I think that the UK's leading yards will be going the same way soon, but there is little press about how they are dealing with the 'Lay Up' as it were. Main builders in the UK are:- Sunseeker. Fairline Princess Moody (Sail) Sealine. Oyster. The larger yards such as Vospers, Babcock / DML (Devonport etc) are no longer taking orders or bidding for yacht work, even when they could do with it. I would hope that can ALL weather the storm and remain active in the markets.
That's interesting. You read so much about US builders and how bad the economy is hurting them (at least what is published here). I read the post about the megayacht builders and the declining orders. But what about the Sunseekers, Ferrettis, Azimuts and the like? I'm sure they are having issues as well, but I would love to get a more world view on the boat building industry (large and not so large builders).
I know that in the last few years it has been harder for European builders to make money on yachts that are sold new in the US. The dollar was worth so much less then the Euro that the exchange rate was killing them. How long does anyone think it will be until new yacht sales (let's say 40'-85') return to normal?
Having worked in the industry for 35 years this is the worst I've seen. There seems to be a pattern of the economy taking a dive every 10 years. I am guessing that we will see an upswing (although very small) in the economy in the next 6 months. However I think that it's going to be a very slow and cautious rebuild to the economy specifially the yachting and or expensive toy industry.
The London Boat Show started on the 9th Jan 09, closing 18th Jan. http://www.londonboatshow.com/ It will be interesting to see what orders come in to the UK builders, especially at the start of the 'Gloomy Economic' period. Will keep a look out for press info. With the Miami Boat show in Feb, it will certainly show how all yards are being affected across the waters. Hopefully Hatteras and ALL keep ticking over. J
Despair is contagious as we've been seeing, but so is optimism and hope which I believe President-elect Obama is bringing. I'm increasing my investments now.
Just found this news item, don't know how Sunseeker will stand now! 9th March 2008 Sunseeker, the Poole-based luxury yacht builder, is set to recruit more than 260 workers this year amid a dearth of engineering talent and a glut of new orders from the recent London Boat Show. The firm, which was taken private in a management-led buyout in 2006, fronted by chief executive Robert Braithwaite and backed by Bank of Scotland, is bucking the gloom affecting markets by gearing up for further expansion in 2008. Buoyed by a surge in orders, finance director Peter Henness said that sales of the recently launched 34-metre yacht were booming. "Our three-year order book is looking very strong, so it's vital we grow our capabilities," he said. Sunseeker, bolstered by its private-equity war chest, hired 300 people last year. Most of the new hires will work at the firm's Osprey Quay facility in Portland, Dorset. According to the latest filings, sales came in at £215m for the near 12-month period to the end of August last year, yielding pre-tax profits of £5.4m. Bank of Scotland has a 20 per cent stake in Sunseeker International through its Uberior Investments vehicle.
Almost a year latter after that Sunseeker press release I wonder how the Bank of Scottland is fairing with the banking collapse?
Saturday 17 January 2009 | Banks and Finance feed | All feeds Advertisement Website of the Telegraph Media Group with breaking news, sport, business, latest UK and world news. Content from the Daily Telegraph and Sunday Telegraph newspapers and video from Telegraph TV. Enhanced by Google Home Finance News by Sector Banks and FinanceRoyal Bank of Scotland sells stake in Bank of China for £1.6bn Royal Bank of Scotland has sold its stake in Bank of China for £1.6bn. By Telegraph Staff Last Updated: 12:34PM GMT 14 Jan 2009 The sale of the 4.3pc holding, the first move by new chief executive Stephen Hester to shrink Royal Bank of Scotland's balance sheet, was completed at a smaller discount to the market than had been expecting. The 10.8 billion shares were sold at HK$1.71 each, representing a 7.6pc discount to their HK$1.85 closing price on Tuesday. The price was set at the upper end of a price range of HK$$1.68-HK$1.71. The sale boosted shares in Bank of China, which rose 3.8pc in early trading in Hong Kong today. Royal Bank of Scotland bought the stake in 2005 for £900m. The bank is one of several major investors to sell stakes in Chinese lenders recently, including Bank of America, Swiss bank UBS and Hong Kong billionaire Li Ka-shing's foundation. The move comes less than two months after the British government took majority control of Royal Bank of Scotland amid fears about its solvency in the face of billions of dollars in write-downs from souring assets.
