Competition Winds Down, ICAST Spools Up by Jim Shepherd

Competition Winds Down, ICAST Spools UpYou can measure the time to ICAST in hours now, not days. And it’s appropriate that competition starts winding down as the fishing industry sets its sights on rolling out new product for retailers.

When those doors open, however, the products won’t be the only things being discussed by attendees. The exhibitors at ICAST, after all, are the same groups that sponsor the vast majority of all the professional fishing events across the country.

The number one question on everyone’s minds going into the largest industry trade show isn’t the color, composition or performance of tackle, it’s the impact of a nervous economy on the wallets of consumers.

As the competitive fishing season staggers toward the finish line, it’s not looking like 2010 is going to be one of those seasons where new events will be introduced. Instead, it’s looking like there will be considerably less pressure on fisheries in the form of high-level competitions. With sponsors paring down - or eliminating altogether - their marketing budgets, everyone is starting to feel the pinch.

Last year, pro anglers felt the hit when their seasons ended. The industry practice of “memo boats” took a big hit. A memo boat is sold - technically - to an angler with the bill not coming due until after their fishing season. At that time, anglers have traditionally offered their fully-rigged competition boats out into the marketplace. They were then snapped up by people who wanted a ready-to-go boat that was set up to professional standards. In the ideal scenario, everyone won on the deal. The boat manufacturer discounted the boat to the pro. The pro, in turn, used the boat in competition, promoting and endorsing that brand. At the end of the season, a consumer got a great deal on a boat that had seen some professional use, but had been given the attention seldom languished on any other “used” boats.

Until the economy broke down the system. Consumers didn’t buy the used boats, some pros found themselves unable to pay for them, and manufacturers found themselves in the unenviable position of having to either take back surrendered boats or repossess them.

An ugly deal for everyone.

But it got progressively uglier as small boat dealers collapsed in droves, victims of a tanking economy. Some tried to tough it out. Others simply locked their gates and walked away.

Fortunately, the tackle portion of the fishing industry hasn’t seen that sort of collapse - yet.

But there have been cutbacks at major outdoor retailers. And they have come in a variety of forms, from bankruptcy of stretched retailers to deep- staff reductions. As ICAST kicks in this week, manufacturers are putting on a good face, but they’re concerned that the economy will hurt them in a couple of ways.

New products might not be so quickly embraced. Restocking of proven products may continue what we’ve been told is a decline that has continued throughout 2009.

Visiting with a major retailer last week, I was told stores had been told to reduce product inventories across all the lines, including those that were traditionally strong sellers. Instead of keeping ten units in stock, stores were being resupplied with smaller numbers. That might not sound like a significant thing, but a reduction of in-stock goods from ten to five represents a fifty-percent reduction. When it’s put in that perspective, it’s easy to understand why both manufacturers and retailers are concerned about product sitting in warehouses.

For a manufacturer, unsold product is money they can’t access. In this economic climate, healthy businesses are accumulating cash and trying to hold inventories at levels that are capable of meeting demand - but not much more.

That’s one reason why the recreational vehicle, automotive and boat categories are suffering.

A category leader sitting on your lot isn’t an asset, it’s a liability.

Some cautious trepidation on the part of the fishing industry is inevitable as we head into the largest event of the year. The economy’s sad state is being felt by everyone from the manufacturers, distributors and retailers to tournament anglers concerned that sponsorship money will become even more scarce in 2010.

Fishing, however, is one of those outdoor activities that may be in the position to actually increase its participation levels. In tough economic times, there aren’t many recreational activities that can provide both entertainment and sustenance.

Jim Shepherd

I was lucky enough to have a boat from Tracker Marine for almost a dozen years when I fished the walleye circuits. It wasn’t till the mid 2000’s that I even had a “memo” bill boat. Tracker was so good to me that all I had to do every year was take the boat back to Springfield, Missouri and drop it off.

I recently talked to many pro anglers who are still fishing and many have lost their boats and are scrambling to find new ones. How things have changed!