2015 annual report

2015 Annual Report

The Voice of Boating in Michigan Advancing, Promoting & Protecting the Marine Industry in Michigan

Advancing, Promoting & Protecting the Marine Industry in Michigan The Michigan Boating Industries Association (MBIA) is the official state-wide marine industry association, serving as the voice to Michigan’s $7.4 billion marine industry and Michigan’s nearly 1 million registered boats. Established in 1958 by marine businessmen dedicated to the betterment of the overall boating industry, the MBIA has come to achieve recognition as one of the most productive and progressive marine trade associations in the nation.

The association is dedicated to the advancement, protection and promotion of boating across Michigan.

The MBIA’s role is instrumental to the continued well being of the industry as it relates to promoting the interests of recreational boating; improving industry conditions; enhancing facilities development; monitoring legislation and advancing the education of those in the industry.

With the support of more than 340 MBIA member companies, the MBIA continues to stand strong in its leadership role as the voice of the recreational boating industry in Michigan and throughout the United States.

MBIA BOAT SHOWS

MBIA produces three world-class, association-owned boat shows, the Detroit Boat Show in Detroit, the Spring Boating Expo in Novi, and the Boating & Outdoor Festival in Harrison Township. The proceeds from these shows benefit the entire marine industry as a whole and recreational boating in Michigan through MBIA’s programs and promotions.

MBIA MEMBERS

Associations are only as strong as their members. As one of the leading Marine Trade Associations in the country, MBIA has 340 marine businesses to thank for their ongoing support through membership. MBIA members are boat dealers, marina operators, marine service companies, banks, insurance companies, manufacturers, repair shops, retailers and others.

Congratulations to all members, who in 2015 were recognized for many different types of achievements, including the 50 certified Michigan Clean Marinas.

We recognize all MBIA member companies. You stand above all others because of the commitment you have made to your industry through membership in the MBIA. 2

MBIA MISSION STATEMENT

The purpose of the Michigan Boating Industries Association is the general ethical, educational, communicative and promotional advancement of the boating industry in the State of Michigan. The Association shall be the voice of the industry in dealing with government agencies, affiliated national and local organizations, and national or local issues affecting the boating industry.

MBIA, founded in 1958.

From the Chairman Fellow MBIA members: We are again delighted to report another very productive year for MBIA and its membership. Throughout its proud fifty-eight year history, MBIA boat shows, conferences, membership programs and overall value have grown again in 2015. The boating industry in Michigan now ranks 3rd nationally in boat and accessory spending, and 3rd in boat registrations. Recreational boating has a $7.4 billion annual economic impact to our great state!

As we enter 2016, MBIA will once again work hard to bring more value and success to your business and Michigan’s boating industry. Here are just a few examples: •

Remain an industry leader with legislative issues that help promote and protect your business by • Reviewing more than 1000 new bill introductions • Leading the Michigan Boating Caucus • Maintaining a high-level focus on our water resources and invasive threats • Creating new relationships with legislative and elected officials in Washington, DC and Michigan

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Continue forging new partnerships that will provide MBIA members with additional benefit programs, discounts and statistical information

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Bringing the boat registration process to the dealerships through the Secretary of State office

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Researching the possibility of exempting marine fuel from EPA’s summer/winter blend requirements

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Addressing the skilled labor shortage of marine techs

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Keeping an eye on Millennials and

understanding what is being called the “experience economy” and how it will affect boating and your business •

Conducting an updated economic impact study for boating in Michigan

MBIA remains poised with these and other initiatives that support your business and help grow recreational boating throughout Michigan.

2016 also brings progressive change as two new Directors and a new Chairman will serve on the Association’s Board. From a personal standpoint, it has been an honor and privilege to serve as MBIA’s Chairman. MBIA’s Board, Executive Director Nicki Polan, and I are very proud of the accomplishments made over the past four years, ranging from financial management to legislative successes to membership growth - all benefiting every member of the Association.

It has been an outstanding experience to work with such talented, team-oriented professionals: your MBIA staff and Board of Directors.

In closing, MBIA appreciates your support, time and financial resources that sustain your programs and initiatives.

Please continue to support your MBIA PAC, the new Recreational Boating Industries Educational Foundation, Clean Marina, boat shows and conferences! We are only one phone call, email or in-person visit away from sharing your ideas that keeps MBIA and your business moving forward.

Thank you and best wishes for a very successful 2016!

Sincerely,

Jim Coburn MBIA Chairman

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Executive Director’s Letter Greetings MBIA Members, Thank you again for the privilege to serve as your Executive Director. I am proud of our Association and our history, and you should be as well.

