18 DECEMBER 2015 | International Boat Industry http://www.ibi-plus.com
Markets & Regions
UK | OVERVIEW
profit in the months ahead. Fairline alas called in the
administrators in December (see pg4). Conversely, at
the bottom end of the market, the dinghy and small
boat sector has offset this decline by reporting strong
growth, particularly with global exports.
Generally, research by the BM suggests that the
market is fairly static for boat manufacturing, with
more than two-thirds of the companies approached
unsure about their business prospects over the next
six months. However, most are taking action to make
their products more marketable, and their businesses
more streamlined. A typical
example is Williams Performance
Tenders, which is hedging its
bets against a flat OEM market,
and instead building new models
that will appeal to the RIB buying
market in general.
In the equipment sector, there
has been only marginal growth
in business activity, with 27%
of survey respondents seeing an
improved market, and 20% seeing a decline in either
workload or value. Around half have seen little
change, particularly the makers of marine engines
and gearboxes. Around a third have seen some
growth in their markets, most noticeably in boat
electronics and electrical products.
The biggest hurdle to exports remains a strong
pound. Back in 2011, the euro almost reached parity,
and resulted in the UK’s brokerages being stripped
of desirable high-value boats by European buyers.
Now the euro has fallen back and is trading at 1.440,
making a pound equivalent to just 70 cents, a figure
expected to remain fairly steady to the year end.
“The weak euro has certainly had a negative
impact,” BM’s Howard Pridding remarked. “Around30% of our output is exported, much of it to the EU,
so it is clearly working against us in some areas.”
However, this is offset when UK manufacturers
import components from EU sources, reducing the
cost of the finished item. One of these is Beta Marine,
a Midlands-based engine manufacturer specialising
in large generator sets. “Our turnover is slightly down
on last year,” said director Andrew Winton.
“The euro has been an issue, but also a help when
purchasing. As such, our profitability remains good.”
Other companies have mitigated the effects of the
euro by discounting their trade
prices, such as Oxforshire-based
Laser Performance, builders of the
iconic Laser dinghy. “A large part
of our annual 2,000 boat output
goes to Europe,” said Simon Ogden,
the company’s Sales Executive. “As
such, we have discounted by 5%,
and encourage our dealers to buy a
lot of stock when the exchange rate
is most favourable.”
This seems to have worked, because Ogden
reports that sales are up by 10% to the Eurozone, and
growing.
Several OEMs we spoke to report a recovering
US market, although China – always embryonic as a
boating market – has suffered a substantial setback
with the sweeping anti-corruption laws. One Chinese
dealer reported that his once thriving showroom
was now almost empty since the new laws came into
force. “Government officials certainly don’t want to
be seen on a luxury boat in the current climate,” he
told the Jing Daily newspaper.
In our annual poll of the UK’s leading – and niche- manufacturers, we discovered a mix bag of opinions
and results, but a cautious optimism prevailed.
UK boatbuilders
are taking
action to make
their products more
marketable, and their
businesses
more
streamlinedTPrincess's 40M,
the largest ever
model from the
Plymouth-based
builder