Prior Newsletters

October 2004 - NC Marine TradeWinds Newsletter

SBTDC NC Marine Trades Services - Mike Bradley, Editor

Topics  (click on item or scroll down)

 

Wrightsville Beach Luncheon to Thank Congressman McIntyre for Dredging Support

The Atlantic Intracoastal Waterway Association (AIWA) is holding a half-day annual meeting in Wrightsville Beach, NC on October 26, 2004.  It will take place at the Blue Water Grill, 4 Marina St. next to the Wrightsville Beach Marina and Yacht Club.  The meeting will begin at 9:00 AM and break at noon for a luncheon to recognize Congressman Mike McIntyre for all his support during this session of Congress. Mr. McIntyre is responsible for getting funds appropriated to dredge the Lockwood’s Folly Inlet and personally encouraging fellow lawmakers to join the Congressional Waterway Caucus, of which he is co-chair. The morning meeting will include Clairborne Young and his comments concerning waterway conditions, issues and solutions. You can find the registration form from the www.NCwaterways.com home page “scrolling ticker.”

 

Coastal Marinas and Boatyards: Updates needed NOW for next NC Boating Guide and Map

The 2005 Coastal Boating Guide needs 2004 Guide corrections and to add missing businesses to the table of marinas and boatyards. We also need to correct location errors. It is important that your waterfront marina or boatyard makes this map and is correctly located. Go to the www.NCwaterways.com and the Tourism Tab. Click on Boating Guide Correction link for more information. You can also fax changes to (252) 728-6988 or email to 2005map@ncwaterways.com.

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Boating Plays Significant Role in Coastal Waterways Tourism

The ECU tourism conference held last week provided good reason for optimism for coastal waterways tourism and its increasing economic impact in eastern North Carolina. More than 49 million tourists leave over $12.6 billion behind in North Carolina annually, with the coastal region credited with just under $3 billion of that in 2003. We don’t know the economic impact of the waterways component, but we have a lot of indicators. According to the NC Tourism Division, the coast averaged over 45 percent of all telephone requests where a geographic preference was given (through September ’04, 96,000 of 215,000 calls). Of the 10,000 email requests for the Coastal Boating Guide through NCwaterways.com, 4,464 visitors indicated that they planned to use a powerboat; 2,664 the ferry system; 1,334 involved in fishing tournaments; and 1,047 to use kayaks. These don’t include the information obtained in 60,000 similar map requests provided through www.ncCoastalGuide.com.

It is a good time for marine businesses to voice the importance of knowing the economic impact of the NC marine industry on tourism and other economic indicators. See the New York study summary below. Contact your local and regional partnerships and economic development groups and indicate the importance of this study for us.

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New York Releases Recreational Boating Economic Impact Study

North Carolina can learn a lot about the economic impact of recreational boating by taking a look at the recent study completed by Cornell University researchers. The study was funded by the New York Sea Grant and entitled: “Recreational Boating Expenditures in 2003 in NYS and Their Impacts.” The study found that recreational boaters spent $2.4 billion in the state in 2003 and accounted for 18,700 jobs. The study took into account all direct expenditures made by boaters, including supplies for trips (food, fuel, launching fees, and lodging), boat purchases, repairs, equipment, insurance, and fees at marinas and yacht clubs. This information provided by NMMA’s October 7th Washington Wave newsletter. Find report at www.seagrant.sunysb.edu/CoastalGeo/boatingexpenditures03.htm.

 

IBEX 2004 – A North Carolina Happening - www.ibexshow.com

More than 30 NC exhibitors, seven NC workshop speakers, and 150 or more NC trade buyers will be “working” the upcoming IBEX (October 23-25 in Miami) taking advantage of unique workshops and seminars as well as looking and buying. It is the biggest such trade event for boat builders in the USA.

We want to help you network with NC exhibitors and to find what you need at the show. Come by our booth (#251) first and we will do what we can to help you be more efficient. Sponsored by Progress Energy, Duke Energy, ElectricCities, the NC Electric Cooperatives and the NC Small Business and Technology Development Center, we are there to help the NC marine industry grow. We will have peanuts and a NC message board.