MBIA was established in 1958 by a group of marine business owners who understood the value of representation and the benefits of working together to help their businesses grow. Today – nearly 60 years later – all of us are the ball carriers for this original mission.

MBIA’s goals for 2016 include efforts to build this awareness, bring in new blood, educate marine techs, and to engage those who are currently working in our industry to allow us to excel through their talents and insight. Our inaugural Millennial session at RBEC was a huge success, and we are excited to build on this momentum.

As I look back on 2015, I am happy to say our industry has had another good year. Statistics show 5 consecutive growth years for Michigan’s boating industry, and an anticipated 6th waiting to be announced. Thanks to our rebounding economy, low interest rates, and low fuel prices, this growth resonates throughout our industry, including boat sales, marina slip rentals, service, aftermarket, and marine supplies - so hopefully all MBIA members are again better off this year than last.

In 2015, MBIA has continued to gain momentum with our legislative outreach and attention paid to issues that affect our industry. This is an important and ongoing effort. Engaging our Boating Caucuses both in Lansing and D.C., communicating the benefits of legislation like Sales Tax on the Difference to those who may not understand, fending off negative legislation, and educating new leaders as to the importance of our industry to Michigan’s economy and the quality of life for our citizens, is a year-round process.

Your Association has also experienced a 6th consecutive year of growth. This annual report offers a recap of many successes for which we are very proud and grateful.

And finally, in 2016 we are excited to discover new programs which will help you grow your business and save you time and money – and bring them to you as member benefits. Here again, we welcome your input.

Our boat shows, member programs, and membership have all grown again in 2015.

Participation in our benefit programs, conferences, and Clean Marina Program is also up. These growing numbers support a strong, united voice in Lansing and Washington D.C., which is so critical to our mission.

As we look forward to 2016, we must not be content with our improvements. We must all work together to invite a younger and more diverse audience to experience boating - to assure growth in boating participation, our industry and your business.

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We must also engage a new audience to embrace careers within our industry by helping young people understand career paths boating offers, as well as the satisfaction achieved by bringing joy to people and families through boating. We are selling fun!

MBIA has had great success in sharing the “Discover Boating” messages across Michigan, highlighting the benefits of the boating lifestyle to millions of potential boat buyers and, in 2016 we are anxious to continue this campaign on your behalf through our boat shows, publications, media and social media.

Whether we reflect back or look ahead, I recognize MBIA’s growth and strength come from your membership support, as well as the dedication of our Board and Committee Members, and the work of a truly talented and dedicated MBIA staff.

I thank you all for a great 2015, and look forward to navigating 2016 together for another successful year.

Sincerely,

Nicki Polan Executive Director

In December each year, the voting Members of the MBIA elect their board representatives to direct MBIA through the upcoming issues of the new year. These dedicated individuals volunteer their time and energy to attend a minimum of six board meetings held at various locations around the state. Board members act as the steering committee setting policies, procedures and objectives. The Association’s efforts include advancing, protecting and promoting the boating industry in Michigan on your behalf. Thank you for your efforts!

2015 MBIA Board of Directors At the helm Chairman Jim Coburn Coburn & Associates, Inc. Macomb, MI

Vice Chairman Mike Apling Devil’s Lake Water Sports Manitou Beach, MI

Secretary/Treasurer Tom Den Herder Yacht Basin Marina Holland, MI

MBIA Staff Executive Director Nicki Polan npolan@mbia.org Director of Exhibitor Sales Bethany Sly bsly@mbia.org Controller & Foundation Administrator Donna Needham dneedham@mbia.org

Directors Amy Crouchman Toledo Beach Marina Monroe, MI

Tim Tadsen - BAM Director Toledo Beach Marina Monroe, MI

Marketing, PR & Meetings Manager Amanda Wendecker awendecker@mbia.org

Andy MacLachlan South River Marine Harrison Township, MI

Warren Wolf Wolf’s Marine Benton Harbor, MI

Administrative Support Specialist Liz Szlaga lszlaga@mbia.org MBIA 32398 Five Mile Rd. Livonia, MI 48154 Phone: 734.261.0123 Email: boatmichigan@mbia.org

Patti Smith Silver Spray Sports Fenton, MI Regional Directors Tom Haag - Southeast Colony Marine St. Clair Shores, MI

Chris Lisowicz - Southwest North Shore Marina Spring Lake, MI

David Lyle - Northern Walstrom Marine Harbor Springs, MI Immediate Past Chair Steve Remias, MacRay Harbor, Harrison Twp., MI

Web sites: mbia.org boatmichigan.org detroitboatshow.net springboatingexpo.net boatingandoutdoorfest.com 2016 MBIA Board shown at mbia.org 5

Awards ǀ Achievements ǀ Accolades

Lighthouse Awards

In 2015, the MBIA honored six great contributors to the marine industry with prestigious Lighthouse Awards.

