Collaboration: The Key to Impactful Climate Action

A Letter from Greg Gausewitz, REI Co-Op Senior Manager of Product Sustainability and OIA Sustainability Advisory Council Co-Chair

Happy New Year! As we cross the mid-point of this decade, we’re offered an opportunity to reflect on the current moment and set our sights on the path ahead. Many of our organizations have set multi-year, science-aligned climate targets that come due in or near 2030. That means many of us are near the half-way mark in pursuing our near-term climate goals. What have we learned? What might we change to accelerate and deepen our impact going forward? 

In my role at REI, I have the privilege of working with the world’s leading outdoor brands, many of which are also global leaders in sustainability. Yet, no one organization has all the answers about how to solve climate change. Overcoming this challenge will require a deep commitment to collaboration – and action.  

We’ve seen effective climate collaboration become increasingly commonplace. We need look no further than the OIA’s Climate Action Corps CoLabs to observe this in our industry, and many collaborative initiatives have emerged outside our industry. I encourage any brand looking to build momentum in their sustainability efforts to consider how they can participate in collaborative initiatives with other organizations. 

I’ve been inspired to see so many brands, big and small, rise to the occasion in taking climate action. REI recently partnered with OIA and Change Climate to host climate workshops to provide guidance to brand partners. Some of the most engaged brands were also the smallest. Several mom-and-pop brands, some with only a handful of employees, made massive progress in their climate efforts: measuring their emissions, setting reduction targets, and putting in place action plans to reduce their emissions. It was a powerful reminder that taking action is simply a choice. No brand is too small to have an impact. 

As we look to the latter half of the decade, we have more tools than ever to make meaningful progress in our fight against climate change. We’re seeing the rapid emergence of next-generation materials that offer significant carbon savings. We’re seeing more opportunities to collaborate with our suppliers to transition away from high-emitting manufacturing processes and bring more clean energy online in our supply chains. And we’re seeing new tools like The Climate Label emerge that promise to spur climate action and enable brands to connect with our customers in new ways. 

I’m excited for what’s ahead, and I look forward to collaborating with this community to steward the outdoors we all love for generations to come.  

Greg Gausewitz 

Sr. Manager, Product Sustainability at REI 

Co-Chair, Climate Action Corps Advisory Council 

Business Solutions for Outdoor Leaders in 2025

Your business thrives when you have the right tools, resources, and community to support your goals. That’s where Outdoor Industry Association (OIA) comes in. More than a trade association, OIA is a member-led collective of businesses like yours—leaders, innovators, and changemakers—who are shaping the outdoor industry’s future while achieving measurable success today. 

We know what matters to you: growing your business, staying competitive, and leading with purpose. OIA is here to deliver the education, events, and business intelligence you need to seize opportunities, tackle challenges, and drive results. 

Here’s how you can make the most of your OIA membership in the coming year:

1. Use Your Outside Voice Through Advocacy

Timely engagement on issues critical to the health of our businesses and industry is not just the right thing to do—it’s a must do. We unify the voices of small and large companies across the country to promote policies and programs to save money, create jobs, invest in recreation, expand outdoor access for all, and protect our environment.  

 In 2025, we’re introducing new opportunities to engage and mobilize advocacy at the intersection of equitable access, trade, climate, and conservation.  

2. Drive Strategy with Industry-Leading Business Intelligence

Better understand the markets and people you serve through OIA’s industry-leading data and insights on participation trends, market forces, consumer insights, and more. We work with multiple sources and leverage deep industry connections to provide the most focused and trusted view of the market and our consumers.  

From comprehensive reports on participation and retail trends to benchmarking studies, our data empowers you to make informed decisions and drive growth for your business. 

 3. Lead the Charge for a Sustainable Future

Through OIA’s trailblazing programs and pre-competitive collaboration, your brand protects the outdoor experience upon which we all depend. We help our members learn fast to apply realistic and proven solutions to reduce greenhouse gases, phase out harmful chemicals, apply safe alternatives in the supply chain, and get ahead of challenges that impact product quality and customer satisfaction.  

