Industry Awards Reception
Mike Nussman, President & CEO
American Sportfishing Association
ICAST Industry Breakfast
July 14, 2004; 7:30 a.m. – 8:45 a.m.
N261 Las Vegas Convention Center

Thank you, Jerry.  As always, it’s a privilege to be here today to speak to all of you about our industry and the future course of your association.  But I’d like to take a second, if I might, and recognize that Jerry’s term as Chairman of the ASA Board of Directors ends in September, and use this occasion to thank him for his dedication and his hard work on behalf of the entire industry.  Jerry, thank you, from all of us!

In looking at the state of our industry, most would agree that 2002 and 2003 were difficult years.  Perhaps the best news is that the economic backdrop we have today is considerably different.  Last year at this time, we were caught up in everything from SARS and terrorism to droughts and flooding.  All these things contributed to an environment of uncertainty and skittish consumers.

This year there’s more reason for optimism.  Most of the leading economic indicators point toward solid growth, consumer confidence is at a two-year high, and interest rates, although ticking upward, remain low.

But where is the fishing business?  Well, who knows better than you:  the industry.  So, as part of our annual industry survey, we asked you.  Seven out of 10 of you told us that you are more optimistic about your business this year than you were at this time last year.  Furthermore, eight out of 10 of you told us that you were optimistic about a strong 3rd quarter for this year. 

And why shouldn’t you be.  Our new quarterly index of fishing license sales is up several points through the first half of the year.  We’re hopeful that this trend will continue through the remainder of 2004.

But we’ve known all along that fishing is an immensely popular sport.  Recent national Harris and Roper polls confirm it.  They find fishing again near the top of Americans’ list of favorite leisure time activities, far ahead of sports like golf and tennis.

So we have a good economy, and optimistic industry, and strong fishing license sales.  That’s welcome news to all of us, especially after several tough years.  But we know from that same member survey that profit margins continue to be a major cause of industry concern.  You can’t have a discussion about profit margins without bringing up the issue of outsourcing.

This is a discussion that many industries are having, from Ford to Microsoft.  Some companies would tell you that the expansion of global manufacturing is a “profit panacea,” while others would say it’s the corporate crisis of the century.  What is undeniable is that outsourcing will continue to have a significant effect on American industries, ours included.

This new global economy influences not just profits, but consolidation, distribution, and innovation.  I hear about this just as often from big retailers and major manufacturers as I do from small companies and dealers.

Rupert Murdoch has said, “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.”

As I think about this comment with regard to our industry, what gives me the most hope about our viability in the future is the passion and ingenuity that has always been the hallmark of the sportfishing business.

In light of the ways global manufacturing is transforming the marketplace, I think innovation is what gives us the best chance to capitalize on opportunities and positively influence our future.

New products drive our industry, whether we’re in a bull market or bear market, whether the products are made in China or Chattanooga.  That’s why the New Product Showcase, the flagship feature of ICAST, is such an important catalyst for the show.  And that’s why many of you are here.

As you walk the show floor for the next three days, it will be easy to find plenty of examples of new innovative products.  Companies are creating market niche through efforts ranging from a focus on ergonomics to creating new starter products for kids.

Businesses are creating new areas of growth by experimenting with environmentally friendly materials for terminal tackle and biodegradable baits and packaging.

I shouldn’t limit my examples to just manufacturing.  I’m reminded of Ken Elie’s presentation at our Sportfishing Summit last year.  He told us about the competitive edge he’s created by recruiting an expert sales team for his Outdoor Pro Shops.

Innovation is about looking beyond what is to what could be.  More than just the next big thing, it’s about what works and taking it to the next level.  We try to take that same approach as your trade association.  It’s about finding ways to help the industry and keep our sport popular and viable. 

Since I’m suggesting to you that innovation is such a critical part of keeping this industry strong, what are we at your trade association doing to help? 

More than anything, the most fundamental role of your association is to protect your long-term interests.  We know you need to stay focused on your sales today and in the next quarter.  Our job is to look out for your tomorrow, to keep an eye on the horizon for the next decade and help you be prepared.  So that 10 years from now, you’re sitting here, with the industry, the sport, and your bottom line better off than they are today.

That leads me to a second, related role for your association.  We must be able to unite and mobilize the industry to address threats and opportunities.  Our ability to stand together is what gives our industry clout.

As I look to the future, I see your trade association focusing on three main priorities.  Our goals and strategies will surely evolve over the next decade, but we’ll be keeping our sights primarily on member services, on advocacy, and on fishing participation.

Over the next several years, I’d like to see our membership expand to better represent every sector of the industry.  Look around the room this morning.  I see manufacturers, reps, dealers, media, and others.  If you were in this room even 5 years ago, you’d have seen a lot less diversity.  And what I’d contend is that our voice is louder and our heavy lifting easier because so much of our industry is represented here.

