FAQ: 2020 BUREAU OF ECONOMIC ANALYSIS REPORT ON OUTDOOR RECREATION RELEASED

Outdoor Recreation Is an Economic Force; Accounts for Over 2 Percent of U.S. Gross Domestic Product

November 20, 2020

How is the Bureau of Economic Analysis (BEA) study different from the OIA economic study?
The featured BEA measures include gross output, a measure of outdoor recreation goods and services produced by domestic industries; and value added, a measure of the contribution of outdoor recreation industries to gross domestic product (the primary measure of economic activity in the nation). OIA’s study measures consumer spending on all gear-related expenses and associated travel for outdoor recreation, including spending on imported products.

How does the $842B nominal gross output ($788B real gross output*) contribution line up with the OIA’s $887 billion consumer spending on outdoor recreation?
Both are true, they just measure different economic contributors. The BEA satellite account measures gross output while OIA’s study measures consumer spending on all gear-related expenses and associated travel for outdoor recreation.

It is important to note; the BEA estimate only includes the wholesale and retail mark-ups applied to imported products while the OIA’s figures report all consumer spending.

* Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is, at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.” Chained-dollar (Real) estimates are calculated by taking the current-dollar level of a series in the base period and multiplying it by the change in the chained-type quantity index number for the series since the base period. Chained dollar estimates correctly show growth rates for a series but are not additive in periods other than the base period.

What is the methodology of the OIA Outdoor Recreation Economy Report?
BEA’s analysis for the time period 2012-2019 was just released on November 10. We have not had an opportunity to review the methodology at this point, but what we do know is that our economic report is based on consumer spending, while the BEA’s numbers are focused on measuring gross output and value added.

Essentially, our economic report – which is basic economic input-output modeling – starts with the consumer and works down to the manufacturing/imports point. The BEA goes the opposite direction, starting with production in manufacturing and other industries and works up to the consumer. This approach uses different data sets and methods which accounts for differences, too.

What is the difference between gross output and value added (or GDP)?
Gross output (GO) is the measure of total economic activity in the production of goods and services. It is a much broader measure of the economy than gross domestic product (GDP), which measures final output (finished goods and services).

Election 2020 Outcome Outlook

This article was published Thursday, Nov. 5. For updates as of Nov. 10 and a deeper dive into these insights, watch our Post-Election Analysis webinar.

At the time of publication, the Associated Press has declared a presidential victor in all but a handful of states, leaving pivotal Georgia, Nevada, North Carolina and Pennsylvania up in the air. A few key Senate seats, including two in Georgia and one in North Carolina and more than 30 House seats, are also too close to call. But with help from our D.C.-based consultants at Forbes Tate Partners, we’ve gamed out the various potential scenarios to explore what the White House and Congress could look like, who are likely to be key players on our issues, what can we expect between now and inauguration and how the outcomes might influence our work moving forward.

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The House of Representatives

Democrats Poised to Hold the House, But Republicans Gain More Seats Than Expected

What Does This Mean: Democrats will retain control of the House but fell well short of expectations to pick up between 10 and 15 seats. In fact, Republicans may still gain some seats, narrowing the Democratic majority. While we believe the House will remain active on climate issues in the new Congress, it’s possible that, combined with Republicans likely retaining the Senate, Democrats might temper their ambitions when it comes to putting together a climate package. Likewise, while we could see additional protections for public lands and waters, Speaker Nancy Pelosi (D-CA) will have to be mindful of what she brings to the floor given her possible reduced majority. On trade, the House will likely continue to prioritize labor and environmental protections in any trade deals, as well as—for the first time—binding climate provisions.

While we believe the House will remain active on climate issues in the new Congress, it’s possible that, combined with Republicans likely retaining the Senate, Democrats might temper their ambitions when it comes to putting together a climate package. Likewise, while we could see additional protections for public lands and waters, Speaker Nancy Pelosi (D-CA) will have to be mindful of what she brings to the floor given her possible reduced majority.

The Senate

Republicans Likely to Hold Senate

What Does This Mean: While control of the Senate is still officially undecided, it is likely that Republicans will retain control. One or both of the Senate races in Georgia could go to a run-off in January, and the Republican candidate would be favored in both races. Democrats picked up seats previously held by Republicans in Arizona and Colorado, while Republicans flipped Alabama. As we saw with the Great American Outdoors Act, we could still see movement on recreation and conservation issues with a Republican Senate, though it will be tougher to pass more robust climate initiatives. Passage of the United States-Mexico-Canada Agreement (USMCA) suggests that a Democratic House and Republican Senate could work together on international trade issues.

As we saw with the Great American Outdoors Act, we could still see movement on recreation conservation issues with a Republican Senate, though it will be tougher to pass more robust climate initiatives. Passage of the United States-Mexico-Canada Agreement (USMCA) suggests that a Democratic House and Republican Senate could work together on international trade issues.

