Archive for » September 26th, 2016«

Brexit boost for superyacht industry as sales rise above sinking pound

Britain’s superyacht industry is weathering the Brexit storm with the sector reporting its highest level of confidence in the wake of the EU referendum – although choppier waters could be on the horizon.

Fresh figures released by British Marine and Superyacht UK on Monday show that revenue rose 11.5 per cent to £605m in 2015/2016, marking the industry’s fourth consecutive year of growth.

However, Peter Brown, Superyacht UK chairman and salesman at yacht broker Burgess, said that “the decision to leave the EU is likely to dampen this growth”.


Nevertheless, the news has buoyed industry sentiment, with 75 per cent of Britain’s superyacht companies recording positive outlook for the next 12 months.

“With the majority of members reporting high levels of confidence post-referendum, this is in stark contrast to the sharp falls in business optimism recorded in August among British SMEs in non-marine industries,” the report highlighted.

The industry has managed to stay afloat in part thanks to its limited exposure to the domestic market.

“Recent years have seen greater demand for yacht sales from international markets, including Asia and the US,” Richard Selby, international development manager for Superyacht UK and British Marine, said.

Meanwhile, the pound’s post-Brexit drop has also supported turnover, strengthening the purchasing power of overseas customers.

Sterling has dropped around 11 per cent against the dollar and 9 per cent against the Euro since the referendum result was announced.

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

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    Rendering of yacht designed by award-winning architect Dame Zaha Hadid for German shipbuilders Blohm+Voss

    Zaha Hadid Architects

About 72 per cent of Superyacht UK’s 250 members have reported a jump in business activity, up from 61 per cent in the company’s last survey.

It has helped drive up full-time industry employment by 4.5 per cent over the past financial year, with over 4,100 people now employed by the superyacht sector.

Mr Brown added: “With market dynamics strong, the superyacht sector is expected to continue to post positive revenue growth over the next 12 months.”

PA

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What to expect at this weekend’s Tampa Bay Boat Show as boating …

The annual Tampa Bay Boat Show is back, with dealers and manufacturers plugging the latest in boating culture.

Vendor Lou Vinci, owner and operator of Indian Springs Marina, keeps more than 300 boats in its full-service marina and also is a dealer of five major fishing and recreational boating manufacturers: Chaparral, Four Winns, Wellcraft, Robalo and Everglades.

The boats he sells represent fishing boats from 16 to 43 feet and recreational boats from 21 to 48 feet.

Here’s what Vinci had to say about the show (which is presented by the Tampa Bay Times), the lines he represents and how the boating industry has bounced back since the Great Recession.



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What’s new in boats this year?

Each one of the lines we represent has released new models this year. Four Winns has the new Horizon Series H350, 35-foot boat … It’s got the combination for sleeping down below.

Wellcraft and Four Winns were acquired by Jeanneau two years ago. Jeanneau is a European builder. They are the biggest boat builder in the world. It is literally the General Motors in the boating industry and they are devoting $100 million to the American market in the next 12 months.

The Tampa Bay market represents the No. 1 fishing boat market in the United States. It’s the boating capital of the world. And all of the boat builders are represented here at the show.

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Are people buying more boats now that the economy is up?

We’ve seen a growth in the marine market over the last five years. The market at my dealership is up 25 percent over the last year. We had a phenomenal year last year. It was the same across the entire spectrum of boats that we sell.

I think we’re seeing growth in the 10 percent range industry wide. Here, people usually come to the show with checkbook in hand, which is really nice. The boat shows probably represent 55 percent of our annual sales. You can see 25 different brands of fish boats. You park your car once and you can see what you want. Now, there is a lot of traffic here.

Our financing people are here and it’s really a one-stop shopping event. I have 26 boats on the floor right now.

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Any signs the market for boats might falter any time soon?

Nobody has to have a boat, except fisherman. It’s a truly elective purchase and when times get tight, it’s often the boat that gets cut. It is a discretionary purchase.

But the nice thing about Florida is, there’s always a getaway … I’ve been in the boating industry for 50 years. I can go fishing three miles offshore and it feels like I’m the only one out there. You get away from the traffic, the phone, the harassment of every day life. Frankly, I would probably not be a continuing resident of Florida were it not for boating. I can use my boat for 10 months a year, although I used to go 12 month a year.

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How big is this year’s show?

It’s sold out. This show is as packed as I’ve ever seen it.

I’ve got 2016s left on the floor, but we’re in the process of making room for the 2017 models here at the show and at the dealership.

And the money is still good. The loans are still good with the lenders. Lenders are comfortable again with boats. Interest rates are 4,5,6 percent, depending on credit scores. But I haven’t seen these kind of rates in a long time.

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AT A GLANCE What: Tampa Bay Boat Show

Hours: Saturday, 10 a.m. to 6 p.m.; Sunday, 10 a.m. to 5 p.m.

Location: Florida State Fairgrounds, 4800 U.S. 301, Tampa

Cost: Free and open to the public; parking is $6


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