Did You Secure  Loans for Your Marine Businesses in 2005?

The growth, and potential growth, of an industry such as NC’s marine industry, can be assessed with information on loans obtained to grow your businesses, especially if the funds are use to grow jobs. If you obtained a loan in 2005 used to grow (or stabilize) your business, please email or fax me the basics such as amount, the loaning agency, SBA involvement, and a few words on how the funds are being used. I will use the information in summary only, not identifying the company in any public document. My private fax is 252-728-6988 and my email is mike.bradley@ncwaterways.com.

Like most coastal states, the resale value of existing working marinas and boatyards (ones that provide haul-out and/or boat and propulsion repair) is becoming so expensive that the only valid decision for the land owner is to sell to condo/marina high density uses. The absence of available working waterfront is a problem fast becoming a concern for boaters and boating communities along the NC coast, especially in locations near inlets or close to the ICW. Carteret County is on track for loosing over 10 such working waterfront within 24 months.

This disappearing working waterfront is now hurting our efforts to attract and keep related jobs in the marine coastal sector. Counties and/or state solutions need to be addressed, including tax credits, county or state owed lease-back to private enterprise, or some type of boating enterprise zones. If you are aware of available working waterfront sites, email us at mike.bradley@ncwaterways.com. We have businesses looking for water access and acreage for working water locations.

  NC MARTEC Awarded Training Grant

 The North Carolina Marine Training and Education Center (NC MARTEC) at Carteret Community College in Morehead City, N.C., has been awarded a $193,000 grant from the Golden Leaf Foundation to expand training and operations. "This grant will help increase NC MARTEC's capacity to train a highly skilled workforce in the expanding marine trades industry …” said David Flagler, director of NC MARTEC.   "In particular, the grant provides funding for tools and equipment to augment NC MARTEC's training in marine systems.  These include mechanical systems, inboard engine and drive train installation, electrical and electronic systems and plumbing systems for today's yachts and marine vessels." Earlier this year, NC MARTEC entered into an agreement with Cummins Atlantic Marine Diesel to provide training for the company's marine diesel technicians in the Mid-Atlantic region.

 Carol Ricketts, senior vice president of finance at Albemarle Boats, was selected “Marine Woman of the Year” by the Marine Retailers Association of America. In accepting the award, Ricketts told the dealer audience she believes education and training is the “number one challenge” in the industry today. She also said women are becoming more of a presence in the once-male-dominated marine industry. “We cannot let gender bias prevent growth and opportunity,” Ricketts says. Carol is in good North Carolina company and joins Joan Maxwell of Regulator and Kris Carroll of Grady-White – both past winners of national “woman of the year” awards from the boating industry.  From a Soundings Trade Only Today 11/11/2005 article.

Good News on Proposed SPCC (Fuel Spill) Compliance Changes 

There is good news for marine fuel providers across the state – especially those that store more than 1320 gallons, “qualifying” them for mandatory federal SPCC (Spill Prevention, Control and Countermeasure) plans. These documents currently require certification by a Professional Engineer.

 “The EPA is today (12/2/05) proposing to amend the … SPCC Plan requirements to reduce the regulatory burden for certain facilities by providing an option that would allow owners/operators of facilities that store less than 10,000 gallons of oil and meet other qualifying criteria to self-certify their SPCC Plans, in lieu of review and certification by a Professional Engineer; … In proposing these changes, EPA is significantly reducing the burden imposed on the regulated community in complying with the SPCC requirements, while maintaining protection of human health and the environment.

 The guidance document is available to owners and operators of facilities that may be subject to the requirements of the SPCC rule and the general public on how EPA intends the SPCC rule to be implemented. The document is designed to provide a consistent national policy on several SPCC-related issues.  See www.epa.gov/oilspill/guidance.htm.

The above information provided by NCPMA (North Carolina Petroleum Marketer Association). For more information contact Tim Laughlin @ 919-782-4411.

IBEX Involvement Shows NC Marine Recruitment Strength

North Carolina continues to be a strong draw for boat builders, marine product manufacturers, and marine product distribution companies. Our IBEX booth, supporting our state’s 35 IBEX exhibitors, became the contact point for over a dozen companies researching relocation to the state.  The advantage to these businesses is the opportunity of a statewide contact point (the SBTDC Marine Trades Services – www.NCwaterways.com). This allows the company principals to access NC sites and buildings for 100 counties as well as have access to the resources of the state’s Department of Commerce and the states’ regional and counties economic development centers.

Our state is “location lucky” as the central East Coast state with good north/south­/east/west transportation routes, existing manufacturing (and distribution) buildings and pockets of “ready-to-go-to-work” employees that we can help the company identify. Companies doing their homework also know NC as having a quality community college workforce training system and regulatory and permitting agencies known to understand the boating industry. Add an NC buying network of over 100 boat builders and several hundred boating product providers within a few hours drive of these builders, and North Carolina becomes a top choice for marine industry relocations.

Special thanks to Progress Energy, Duke Energy, ElectriCities, and the North Carolina Electric Cooperatives for funding this statewide boating industry economic development effort.