The White House:

Biden Has a Clearer Path to Victory

What Does This Mean:  While the race has not yet been officially called (though that could happen as soon as today), indications are that Biden will win the presidency by successfully flipping Arizona, Wisconsin, Michigan and Pennsylvania. Aggressive action on climate will remain a top priority for his administration, but if Republicans maintain control of the Senate, Democrats will likely set aside more ambitious plans. The Great American Outdoors Act shows how Republicans and Democrats can work together on conservation issues and additional public lands and waters protections. On trade, Biden will prioritize “Made in America” and a more multilateral approach to trade disputes, relying on dialogue and negotiation rather than punitive tariffs. That being said, China Section 301 tariffs are likely to remain for the foreseeable future. Biden and the Democratic House will push Senate Republicans on strong labor and environmental and climate provisions in any new trade deals, using USMCA as a model.

 

The Cabinet

New Faces Likely, Whoever Wins

What Does This Mean: Obviously, with a Biden presidency, we will see new leadership at Interior, Commerce, the Office of the United States Trade Representative and other agencies, with dramatically different priorities on issues affecting the outdoors and the outdoor industry. Should Biden win, his nominees for those positions will be released over the next several weeks. With a Republican-controlled Senate, he may be compelled to send over more moderate nominees.

The Key Committees and Chairs

Republicans have term limits on their chairs. Democrats do not, and they appoint committee chairs and ranking members based on seniority.

House Natural Resources

  • Raul Grijalva (D-AZ) retains the chairmanship.
  • OIA will have a great opportunity to work with Chairman Grijalva on conservation, streamlining the permitting process, promoting diversity in the outdoors, implementing the Great American Outdoors Act and combating climate change.

House Ways & Means

  • Richard Neal (D-MA) will remain chairman.
  • OIA anticipates that one of our key outdoor champions, Earl Blumenauer (D-OR), will continue as chair of the trade subcommittee and work with us on our balanced trade agenda.

Senate Energy & Natural Resources

  • Senator John Barrasso (R-WY) will likely take over from Senator Lisa Murkowski (R-AK) who is term-limited. Senator Joe Manchin (D-WV) is ranking member.
  • The outdoor community worked closely with Senator Manchin on passing the Great American Outdoors Act. Senator Barrasso helped lead the effort to pass America’s Conservation Enhancement Act.

Senate Environment & Public Works

  • Senator Shelley Moore Capito (R-WV) is the likely incoming chair, with Senator Barrasso (R-WY) moving over to Energy and Natural Resources.
  • Senator Tom Carper (D-DE) a longtime friend of the industry on climate and public lands and is ranking member.

Senate Finance

  • If Republicans maintain control, the gavel could pass to Senator Mike Crapo (R-ID), as the current chair, Senator Chuck Grassley (R-IA), is term-limited. Senator Ron Wyden (D-OR) will continue as ranking member.
  • Senator Wyden is a longtime supporter of the outdoor industry and has led several initiatives in the past consistent with our balanced trade agenda, including the U.S. OUTDOOR Act. Senator Crapo, in fact, was also a lead sponsor of the OUTDOOR Act and worked closely with outdoor companies on miscellaneous tariff bills and the Generalized System of Preferences (GSP).

Prospects for a Lame Duck

We have seen early signals that Senate Majority Leader Mitch McConnell (R-KY) and Speaker Pelosi will push for a Covid-relief package in the lame duck session, in addition to an omnibus spending bill to keep the government open through the end of the fiscal year. It is unclear, however, if an outgoing President Trump will have any interest in working with congressional leadership on either issue. It is possible that Congress could pass a short-term spending bill and consider the broader spending bill and Covid relief when the new Congress is sworn in in January.

OIA Policy Alert: LWCF Delay at the Department of the Interior

Washington, D.C. – Today, OIA Executive Director Lise Aangeenbrug made the following statement after the Department of the Interior (DOI) failed to provide a list to Congress detailing which Land and Water Conservation Fund (LWCF) projects should be funded under the Great American Outdoors Act (GAOA):

“We are deeply concerned by the agency’s failure to meet this straightforward statutory requirement. This delay stifles new outdoor projects from getting off the ground and keeps LWCF funding from flowing to communities that desperately need this money. When the Great American Outdoors Act was enacted earlier this year, it was met with great fanfare from the outdoor industry, members of Congress from both parties and the administration. For agency officials to drag their feet on implementing the most significant conservation law in a generation is not only perplexing, it demands an explanation.”
 
GAOA provides $900 million in permanent annual funding for the Land and Water Conservation Fund and addresses the nearly $20 billion deferred maintenance backlog on federal public lands. 
 

