to go up and down with
the market, where smaller guys can expand into new markets,” says Truslow.
Edgewater Power Boats recently got
$5 million in tax-exempt industrial revenue bonds from Volusia County to buy
the plant it had been leasing and construct a 45,000-square-foot building, al-
continued on Page 12
plification Act of 2008. BATSA, introduced by U.S. Reps. Rick Boucher, D-
plus
Va., and Bob Goodlatte, R-Va., would
set forth a “bright-line” standard, specifying that states and localities Electronics
may collect business activity taxes
from out-of-state entities only when A Trade Only special report
those companies have a physical presence in the taxing state.
“There needs to be a ‘physical presence’ certainty in taxation or our economy, our employment, and our ability
to be competitive internationally will
pay a significant price,” says Zumwalt.
continued on Page 26
The state tax some call ‘extortion’
Manufacturers push Congress hard to clarify concept of ‘nexus’
By Melanie Winters / Associate Editor
m.winters@tradeonlytoday.com
One of the principles this country
was founded on was “no taxation without representation.”
But, say marine industry leaders, that
is exactly what is happening as more
and more states, facing revenue shortfalls and budget deficits, impose taxes
on companies that have no physical
presence in that state.
The rationale they rely on is the legal
concept of “nexus,” or the connection
a business may have with a particular
state. In the case of the marine industry,
it simply can be having customers and
dealers located in that state.
“What is going on is an insult to the
constitution and our notions of interstate commerce, substantial nexus and
fair play,” says Bryan Zumwalt, legislative counsel for the National Marine
Manufacturers Association.
The NMMA is working with the
Coalition to Protect Interstate Commerce — a group including financial
institutions, Internet companies, entertainment industry representatives
and more — to lobby for passage of
the bipartisan Business Activity Sim-
n What’s new in the VHF market. p. 16
n Inside the NMEA 2000 rule. p. 20
n The industry slump has not exempted
electronics. p 47
An early start
Preparation for a marine industry
career
should
start early,
an industry
job conference is
told. p. 10
A mixed
Miami
Turnout was down
and sales at the
Miami boat show
varied, depending
on with whom you
were talking. p. 36
