If You Had Three Marina Wishes

Other than wishing for the next winning number of the Power Ball Lottery, what would be your three wishes for your facility?

I have asked this question throughout the world. Some of the answers I have received include: be more profitable; find and keep skilled employees; lower insurance; less regulation; more understanding regulators; better water depths; better protection from storms; keeping up with the changing needs of boats and customer expectations; a meaningful succession path; increased customer loyalty; better weather; a longer high season; nicer neighbors, and the list goes on.

But if you boil it down to the top three themes, those wishes involve regulation, profitability and employees.

Regulation
We have not found one facility operator or owner that has not complained about the endless and increasing regulations. Most also agree that there needs to be some meaningful regulation. How many times have you said, when referring to something outside of your business, that there should be a law against that? I think we all have said something like that on more than one occasion. And in the past there have been some abuses and bad apples in the industry that, while a minority, have been more visible and combative. There are some topics in our industry, such as dredging (discussed in my previous column), that conjure up more emotion on numerous sides.

And the regulations are still coming – and they are even more intrusive and more restrictive. They are affecting most every aspect of a facility from more substantive issues such as stormwater, safety and maintenance operations to record keeping or questions one can ask a prospective employee.
The irony is that the regulations usually have a meaningful goal that gets lost in the process, and more often than not are extremely restrictive on operations, add significant expense to the facilities, and in the end, often don’t accomplish the intended goal. Most are conceived and written by those who have no familiarity with the industry or real-world (non-government) work environments. The process has been compared to designing a thoroughbred race horse and ending up with an octopus.

I do want to point out that not all regulators are bad. In fact, I have a great respect for regulators who are willing to listen and try to see the various cause and effect impacts of regulation. The industry can often be part of the problem. The industry seems to react after regulations are imposed as opposed to being proactive and spending time working with regulators, going to meetings, being on commissions, seeking to be part of the drafting and formulation, etc. I often hear, “how could they have done this?” … or …“how could they let it happen?” Part of the problem is the use of “they,” as opposed to “we.” Even the numerous industry associations can fall victim to being reactive.

It’s as rare to take down a toll booth, as it is to eliminate regulations. But they can be modified, and new proposed regulations can be put in a more user-friendly framework. It just takes all in the industry to be continually proactive and working together.

Profitability
Who does not want to be more profitable? The issue of profitability has two sides: the revenue side and the expense side, which are both partners. The cost of everything continues to rise – some things exponentially, and some with a lesser rate of rise. Insurance, particularly medical, seems to claim the status of the fastest continually rising cost, employee compensation and taxes seem to follow next. But nothing seems to be left out. Many of these costs have far outpaced inflation, helping to contribute to years of deferred maintenance in the industry.

In terms of monitoring expenses, there is no easy answer. For insurance, there are industry groups, usually through trade associations, that can be helpful. Having operations running as efficiently as possible will make them more cost effective. Managing inventory for parts can also prove to be meaningful. If part distribution centers are relatively close by, they can cut the costs of maintaining a large inventory. Likewise, using overnight delivery systems is also meaningful. However, when managing inventory through others, you have to be mindful of cut-off times. This means that you need to find out what parts are needed early enough to get the next day delivery, or end up with longer delays in completing the work, which does not please the customer.

We have found that most facilities agonize over raising their pricing. We agree that one needs to carefully consider the competition and what the market perceives. However, the higher the quality of the product, the more you can charge, leading to better profitability and cash flow. The marina industry continues to be one of the more restrained in raising prices. Customers do not like to pay more – but this is their leisure time enjoyment, and if communicated correctly, most will pay the tariff, if they perceive that they are getting value for what they are paying. The cleaner, more modernized, convenient and functional the facility is, the more one is willing to pay. So investing in the facility is investing in a more profitable future.

Employees
There is no question that finding and keeping skilled labor is increasingly difficult.

The industry, as well as community colleges and trade schools, are setting up programs to help train qualified help. Various engine companies are setting up their own schools or working with others in programs to train people on engine repair. The American Boat and Yacht Council (ABYC) has courses on electrical wiring. Industry associations and others run various courses for different levels of employee training. Many facilities are offering internships through local high schools, trade schools and colleges for those interested in various aspects within the field – which have proven to be a significant win-win-win for students, the schools and the facility in attracting a source for fulltime employment. However, many schools do not seem to know how to reach out, so facilities should seek out the schools and not wait for a call from the schools or their students.

As I travel, I find that many of the skilled workers have been at a facility for years and are treated well and feel like they are part of the family. That can be a very strong calling card in this day and age. But the younger generation is growing up in a more mobile society with different motivations and desires.
Finding ways to have younger workers buy into being part of the facility is never easy. However, there are lots of different approaches, but it usually comes down to the individual involved and the feel of the facility. For smaller facilities, they can often be more flexible in tailoring approaches to an individual’s need. Larger facilities may have more difficulty satisfying individual needs, and other approaches should be considered, like emphasizing opportunities for advancement or for transferring to other locations down the road.

Bottom line (pun intended), there are many ways to make one’s wishes – regardless of what they are – come true. As Peter Pan said, “Dreams do come true, if only we wish hard enough.” And, I might add, if only we also put in the effort!

Dan Natchez is president of DANIEL S. NATCHEZ and ASSOCIATES Inc., a leading international environmental waterfront design consulting company specializing in the design of marinas and marina resorts throughout the world. He invites your comments and inquiries by phone at 914/698-5678, by fax at 914/698-7321, by e-mail at dan.n@dsnainc.com or on the Web at www.dsnainc.com.