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Capital Commentary
Notwithstanding a quick return to the
air following the September 11 attacks, an already depressed industry
has been in the doldrums, as drop zones have been forced to close,
insurance premiums have caused aircraft owners to sell, and manufacturers
have reduced product lines and decreased advertising. If there is any good news, it's the fact
that skydiving has fared better than most air sports and much of
the adventure sport industry. We skydivers tend to be fanatical
about our sport, so we find ways to jump under dire circumstances.
And USPA has been there helping to ensure that we can. But USPA,
too, has felt the pain. Comparing where we are now to three years
ago, the revenue pie chart is a little smaller, shrinking slightly
from $3.1 million to $2.9 million, with dues income now having a
55 percent instead of a 51 percent slice, reflecting the new rate
increase, a trend we do not want to continue. The expense picture
is similar, with individual third-party liability insurance premiums
taking a larger slice of a smaller pie. But instead of representing
a four percent increase like the dues, the increase in premiums
represents a seven percent increase in expenses. From 2000 to 2003,
individual-member insurance went from $199,795 to $431,858, or up
216 percent. Ouch! So, how has USPA been coping? Pretty much
like any other business--downsizing, cost cutting, program streamlining
and bargain hunting. For example, the staff has been reduced from
24 to 18, facility maintenance has been deferred, and travel expenses
have been curtailed. Nothing surprising here. What is noteworthy is how the USPA members
put their heads together to reduce program costs while improving
service. The prime example is in training, specifically the instructional
hierarchy. After considerable input from the field and much constructive
debate, the training hierarchy was reduced to three levels--coaches,
instructors and instructor examiners--and cadre at each tier were
required to have equivalent qualifications and given comparable
responsibilities. Besides making more sense to members out of the
former morass of titles, standards and course materials, the processing
and management time at USPA Headquarters was reduced, which allowed
for staff reduction. There are many other program enhancements,
such as one-site nationals and standardization of manuals and proficiency
cards, that have reduced administrative burden and overhead. Even
the seemingly little things like finding bargain office supplies
or a less expensive telephone service have helped. Every membership
dollar counts. But now, the war is mostly over, the economy seems to be slowly rising, and the U.S. has demonstrated its resolve and effectiveness in countering terrorism. Recognizing that USPA as an association will remain fiscally responsible regardless of these circumstances, we individual members, too, need to contribute to the recovery--particularly of skydiving--by getting back in the air, trying out the latest new gear and just having more fun at the drop zone. And while we're at it, we need to bring a non-jumping friend into the sport. More skydivers means more USPA members. More members means a bigger voice when the going gets tough. |
In
the past three years, we've seen a major terrorist attack on the
United States, a stock market crash and lingering worldwide recession
and, most recently, a war in Iraq that is a new defining moment
in world order. And what has this meant for skydiving? Plenty.