Audio Outdoorist: Climate Klatch — Episode 1

Welcome to the first in a new Audio Outdoorist series we’re calling the Climate Klatch. A klatch is an informal gathering, usually involving conversations and coffee. In this series, we’ll deliver monthly conversations about climate action. Our goal is to keep you in the know on what’s happening in the outdoor industry and the broader world around the ever-evolving topic. These are meant to be high-level, bite-size insights and updates. Listen while you sip your morning jo, on your commute to work — if you’re still doing that these days — or while you’re getting ready in the morning or taking a short break midday.

In this first episode, Amy Horton, OIA senior director of sustainable business innovation, and Deborah Williams, OIA director of marketing, communications and storytelling, discuss the most impactful strategies for reducing and reversing global warming by the year 2050 and how the OIA Climate Policy Agenda aims to drive those strategies through a combination of responsible business and federal, state and local legislation.

 

 

More Resources:

 

Climate Interactive

Webinar: Post-Election Analysis – The Impact of the 2020 Elections on the Outdoor Industry

Speakers:
Lise Aangeenbrug, Executive Director at Outdoor Industry Association
George Cooper, Partner at Forbes Tate Partners
Rich Harper, Director of Government Affairs at Outdoor Industry Association
Doug Usher, Ph.D., Partner of Polling and Insights at Forbes Tate Partners

Summary: Our industry’s top priorities are on the ballot in this year’s election—from climate change and public lands to outdoor access, international trade and economic recovery from the COVID-19 pandemic. Learn how federal and state election results will shape the outdoor recreation economy for years to come—and how you can prepare your business for what’s next. Join us for a timely post-election analysis as we:

  • Recap election results, examine voting data and share takeaways to inform our advocacy efforts going forward
  • Analyze how the election outcomes will impact the outdoor recreation economy and explore how the results will influence outdoor industry priorities in the future
  • Explain how outdoor industry leaders can guide their businesses to succeed in a post-election environment
  • Share opportunities to advocate for critical outdoor industry issues at both the federal and state level

Policy Alert: Outdoor Industry Applauds Introduction of the ‘Ocean Based Climate Solutions Act’

BOULDER, Colo. – Outdoor Industry Association (OIA) commends Congressman Raul Grijalva (D-Ariz.) for introducing the “Ocean Based Climate Solutions Act” today. The bill would authorize federal funding for the National Oceanic and Atmospheric Administration to invest in ocean-based solutions to greenhouse gas emissions and conservation of coastal communities, as well as outline a national policy to protect 30 percent of the ocean by 2030.

“This landmark proposal leverages the power of conservation to combat climate change and positions our coastal communities to be an integral part of the solution,” said Executive Director of OIA, Lise Aangeenbrug. “Further, it focuses on establishing social and economic criteria to ensure our public lands and waters remain accessible, where appropriate, to all Americans and the businesses that rely on them. It is essential to have the right balance between conservation and providing Americans the access they need to thrive outside and participate in our robust outdoor recreation economy. We are pleased to see Rep. Grijalva’s legislation achieves this important balance.”

OIA’s 2020 Policy Platform, released in October 2020, supports the swift scale-up of natural climate solutions as a strategy for both climate mitigation and climate resilience across a variety of lands, waters, and habitat types – including the forests, rivers, lakes, streams, oceans, and coastal areas.

The bill awaits consideration by the House Committee on Natural Resources.

2020 Membership Dues Deferral

We recognize that the Coronavirus pandemic has put many companies, small and large, in a very difficult financial position. Our priority is supporting you through this challenging time. That is why we created the COVID-19 Resource Hub and why we have decided to defer OIA membership payments.

Current OIA members will have 120 days (expanded from the usual 30-day grace period) to pay their renewal invoice. You will continue to retain your full membership status and all of your OIA membership benefits for up to 4 months after your anniversary date.

In addition, we are waiving all initiation fees for new and renewing members.

If you have questions or would like more information, please reach out to our membership team at membership@outdoorindustry.org.

We are here for you. Together We Are A Force.

Outdoor Foundation and Winnebago Industries Foundation Support Communities to Thrive Outside

Outdoor Foundation and Winnebago Industries Foundation Support Communities to Thrive Outside

EDEN PRAIRIE, MINNESOTA, October 6, 2020 – More kids and communities will build meaningful connections to nature through the Winnebago Industries Foundation’s partnership support to Thrive Outside, an Outdoor Foundation collective impact initiative. During the month of October, Winnebago Industries will celebrate outdoor equity partners and inspire employees, family and friends to do good deeds and GO outdoors during its GO for Good Challenge.

“Thrive Outside is designed to create healthy individuals, communities and economies by making the outdoors a habit,” said Stephanie Maez, Outdoor Foundation managing director. “Centering community leadership and voice, Thrive Outside communities ensure that all people feel a connection with nature and realize the health and mental health benefits the outdoors provide.”

