There may be changes
01 May 2003
The recent ruling by the WTO that the US decision to impose tariffs on steel imports broke global trade rules has led the European Union (EU) to consider imposing retaliatory tariffs of up to 30% on US built recreational boats.
The fact that the EU is considering such a move is not a topic of general conversation over here at present because nothing is expected to happen in the "foreseeable" future (between now and the beginning of the boat show season in September).
Should, however, the likelihood of such tariffs become public and imminent then there will likely be a wave of anti-European sentiment over here (France and Germany have not recently endeared themselves with the US populace) with the consequential calls to "buy American" and boycott European boats.
The tariffs into Europe plus the boycott in the US would lead to a number of boat builders who would lose a significant part of their business.
The recent acquisition of one large national retailer, Boat US, by the largest national retailer, West Marine, has set in motion a different set of dynamics.
The two retailers had vendors that supplied both of them while having vendors that supplied one or the other but not both.
The acquisition will result in a consolidation of buying departments (with their associated brand preferences and loyalties) as well as the products on offer and thus vendors.
There will be a number of vendors who will lose a significant part of their business.
Businesses faced with losing a significant share of their market react in a predictable manner. They move aggressively to increase their sales in their remaining markets while seeking new routes to market to make up any shortfall.
Price becomes the primary weapon with both margins and markets being disrupted. The common denominator resulting from this will likely be further industry consolidation?






