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! 

Webinar: Post-Election Landscape: Mobilizing Outdoor Industry Advocacy in 2025

Learn what the 2024 election outcomes mean for your business. Watch our webinar recording with OIA’s government affairs team to learn about the 119th Congress and the state of play for key outdoor industry policy priorities in 2025. Experts discuss new BEA economic data, ways to engage policymakers, mobilize advocacy networks, and catalyze trade, recreation, and sustainability policy impacts in the year ahead.

 

 

 

TRADE POLICY 101: DEMYSTIFYING SUPPLY CHAIN AND CUSTOMS COMPLIANCE

 

Live Date: Tuesday, May 21, 2024

Supply chain management and customs compliance policy can be daunting. Designed specifically for those new to trade policy, this final session in OIA’s Capitol Summit Series provides you with the insights and tools to successfully navigate the world of international trade, including supply chain logistics, customs regulations, and trade policy. You’ll gain a comprehensive understanding of key concepts including import/export procedures, tariff classifications, trade agreements, and regulatory compliance. Our panel of seasoned experts and industry reps share real-world experiences, best practices, and actionable tips to help you better understand your supply chain operations and ensure compliance with customs requirements.

Outdoor Retailer Education Session: Ask OIA Anything On Trade

OIA’s international trade program is dedicated to promoting a stable and predictable trade environment for outdoor businesses of all sizes, from domestic manufacturers to those that utilize global value chains to bring product to market. Members of OIA’s Trade Advisory Council (OIATAC) meet regularly to provide advice and guidance on new initiatives to help the bottom line of outdoor companies and to collaborate and exchange new ideas and best practices as they navigate tariffs, supply-chain disruptions, shipping costs and other challenges to their businesses. Watch our presentation from Outdoor Retailer Snow Show 2022 to learn from OIA’s outside trade counsels from Sorini Samet & Associates and members of OIATAC on the latest federal trade updates, challenges to outdoor supply chains and how OIA members are responding.

Moderator: Richard W. Harper, Jr., Director of Government Affairs, Outdoor Industry Association 

Panelists: 

Ron Sorini, Principal, Sorini, Samet & Associates, LLC

Ben Christensen, Vice President of Operations, Simms Fishing Products 

Sara Bowersox, Senior Manager of Global Trade Compliance, Keen Footwear

 

Takeaways from the session include:

  • There is broad, bi-partisan support for getting even tougher on China with regard to trade. Punitive tariffs are likely to remain in place for some time.
  • While Congress and the administration focused on domestic priorities in 2021, there’s a chance we’ll see movement on some outstanding trade items early in 2022, like renewing the Generalized System of Preferences (GSP) and a package of miscellaneous tariff bills.
  • Outdoor companies are dealing with unprecedented challenges in bringing products to market, from high freight costs to congestion at US ports. Work on addressing these issues has gone up considerably. Some have found success in broadening partners in freight and logistics, adding more options.
  • Looking at the year ahead, outdoor companies are looking for any opportunity to help with their bottom line, from leveraging any duty savings, streamlining supply chains to developing multiple vendor relationships.

Audio Outdoorist: 2021 International Shipping Crisis

This is the second in our series about international trade and trade policy. In this episode, our director of government affairs Rich Harper and three members of our Trade Advisory Council, discuss the recent precipitous rise in shipping costs, which, on top of punitive tariffs, trade wars and the global pandemic, have made it difficult for our member companies to remain nimble and competitive. Recently, OIA sent a letter to the White House, calling on this administration to invite all stakeholders to the table to identify immediate solutions to the crisis and to enforce all existing regulations. In addition, we’re calling for support on legislation recently introduced in Congress to help alleviate the issues. To learn more about OIA’s advocacy work, to sign up for our trade alerts and to get involved in legislation to help outdoor companies address this crisis, reach out to Rich Harper, OIA Government Affairs Director.

White Paper: Outdoor Sports Insurance Highlights the Necessity of Network Security

For years, Network Security Insurance (commonly referred to as Cyber Liability Coverage) was widely regarded as a boutique coverage needed only by large corporations who store and process large volumes of consumer credit card information. In the later part of the last decade, however, this perception proved inaccurate when cyber-attacks on small to midsize businesses and retailers increased nearly 600%. Cyber extortion targeting small businesses now reigns supreme.

The good news is, Outdoor Sports Insurance has access to a wide array of insurance markets that write cyber policies specifically for the small business owner. These policies are both comprehensive in protection and breach response services, and affordable in premium.

Wrapped together with policies that cover the risks associated with hiking, camping, paddling or any outdoor activity, Outdoor Sports Insurance knows the market and has the products to fit any OIA member.

By definition, a “cyber attack”, or “security breach”, refers to unauthorized access to the IT infrastructure of a company by a third party (hacker) with the intent to corrupt, steal, or destroy data. The types of attacks hackers employ to achieve these ends runs a wide spectrum; Denial of Service (DoS), Phishing attacks, Password attacks and cross-site scripting attacks are just a few of the more common means by which hackers wreak havoc on a company’s network (and subsequently the daily operation of the business itself).