Our collaborative community is here to help you protect the people and places touched by your products and value chains.    

4. Connect and Innovate at Industry Events

OIA brings the outdoor industry together through events and gatherings designed to inspire collaboration and innovation. Whether it’s through Capitol Summit, Catalyst Conference, Switchback, or virtual convenings, you’ll have opportunities to network with industry leaders and forge meaningful partnerships.  

From the timing of events to the content they deliver, we aim to shape gatherings that bring value to all members and reflect the voices and needs of our entire community. 

5. Empower Your Team with Resources and Savings

OIA membership includes a wealth of resources to help your team grow. From our career center, press room, and member portal to exclusive access to special preferred pricing on goods and services from OIA’s 20+ best-in-class service provider partners, your team can stay ahead of the curve and drive success across your organization.

6. Foster Equity and Inclusion in the Outdoors

OIA’s philanthropic arm, The Outdoor Foundation, is 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, we work with partners across the country to address equity barriers and help make the outdoors accessible for all. Your business can be a part of the movement. 

Ready to Engage?  

No matter your sector, product category, or company size, OIA is your partner in driving business success while staying true to the values that define the outdoor industry. Let’s make 2025 a year of meaningful growth and impact for your brand and our industry. Talk to our team today. 

 

 

4 Ways Your Outdoor Business Can Advocate for Climate in 2025

2025 will bring a host of changes to the United States’ climate policy landscape. A new presidential administration will enter the White House, with more conservative views on climate than the current Biden administration. The 119th Congress will be sworn in on January 3, with Republican majorities in the Senate and House of Representatives. These transitions portend some changes for federal climate policy. It is likely that the Trump administration will be less supportive of climate policies than the Biden administration. The Trump administration has also threatened to roll back federal climate and environmental policies, including the landmark Inflation Reduction Act (IRA). The unknowns: How successful will the Trump administration be in rolling back said climate policies? Will the Trump administration be able to effectively gut the IRA? Despite these dynamics, there are still many opportunities for the outdoor industry to advocate on behalf of climate policies to protect the areas we all depend on for outdoor recreation. These include:  

Focus on the States

While it is unlikely that the Trump administration will support federal climate policies, many states are pursuing aggressive climate agendas. California has enacted some of the country’s most progressive climate policies, including the Climate Corporate Data Accountability Act (SB 253), the Climate-Related Financial Risk Act (SB 261), and the Responsible Textile Recovery Act (SB 707). Other states like New York and Washington are expected to introduce climate bills in 2025. New York will likely reintroduce the New York Fashion Act (A4333), and Washington State will likely reintroduce its own version: the Washington State Fashion Sustainability Accountability Act (HB 2068). While both acts failed to gain momentum in either state’s legislature in 2024, proponents of the bills hope that they will gain more traction in 2025. OIA Members have the opportunity to advocate on behalf of policies at the state level that will advance the industry’s broader climate goals, and to ensure that the legislation that’s introduced is realistic and attainable for industry compliance. 

Defend Federal Policies

While it’s unlikely that new federal climate policies will be enacted, the industry can coalesce around protecting existing policies. An example of this is advocating on behalf of the Inflation Reduction Act (IRA). Outdoor businesses – particularly those located in red states – can testify on behalf of their local communities on the benefits received from the IRA, and stress the bipartisan and infrastructure benefits of the IRA. 

Look Abroad

Like the States, foreign nations continue to advance climate policies that impact American businesses. Europe’s Green New Deal has far-reaching impacts on global business operations. Other countries such as Canada and Australia have also been ramping up their climate policies.

Recognize and Leverage the Industry's Power

The outdoor industry is a 1.2 trillion-dollar force. Despite partisan politics, the outdoor industry has a strong voice and can leverage our market share to continue to advocate for policies that protect our outdoor spaces for generations to come. We can and must stress to all legislators: our business vitality depends on climate action. 

