Upward trend for luxury yachts continues

The 2007 Global Order Book for luxury yachts shows a total of 777 yachts 80 feet and larger under contract, totaling 94,404 linear feet. This total represents a 15.3 percent increase in footage from 2006, continuing an upward trend that was reported in the 2004 GOB report. Also reported is an 89-unit increase in the number of yachts under contract, mainly in the 120- to 149-foot range, which increased from 98 to 141 projects.

Global increase in wealth
What drives this market? Three years ago, Forbes magazine listed 476 billionaires on its list of the world’s richest people. The magazine’s most recent list, released in March, shows the number of billionaires around the globe has climbed to 793. Looking at the global increase in wealth more locally, for the first time in the American business and financial magazine’s history, its list of the 400 richest Americans includes no multimillionaires; instead, the roster is full with those whose net worth is at least $1 billion. These figures give credence to an observation made by Billy Smith, vice president of Trinity Yachts, that "the wealthy [population is] increasing faster than the shipyards can build the boats they want." Yachtbuilders say that many of their new clients are from Eastern Europe, Russia and smaller Middle Eastern nations—places where yacht ownership is a new phenomenon.

Rising stars
Although the top three producing nations—Italy, the United States and the Netherlands—account for 65 percent of the total yacht footage under construction, newcomers and rising stars continue to join the luxury yachtbuilding scene.

Large builds increase overall
The number of builds larger than 150 feet continues to climb. There was a 13 percent increase in 2005 in the number of motor yachts 150 feet or larger. Last year’s listings saw a 14.6 percent increase. This year, 139 motor yachts 150 feet and larger are reported, an 18 percent increase over 2006’s total of 118. Forty-four of those are larger than 200 feet. Even with launchings, there is enough interest to keep the number steady. Of those, 27 are 200 to 249 feet and 17 are over 250 feet. A new Sport Boat (SB) category was added this year to distinguish the 120-foot and larger yachts that aren’t really open yachts yet don’t fit the traditional motor yacht configuration. Only eight were reported, but if their popularity holds, that number will increase as builders join in the mix.

Sailboats in trim
Sailboats seem to go in cycles. Their numbers increased annually from 30 in 1997 to 72 in 2002, and then suffered a yearly decline trend. This year the number of builds increased from 52 to 59, returning to the 2005 level. Sailing yachts now account for 8 percent of the total boats under construction.

Source: www.showboats.com


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