MBIA Finance Committee: Jim Coburn, Tom Den Herder, Chris Lisowicz and Jim Stewart - recognized for their extraordinary dedication to helping MBIA update the Association Investment Policy and choose a new investment firm to manage the Association’s investments.

Tom Den Herder, Nicki Polan, Jim Stewart and Jim Coburn.

(Chris Lisowicz not pictured)

Tim Tadsen - MBIA’s BAM Director who spent hundreds of hours talking to boaters and growing the Boaters’ Association of Michigan. He is awarded for being a true ambassador for boating, and his passion for the Association.

Elizabeth LaPorte was awarded for her hard work with the Michigan Clean Marina Program since its inception and helping the program grow immensely to an impressive 50 certified clean marinas. She’s helped find grants to fund the program, spearheaded the online training module, and more.

Tim Tadsen accepting his award from Nicki Polan

Lighthouse recipient Elizabeth LaPorte with Nicki Polan

Hall of Fame

In 2015, MBIA inducted Bill Blakemore, an exemplary employee with Walstrom Marine in Harbor Springs, Mich. for more than 50 years, into the Hall of Fame.

“Customers came from all over the Midwest to Harbor Springs to have Bill work on their boats,” said David Lyle, president of Walstrom Marine, who nominated Blakemore. “He has been a meticulous and masterful artist with an eye for perfection.”

“Blakemore is being recognized not only for his technical ability, but also his dedication to excellence,” said MBIA’s Executive Director Nicki Polan. “He shared his gift and mentored many young technicians in his career, and that is beneficial for the entire industry. We are honored to induct him into the MBIA Hall of Fame.”

Bill with the MBIA’s Nicki Polan

Lifetime Achievement Award

The MBIA presented long-time marine industry veteran Ray Underwood with the first Ray L. Underwood Lifetime Achievement award, named for the recipient in July at the SE Regional Meeting.

“Ray Underwood has been an advocate for the marine industry in Michigan for decades. He has made great strides for our industry in his work as our Association’s Executive Director and as our lobbyist,” said current MBIA Executive Director Nicki Polan, who began her career at MBIA during Underwood’s term as Executive Director. “This award is well deserved!”

“Ray has an extensive background and history in the boating and fishing industries in Michigan,” said MBIA Chairman Jim Coburn, of Coburn & Associates. “The Board is honored to recognize him for his efforts.”

Underwood with the MBIA’s Nicki Polan

Underwood began his career with the MBIA as the Executive Director from 1976-1989, and served as the Director of Government Relations from 1989-1991. He continued to represent MBIA at Karoub Associates from 1991-1993. Since 1993, Underwood has been a Lobbyist at Muchmore Harrington Smalley & Associates, a top-rated lobbying firm in 6 Lansing, and has been instrumental in the development of statewide lobbying efforts for the MBIA. Ray continues to lobby on behalf of MBIA today and has created a well-respected boating and fishing awareness program in MI.

Michigan Clean Marina Program Michigan’s Clean Marina Program (MI CMP) is certainly a bragging point yearafter-year for MBIA. Michigan was one of the first states to have a clean marina program, and now Michigan is leading a regional Great Lakes effort with a total of 50 clean marinas. The MI CMP shares its Online CM Classroom with other states, and partners with other states in a national network of Clean Marina Programs.

michigancleanmarina.org

“2015 was one of our most successful years to-date. We are proud of our Certified Clean Marinas and for their continuation of following best practices,” said Nicki Polan, executive director of the Michigan Boating Industries Association. “It is not difficult, and there are both financial and environmental gains that come with this effort, as more boaters are becoming aware of the program and are searching out these facilities as places they want to patronize.”

The Michigan Clean Marina Foundation is a public-private partnership between the Michigan Boating Industries Association, Michigan Sea Grant College Program, and the Michigan Department of Environmental Quality. The Michigan Clean Marina Foundation fosters its objectives by disseminating information that will assist marina and boatyard operators in managing profitable businesses, while protecting and enhancing the quality of Michigan’s waterways. In 2015, two new Board members were added to the Michigan Clean Marina Foundation - Kathleen Torresen of Torresen Marine and Wade Eldean of Eldean Shipyard.

Elizabeth LaPorte volunteered for another year term as the Michigan Clean Marina President.