Solid Economy, Cautious Consumers: Outdoor Retail Confronts Challenges

Despite slowing inflation and a healthier overall economy, the outdoor retail market continues to face challenges. From shifting consumer behavior to cautious spending habits, there remains significant growth opportunities for outdoor industry businesses as we head into the new year. Read on to get a high-level overview of the trends driving the outdoor economy, as detailed in our recent State of the Outdoor Market Report Winter 2024.  

GDP is up, But OUtdoor Retail Sales REmain Low

The U.S. economy is showing signs of growth, with GDP increasing by 2.8% in Q3, low unemployment at 4.2%, and wages steadily rising. Inflation is under control at 2.6%, and consumer sentiment remains high. Yet, despite these positive economic indicators, the outdoor retail market has seen a 5% dip in sales for the July-September period, totaling $6.2 billion. 

Shifting Consumer Behavior: From Big-Ticket Items to Casual Gear

One notable trend is a shift from high-ticket outdoor gear—such as kayaks and camping equipment—to more casual and affordable products. Consumers are prioritizing items like road running shoes, casual apparel, and insulated cups. These products cater to the growing number of casual outdoor participants who enjoy activities like hiking, biking, or park visits, but don’t require specialized gear. 

Holiday Shopping Outlook: Small Retailers Shine

The holiday shopping season presents a potential bright spot for the outdoor market. Interestingly, many outdoor consumers are turning to small retailers this season. Over half plan to shop at smaller stores, seeking personalized service and expertise. For independent outdoor brands, this trend presents a valuable opportunity. 

Challenges in Outdoor Retail Sales

Despite the positive outlook for the holidays, outdoor product sales in September 2024 were down across the board. The decline affected every major sales channel, including large retailers like Dick’s Sporting Goods and REI, as well as online sales. Categories such as hiking boots, trail running shoes, and outerwear saw sharp decreases in both units sold and revenue. 

Looking Ahead: What’s Next for Outdoor Brands?

While the broader economy remains strong, outdoor retailers face an uphill battle in 2024. The shift toward casual outdoor gear, combined with a more cautious consumer mindset, suggests that sales may remain flat or even dip. For brands to succeed, they’ll need to focus on more affordable products, adapt to the growing number of casual participants, and leverage the trend toward small-business shopping during the holidays. 

Conclusion: A Market in Transition

The outdoor retail market is experiencing a shift, with consumers increasingly opting for casual outdoor gear rather than expensive, specialized equipment. The economic landscape remains positive overall, but inflation and changing consumer behavior are driving a more cautious approach to spending. Outdoor brands that understand and adapt to these trends—by offering more affordable, casual products and tapping into the holiday shopping momentum—will be better positioned to thrive in 2024 and beyond. 

4 Key Post-Election Policy Implications for the Outdoor Industry

The 2024 election resulted in a dynamic political landscape with significant policy implications for outdoor industry businesses, particularly in overseas manufacturing and exporting. During our industry-wide webinar this December, OIA convened policy experts, government affairs representatives, and attendees to share insights and answer questions about tariffs, trade policies, and broader regulatory challenges under the new administration. Read on for key takeaways from the session and answers to some of the industry’s most pressing questions. 

Key Takeaways 

  • The outdoor recreation industry contributes $1.2 trillion to U.S. GDP and supports over 5 million jobs, underscoring its importance as an economic driver. 
  • Early and consistent engagement with the new administration and 119th Congress is critical to ensure the industry’s voice is heard on issues like trade, public land management, and sustainability. 
  • Businesses should prepare for potential new tariffs on China, Vietnam, and Mexico, emphasizing the need for supply chain diversification and proactive communication with policymakers and consumers. 
  • Circularity, product durability, and recyclable materials are becoming regulatory priorities, offering both challenges and opportunities for companies to innovate. 
  • Leveraging robust economic and sustainability data is essential for advancing policy goals and demonstrating the industry’s contributions. 

Tariffs and Trade Policy

How soon could the administration implement tariffs on outdoor products? 

The administration is expected to act quickly on tariffs, with announcements potentially coming as early as Inauguration Day. Tariffs targeting countries with significant trade deficits, such as China, Vietnam, and Mexico, are anticipated. Businesses should be prepared for swift changes. 

