Audio Outdoorist: Climate Klatch — Episode 2

Welcome to 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 the second episode of our new series that’s all about climate action, Amy Horton, OIA senior director of sustainable business innovation, and Greg Gausewitz, product sustainability manager for REI, chat about the recent release of REI’s updated Impact Standards and how the retailer hopes the new sustainability and DEI standards will drive meaningful shifts among outdoor brands. He previews what REI vendor meetings will look like now that the new standards are out, and he explains why the OIA Climate Action Corps is a great way for brands — whether they sell to REI or not — to affordably and authentically forge a path toward climate positive

New ban on products made with forced labor in Xinjiang, China

The Trump administration announced last week that it would ban all inbound shipments containing cotton or any cotton products – including textiles and apparel – originating from the Xinjiang Production and Construction Corps (XPCC) due to forced labor and human rights concerns.

The XPCC is a paramilitary organization that is responsible for most of the cotton production and harvest in the Xinjiang Uighur Autonomous Region (“XUAR”) of China. The U.S. Department of Agriculture estimates that XUAR’s cotton harvest accounts for more than 80 percent of China’s overall cotton production.

This action is the latest in the administration’s effort to combat forced labor and other human rights violations in the Xinjiang region, home to China’s Muslim Uyghur community.

In September of 2020, the U.S. Customs and Border Protection (CBP) announced it would detain imports suspected of being made with forced labor from the following entities in XUAR:

  • Xinjiang Junggar Cotton and Linen Co. and its subsidiaries – Cotton
  • Hefei Bitland Information Technology Co. – Computer parts
  • Yili Zhuowan Garment Manufacturing Co. – Apparel products
  • Baoding LYSZD Trade and Business Co. – Apparel products
  • Lop County No. 4 Vocational Skills Education and Training Center – All products
  • Lop County Hair Product Industrial Park – Hair products

In July of 2020, the administration listed the XPCC as a specially designated national (SDN) under U.S. sanctions laws enforced by the Office of Foreign Asset Controls (OFAC) by the Treasury Department; this bars all transactions that benefit the XPCC or its subsidiaries and affiliates with a 50-percent-or-greater controlling share by XPCC. The Commerce Department has also placed companies connected to the Xinjiang region on its Entity List subject to technology export controls.

In addition, the Senate may consider the House-passed Uighur Forced Labor Prevention Act (H.R.6210/S.3471) before the end of the year. As currently drafted, the bill includes the following provisions:

  • A requirement for the administration to develop an action plan to address forced labor in the XUAR.
  • A prohibition starting 120 days after enactment of the importation of all goods produced, in whole or in part, in the XUAR, based on a presumptive link to forced labor – unless the importer can provide clear evidence to the contrary.
  • A requirement that SEC-reporting companies include new disclosures about any nexus to the XUAR.

It is possible that the bill’s provisions could be amended before a final vote in the Senate. We will keep you posted on any developments.

To learn more about this important issue and the impact on outdoor companies, check out this OIA webinar from September.

Webinar: Understanding and Integrating Diversity, Equity and Inclusion: An Inside Look at the Latest Course in the Outdoor Industry Business Certificate

Speakers: Lise Aangeenbrug, Outdoor Industry Association and Andrés Esparza, Western Colorado University

Take the first step in a life-long path towards a better understanding of what it means to belong to a diverse community and the strength, power, inspiration, and opportunity that such a community can provide for the greater outdoor industry. Learn about the new course currently being offered as a part of the Outdoor Industry Business Certificate (OIBC) program from instructor Andrés Esparza. Learn more about the course objectives, and what you can expect to learn by taking the course. Hear from OIA executive director Lise Aangeenbrug on why knowledge on these principles is critical to a successful career in the outdoor industry. You’ll also have a chance to ask them questions in a live Q&A session.

Help Victims of Hurricanes Eta and Iota

On November 3, Hurricane Eta made landfall off the coast of Nicaragua as a category 4 hurricane, before slowly moving across much of Central America. The constant heavy rains and 140+ mph winds caused catastrophic, life-threatening flash floods, mudslides, and devastating infrastructural damage.

Devastatingly, on November 17, the area was struck once again by Hurricane Iota, a second category 4 storm, causing further catastrophic damage to many of the same areas still reeling from the storm weeks prior. Hundreds of thousands of people have lost everything they own, and hundreds are feared dead.

As one example, the community of Puerto Cabezas, Nicaragua, home to more than 60,000 people, 95% of the buildings lost their rooves and many were completely decimated. Community members and relief workers alike are sleeping in tents and under makeshift tarps. Hundreds of thousands are without food, water or other essential supplies, as reported by one of LifeStraw’s non-profit partners.

To aid in relief efforts, LifeStraw has teamed up with a number of nonprofits, including Food for the Poor, Global Citizen USA, ANF Nicaragua, Feed the Hungry Nicaragua, and Global Response Management. LifeStraw will be sending water filtration supplies to these organizations to assist in disease prevention.

Emergency relief efforts are ongoing, and it will take months, if not years, to rebuild many of the communities affected by these two hurricanes. The outdoor industry has a lot if can offer to support these efforts. The following items have been identified by our partners as critical needs:

  • Tarps and tents
  • Sleeping bags
  • Sleeping mats and cots
  • Mosquito nets
  • Mosquito repellant and mosquito afterbite
  • Solar lanterns
  • Flashlights and batteries
  • MREs (with expiration beyond May 2021)
  • Disaster cleanup gear: shovels, rain boots, raincoats, work gloves, masks, buckets
  • First aid items
  • Life preservers
  • Hoses
  • Stoves (kerosene and LPG)

If interested in donating, please contact LifeStraw’s Social Impact Manager, Tara MacDowell, at TLM@lifestraw.com, who is coordinating relief shipments and distribution. If you would like to support LifeStraw’s relief efforts, we have also created a non-profit, Safe Water Fund to support additional supplies and donations of water filtration: https://charity.gofundme.com/o/en/campaign/hurricane-eta-emergency-relief

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

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.

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.