German boat yards internationally successful

Germany's boat yards continue to ride the wave of success. The leading manufacturers have further expanded their market position in Europe. And in Germany's home market, too, it appears that the upturn has finally arrived. In 2006, demand for new boats and yachts underwent a significant increase.

Bavaria Yachtbau
In fiscal 2005/2006, Germany's largest manufacturer of series-produced yachts, Bavaria Yachtbau, increased sales by 20% to EUR 270 million. A total of 2,900 sailing yachts and 700 motor boats left the production lines in Giebelstadt, a small town in the German state of Bavaria. Business is also booming at HanseYachts. There, production has increased by 45% to currently approx. 1,000 sailing and motor yachts p.a. The export share of the output from Germany's producers is in excess of 85%. The export results 1-6/2005-2006 confirm this trend, at least for the sailing yacht segment. The value of exported sail craft during this period rose by 28.5% to almost EUR 150 million.

Better results than in previous year
Over the last few years, Germany's domestic market has been unable to keep pace with the rate of increase of its foreign markets. However, business picked up considerably in 2006. In an economic survey, 83.3% of the manufacturers and dealers of sailing yachts questioned reported results that were either as good or better than in the previous year. The motor boat market has also improved. Here, 72% of companies (previous year: 61.9%) expressed satisfaction with their business situation. In its year-end statistics, the Federal Association of the Watersports Industry (BVWS) expects to see an increase of 4.3% to a total sales figure for marine and maritime products and services (excluding the superyacht industry) of EUR 1.75 billion for the German market. This means that Germany's marine sports segment is once again catching up with developments in the markets abroad.

European boat market
The European boat industry expects total sales of marine and maritime goods and services to amount to approx. EUR 24.3 billion for 2006, generated by around 37,200 companies with more than 272,000 employees. This revenue figure includes around EUR 8 billion arising from the sale of new boats and yachts. Of the roughly 213,000 boats and yachts sold in 2006, approximately 86% (183,000) were motor boats. Close to 90% of the sailing and motor boats fall into the LOA segment of 7.5m or less, i.e. the category most affordable for wide sections of the population.

"Custom and Semi-Custom Built” category
A not inconsiderable portion of growth in years past was due to the increase in demand for superyachts which, though not having much effect on the unit numbers, do have a considerable influence on the total sales figure. In the "Custom and Semi-Custom Built” category of motor yachts, it is Europe's manufacturers that lead the world. While the demand for luxury yachts is incessant, manufacturers of series-produced sailing and motor yachts are considerably more reticent in their assessment of future prospects. However, an average annual growth rate of 3-4% certainly appears realistic.

Sailing and motor boats
The main runners remain yachts in the medium-sized category. The most important segment is that of yachts measuring 33 to 42 feet LOA. Within this range, it is the 11m yacht which is easily the most popular among boat purchasers. While yachts of this size can be safely handled by a (small) family crew, they also offer sufficient living space to ensure a comfortable boating holiday.

Trend towards easy-to-handle rigs
In the sailing yacht segment, the trend is towards easy-to-handle rigs - regatta-oriented purchasers excepted, of course. Whether this is achieved with roller furling devices for the mainsail or by sophisticated line reefing systems remains a question of company and product philosophy. The main thing is that everything is made as easy as possible, and particularly that the crew does not have to keep weaving its way down to the focsle end. The import figures indicate that Germany's domestic market is firming up. In the first half of 2006, a total of 751 sailing yachts were imported. This represents a rise of 103.5% in unit number terms and a value increase of 79.5%. Volumes and values on the motor boat side are roughly the same as in the previous year.

Equipment and accessories
At the same time, boat owners are investing more in equipment and accessories. High-quality heating, refrigeration and cooking technology as well as navigation and communications equipment are being acquired with a view to making owner-sailor yachts more comfortable, safe and secure. In the general chandlery segment, 76.5% (previous year: 68.6%) of companies report sales equal to or better than the figure for the previous year. Service companies and refit firms are also profiting from the trend towards better facilities in private boats. 86.7% of the businesses (previous year 73.9%) are satisfied with the 2006 season. The high workload is as much a consequence of brisk business in the pre-owned boat segment, often the first choice of people new to the sport.

Charter and marine tourism
The cold spring and the FIFA World Cup had a negative effect on business in Germany. The resultant decline in the number of bookings was, however, recouped on inland waters as the season continued - thanks to the above-average weather of the 2006 summer. This does not apply, however, to the Baltic region. Here, the decrease in revenues came to around 8% compared to the previous year. One of the reasons for this was certainly the radio certificate requirement. Since all sea-going charter yachts are equipped with radio equipment, the would-be skippers now require a radio certificate, something that fewer than 10% of charter customers have. At least the industry succeeded in ensuring that infringements would continue to go unpunished until 1 October 2007.

Mediterranean region
The Mediterranean region, so important for the industry, continues to be a price battleground. The supply of yachts is significantly higher than demand. Overall, business in the resorts abroad is reported to be at the previous year's level. Essentially, the trend of recent years - with ever later bookings and ever shorter rental periods - has continued. While some years ago, trips of one or several weeks were no exception, more and more customers these days are showing a preference for mini-weeks or weekend trips. Although this means there are more and more people enjoying the delights of chartering and marine tourism, total sales of this segment are growing only very slowly.

Outlook
The marine sports industry is looking forward to the future with some optimism. 81.6% of companies consider the medium-term economic outlook to be positive. The expectations of boot Düsseldorf 2007 are correspondingly high. As the world's largest showcase for marine and maritime products and services, boot is not only an important economic barometer but also a motor for future development. However, in order for this upward trend to be sustained, the required deregulation activities will need to be quickly implemented. The entry point in marine sports has to be sufficiently open and barrier-free in order to enable newcomers to first get a taste of their sport before having to acquire operating licences and skippers' certificates.

Source: Messe Düsseldorf

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