Launched in 2019, Thrive Outside provides multi-year capacity building grants to diverse communities to create or strengthen partnerships between existing local organizations such as schools, Boys and Girls Clubs, YMCAs and nonprofit conservation and outdoor organizations that engage kids and families in repeat and reinforcing positive outdoor experiences. Atlanta, San Diego, Oklahoma City and Grand Rapids, Mich. are the first Thrive Outside communities, with an additional four communities activating in 2021.

“Winnebago Industries and the Winnebago Industries Foundation strive to connect people with transformative outdoor experiences. We also are strong believers in the power of people working together to strengthen the communities they call home,” said Michael Happe, Winnebago Industries President and CEO. “As our team members kickoff a month of giving and outdoor wellness, we are thrilled to announce this partnership with the Outdoor Foundation, outdoor industry colleagues and communities across the country.”

To participate in the WGO for Good Challenge simply do a good deed, engage in an outdoor adventure, and inspire your friends and family on social media with #GOforGood.

About Winnebago Industries and Winnebago Industries Foundation

Winnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products under the Winnebago, Grand Design, Newmar and Chris-Craft brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motorhomes, travel trailers, fifth wheel products and boats. Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota and Florida. The Company’s common stock is listed on the New York Stock Exchange and traded under the symbol WGO.

The Winnebago Industries Foundation seeks to inspire new generations of outdoor enthusiasts, mobilize resources to reach people in need, and support employee volunteers to build strong communities where we work, live and explore. We focus our community investment in three impact areas: outdoors, access, and community. Learn more at https://winnebagoind.com/community.

About the Outdoor Foundation

The Outdoor Foundation, the philanthropic arm of Outdoor Industry Association, is a national 501(C)(3) nonprofit organization dedicated to getting people outside for their health, the health of communities and the health of the outdoor industry. Through community investment and groundbreaking research, the Outdoor Foundation works with many partners to get more people outside more often. Visit outdoorfoundation.org for more information.

Winnebago Industries Contact: Sam Jefson – Public Relations Specialist – 641-585-6803 – sjefson@wgo.net

Outdoor Foundation Contact: Andriana Rogers – Marketing Communications Manager – 720-629-3542 – arogers@outdoorindustry.org
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Pandemic? Holiday Sales? Shortages? Landed Costs? How Traeger Grills Manages Supply Chain Planning in an Unmanageable World

Speakers: Anne Patterson, Principal at InventoryGuru.com; Russ Graf, VP Channel Management North America at NETSTOCK; and Dustin Joyce, Director of Operations Planning at Traeger Grills

Sales are flamin’ hot at Traeger Grills, yet supply chain and inventory replenishment are keeping their cool. Learn how KPI-driven dashboard insight helps Traeger balance sales growth and inventory investment, keep customers happy and let planners focus on the big picture instead of spreadsheet minutia.

Brand recognition and market-share leadership have enabled Traeger to expand its grill product line as well as to diversify into accessories, apparel and consumables.  But with growth comes challenges: more SKUs, more suppliers, more product life cycles and – with the pandemic – exponentially more supply chain risk.

Learn how NETSTOCK’s cloud-based inventory management solution helps Traeger manage inventory by exception: what’s out of stock, what’s about to go out of stock and what’s excess – prioritized by inventory classification that cleverly marries cost with run rate and enables quick ordering, while at the same time optimizing transport.

With the pandemic still in play, consumers are queueing up for the holiday sales, said to have already begun in Q3. Learn how to audit and adapt your inventory strategy so that this year’s holiday season is a smooth one for your business and your supply chain is geared up for 2021.

Sponsor: This webinar is proudly sponsored by NETSTOCK inventory optimization software. Used by over 15,000 users in over 1,600 companies worldwide running over 40 different ERP systems, NETSTOCK brings enterprise-class planning to the mid-market with affordable subscriptions and 100 percent remote implementation.

Webinar: Virtual Discussion: The 2020 Election and Beyond: What’s at stake for the outdoor recreation economy?

When: Thursday, October 8, 2020, 2:00 p.m. (EST)

Speakers: OIA Executive Director Lise Aangeenbrug and Senator Martin Heinrich (D-NM)

The 2020 election will be one of the most consequential contests for the outdoor recreation economy. Following enactment of the Great American Outdoors Act, our top priorities are all on the ballot – from tackling climate change and preserving our public lands and waters to expanding access to the outdoors for all Americans to new investments in green infrastructure and close-to-home recreation as outdoor companies recover from the COVID-19 pandemic. What can outdoorists expect from the next administration and Congress? What can we learn from our past wins, and how can we ensure our voice is heard?

Listen to this timely discussion of these issues featuring OIA Executive Director Lise Aangeenbrug and Senator Martin Heinrich (D-NM), one of Congress’ leading sportsmen and conservationists and a member of the Senate Energy and Natural Resources Committee.