The most common attack, and by far the most damaging in terms of financial impact to victims, is the ransomware attack, commonly referred to as, “cyber extortion.” When a company has been hit with a ransomware attack, malicious software infiltrates a portion, or all, of the company’s IT mainframe. As malware increases in sophistication and complexity, so, too, do the extortion demands made upon the targeted companies. Between 2019 and 2020 alone, the number of companies that reported paying a ransomware extortion demand increased more than 300%.

According to a NetDiligence 2020 Cyber Claims study, the total cost of a network breach ranges anywhere from $1,000, to more than $120 million. The average cost to businesses with less than 200 employees is estimated to be $200K – $750K. Between 2018 and 2020, it is estimated that 45% of cyber-attacks targeted businesses with less than 200 employees. Less than 25% of those businesses carried the proper network security coverage, and even fewer had a formal incident response plan in place. Of the businesses impacted that did not carry the proper protection, more than 60% were out of business within 6 months.

Outdoor Sports Insurance works across multiple carriers to make sure all OIA businesses can find the right policy with the appropriate coverage at an affordable premium. In addition to the coverage itself, Outdoor Sports Insurance supplements the policies with risk management services and third party resources curated to ensure policy holders are equipped with the tools to mitigate the threat of an attack, and expedite the response time should an attack occur.

Included in the coverage portfolio, policy holders have access to a 24/7 cyber response hotline, educational tools to help network users identify threats and phishing campaigns, recommendations for protective software implementations, and best practices for user protocol of a business’s IT property and systems.

OIA has assembled best-in-class services provider partners to offer OIA special preferred pricing on goods and services in marketing, sales, sustainability, supply chain, finance, operations, research, rep associations, and trade shows. Outdoor Sports Insurance is one of those provider partners. Learn more about the OSI partner benefit for OIA members here. In order to receive the discounted pricing offered, you must mention and confirm your OIA membership to the service provider.

Rob Martin and Tori Hoeschler from Outdoor Sports Insurance recently sat down with Rick Saez from The Outdoor Biz Podcast to chat skiing, outdoor adventure, and risk management. Learn about how Outdoor Sports Insurance, protects businesses from inherent risks to areas of exposure that are less obvious, including how small and mid-sized businesses are increasingly becoming targets of cyberattacks. Also hear about how proper waivers and training can save a shop, and how Outdoor Sports Insurance can help you with all of it.

To learn more about cybersecurity offerings from Outdoor Sports Insurance, please contact the team at outdoorsportsins.com, or email OSI@horizonagency.com. And check out this Outdoor Biz podcast featuring Rob Martin and Tori Hoeschler from OSI

 

 

Audio Outdoorist: A Conversation with the Trade Advisory Council

Hear from OIA’s Director of Policy, Rich Harper, and members of the OIA Trade Advisory Council (OIATAC) as they discuss the council’s important policy role. In this conversation, Rich is joined by:

  • Sara Bowersox, Sr. Manager, Global Trade Compliance, KEEN Footwear
  • Ben Christensen, Vice President, Operations, Simms Fishing Products
  • Jeff Tooze, Vice President, Global Customs & Trade, Columbia Sportswear

OIATAC reviews U.S. trade policy, relevant federal legislation and international trade negotiations, develops federal trade policy that may affect OIA membership and recommends policy positions to OIA government affairs staff and OIA leadership. It is made up of OIA members engaged in the business of manufacturing, marketing, and/or distributing outdoor recreation products. It includes representatives from small, medium and large entities representing all segments of the industry, including manufacturing, importers and retailers. OIATAC is administered and supported by OIA government affairs staff. Learn more about OIATAC here.

Subscribe to OIA’s Audio Outdoorist and listen to the full episode and other episodes anytime, anywhere. You can find the podcast on iTunes and SoundCloud

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

THRIVING PEOPLE, THRIVING PLANET AND THRIVING BUSINESSES: BIDEN, CONGRESS AND THE OUTDOOR RECREATION ECONOMY

Presenters: George Cooper, Forbes-Tate; Rich Harper, Outdoor Industry Association; Taldi Harrison, REI; Amy Horton, Outdoor Industry Association; Mike Ratchford, W.L. Gore & Associates; Senator Martin Heinrich (D-N.M.); Jeannie Renne-Malone, VF Corporation

Description: The 2020 general election was one of the most consequential in U.S. history for the outdoor recreation economy. And outdoor voters responded in record numbers in support of all aspects of our policy priorities. With a new administration and Congress, we now have the opportunity to build on the success of the Great American Outdoors Act and help tackle climate change, protect our public lands and waters, expand access to the outdoors for all Americans and help our industry recover from the COVID-19 pandemic with new investments in green infrastructure and close-to-home recreation and a balanced trade agenda. Join us for an exciting conversation on what lies ahead for the outdoor recreation economy and how we can play a meaningful role.