Congratulations Michigan Clean Marinas: Algonac Harbor Club, Algonac; All Seasons Marine, South Haven; Anchorage Marine/Marina, Holland; Bay Harbor Lake Marina, Bay Harbor; Belle Maer Harbor, Harrison Twp.; Bouvier Bridge Marina, Fair Haven; Cedar River State Harbor, Cedar River; Charlevoix City Marina, Charlevoix; Copper Harbor State Dock, Copper Harbor; DeTour State Dock, DeTour; Duncan L. Clinch Marina, Traverse City; Eagle Harbor State Dock, Copper Harbor; East Jordan City Marina, East Jordan; Ed. C. Grace Memorial Harbor, Village of Elk Rapids; Eldean Shipyard, Macatawa; F. Grant Moore Municipal Marina, Boyne City; Grosse Pointe Shores Municipal Harbor, Grosse Pointe Shores; Grosse Pointe Yacht Club, Grosse Pointe Shores; Hammond Bay State Harbor, Cheboygan; Harbor Springs Municipal Marina, Harbor Springs; Harborage Marina, Boyne City; Howe Interlakes Marine, Indian River; Irish Boat Shop, Charlevoix; Irish Boat Shop, Harbor Springs; Kean’s Marina, Detroit; Lac La Belle State Dock, Lakeport; Lexington State Dock, Lakeport; Mackinac Island State Harbor, Mackinac Island; MacRay Harbor, Harrison Twp.; Manistee Municipal Marina, Manistee; Miller Marina, St. Clair Shores; Northwest Marine Yacht Basin Association, Charlevoix; One Water Marina, Boyne City; Petoskey City Marina, Petoskey; Port Austin State Dock, Port Austin; Presque Isle State Harbor, Presque Isle; River Bend Marina, Harrison Township; Saugatuck Yacht Services, Saugatuck; Seng’s Marina, Manistee; St. Clair Boat Harbor, St. Clair; Straits State Harbor, Mackinaw City; Sundog Marina, Harrison Township; Suttons Bay Municipal Marina, Suttons Bay; Torresen Marine, Muskegon; Tower Marine, Douglas; Walstrom Marine, Harbor Springs; Walstrom Marine, Cheboygan; William G. Milliken State Park/Harbor, Detroit; Windjammer Marina, Oden; Woodland Marina, LLC, Brighton; and Yacht Basin Marina, Holland.

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Advancing Education

MBIA works each year to advance the industry through education, whether through programs designed to help members become certified as Clean Marinas, or through education offered at regional meetings, and at the Recreational Boating Educational Conference (RBEC). MBIA also educates legislators and the media about the importance of our industry via gathered and commissioned statistical research, e-newsletters, Websites and media kits. The media covered the boating industry very well in 2015, with great, positive stories of our industry and the passion for boating of Michigan’s citizens. Boaters have convenient access, via the MBIA, to free information about boating education courses, the importance of life jackets, information regarding how they can play a role in protecting their favorite recreational past time, and supporting recreational boating in Michigan.

Recreational Boating Educational Conference - RBEC More than 145 marine industry representatives came together in December of 2015 for MBIA’s annual meeting and Recreational Boating Educational Conference, making it a great success. Governor Snyder and SOS Ruth Johnson also attended the event and addressed attendees. RBEC is the only networking and educational conference in Michigan dedicated to the boating industry. It is an important arena to hear the latest industry updates, learn from fellow members and qualified speakers, and have a good time with your fellow MBIA members.

marine industry insurance

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Member Benefits

MBIA is pleased to say we now offer 20 membership benefits to save members time and money, and become more competitive. Often times, the money saved from these programs can more than pay for membership.

• *New in 2015* Pollution Insurance Discount through Environmental Risk Managers • MBIA / Hanover Insurance Program • Discounted UPS Shipping • Free listing in Boat Michigan Annual Directory • Free listing on www.boatmichigan.org in product and service search • Discounts in all MBIA produced events • Access to industry statistics, news, research • Education through New Horizens Computer Learning Centers • Discount Marina & Boatyard Training through MYMIC • Reduced Visa/MC processing costs through Veracity Payment Solutions • Staples Business Advantage • AFLAC – supplemental insurance programs • Fuel Discounts through SuperFleet/Speedway • Discount legal services through Kotz Sangster • Clean Marina Program discounts • Constant Contact email marketing (A complete list is available at mbia.org.)

Recreational Boating Industries Educational Foundation

RBIEF awarded $3,000 in scholarship funds to 4 students for the 2015/2016 school year. The RBIEF scholarship fund was developed in 1986 by the MBIA as a support program for students interested in pursuing careers in the recreational boating industry. With this granting, the fund will have distributed $342,396 to deserving students.

