The year 2020 started very well for pleasure boat builders across the Europe but it was battered in mid-year by COVID-19. The Dusseldorf trade show, Boot, held at the end of January, ended with a positive outlook and promising results for 2020. Order books were full, thanks to the great boating mood created in previous years.
The unexpected and violent Covid-19 storm came up in March. Nobody was prepared to face the challenge. Builders had to stop production or to reduce their capacities to a minimum during April and May. Production schedules had to be reorganized according to security measures imposed by the local governments.
Larger shipyards faced more difficulties with their rigid production processes. Smaller facilities, being more flexible and adaptable to the new requirements, suffered less. The French Beneteau Group, the global number one in the sailing boats production, has been deeply impacted by the crisis. Turnover has dropped 45% in Q3 2020. Two months of very limited activity enormously hurt the industry. The estimated drop in produced units this year is 10% to 20% across Europe.
Business activities rebounded at end of April in all European countries, thanks to better sanitary conditions. Production of boats ordered in previous years restarted with a delay of one or two months but making up for lost time proved extremely difficult for some builders.
The Catana Group, one of the world’s biggest catamaran manufacturers, despite all efforts, was not able to complete the production of 297 units ordered in 2019. Three shipyards being heavily impacted by the pandemic crises have managed to produce less than half by the end of August. This is one of many examples having similar experience across Europe. Loss in turnover is irreparable.
The North and Central European citizens being disabled to travel abroad to their favorite destinations on the south this summer, have turned to the local tourism and water activities considered safe and secure from the virus. German, Scandinavian, Dutch, Great Britain, Polish and other builders have seen the opportunities in selling boats to the local population.
Local boating has been promoted intensively by the national maritime organizations and local governments. It has resulted in growing interest in a day/weekend smaller boats of all types. Countries having access to the sea or inland waters were offered great opportunities.
On the other hand, sales of bigger motor and sailing boats have suffered since the beginning of the crisis. Sales of new boats in size between 12 and 24 meters, in the normal conveniences sold abroad and used for long and far distance boating, have dropped by half in some cases. Portuguese and Spanish builders reported the international market disappeared overnight because of the Covid-19. Sweden lost 60% of its export market.
The superyacht sector remains untouchable, however. More than 90% of shipyards report incredible realizations and new projects for next three years. The Azimut Benetti Group, Ferretti Group, Sanlorenzo, Moonen, Damen Shipyard, Feadship, Heesen Yachts, Vitters are selling their yachts less in Europe, more in the Asia-Pacific and Mid-East regions. Order books for 2021 remain strong and production continues according to the plan.
2020, despite the pandemic crisis, may be considered as very bad but not completely catastrophic for the European pleasure boat industry. Thanks to last year’s orders, growing interest for domestic boating, good weather conditions and some governmental support, the loss in produced units is estimated to be as much as 20% comparing to 2019.
Travel bans prevented visits of shipyards, national and international trade shows have been canceled during the year, except for the Genova trade show. Their absence made a big hit on new sales. The second wave of the virus spreading over the Europe at the moment might cause cancelation of the January’s Boot edition. As reported by now, orders for 2021 declined by almost 30% in the segment of bigger motor and sailing boats and yacht which represents almost a half of the total European output.
Strategic changes and industry reorganization have been taking place within bigger structures, especially those traditionally producing boats for export. The Beneteau Group plans to reduce their capacity by at least 20% to cope with the post-COVID crisis. It is expected that the smaller boat manufacturers and those in the superyacht segment will be able to maintain production activities at this year’s level.
In general, though, taking into consideration all economic factors and the COVID uncertainty, the industry mood is not very optimistic. PSR
Natasa Mulahalilovic, Marine Pleasure Analyst Europe – Europe
