Economic uncertainty and skills shortages top superyacht sector concerns, says CMC Marine

Economic instability remains the biggest threat facing the superyacht industry over the next three to five years, according to Pietro Cappiello, vice president of CMC Marine. While labour shortages, regulation and sustainability continue to shape the sector, Cappiello argues that a major financial downturn would have the widest-reaching consequences.

“If a similar situation were to occur on a larger scale, it would inevitably have repercussions across the entire industry,” he says.

Economic risks remain the primary concern

Cappiello points to the impact that inflation and wider economic conditions have already had on parts of the marine market since the pandemic, and says the international political and economic environment continues to influence market performance.

Following covid, inflation and weaker economic conditions created difficulties, particularly within the smaller boat segment, affecting many companies across the industry. A larger-scale economic shock would be felt throughout the superyacht supply chain, he says.

Technical complexity is increasing demand for skilled workers

While he sees economic uncertainty as the most significant challenge, Cappiello believes the industry may be underestimating the scale of its workforce problem.

He says strong post-pandemic growth and the shift towards larger yachts have increased the technical complexity involved in designing, building and operating vessels.

“The industry is facing a shortage of skilled professionals,” he says.

The challenge is compounded by generational turnover and the growing need for specialists capable of managing increasingly advanced technologies with demand extending across the entire value chain, including designers, shipyards, suppliers and crew.

Recruiting talent remains difficult

The talent shortage is a clear and ongoing issue.

“The most difficult roles to fill are skilled technicians and workers, particularly in mechanical and electronics fields.”

Management positions are also proving difficult to recruit for, with companies seeking individuals who can provide leadership and make strategic decisions in a complex operating environment.

Sustainability pressure varies by company

According to Cappiello CMC Marine is not experiencing significant pressure in sustainability requirements or regulation.

“In our case, there is no pressure at all,” he says. He attributes this to the company’s long-term focus on innovation and an electrification strategy adopted several years ago, which he says positions the business to meet regulatory requirements while developing sustainable solutions.

Margin pressure from both directions

But profitability is being squeezed by rising costs and continued market recovery.

“Costs are increasing due to recent geopolitical developments, while the yachting market is still in the process of recovering,” he says.

At the same time, customers are facing similar economic pressures and are seeking more competitive pricing, creating additional pressure on margins throughout the sector.

More information about CMC Marine can be found on its website.