2015 RBIEF scholarship recipients: • Lisa Cirisan, Kingsley, MI • Charlotte Hatfield, Fenton, MI • Bailey Kehrig, Clinton Township, MI • Cody Yearn, Milford, MI “There are many interesting and challenging jobs within the boating industry, and we are passionate about educating students about our industry,” said RBIEF President Jim Coburn of Coburn & Associates. “Our foundation is also committed to continuing education, and has changed the parameters of the application to include those already working in the marine industry.” RBIEF has information on the MBIA website under programs on mbia.org.

Gregory P. Krueger Scholarship A new named scholarship was also created this year in honor of Gregory P. Krueger. Krueger was one of the founding members of RBIEF, and was known for saying, “Your education is the only thing no one can take from you.” Krueger passed away in April of 2015. To date, donations in his name exceed $13,000 towards this scholarship that will provide education to marine industry professionals in the future.

RBIEF Directors:

President James A. Coburn Coburn & Associates, LLC. Macomb, MI Vice President Robert G. Liggett Jr. Grosse Pointe Shores, MI

Treasurer Horst Sherriff PNC Bank Troy, MI

Secretary Nicki Polan MBIA Livonia, MI Amy Krueger-Malow Jefferson Beach Yacht Sales St. Clair Shores, MI Ray L. Underwood Muchmore Harrington Smalley & Associates Lansing, MI

“On The Lake” In 2015, the MBIA Partnered with one of the top publishing companies in the country, and with the help of a long list of sponsors, produced two issues of an art-class publication designed to promote boating in Michigan.

ON THE LAKE is a one of a kind publication and we are proud to call it our own.

“On the Lake” features professionally crafted editorial and compelling imagery, which promotes both the vast water resources Michigan has to offer, as well as the benefits associated with time spent on and near the water. Consumers who received the publications at the MBIA Boat Shows, special events through the season and from MBIA members were beyond pleased with the boating magazine. Thank you to all the members who have supported and distributed the publication.

We hope to grow the support for this magazine in the coming years as it serves to keep current boaters engaged and bring new boaters to the water.

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Promoting

MBIA Boat Shows

MBIA prides itself in producing world-class boat shows as a member benefit, as they provide an important role in the buying process for all boaters. With the improving economy in 2015, all three MBIA Boat Shows increased in size, attendance and sales.

The MBIA has more than 58 years of experience producing boat shows that provide MBIA with its funding to conduct its statewide programs benefiting all MBIA members including: lobbying efforts, RBEC and other educational programming, the MI Clean Marina Program, statistical reporting, communications, web sites, Grow Boating Initiatives, and much more. When supporting MBIA produced boat shows, whether as an exhibitor, attendee or promoting the event, members are supporting their industry.

Detroit Boat Show

The 57th annual Detroit Boat Show saw an even attendance with the year prior despite poor weather conditions, with more than 67,000 attendees coming to the newly renovated Cobo Center in February. Exhibitors reported great sales and lead prospects from the show. The Detroit Boat Show grew again in 2015. At 350,000 square feet, space sales were up (17%) over 2014 and the show was sold out. Nearly 1000 boats were on display and featured 35 new model introductions.

Attendance at The 23rd annual Spring Boating Expo also remained the same as 2014, garnering more than 13,000 attendees in four days. Exhibitors also reported great sales and leads out of the Expo in Novi. Nearly 100 exhibitors filled the exhibit halls wall-towall. The Pirate Village entertained adults of all ages and garnered great media attention for the event.

Spring Boating Expo

At the conclusion of a great boating season, the 6th annual Boating & Outdoor Festival held at Lake St. Clair Metropark, Sept. 17-20 was deemed a success by exhibitors and MBIA with an impressive 19 percent increase of paid attendance. With increasing demand for in-water space, the show footprint grew with additional floating docks. Exhibitors were pleased with the crowds, the quality of buyers and leads generated at the event.

Social Media & Web sites

In 2015, many online promotions and events helped grow MBIA’s social media presence. With more followers, MBIA’s social media served to engage our Michigan’s boating community year-round.

The MBIA maintains 5 web sites that work to advance, promote and protect boating, as well as promote our members, the boating lifestyle and MBIA produced boat shows: mbia.org, boatmichigan.org, detroitboatshow.net, springboatingexpo.com, boatingandoutdoorfest.com

Promoting our Members

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Boating & Outdoor Festival

Through our web sites, Boat Michigan Annual Directory, attendance at consumer events, advertising, social media efforts, and consumer communications, the MBIA continues to produce and improve its tools which lead the boating consumer to its members.

Michigan Boating Week

Gov. Rick Snyder signed a declaration for the second year in a row establishing June 6-14 as Michigan Boating Week. He encouraged residents to experience all the boating opportunities Michigan has to offer. June 14 was also National Marina Day, where celebrations and events were held nationwide.