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The Dismal Swamp Canal Open through December 31, 2004

It is important for marinas and boating communities along the ICW route to let the transient boaters with whom you communicate know that the Dismal Swamp is open. This has special impact now as the “birds” are finalizing their plans. Help them get the word. See www.icw-net.com/DSCwelcome/dscw02.htm or call (252) 771- 8333.

 

UNCW Cameron Business School Summit Gets Boating Industry Lessons

The recent UNCW Economic Outlook Conference had a panel of boat industry professionals provide a candid look at business issues favoring and limiting business growth in North Carolina. Moderator Bob Rippy led Alton Herndon of Southport Boat Works, Randy Rehder of Sea Tech, and Peter Plott of Chaos Boatworks in discussion following an overview provided by Mike Bradley of the SBTDC Marine Trades Services. About 200 attendees heard about favorable NC networking between suppliers and builders, concerns related to unevenly administered regulations, quality resources for business assistance and professional planning, manpower shortages, and concerns about water access, poorly dredged waterways, and availability of slips.

 

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Tax Tips: Take advantage of increased expensing while you still can - RSM McGladry

The Section 179 expense election allows businesses a current tax deduction for eligible new and used property placed in service during 2003 and 2004 that otherwise would be subject to the normal depreciation rules. The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) raised the deductible amount from $25,000 to $102,000 for 2004 (based on inflation indexing).

There are some caveats: A $400,000 phase-out amount applies to qualifying assets put in service during those years, a $200,000 increase from the previous limit. Also, a company’s Section 179 deduction can’t surpass its aggregate business income before the deduction.

Sounds like a great deal, right? Well, it is, for now — this provision exists in its present state only until 2005, when the rules revert to their pre-2003 level. So you may want to buy major business assets now, while the greatest tax benefits are still available.

For instance, ABC Construction and Development Corp. bought $80,000 in new qualifying assets this year. Under Sec. 179, the company can expense all of these items as long as its taxable income before this deduction exceeds $80,000. In contrast, the previous rules would have allowed the business to expense only $25,000 of those purchases. Although some first-year bonus depreciation may have applied to some of the assets, it would have then had to relegate the remaining $55,000 to a regular depreciation schedule.

To get the most benefit from Sec. 179 expensing, look for assets that will provide the most benefit if your total exceeds $102,000. Choose property with longer recovery periods so you can recoup its total cost in the shortest possible time. One purchase JGTRRA refers to specifically is “off-the-shelf” software. These products did not qualify under the previous law, but do now — or, more specifically, they do for the remainder of this year. – Thanks to Matt Bradvica of RSM McGladry Tax Service – matt.bradvica@rsmi.com

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An Employer's Guide to Overtime Rules

We have had several questions about the “new” overtime rules and found this sourced information provides a good overview of the topic. The source is: Business Week, 9/29/04. The full article is available on our website. Go to the Business and Regulatory Assistance tab of NCwaterways.com and click on the ticker at the bottom.

Typically, employees are eligible for overtime premium pay (as "nonexempt employees") unless they hold positions falling within one of three "white collar" exemptions. To fit within these three exemptions -- executive, administrative, and professional -- a position must both: 1. Require the performance of particular, and typically discretionary, duties; and 2. Be paid on a salaried, rather than hourly, basis, though there are several notable exceptions to the "salary basis" requirement, including doctors, lawyers, teachers, certain skilled computer professionals, outside salesmen, and managers who own at least 20% of a business.


The new regulations loosen some of the standards on both prongs of this analysis. They broaden in important ways the white collar "duties" tests. They also relax some of the criteria for determining whether a position is truly paid on a "salary basis" (generally, payment of a predetermined amount for a work week, which does not vary based on the quality or quantity of work performed) or is instead, effectively, compensated by the hour. 

 

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The SBTDC is a business development service of The University of North Carolina operated in partnership with the US Small Business Administration. This website and newsletters are a product of the Marine Trades Services of the Small Business and Technology Development Center and are in part funded by the SBA. For additional information, contact Mike Bradley (252) 728-2144 or MBradley@SBTDC.org.

This material is based on work supported by the US Small Business Administration (SBA). Any opinions, findings, conclusions, or recommendations expressed are those of the authors and do not necessarily reflect the views of the SBA.