Following the slump in boatbuilding by nearly 60% in 2009, relative to the peak year of 2006, demand for boats and yachts was on the upturn again in the first half of 2010. According to the German Marine Industry Association (BVWW) estimates, boat production was 12% up on the same period last year.
Overall, turnover in maritime goods and services on the German market will increase by 4.7% to 1.726 billion euros in 2010 (prior year: 1.649 billion euros).
This positive trend is confirmed by the results of the mid-year business barometer of BVWW. 39.3% of the interviewed companies consider their business situation to be better than the year before. Last year, just 17.2% were of this opinion. The recovery extends to nearly all areas of the maritime economy. Naturally, this is most evident in the new boats market, which had been especially hard hit by the recession. In the sailing boats segment, 56.8% (PY: 23.5%) considered their economic situation to be as good if not better than the previous year, and in motor boats the figure is even higher at 59.6% (PY: 24.5%).
Prospects for the next two to three years are also being viewed very much more positively: 38.1% (PY: 24.1%) believe that business will improve further.
This recovery is also reflected in the export figures. In the first half year of 2009, the number of exported sailing and motor yachts rose by 13.5% (value: +12.9%) compared with the prior-year period. Sailing yacht builders in particular have the wind in their sails. In the first half year of 2010, exports of the important 7.5 to 12 metre boat class climbed 48.5% (value: +29.2%). A total of 864 sailing yachts with a value of a good 78 million euros were exported. This indicates that demand for boats and yachts has also stabilised in the European markets, which are of such crucial importance for German boatbuilders. Sales growth in Scandinavia, the UK, France and The Netherlands is matching that on the German market.
Inventories at boat yards and dealers have in the meantime been largely sold off. However, sales of larger yachts remain slow across Europe, and especially sluggish in the case of mega yachts. Here, the general economic situation and the related slackening in demand for new yachts are compounded by the sharp drop in prices for used boats.
Used boat prices tumbling
Slipping used boat prices are also impacting smaller boats and yachts in the new boats business. The gap between new boat prices and the value of existing boats is growing. This makes it more difficult to sell new yachts. Companies are responding to this situation by offering lower-priced special models and increasing their marketing efforts in the used boat segment.
On the other hand, this situation makes it easier for new customers to enter the boat sports market. Reasonably priced, well-maintained and well-outfitted used boats offer an ideal opportunity for beginners to gather experience in boat sports.
The industry must woo new customer segments
Until now, the industry has profited from the large numbers of boat owners and users won over to these sports in the 1970s through to the 1990s. However, in the long term, this will not be sufficient to maintain the industry at its accustomed level. It will therefore have to made a conscious decision to advertise boating and yachting more forcefully in future.
A first step in this direction is the PR campaign launched by the Federal Association of the Water Sports Industry in September. Five televisable short films on the topics of sailing, motor boats/houseboats, sports boats, canoeing/kayaking and diving have been produced to generate more publicity for watersports. This campaign will be supported by the internet portal www.entdecke-wassersport.de, which offers further information on the individual watersports activities. The target group is watersport enthusiasts in the 25-40 age bracket. The feature films will be shown on regional TV channels and offered as free-of-charge material to the public and commercial broadcasting channels.
Other market segments maintain good level of prior year
The other segments in the maritime economy have also profited from the improved mood. This is all the more surprising as the equipment and accessories, charters, maintenance/repair/refit, services and diving segments hardly experienced any kind of dip during the challenging 2009 business year.
Equipment & accessories
Despite the cold spring, this year’s sales in the equipment market are bidding fair to equal the satisfactory prior-year level. About 2/3 of the interviewed companies report sales to be as good as or better than the year before. Owners are continuing to invest in maintaining the value of their boats. This holds especially true for high-quality technical accessories such as heating, refrigeration and cooking appliances and navigation and safety equipment. But demand is also up for entertainment systems.
Charters
The same applies to the charters market. Although the FIFA World Cup did result in a dip in bookings in the month of June, overall bookings remain at the same good level as the previous years, for charters both in the Baltic and on inland waterways. Charter firms benefit here once again from the general trend among holidaymakers to spend the best days of the year in their home country. Conversely, foreign destinations did show a slight drop. Overall, 62.5% of the firms (PY: 63.6%) recorded turnover that equalled or exceeded that of the same period the year before.
As a general rule, it can be said that charter clients are increasingly willing to pay for the comprehensive services offered by providers. A pleasant environment with best possible choice of supplies in the starting port is appreciated just as much as suggested itineraries with landside tourist information, free weather reports and emergency services around the clock.
Maintenance, repair, refit
For many companies, maintenance repair and refit are a solid mainstay. This market segment traditionally benefits from weaker years in the new boats business. Many yacht owners have decided to keep their existing boat and are investing in maintaining its value, even to the point of commissioning complete overhauls. The refit businesses are doing extremely well and expanding their capacities. Nevertheless, the lack of qualified personnel is a growing problem and is putting a curb on growth plans.
Diving
Furthest up the scale on the mood barometer is diving. 75% of the interviewed companies (PY: 45.5%) consider their business performance to be as good or better than the year before. The 2008/2009 comparison showed that turnover with specialist stores had already risen by just under 8%. In the first 8 months of 2010, this segment grew another 2.2% versus the same period in the previous year.
Summary/outlook
Viewed overall, the mood in the maritime economy has significantly improved both in Germany and abroad. Further developments will depend essentially on whether consumer trust in the general economy continues to grow. Decisions to spend on comparatively expensive leisure goods that imply a long-term commitment are only taken easily in an atmosphere of general public confidence, optimism and trust.
Despite the still-present risks associated with the general business climate, the industry expects the economic recovery to continue in 2011.
The international maritime economy is focusing ever more strongly on boot Düsseldorf as the central marketplace for maritime goods and services in the heart of Europe. The comprehensive panorama of maritime products and services generates valuable synergistic effects that benefit all industry segments, and the expected 50,000 visitors from abroad give this event an international flair that is unequalled among marine trade fairs. The industry is looking forward with confidence and optimism to boot Düsseldorf 2011.
