Archive for » June 10th, 2013«

Sailing

The participation of Artemis in the regatta, slated to begin on July 4 and go into September, was thrown into doubt after its 72-foot catamaran capsized and broke apart on May 9 during a training session, the second time one of the controversial multihulled boats has flipped in San Francisco Bay.

The Artemis accident killed British Olympian Andrew Simpson, who was trapped underwater by the wreckage, and raised questions about the fundamental soundness of the huge, lightweight boats, which can reach speeds of close to 50 miles per hour.

Organizers have since adopted several proposals to improve safety and on Friday they announced there would be fewer races in the first part of the Louis Vuitton Cup, the winner of which will challenge America’s Cup defender Oracle Team USA, backed by software billionaire and Oracle Corp co-founder Larry Ellison.

Fewer races in the Louis Vuitton Cup give the three competitors – Artemis, Italy’s Luna Rossa Challenge and Emirates Team New Zealand – more time for boat maintenance.

Artemis had warned that it might not compete at all if its sailors felt that planned rule changes were insufficient.

“We are working around-the-clock to get our new boat ready, in the water and to prepare our team to race,” Artemis Racing CEO Paul Cayard said. “We still have a mountain to climb, but our plan is to launch our new boat in early July and get ourselves in a position where we can race by the end of the month.”

The other teams in the America’s Cup have shared structural data about their yachts to help Artemis prepare its new boat for racing as quickly as possible, America’s Cup Authority head Stephen Barclay told Reuters.

“Once they get to start line it’s dog eat dog but they want to help Artemis get there,” Barclay said.

A late start by Artemis in the Louis Vuitton Cup series of round robin elimination races, scheduled to go through August, would not leave the team out of the running for the final two-boat America’s Cup match races in September.

If it starts late or even misses the first round, Artemis would race in the semi-finals against the team in second place, giving it a chance to make it to the America’s Cup and take on Oracle despite its setback.

Following the Artemis accident and an incident in October when Oracle’s catamaran capsized and was swept out to sea, criticism has grown that the boats may be too hard to manoeuvre in San Francisco’s Bay’s heavy winds and rip currents.

San Francisco’s police department has been investigating Artemis’ accident but has yet to report its results.


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Boat Building in the US Industry Market Research Report from IBISWorld has Been Updated

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Demand for boats, especially large ones, declined as incomes fell and gas prices rose

Los Angeles, CA (PRWEB) June 10, 2013

The recession hit the Boat Building industry hard, especially since households make up about 50.0% of the industry’s customers. The broader economic problems plaguing the United States reduced the amount of money consumers were willing to spend on luxury items, watercraft included. Heightened unemployment and reduced consumer sentiment during the recession caused demand for luxury boats to plummet. The industry attempted to make dramatic changes to operations, slashing production and operating costs in reaction to the sharp drop in consumer demand. Still, industry revenue declined an average of 7.0% per year in the five years to 2013.

Luckily for operators, 2011 marked a turning point for the industry. Economic recovery took hold and disposable incomes grew, driving demand for boats (much of this growth coming off the low levels of 2010). As the economy continues to strengthen from the worst of the downturn, these trends will continue to be more prevalent. IBISWorld expects the industry to generate $6.9 billion in revenue in 2013, up 3.7% from 2012. Profitability is the biggest challenge facing the Boat Building industry. Over the past five years, numerous boat builders filed for bankruptcy, while others incurred significant losses due to weak demand. “In 2008, consumers’ preference for larger boats declined, and gasoline prices hit an all-time high,” says IBISWorld industry analyst Lauren Setar. Subsequent drops in oil prices failed to restore demand because rising unemployment and poor stock market and housing market conditions damaged consumer wealth. Increases in the price of steel also contributed to declining profit margins. Many operators cut costs by reducing their workforce and cutting production capacities. After widespread operating losses in 2010, the industry’s profitability is expected to continue to grow in 2013.

IBISWorld anticipates that continued gradual improvements in the general economy, including returning disposable incomes and growing consumer confidence, will strengthen revenue through 2018. During that time, the industry will also benefit from increased demand from ocean and coastal transportation as well as efficiency improvements made during the economic downturn. According to Setar, operators able to successfully speed up production to align with demand while maintaining the efficiencies achieved during the downturn will be able to expand profit. The Boat Building industry has a low level of concentration and is considerably fragmented. IBISWorld estimates that the top four major players will account for less than 20.0% of US industry revenue in 2013. The majority of companies in the industry are small, independently owned operators. The level of market share concentration has decreased over the past five years; many small and medium-sized businesses have either been consolidated into larger companies or expanded to achieve greater scale and efficiency levels. For more information, visit IBISWorld’s Boat Building in the US industry report page.

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IBISWorld industry Report Key Topics

This industry builds boats, which are defined as watercraft not built in shipyards and are typically intended for personal use. This industry does not include ship building (IBISWorld report 33661a).

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products Markets

Supply Chain

Products Services

Major Markets

Globalization Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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