says Stack. “The availability and convenience of
a new build – supplied with the latest technology
and modern appointments – is more desirable
than the arduous process of up-fitting a dated
vessel that needs a tremendous amount of work
to the layout, systems and [styling]. American
buyers look for quality in a new yacht, with an
outlook on resale being an important factor in the
decision-making process.”
Buyers will also go where they can get the most
bang for their buck. With the current strength of
the dollar, it’s perhaps no surprise that buyers are
looking abroad for new builds, but Gilbert
contends there’s far more to owners’ purchasing
decisions than the exchange rate. “Currency
exchange has never had a huge impact on new
construction,” he says. “Wealthy people have
ways of hedging volatility in the exchange. Even
when the euro was very strong, Americans still
went overseas. This is because European yards
have done a far, far better job of marketing on the
whole than US builders... but also due to the fact
that there are so few US builders, especially
custom builders, that US buyers often have no
choice but to go abroad for their new builds. The
differences in quality [between US and European
builds] are merely perceptions, not reality.”
Sanford agrees that Americans largely prefer
to buy something that is “made in the USA”, and
Moran concurs, saying that many US owners
would enjoy the convenience of building their
yacht stateside. “Most Americans would rather
build a boat in the US – it’s more
comfortable, they speak the same
language and they use dollars,”
Moran says, lamenting the fact
that there aren’t as many custom
boatbuilders in the US as Europe.
Indeed, US custom-yacht
builder Delta Marine, based in
Seattle, Washington, counts
Americans as its top clientele.
“Delta Marine competes on a
global market and has clients from
all over the world but the majority
of our clients are Americans – and
they tend to enjoy the build just as
much as ownership,” says
Michelle Jones, Delta’s director of marketing.
“For our American clients, building in the US
allows them to easily travel to visit the yard and
be engaged in the build. Also, for many, building
in the US is an important criteria, a symbol of
patriotism and pride.”
The responsibility, Stack says, comes down to
yards and brokers reminding customers of the
convenience factor, quality and history of
working with a US yard.
With US buyers soaking up so much of the
brokerage stock and responsible for a third of all
sold new builds, the potential damage to the
superyacht industry of any downturn in the US
is amplified. The BRIC nations (Brazil, Russia,
India and China) are yet to take up the mantle.
Asia remains the most potent sleeping giant, but
“the Chinese market has not yet emerged because
[yachting is] not in their culture”, says Moran.
“The American buyer will remain the largest
segment of the yacht-buying and building market
for years to come,” adds Denison. “Not because
of Trump, not because of the economy,
but because the adventure of yachting has been
very closely tied to the American Dream since
our very beginning.”
Changing perceptions have certainly helped
the market. “There’s a different perspective withAmerican buyers than a number
of years ago when it wasn’t
deemed appropriate to own a large
yacht – nowadays it is,” Moran
says. “No one is embarrassed of
owning a nice yacht or car or
plane. It’s a badge of success.”
But where from here? After the
bitter experience of the global
financial crisis a decade ago,
many in the superyacht industry
instinctively wince when phrases
such as “record sales” are uttered.
A slowdown is inevitable, admits
Denison. “As much as I’d love to
pretend this run will last forever,
it’s obviously going to end at some point,” he
says. “The question we’re all asking is: ‘Will it
end gracefully and with some kindness?’”
Moran takes the long view, pointing to a report
by the US Energy Information Administration
that shows that America is now the largest global
crude oil producer, and the biggest exporter of oil
to the UK for the first time since 1950s. “We will
be spending less on energy, and it’s going to make
America even more wealthy, so I think Americawill be at the forefront of yacht purchases for a
long time to come,” he says. “I don’t think this is
a short cycle, I think this is a long cycle.”
According to a recent survey by the National
Association for Business Economics (NABE),
economists are growing more concerned of“I’M USED TO
SEEING THESE
TRENDS GO UP
AND DOWN, SO IKNOW THIS HIGH
WILL NOT LAST”Wes Sanford of
Northrop & Johnson
graduated from
Stanford and worked as
a financial analyst
before going to sea. An
ex-captain, he has been
a broker since 2005.Of the 456 projects sold in the latest GOB, 36.18% (165 projects) are for US clients
AMERICANS
LARGELYPREFER TO BUY
SOMETHINGTHAT IS “MADE
IN THE USA”US 36.18%
Projects ordered by US owners in the 2019 Global Order Book
122
08 2019 boatinternational.com