BLOG: OBM importers might be all at sea in the year ahead!

REGARDLESS of The Skipper's previous subjective diatribe on the woes and misfortunes which will almost certainly befall our industry should the Greens be allowed to find themselves in a position where they would be providing tofu-nibbling, hessian-clad, sandal-wearing beardies (and that’s just the women) to crew the ship of state, there is another more pressing, gnawing and insidious matter which has been looming ominously over us for most of the latter part of this decade. The issue of marine-engine emissions. In this instance, your scribe – surprisingly – won’t rail (too much!) against the schism that has afflicted the OBM industry and the ludicrous situation where the three minor players, who primarily sell low-emission engines (and who would therefore have an immediate advantage market share-wise should emissions regulations be imposed), are trying to force the pace and mandate a standard that suits only their business models.

What is inarguable is the fact that, for a very long time, many of the outboard motors being sold in this country have been legislated out of existence in other key markers like the US, Canada and Europe. Now, The Skipper doesn’t want to go into a dissertation about the pros and cons or rights and wrongs of who sells what and why – besides, all such arguments have been done to death by being trotted out ad nauseam on forum after forum. Our market is unique and, prior to the recent growth of nascent pleasure-boating nations like Russia, it was the second largest single market in the world after the US. What is also unique about our otherwise sophisticated market is the fact that conventional (some people use the accusatory, guilt-inducing word “dirty”) 2-strokes still make up over 50% of all sales.

Regardless of how this scribe feels about the dire possibility of the Greens in government and the fishing areas and waterway closures they’re almost certainly going to ruthlessly demand by way of quid pro quo, another - altogether more foreboding - spectre has raised its head: the Marine Engines Emissions Regulations (Australia) – Government Regulation Impact Statement (RIS). If you sell conventional 2-stroke OBMs, and if you still depend on them for volume, turnover, profit and overall viability of your business, then you should now be seriously looking at an alternative income strategy. We’ve had our share of posturing, opinions and recommendations by proponents and opponents, brainstorming workshops, discussions and industry think tanks etc, but we’ve never before been at the stage where the Government has released a document detailing measures by which emissions of marine engines (OBM and sterndrive) should be reduced. Which means that the clock is now ticking….

Anyway, the deadline for all industry submissions to the relevant Government body, the Department of Environment, Water, Heritage and the Arts (DEWHA), was July 27th, so let’s hope everybody was as diligent at lobbying beforehand as they always are at indignantly moaning and howling in pique afterwards. Although The Skipper would, on this occasion, like to be proven wrong (and do please correct him if, in fact, he is), from what he can see (and there’s no point in naming names and shaming those who appear to be less committed), there has only been one marine engine company that can truly be said to be lobbying properly, equitably, proactively and professionally on behalf of the entire industry – including the dissidents. This particular company has grasped the stark reality that this whole RIS business is, to borrow one of today’s most nauseating, done-to-death clichés, a complete “game changer”. So much serious thought has this manufacturer devoted to this entire issue that they have even gone to the trouble of producing a “fill-in-the-blanks” form letter which boatbuilders or dealers only need complete and send to the relevant party.

If you want a synopsis of merits/demerits, features/benefits and pros and cons of each engine type, then ordinarily The Skipper would be just the man to give it to you, but that is not the point of this piece. The fact is that, Greens or no Greens (but if they are a part of the new Government, then it will hasten the inevitable), the outboard motor business as we all know it will almost certainly change irrevocably and markedly in the next couple of years. Sure, there are always some reasons (albeit tenuous) for guarded optimism. You could, for example, look at some hypothetical “positives” and possibly convince yourself that, as sterndrives and inboards are being forced to adopt catalysts in the US from 2012, this could now lead to boat companies turning out new models to suit large 4-stroke outboards. But large outboards (150hp+) don’t even constitute 10% of our market, so how will you keep your volume and turnover?

For those of you whose businesses are already hitched to the latest technology (to the exclusion of the mainstream sphere), there will be few problems, but the days of both manufacturers and retailers building volume with tiller-steer 15/25/30hp two-strokes and price-point $6K specials will go the way of cigarette packets without health warnings. What we need to realise, dear reader, is that any emissions regulations will almost certainly rewrite the rules for doing business in the outboard motor industry and the days of perennial favourites like “cash-and-carry” 15hp 2-strokes will henceforth be but halcyon memories. So The Skipper hopes that you all submitted your RIS comments in a timely manner…….after all, it’s only your future that’s at stake.