To help grow boating participation, MBIA also arranged for Boating Demo locations as seen below.

“As a life-long boater and supporter of the industry, I appreciate Gov. Snyder’s proclamation and support of boating in Michigan,” said MBIA Board Chairman Jim Coburn, of Coburn & Assoc. in Macomb, Mich.

These events brought significant media attention to our industry, our members, and the benefits of the boating lifestyle.

Some 2015 Headlines

Creating Positive Boating Press

MBIA continues to take every opportunity to promote boating to the media and public, and regularly issues more than 50 state-wide press releases annually including: National Safe Boating Week, Memorial Day Boat Launch Tradition, Clean Marina Certifications, Water Level Updates, Industry Updates, National Marina Day, Scholarship Awards, Holiday Gift Guide for Boating Enthusiasts, Free Boat Michigan Annual Directory, Show Calendars Updates, and National Fishing and Boating Week to name a few.

“2015 continued the good news of boating from 2014,” said MBIA’s Nicki Polan. “There was tremendous interest in our industry’s strength as it relates to Michigan’s economy and the passion of the lifestyle of Michigan’s residents.”

New technology and models make boating easier, more luxurious

Four new marina certifications and two re-certified as Michigan Clean Marinas

Boat Dealers: ‘Perfect Storm’ Creates Best Sales in a Decade

Bill Blakemore of Walstrom Marine inducted into the Michigan Boating Industries Association Hall of Fame

Boats help keep state afloat

MBIA members receive $200,000 in dividends from The Hanover

Leadership Council Meets on industry future

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Representation & Partnerships

MBIA Works Closely With National and State Organizations In our commitment to offer continued education, industry statistics and timely industry news, MBIA maintains membership and partnerships in many related associations, and maintains working relationships with many industry experts in order to provide information to our members that will help them manage their businesses more effectively. MBIA works closely with these local and national groups: • • • • • • • • • • • • • •

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Michigan Society of Association Executives Great Lakes Small Harbors Coalition US Army Corps of Engineers Michigan Secretary of State’s Office Lake St. Clair Tourism Initiative Michigan Waterways Commission Michigan Natural Resources Commission Michigan Economic Development Corp.

Recreational Marine Research Center- MSU Michigan Inland Lakes Partnership DNRE Land & Water Management Division Grow Boating Initiative/Discover Boating Michigan Port Collaborative Tourism Industry Coalition of Michigan

• • • • • • • • • • • • •

National Marine Manufacturers Association Advisory Council of Marine Associations National Marine Trades Council Marine Retailers Association of America Michigan Clean Marina Foundation Michigan Sea Grant (MSU & UofM) Metro Detroit Convention and Visitor’s Bureau Pure Michigan/Travel Michigan Super Yacht Association Marine Bankers Association Association for Marina Industries American Boat and Yacht Council Boat U.S.

Michigan Waterways Commission

The Michigan State Waterways Commission was established by the Michigan legislature in 1947. The Commission is responsible for the acquisition, construction, and maintenance of recreational harbors, channels, docking and launching facilities, and administration of commercial docks in the Straits of Mackinac. The Commission members are appointed by the Governor, with the advice and consent of the Senate, to serve three-year terms. MBIA Executive Director Nicki Polan, and MBIA members Al Declerq, Doyle’s Sails, and Ward Walstrom, Walstrom Marine are all currently Michigan Waterways Commissioners.

Recreational Boating Leadership Council (RBLC)

Marine industry representatives from across the country, and from all aspects of our industry including dealers, associations, marinas, manufacturers, etc., are working together to facilitate the long-term growth of our industry.

MBIA outgoing Board Chairman Jim Coburn of Coburn & Associates remains a strong representative for the Michigan Boating Industries Association on this important Council, and leads the Affordability Committee for the RBLC. RBLC Committees: Marketing, Youth Initiative, Boating Education Initiative, Recreational Boating Affordability, Diversity Initiative, Recreational Boating Advocacy and Accessibility.

Advisory Council of Marine Associations (ACMA)

In 2015, MBIA’s Nicki Polan finished her 2nd year term as ACMA Chair. ACMA is an informal group of Marine Trade Associations (MTAs), which have been meeting for more than 50 years. ACMA provides an opportunity for MTAs to help each other with state and federal legislative initiatives. ACMA also serves to create annual resolutions which are given to the Marine Retailers Association of the Americas for their Board of Directors to consider for the upcoming legislative year.

