Small businesses keep our boats afloat
Our district is surrounded by water. The ocean, rivers, and lakes throughout Lincoln County keep us alive, literally and economically, through tourism, fisheries, and marine trades. Maine’s boatyards and marinas connect our people to this essential resource. These businesses ensure that recreational boaters can enjoy a safe day on the water, and that those who rely on our waters to earn a living can count on the boats and engines that power their businesses.
However, running a marine business in a state where the water can stay frozen and unfriendly until mid-April is not always easy. Like all Mainers, these family-owned companies and small businesses adapt to the extreme seasonality through work that keeps mechanics busy year-round. Engine sales and service are a critical component to ensure the viability of these small businesses. Our dealers earn a living by providing both the parts and labor to service these engines.
The current watercraft dealer and manufacturer landscape unfairly favors manufacturers, most of which are massive, multinational companies. In fact, there are now just four companies that make almost all outboard motors, down from about 20 a couple decades ago. Of those, only two companies share most of the market in our state.
This recent consolidation has given outboard engine manufacturers significantly more leverage over their dealers and has led those manufacturers to push the limits of the dealer protections afforded by Maine law.
Many of the service jobs needed to support our watercraft businesses are done under warranty, so the dealer is reimbursed for the parts and labor required to perform the repair. Unfortunately, some manufacturers have been skirting Maine’s reimbursement rules by providing the parts for the repair directly to the dealer, denying them the markup on the part. Some manufacturers have even resorted to paying only a fixed price for labor for certain common repairs. These so-called job codes are based on the average time it should take a well-qualified tech working under perfect conditions – which is rarely, if ever, the case. As a result, a dealer may only be reimbursed for 4 hours on a job that took her tech all day to complete.
I’ve introduced a bill to stand up for our local boat dealers and close this loophole. “An Act to Amend the Law Governing Watercraft Franchisor Warranty Reimbursements,” LD 1296, would require a dealer to be reimbursed for the markup on parts, regardless of who provided them, and for the actual time it takes the dealer to complete the warranty repair.
With the boating season getting underway in earnest this weekend, it’s urgent that we pass this legislation and ensure our dealers get paid for the work they do. The Housing and Economic Development Committee voted unanimously to support the bill with an added emergency clause, which means it would take effect immediately upon becoming law if it passes with 2/3 support in the House and Senate. Please encourage your legislators to support this bill and support our local watercraft dealers.
Please don’t hesitate to reach out to me or my Senate office if you have questions about legislation, or if you need help accessing state government resources. You can email me at Cameron.Reny@legislature.maine.gov or call my Senate office at (207) 287-1515. I also encourage you to sign up to receive my regular legislative updates at www.mainesenate.org.