The recreational boating industry supports manufacturers, suppliers, dealers and thousands of jobs nationwide, but changing regulations and softer post-pandemic demand are creating new challenges for small businesses across the sector.
Joining us on the latest episode of Business Trends Today are Dustin Hollis, Facilities and Compliance Manager at Grady-White Boats in North Carolina, and Tyler Teresa, Southeast Regional Administrator for the U.S. Small Business Administration (SBA), to discuss the industry’s regulatory and economic pressures.
Hollis opens the discussion by highlighting Grady-White’s recent ownership change to a purpose trust under Andy Smith. The new structure aims to preserve the company’s independence and ensure it continues to serve its employees, customers and community for the long term.
Currently, Grady-White employs roughly 340 people in Greenville, North Carolina, and supports another 150 jobs through local small business suppliers.
The industry concern
Hollis says styrene’s placement on the Toxic Substances Control Act (TSCA) prioritization list ranks among the industry’s biggest regulatory concerns. The chemical is a key component in the resins and gel coats manufacturers use to build boats.
“95% of the boats sold in the US are built right here in the United States. It doesn't get much more American manufacturing than that.” – Dustin Hollis
The industry currently lacks a viable alternative that would let manufacturers maintain existing production processes if regulators ban styrene, Hollis says, warning that a ban could push boat manufacturing and related jobs outside the United States.
Teresa, for his part, explains that the SBA has been holding regulatory roundtables with small businesses and manufacturers to address these concerns.
At a roundtable in Morehead City, North Carolina, boat manufacturers raised concerns about styrene and its potential effects on the industry. The SBA is gathering specific examples and data on business impacts to communicate effectively with federal regulators, Teresa says, describing the effort as part of a broader push to identify regulations that impose significant compliance costs on small businesses.
“When the federal government doesn't actually hear from industries, that's how mistakes happen.” – Tyler Teressa
Hollis says regulatory requirements can significantly affect Grady-White’s ability to operate and grow, pointing to a proposed OSHA heat standard as a potential compliance challenge for small boat manufacturers. Additional documentation and procedural requirements, he argues, could complicate operations already subject to OSHA rules related to styrene, adding to the uncertainty that makes long-term planning for growth and workforce needs more difficult.
Resources for manufacturers
The SBA also offers resources to help manufacturers navigate regulatory and financing challenges. Teresa says the agency is committed to reducing barriers for small businesses and encourages companies to submit specific examples of regulations affecting their operations through its regulatory assistance program. He also points to SBA lending programs that improve access to capital, noting that manufacturers can qualify for a 90% SBA guarantee when seeking eligible financing through participating lenders.
Hollis says the economic impact of boat manufacturing extends beyond sales, creating opportunities for marinas, boatyards, repair shops, retailers, fishing tackle and electronics companies, and other services across a network of small businesses dependent on boating activity. He adds that fishing regulations and access changes, such as new seasons and permits, can ripple across the broader boating ecosystem.
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