National Marine Trades Council (NMTC)

In 2015, Nicki Polan completed her 1st of a two year term as Chair for the National Marine Trades Council (NMTC). NMTC is another informal group comprised of Marine Trade Associations (MTAs) from across the country. This group meets twice annually to talk about Boat Show Production, Membership Development, and Association Management.

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Protecting

2015 Legislative Overview

Muchmore Harrington Smalley & Associates, LLC The first half of Michigan’s 98th legislative sessions ended in December 2015, and we are now into the final year of the session. Of the 1,890 introductions offered by the Senate and House of Representatives to date in this session, Muchmore Harrington Smalley & Associates (MHSA) has identified 70 of those introductions that in some way are of interest to the MBIA membership and recreational boating in the State of Michigan.

As is the general rule in the Legislative system, many of these introductions being tracked have not received action to process them into law. In fact, to this date, Governor Snyder has only been presented with three introductions of interest to the MBIA, which by his signature became law. Those were: • HB 4052 Poleski (R-Jackson) 1/22/2015 6/30/2015 Approved by Governor, Public Act No. 105, I.E. of 2015. Prohibits local units of government from establishing mandatory wage, benefit and leave time requirements.

• HB 4448 Victory (R-Georgetown Twp.) 4/15/2014 6/10/2015 Approved by Governor, Public Act No.76, I.E. of 2015. Eliminates sunset on certain fees.

• HB 4738 McCready (R-Bloomfield Hills) 6/17/2015 11/10/2015 Approved by Governor, Public Act No. 176, I.E. of 2015. Modifies wholesale rate for motor fuel.

There are seven additional Introductions which have not received action by the legislature but have been reviewed by the MBIA Board of Directors and supported for passage. They are; • HB 4149 Sheppard (R- 2/5/2015 Temperance) 2/5/2015 House Committee on Tax Policy: Accelerates phase-in of use tax on the difference.

• HB 4150 Webber (R-Rochester 2/5/2015 Hills) 2/5/2015 House Committee on Tax Policy.

Accelerates phase-in of sales tax on the difference.

• SB 10 Hildenbrand (R-Lowell) 1/20/2015 3/26/2015 Reported out of Senate Committee on Finance with sub S-2. Accelerates phase-in of sales tax on the difference.

• SB 11 Hune (R-Whitmore) 1/20/2015 Lake 3/26/2015 Reported out of Senate Committee on Finance with sub S-2. Accelerates phase-in of use tax on the difference.

• SR 12 Proos (R-St. Joseph) 2/11/2015 2/11/2015 Senate Committee on Natural

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•

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Resources. A resolution to support ending water diversions from the Great Lakes through Chicago.

SR 22 Schmidt, Wayne (R- Traverse City) 4/22/2015 Passed Senate. A resolution to encourage the Chicago Area Waterway System Advisory Committee to fully consider all options, including complete hydrologic separation, to protect the Great Lakes from Asian carp and to move as quickly as possible to determine the best long-term solution.

SR 23 Pavlov (R-Saint Clair) 3/12/2015 4/22/2015 Passed Senate. A resolution to call on the Obama Administration and the Congress of the United States to direct the U.S. Army Corps of Engineers to close the connection between the Great Lakes and Mississippi River basins through Chicago to prevent Asian carp from entering the Great Lakes.

As we know, the “road funding issue” consumed a lot of time in the closing days of the 97th Legislative session and continued over into the 98th session with the defeat of a ballot issue designed to increase the Michigan Sales Tax. During the roads discussions, MBIA and MHSA fought to keep the full funding formula in place to assure Michigan’s Waterways Fund did not suffer any losses. The road issue and sales tax issue has been resolved, and the Michigan State Waterways Fund will see some slight increases as a result.

For some time now, the staff of MBIA and our lobby team have been discussing the issues of: 1. Watercraft registration fees as funding for public access sites.

2. In house registration/titles of Watercraft sales at the marine dealerships.

3. Obtaining ownership of watercraft abandoned while in storage.

Recently we have had discussions with the SOS and Legislators about the steps for a resolution for these issues, and are encouraged that we may see some movement in this session of the legislature.

In 2015, MBIA spent time in Lansing testifying in front of the House Tourism Committee as to the strength of Michigan’s boating industry and the importance of the boating industry to the state’s economy and the quality of life for its citizens. MBIA also testified in front of several committees against Person in Tow legislation citing statistics which show a very impressive boating safety record for Michigan, as well as only 3 towing related towing accidents in 2015.

MBIA and MHSA continue to lobby for Post Labor Day School opening which again saw opposition in 2015.

