Archive for » March 2nd, 2013«

Canada. JT’s Top Shop predicts strong year ahead for Canadian marine supply …


Positive economic indicators, including increased traffic at this year’s Toronto International Boat Show, lead JT’s Top Shop one of Canada’s largest suppliers of marine canvas and boat upholstery supplies, to predict that 2013 will be a good year for the Canadian Marine Industry.

JT’s Top Shop (http://www.jtstopshop.com), Canada’s leading supplier of marine upholstery, boat canvas, marine fabrics and hardware, predicts that 2013 will be a good year for the Canadian boating industry and for marine sales in Canada. Strong in store and internet sales, positive economic indicators and increased traffic from the previous few years at the Toronto International Boat Show in January are just a few of the signs that people have more confidence in the economy and are willing to spend more on recreational products like boats, according to Jari Vartiainen, owner and operator of JT’s Top Shop.

At the 2013 Toronto International Boat Show, the National Marine Manufacturers Association (NMMA) released their second annual Canadian Statistical Abstract. The NMMA is the leading recreational boating industry association in North America and in their report for 2012 they state that, “The tide is turning” for Canada’s boating industry. The NMMA Canadian Statistical Abstract is a compilation of statistics on recreational boating retail sales in Canada, boater demographics, imports/exports, the retail market, and economic issues that affect the industry. It states that in 2012, the Canadian recreational boating industry saw a thirteen percent increase in new boat and engine sales totalling $2 billion. Sara Anghel, Executive Director of NMMA Canada, reports that a more stable U.S. economy and increased Canadian consumer confidence helped the Canadian recreational marine industry in 2012, and the thirteen percent increase in sales will create “momentum” in 2013.

“When the recession hit in 2008, new boat sales dropped off considerably. People were staying away from new boat purchases and were buying used boats and fixing them up instead. As well, boat owners who every few years would normally trade in their old boat for a new one, were holding off, and in the meantime, were spending more on repairs and renovations to their old boat. To freshen up their boats they were spending money on replacing the old canvas, biminis, boat covers or repairing the cockpit upholstery. As new boat sales fell and the economy worsened, do-it-yourself boat repair spending increased,” states Vartiainen. “While this has not been good for the marine industry as a whole, businesses like ours who sell a wide range of marine supply products for the do-it-yourselfer have benefitted greatly, as more boaters choose to do their own boat repairs to save money. With all signs suggesting that new boat sales in Canada will continue to increase through 2013, we are expecting an even greater increase in business from last year. After all, when a boat owner trades in his old boat for a new one, there will be someone out there who will buy that used boat. The new owner of that used boat will probably want to make some repairs sooner or later and we will be ready to sell him everything that he needs to do the job,” adds Vartiainen.

About JT’s Top Shop: A one stop shop for marine textiles, boat canvas and marine repair supplies, JT’s Top Shop, a leading Canadian marine supply retailer, serves both the do-it-yourself boat owner and the commercial marine industry. A certified distributor for Sunbrella Canada, they offer a wide range of boat canvas, upholstery and exterior vinyl materials, as well as everything you need for marine textile work and to do your own canvas repairs. Order from JT’s extensive online catalogue or visit their retail store and warehouse located in Midland, Ontario. JT’s Top Shop ships products across Canada..

Last Updated ( Saturday, 02 March 2013 )


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Limit sought on boat tax might help struggling industry, hurt waterway fund – Baltimore Post

By Becca Heller
becca@marylandreporter.com

Yacht in Annapolis harbor (by Mr. T in Dc-Flickr)

A state bill proposing to set a $10,000 maximum tax on boat sales sparked a tense debate due to its potential implications on Maryland’s struggling maritime economy and the Waterway Improvement Fund (WIF).

The bill was drafted with aims to stimulate local marine-related jobs and businesses and discourage out-of-state purchase of boats — a practice which has become increasingly common due to the lower sales tax of vessels in neighboring states.

“Working where I do, I have a front row seat to the recreational marine world, and the past few years have been alarming,” said Bill Brandon, who works at Tidewater Yacht Service in Baltimore. “Vessels that have been registered and kept in Maryland are being sold and shipped out of state at a rising rate.”

Lower tax undermines waterway fund

Lowering the boat tax, however, would reduce funding to the already underfunded waterway fund; and while the annual cost to maintain existing boating infrastructure is about $41 million, the fund brought in just $14.5 million in fiscal 2012, according to the Department of Natural Resources.

House Bill 548 would further reduce the Waterway Improvement Fund, leaving Maryland unable to maintain waterway navigation channels, resulting in public safety hazards, access issues for commercial watermen, detriments to restaurants, marinas, and tourism, and a loss of boating related jobs,” said Olivia Anderson, legislative director of the Department of Natural Resources.

Proponents of HB 548 counter that the initiative, which most notably made Florida $13.5 million in 18 months, would generate significant capital for the industry and would in turn be a positive thing for WIF. The Department of Legislative Services estimated that the sale would result in about $3 million less in revenue based on past tax collections, but said that number could vary widely if boat sales increased due to the lower tax.

Tax cap helps sales of high-priced boats, but hurts average owner

With the tax cap, the bill particularly incentivizes the purchase of larger, more expensive boats — a factor which some feel is critical to healthy maritime economy.

“Boat US statistics show that 10% of a vessel’s value is spent each year on maintenance, repair and storage,” said Susan Zeller, the executive director of the Marine Trades Association of Maryland. “As an industry, we are missing out on a substantial amount of maintenance, repair and storage by not registering more boats in the 50 to 70 foot range.”

Others feel that the $10,000 tax cap unfairly advantages those who are already wealthy enough to purchase bigger boats, leaving the brunt of the tax responsibility on the “average” boater.

“Limiting or capping the tax at a specified dollar amount would mean that a purchaser of a vessel with a smaller fair market value would be paying the full 5%, while a purchaser of a vessel with a greater fair market value would be paying a smaller percentage of tax,” said Andrea Mansfield, the legislative director of Maryland Association of Counties. “This does not constitute fair tax policy.”

Supporters of the bill assert that, on the contrary, this bill would benefit, not just the wealthy, but also small businesses and the state.

“While buyers do benefit from these tax policies, the real winners are state treasuries and the hundreds of workers who depend upon the business generated by these boats,” said David Dickerson, state government relations director for the National Marine Manufacturers Association.



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