Marina and Boatyard Power Wash Regulatory Update 

There is no simple or inexpensive solution yet, and the regulatory specifications for power wash waste water appear to still require the treated wash water to be (impossibly) cleaner than drinking water before it can be returned to surrounding public waters. But there is a bright note. The award obtained by NC MARTEC from the Golden LEAF Foundation included funding for a marina wastewater treatment system. This system will be set up in a commercial marina under controlled conditions and the resulting waste stream from the power wash system monitored. This data should help the industry better establish workable and affordable regulatory solutions.

The high cost of operating service boatyards, such as new waste treatment systems, is driving the sale of these yards into the non-service sector – mainly condo marinas. Carteret County just lost two more service boatyards/marinas to condo development – highlighting the difficult decisions these marina owners face when considering upgrading facilities or selling for the much higher return from condo development.

College of The Albemarle Dare County Campus in Manteo graduated 12 students from Boat Building I and II November 22.  The Dare County Marine Industry Association and the Boat Builders Challenge Fishing Tournament sponsored by Pirates Cove Marina, pledged $1,000 in scholarships each semester to help students continue in the program.

Upcoming courses include Marine Cabinetry and Carpentry I and Marine Electrical I (late January), Marine Hook-ups and Installations (March),   Marine Composite Constructions and Marine Painting (fall 2006.) The Dare County Campus is presently in the midst of renovating a middle school to house its growing technical and vocational programs.  It is seeking $1 million from private and public funds to construct a state-of-the-art industrial training center on Roanoke Island.  For more information, contact Teresa James at tjames@albemarle.edu.

MACT Compliance Reviewed in Boat Building Facility Inspections    

Recent fiberglass boat facility visits by NC inspectors have included review of MACT annual compliance (Maximum Achievable Control Technology) and related permit paperwork and corresponding compliance dates. The facilities visited have been Title V permit holders. Reading this article may trigger questions about your company’s permit status. My suggestion is that you contact the consultant who filed (or helped you file) your Title V. If you did it yourself, you might want to involve a qualified consultant (make sure they have boat facility experience and have them show you other comparable builder’s permits – these are public documents.)

 In your permit, look for 15A NCAC 2D .1111, Maximum Achievable Control Technology (40 CFR63 Subpart VVVV) (NEW). The actual requirements and wording used in the permit are specific to each company and site, but usually include reference to the following products:  Methyl Ethyl Ketone 978-93-3), Styrene (100-42-5), Toluene (108-88-3), and Xylene mixed isomers (1330-20-27).  Specifically look for wording in your permit that refers to Subpart VVVV and NESHAP/MACT. Example wording includes: “Compliant airless (internal mix) spray guns are used for the gel coating. These guns limit the degree of atomization, and therefore air emissions, of the materials leaving the gun.” “The facility provided their MACT Subpart VVVV initial notification on date x”. “The facility was required to be in compliance with the applicable MACT requirements for existing facilities by date y”. “Specific MACT compliance conditions were added to the Permit”.

 Another example: NESHAPS/MACT: “The facility is subject to Maximum Achievable Control Technology Standards (Subpart VVVV) for boat manufacturing.” “The MACT as written applies to the combination of all of the following boat manufacturing operations: Open molding resin operations; Closed molding resin operations; Resin and gel coat mixing operations; Resin and gel coat application equipment cleaning operations; Carpet and fabric adhesive operations”; etc. And, importantly, “the facility is required to comply with the applicable standards, notifications, reports and records described in the Subpart.”

 By way of an example, the related information appeared in Soundings Trade Only Today on 12/1/2005 - www.tradeonlytoday.com: [paraphrased here]. The EPA alleges that a small boat builder used fiberglass resins, gelcoats, solvents and adhesives that contained excessive amounts of air pollutants in its manufacturing processes, and that the company failed to comply with reporting and record-keeping requirements. The company agreed to comply by the end of January with all regulations the EPA says were violated. The company was fined $1,500, according to the EPA. The company owner said that he had been using the same resin products for 19 years and was unaware that they violated EPA standards. The owner indicated that he is happy with the outcome because the resin he is using now is less expensive.

Registration opens for training summit   

Online registration is open for the second annual Conference on Marine Industry Technical Training, to be held Jan. 23–24 at the Safety Harbor Resort and Spa, just outside Tampa, Florida www.abycinc.org. COMITT, co-produced by the American Boat & Yacht Council, the National Marine Manufacturers Association and Professional BoatBuilder magazine, will provide a forum to discuss technical workforce education, training, certification and professional development. David Flagler of NC MARTEC will be a featured speaker.

State eyes dredging financing  

 December 14,2005
BY BARRY SMITH 
FREEDOM RALEIGH BUREAU

RALEIGH - The possibility that the federal government will stop paying for dredging in shallow draft channels along the North Carolina coast has state lawmakers looking for ways to keep the channels passable.

A legislative oversight committee on Tuesday received a report that offered alternatives to federal money. Among them are imposing waterway user fees, applying sales taxes already paid on boats to dredging projects and using local boat property taxes for such purposes.