MBIA Co-hosts Michigan’s Boating Caucus Loaded with data to highlight the impact that marine manufacturers, dealers, marinas and others have on the Michigan economy, MBIA co-hosted Michigan’s Boating Caucus on June 10 in Lansing. MDNR Director Keith Creagh spoke to the very engaged group of legislators. All at the meeting understood the importance of boating to their districts.

MBIA joins groups speaking out against growing list of threats to the Great Lakes Net Pen Aquaculture, Microbeads, Wind Turbines, Asian Carp, Algae Blooms, Nuclear Waste and Enbridge Oil Lines are some of the major threats that MBIA and many water dependent industries, are watching and weighing in on to assure our state’s leadership does not drop the ball.

MBIA Supports Senate Bill 526 addressing Net Pen Aquaculture plans in the Great Lakes Commercial net-pen aquaculture is the practice of raising fish in an underwater net (or solid structure cage) that serves as a pen. In 2015, two companies approached the state of Michigan with proposals to raise rainbow trout in net-pens in lakes Huron and Michigan. Input to MBIA from a variety of sources leads us to believe net-pen aquaculture in the Great lakes is a bad idea. MBIA supported Senate Bill 526 addressing this issue.

MBIA signs on to letter urging Canadian Prime Minister to stop Nuclear Waste Depository MBIA supported the signing of a congratulatory letter to new Canadian Prime Minister Justin Trudeau, which also requested him to stop Ontario Power Generation’s plans to create a nuclear waste depository less than 1 mile from Lake Huron. Six U.S. Senators and 26 U.S. Representatives from a number of Great Lakes states have also written to the new Canadian prime minister urging him to block plans for this underground storage facility in Ontario.

MBIA continues to monitor Federal Legislation MBIA’s Nicki Polan Chaired the Advisory Council of Marine Associations in 2014 & 2015. The group meets annually to identify legislative priorities at the federal level. Some of MBIA’s and ACMA’s 2016 legislative priorities include: 1. To support and seek legislation to increase funding for vocational education, recognizing our industries shortage of marine techs across the country.

2. Recognizing that the Great Lakes region fully accounts for a third of all recreational boating sales and usage in America.

3. Take action to closely monitor and support favorable use of the Water Resources Reform & Development Act and the Harbor Maintenance Trust Fund for the dredging of America’s small boat harbors.

4. Reform of the Renewable Fuels Standard to eliminate the damaging impact of corn ethanol on millions of America’s marine and other small engines by repealing the mandate for continually increasing the quantity of ethanol in the nation’s gasoline supplies.

5. Support action that helps stop the spread of Aquatic Invasive Species (AIS), prevents the introduction of new AIS, and helps eradicate AIS, as water quality and fisheries are vitally important to the survival of the marine industry in the U.S.

MBIA PAC

Your Association has worked hard to establish itself as “the voice” of both the marine industry and its consumers here in Michigan.

Through this voice, and the MBIA Political Action Committee (PAC), the MBIA has taken a leadership role in making the leaders of our state and local government more responsive to the recreational boating community.

Every individual who works in the marine industry and/or enjoys boating in Michigan should make an annual contribution to the MBIA PAC. It is the single most effective method by which we can make our voice more powerful, and through our united voice and our PAC, your association works to make the leaders of our state and local government more responsive to the recreational boating community.

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Statement of Revenues & Expenses 4/30/2014

4/30/2015

$66,674 $1,717,612 $310,727 $62,578 $2,910 $55,912 $5,875 $2,222,288

$ 123,013 $1,901,359 $307,610 $44,900 $16,009 $50,861 $6,550 $2,450,302

Expenses: Outside Services & Contractors $120,089 $436,980 Public Relations & Advertising $301,758 Rental $55,767 Set-Up Costs $351,162 Wages & Fringes $234,844 Other $1,500,600 Total Expenses:

$125,355 $459,450 $348,469 $164,607 $404,214 $252,218 $1,754,313

Revenues: Membership Dues Space Sales/Boat Shows Admissions/Boat Shows Sponsor Fees Interest Income Other Grow Boating Income Total Income:

Excess (Deficiency) of Revenues over Expenses

$721,688

$695,989

..................................................................................

Statement of Financial Position Total Cash & Investments Property & Equipment Total Assets

4/30/2014 $2,293,662 $341,054 $2,634,716

4/30/2015 $3,002,673 $328,032 $3,330,705

Liabilities & Net Assets: Total Current Liabilities Unrestricted Net Assets

$0 $2,634,716

$0 $3,330,705

Total Liabilities & Net Assets

$2,634,716

$3,330,705

Note: 2014/2015 review conducted by Maner, Costerisan PC, Lansing, MI. Complete financial information is available upon request to all MBIA members at the MBIA office in Livonia during normal operation hours.

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