I think we’re doing a good job of creating solid business benefits and services for our current members.  But when I look down the road, it’s clear we need to design new, targeted initiatives like improving our health care benefits and offering more help with excise tax problems.

We’ll use these benefits and others as incentives to bring other sectors of the industry more into the mix.   Not that we plan to turn away from our manufacturing base, that’s our core and always will be.

But I think it’s clear that every member of our industry shares the goal of a productive resource, more anglers, and a healthier bottom line.  Yet I’m still sometimes asked, “Why do we need to expand our membership”?  My answer is simple, because in unity there is strength.  Benjamin Franklin summed it up when he said, “We must all hang together, or assuredly, we shall all hang separately.”

That leads me to the second priority I mentioned—advocacy.  We wouldn’t be serving you if we didn’t speak up for your long term interests.  Our job is to give you a presence with decision makers in the states, in Washington, and even internationally.  I have to say that this is a job that seems to get bigger each and every day.  Let me give you a couple of examples.  

Just last month, Bob Eakes from Red Drum Tackle Shop in Buxton, North Carolina, came to us with a problem.  The National Park Service had banned fishing access to an important part of the Cape Hatteras National Seashore.  If the ban on access continued, fishing opportunities would to be lost and the effect on the local economy would be significant.  Bob and a few other tackle shop owners, as well as representatives from other businesses, joined us in Washington during National Fishing and Boating Week.  We paid a visit to their Members of Congress and to authorities at the Department of the Interior.  I’m pleased to report that in this case, we made significant progress in restoring the fishing access.   But I guarantee that this isn’t the last challenge we’ll face in North Carolina or for that matter across the country.

Even internationally, as I speak here today, I understand the Canadian government is drafting sweeping regulations that would ban lead in fishing baits and terminal tackle.  If enacted, these regulations would impact our industry and anglers all across Canada.  In the coming months, ASA staff will turn its attention to the Canadian proposal and work with our friends at the Canadian Sportfishing Industry Association to bring common sense to this important discussion.

My message here is that the challenges of the future will require us to be better organized and better funded than we are today.  To that end, over the last year there’s been a lot of discussion on the ASA Board and committees about creating a stronger and broader advocacy network that would increase our influence with policy-makers when issues like those on Cape Hatteras arise.  I’m reminded of Teddy Roosevelt’s timeless advice when wading into conflict, “Speak softly, but carry a big stick”.  Imagine taking aim at a problem with 10 times the influence we have today.

This advocacy network could give us new routes to more easily engage ASA members and the broader sportfishing community for more effective activism.  We could better mobilize to address threats to fishing access, to competing demands for our outdoor resources, and to changing attitudes that threaten to affect our sport.  Our simple goal is to build a big stick to deal with the problems of tomorrow.

We’ll dedicate a special session to this advocacy network at the next Sportfishing Summit on Hilton Head Island in October.  I invite all our members to attend and be a part of these discussions.  I expect that what comes out of that summit to fundamentally shape our future course.

In the few minutes I have left, I’d like to speak on issue of fishing participation.  To me, this is our most important priority.  For if the number of anglers fails to grow, if your customer base erodes, if the sport of fishing falls in popularity, all of the other problems I’ve discussed this morning like fishing access and profitability will only be greater.  I think we have no bigger challenge.  We must grow fishing.  This should be a priority for everyone in the sportfishing community!

So how do we proceed?  The good news is the benefits of us coming together as an industry are not limited to tackling problems.  They also allow us to seize opportunities.

We need not look any further than the countless opportunities to join industry-wide efforts such as the Recreational Boating and Fishing Foundation’s Water Works Wonders Campaign or other efforts to boost fishing participation by our two foundations, the FishAmerica Foundation and the Future Fisherman Foundation.

Right now, our Foundations, FishAmerica and Future Fisherman have a combined annual budget of about $2 million a year.  When the Sport Fish Restoration Act is reauthorized, the budget for the Water Works Wonders Campaign will exceed $10 million a year.  Together, these are significant investments that can make a major difference to our industry and the sport.  But for them to truly be effective, for us to get the maximum return on our investment, we have to have broader industry buy-in and participation.

If you wonder what kind of difference we’re already making together, I can tell you about 75 enthusiastic high school kids in New Jersey who are restoring a 25-acre fishing pond with FishAmerica money.  This all came about because of one of our Hooked On Fishing—Not On Drugs partners organized the project and taught the kids how to fish and about caring for the outdoors.

Or take for example of Marine Lieutenant Joseph T. Gamble currently stationed at the U.S. Embassy in Baghdad.  With the help of our Future Fisherman Foundation, in his spare time, he’s sharing his passion for fishing with Iraqi kids.  

These are but two examples of the great work that goes on, and when multiplied by the thousands of schools, fishing clubs, rec centers, and tackle shops across the country, we can and will shape our future.  And despite the competition that takes place out there on the show floor, I can assure you, we’re all in this together!  Our challenge is to look beyond today, to see what we can become tomorrow.