Industry focus: will supply chain shortages reap rewards elsewhere?

So how has the world been doing since the great shock of spring 2020 when we shut our doors and wondered what would become of us all? In our industry’s case, rather well it seems.

David Lewin, Global Marina Business Advisors (GMBA) UK, says that while we all believed we would come through the pandemic many have been surprised at how strongly and quickly the demand for boats (and caravans and RVs) overcame us. 

In the UK (but by no means a singular example of this trend) Lewin notes many companies had laid off staff and social distancing within the workplace made tasks very difficult, if not nearly impossible. In addition, half the world’s ships and containers were all in the wrong place, plus a hangover from three months of non-production of materials and parts and the world economy still has some catching up to do.

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These supply chain issues aside, we are now feeling the effects of a lack of suitably trained staff – from CAD engineers to laminators to boat builders. So much so that subcontracting has really moved forward, whether it be design houses, interior joinery or simply finding self-employed engineers. 

Small marine engineering companies or self-employed tradesmen are being drafted in to work on the production of new boats. This also makes good commercial sense as anyone knows the market can – and usually does – fall after a period of boom and it is easier to downsize by letting go of subcontractors than closing wholly owned factories.

The shortage of boat inventory has seriously advantaged the refit market. Emergent company Setag Yachts aims to ‘raise refits to a new level’ and is fielding increased levels of interest. If you can’t find a suitable craft, Setag’s Chris Gates says owners can buy a pre-owned boat and let the firm refit it. In this case, not a simple repair of the interior but a complete upgrade package can be actioned to an owner’s taste and pocket. 

In other areas, services including re-spray, PVC wrapping and textile trades such as covers and upholstery are doing well, as is the after-market chandlery trade for the first time in a while.

Where boating density is high, the lack of available craft, along with its often high price of entry to the sport, has seen new growth in shared ownership arrangements and in clubs where boaters pay a subscription and have access to a range of boats for a given number of days. This also appeals to a growing number of ‘pay and play’ participants, who wish to do many other recreational hobbies as well as boating.

In the main, the world has bounced back well from the pandemic and our industry has been one of the beneficiaries. It’s now time to capitalise on the good time afforded to us by investing in the future, not only in skilled personnel but also in a sustainable boating future. We ignore both these at our peril!

Read more from GMBA in the lastest issue of Marine Industry News.

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