Should manufacturers move operations out of China? 

While moving operations out of China may help mitigate risks, it’s important to avoid over-reliance on a single alternative, such as Vietnam, which may also face tariffs. Companies are encouraged to adopt a diversified multi-country sourcing strategy and consider onshoring and nearshoring opportunities to reduce dependency on high-risk regions. 

Mitigating Tariff Impacts

What can companies do to mitigate the impacts of increased tariffs? 

Diversifying supply chains is critical. Businesses should explore sourcing alternatives, including domestic production. Additionally, clear communication with consumers about the impacts of tariffs—such as breaking down costs on receipts—can raise awareness and drive advocacy. 

Will there be reforms to the 321 Program? 

Changes to the de minimis program under Section 321 are likely, with restrictions expected on categories like apparel and footwear. Companies should monitor legislative developments to adapt their strategies accordingly.

Advocacy and Engagement

How can companies advocate for their policy priorities and when should they engage with the new administration? 

Early engagement is essential. Advocacy efforts should begin as soon as the administration and Congress take office, emphasizing the industry’s economic contributions and the impacts of proposed policies. Coordinated campaigns, like participation in OIA’s Capitol Summit, are effective in amplifying these efforts. 

Will there be opportunities for coordinated advocacy efforts? 

Yes, coordinated advocacy initiatives, such as Capitol Summit and coalition campaigns, will provide platforms for engaging policymakers. Businesses are encouraged to join these efforts to ensure their voices are heard. OIA is here to facilitate any advocacy efforts that members are interested in. 

Broader Sustainability and Regulatory Trends

Do you see a shift in how retailers approach sustainability and climate goals? 

 Retailers were the among the first to incentivize sustainable practices, such as circularity, setting targets for emissions, and reduced packaging, from their supplying brands. After the election, there has been no indication that outdoor retailers will de-emphasize their sustainability and climate goals. They are committed to science-based targets and still have to comply with European regulations. 

What trends in sustainability should companies prepare for? 

 Regulatory focus is shifting toward circularity, with initiatives like California’s textile circularity laws paving the way. Businesses should prepare to align with sustainability goals through durable, repairable, and recyclable product designs. European regulation if often reflected in emerging state regulations, so supply chain traceability and data transparency could also be on the horizon. 

Looking Ahead

The post-election environment presents both challenges and opportunities for businesses. Tariffs, trade policies, and sustainability regulations will require strategic planning and advocacy. By staying informed and engaged, companies can navigate these changes effectively, ensuring resilience and long-term success. 

You can watch the full webinar recording here. For further discussion or questions, feel free to reach out to ga@outdoorindustry.org or join our upcoming webinars to stay ahead of policy developments! 

New California and Canada Sustainability Regulations: Key Impacts for Outdoor Brands

In a significant step towards enhancing sustainability and consumer safety, California has recently enacted two pivotal bills that will reshape compliance for manufacturers and retailers. The Responsible Textile Recovery Act of 2024 (SB 707) and the Household Product Safety: Toxic Substances: Testing and Enforcement (AB 347). Concurrently, Canada is implementing a new PFAS reporting rule, requiring importers to disclose specific per- and polyfluoroalkyl substances. These regulations will require immediate attention from outdoor industry brands and manufacturers. Our Clean Chemistry and Materials Coalition is here to support members with guidance and collaboration to ensure compliance and sustainable progress.

Two sustainability bills signed into law in California:

  • The Responsible Textile Recovery Act of 2024 (SB 707)
    • What is it? This law adopts a stewardship program for textiles, requiring producers to fund, design, and implement a program via a producer responsibility organization (PRO) for collecting, sorting, and recycling textile articles.
    • How does this impact outdoor brands? If you sell textile products in the State of California, you will be subject to this rule, which is slated to go into effect on January 1, 2030.
  • Household Product Safety: Toxic Substances: Testing and Enforcement (AB 347)
    • What is it? This law requires covered manufacturers to register with the Department of Toxic Substances control, pay a registration fee, and provide a statement of compliance.
    • How does this impact outdoor brands? If you produce textile articles, juvenile products, or food packaging products, you will be subject to this rule, which is slated to go into effect on July 1, 2029. 

