A Washington Town Hall on Trade for Outdoor Companies

When: Wednesday, May 5

OIA Director of Government Affairs Rich Harper will lead a discussion with OIA’s outside trade counsels, Ron Sorini and Andrew Samet, on the wide range of issues that impact global supply chains of critical importance to outdoor companies. Sorini, Samet & Associates has represented OIA for over 15 years, helping our membership navigate a myriad of issues, from punitive tariffs on products sourced from China to securing duty-free treatment for travel goods in the Generalized System of Preferences (GSP).

These are among the topics that Rich, Ron and Andrew will discuss:

  • China tariffs: how long they might continue and prospects for a new exclusion process
  • What the focus in Washington on forced labor means for the industry
  • Implications of the Biden administration’s Build Back Better plan for the industry
  • Shipping challenges for outdoor companies
  • The prospects for new tariffs or free trade stemming from the Section 301 investigations with Vietnam
  • The future of critical trade programs such as GSP and miscellaneous tariff bills (MTBs)
  • Your questions

A NEW BEGINNING? OPPORTUNITIES AND CHALLENGES FOR OUTDOOR PRODUCTS AND GLOBAL SUPPLY CHAINS IN 2021A NEW BEGINNING? OPPORTUNITIES AND CHALLENGES FOR OUTDOOR PRODUCTS AND GLOBAL SUPPLY CHAINS IN 2021

Moderator: Rich Harper; Outdoor Industry Association

Presenters: Sara Bowersox, Senior Manager of Global Trade Compliance, OIATAC Vice Chair, Keen; Ben Christensen, VP of Operations, OIATAC Chair, Simms Fishing Products; Brent Meriam, COO, NEMO Equipment; Loren VandenBerghe, Director Global Logistics, REI; Emily Vedaa, Senior Manager, Global Customs & Trade, Columbia Sportswear

Description: Over the past few years, outdoor companies, from importers to domestic manufacturers alike, have had to deal with a series of threats to their supply chains, from steel and aluminum tariffs and the US-China trade war, to the covid-19 pandemic and the uncertainty of what may come next. With a new administration and Congress, outdoor companies look to turn the corner and take advantage of a surge in interest in outdoor recreation by doing what they do best: develop and bring to market innovative outdoor apparel, footwear and equipment to enhance the outdoor experience. Join us for an informative discussion with representatives from several outdoor companies on how they have dealt with multiple disruptions to their businesses and supply chains and where they see opportunities for growth in 2021 and beyond.

An Interior Secretary the American People Deserve

Outdoor recreation is a cornerstone of American life that relies on the health and wellbeing of the environment. Widespread access to public lands and waters is critical to maintaining and expanding the many benefits of outdoor recreation. As more and more Americans find refuge outdoors during the COVID-19 pandemic, recreation can be a big piece of the economic recovery puzzle.

Americans of all ages and the outdoor industry keenly understand this – as does President Biden’s nominee for Secretary of the Interior, Debra Haaland. With her stellar track record on public lands and waters, climate change, and environmental justice, the Senate would do well to swiftly confirm her nomination.

Secretary-designate Haaland will marry outdoor policy with this potential for economic growth. Throughout her career and during her time in Congress, she has demonstrated a sharp understanding of the impact of the $788 billion outdoor recreation economy and the benefit it has to communities. She led the charge on the Simplifying Outdoor Access for Recreation (SOAR) Act, a bill to cut bureaucratic red tape that prevents Americans from accessing outdoor spaces. She also supported the historic and broadly bipartisan Great American Outdoors Act (GAOA) last session, which provided much-needed funding for public lands and waters. In talking about this bill, she highlighted the close connection between environmental policy and economic recovery, saying “spending time outdoors…creates jobs in the outdoor recreation and restoration economies, but without proper federal funding, the parks, rodeo grounds, and National Parks…are vulnerable, as are the jobs that go along with them.”

In addition to increasing access to public spaces, the conservation and protection of the outdoors is of critical importance. 30×30 – the goal of conserving 30 percent of our lands and oceans by 2030 – is a top policy priority for the outdoor industry and for Haaland, too. As an industry that works closely with the Department of the Interior, it’s encouraging to see that she understands the massive opportunity to fight climate change and protect access, all while conserving public lands and waters. The outdoor industry will gladly work with her agency to develop a cohesive public and private sector action plan.

Addressing climate change is also a top priority for the entire outdoor industry. Businesses that operate in outdoor recreation have been feeling the impact of climate change for years and intimately understand the need for an aggressive, coordinated effort to address the crisis. With Deb Haaland at the helm of Interior, we believe progress can be made while leveraging the outdoor recreation economy as one part of the solution to support the traditional energy communities that will be affected by these changes. In her time in the House of Representatives, she cosponsored the Ocean Based Climate Solutions Act and introduced the Climate Stewardship Act, both of which worked to mitigate climate change by promoting natural climate solutions to keep the planet healthy. She also promised to “continue to push for natural climate solutions” going forward.

To effectively address the growing threat from climate change and protect the environment, we need everyone from Democrats and Republicans in Congress to Fortune 500 companies to park rangers to work together. Secretary-designate Haaland has a history of working across the aisle – she’s gotten more Republicans to sign on to her bills than any other Democrat in the House of Representatives. Her proven willingness to work in a bipartisan manner will be a boon for the outdoors, which after all are enjoyed by Americans from all backgrounds and walks of life.

The American people deserve an Interior Secretary that will fight for all of us. From conservation to economic recovery to climate change, Deb Haaland understands the broad impacts of decisions made by the Department of the Interior. For the good of the environment, the economy, and the people, the Senate should quickly vote to confirm her so she can get to work.

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).

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.