New PFAS Reporting Rule in Canada:

  • What is it? The Notice with respect to certain per- and polyfluoroalkyl substances (PFAS) creates reporting requirements covering 312 PFAS when manufactured, imported, or used above certain thresholds.
  • How does this impact outdoor brands? If you are the importer of record of any covered product under this notice, you must submit your report to Environment and Climate Change Canada (ECCC) by January 29, 2025.

Looking for expert guidance on how to ensure your brand is meeting new and upcoming sustainability requirements? OIA’s Clean Chemistry and Materials Coalition provides members with a scalable action plan for eliminating and replacing harmful chemicals and materials, delivering supply chain transparency, recycling and emission disclosures and more. Contact our sustainability team to learn more sustainability@outdoorindustry.org

5 Ways Benchmarking Can Drive Growth and Profitability for Your Outdoor Brand

In today’s competitive outdoor industry, brands need to make data-driven decisions to stay ahead. Benchmarking is a powerful tool that allows you to measure your brand’s performance against your competitors and industry standards, uncovering opportunities for growth and profitability. Here’s how benchmarking can help your outdoor brand blaze new trails to success:

1. Optimize Financial Performance

Benchmarking provides a clear picture of your brand’s financial health by comparing key financial ratios and indicators. By analyzing metrics like revenue growth, profit margins, and inventory turnover, you can identify areas where your brand excels and where improvements are needed. For example, understanding how your profit margins compare to industry leaders can highlight pricing strategies or cost management practices that could be adopted or refined. Similarly, tracking inventory turnover rates against top performers helps ensure that your capital isn’t tied up in excess stock, boosting cash flow and profitability.

2. Streamline Business Operations

Your brand’s operational efficiency is critical to sustaining growth. Benchmarking allows you to assess core business operations, focusing on metrics such as SKU count, sales channel mix, marketing mix and ROI, sourcing mix, number of employees, and sales per employee. By comparing these metrics with industry averages or top performers, you can identify inefficiencies or areas for optimization. For instance, understanding the right balance in your sales channel mix or the effectiveness of your marketing spend can lead to better allocation of resources, improved customer reach, and ultimately, higher sales.

3. Implement Actionable Best Practices

Benchmarking goes beyond identifying gaps; it can often unlock actionable strategies for your brand’s specific needs. For outdoor brands, this could mean adopting best practices for revenue and gross margin optimization, asset management, or payroll control. These practices help you streamline operations, reduce costs, and enhance profitability. For example, if your payroll expenses are higher than industry norms, benchmarking can guide you in implementing more efficient workforce management practices, or if your gross margin is below average, it might suggest pricing adjustments or cost-cutting measures that align with industry standards.

4. Gain Targeted Insights

Not all outdoor brands are alike. Segmenting by company size and product line allows you to pinpoint opportunities within your specific market segment, whether you’re a niche specialty brand like OIA member Gossamer Gear or a large, diversified outdoor company like The North Face. By comparing your performance to similar-sized companies or those with a similar product mix, you can identify the best strategies for your unique circumstances, ensuring that your growth efforts are both targeted and effective.

5. Catalyze Continuous Improvement

Benchmarking is not a one-time exercise but a continuous process that drives ongoing improvement. By regularly measuring your brand’s performance against industry benchmarks, you can stay ahead of trends, anticipate challenges, and adjust your strategies proactively. This ongoing evaluation ensures that your outdoor brand remains competitive, agile, and poised for long-term growth.

Ready to incorporate benchmarking into your business strategy? OIA makes it easy. Our new 2024 Outdoor Brand Benchmarking Report provides decision-makers access to exclusive industry benchmarks across all major business functions so that you can make informed decisions and lead your outdoor brand to success. Learn more and gain access to the data and insights today.