Key Insights from The Superyacht Group's Annual Report 2012


Ellie Brade | April 18, 2012

Ellie Brade, editor of Superyacht Intelligence, shares the key insights from the 2012 edition of its Annual Report issue of The Superyacht Report

The Superyacht Report magazine is widely recognised as the business-to-business magazine covering the large yacht market. Celebrating 20 years in the superyacht industry, the publication has continued to deliver intelligent editorial to ensure readers are kept up to date with the latest developments relating to management, construction, design and new technologies. Detailed analysis of trends by our team of experienced and well-respected journalists makes it a ‘must read’ for anyone serious about doing business in the luxury yacht market.

The Annual Report serves as a detailed overview of every aspect of the superyacht industry, and features snapshot overviews of the key sectors of the superyacht industry, including new build, refit, marinas, brokerage and finance, listings of each yacht under construction, analysis of the order book of yachts in build, a ‘Year in View’ overview of key events, sales and launches, a look at the superyachts of the future and the results of the inaugural Superyacht Economic Analysis Study.

Conducting the report we…

To obtain the data needed to support this study a survey of the superyacht industry was undertaken. The survey received 1,400 unique responses from companies representing the diverse businesses operating in the global superyacht sector from supply and manufacturing, to service industries like banking and insurance (multiple entries from the same IP address or company were disregarded in the interests of accuracy). Data for this study was sourced using a range of methods including, but not limited to:

- A direct mail containing the survey link to every company in The Superyacht Group’s (TSG) database, a detailed record collated over 20 years.
- Publication of the survey link in TSG’s online publications, other online media publications and using social media such as LinkedIn, Twitter and Facebook.
- Collaboration with industry associations, which supplied and helped to validate data.
- Use of data in existing reports relevant to the subject.

“ European shipyards continue to produce the majority share of all new yachts, with Italy the producer of the most yachts per annum ”

Most surprisingly we found…

The 2012 Annual Report included the first showcase of the results of our inaugural Superyacht Economic Analysis Study. Although it is well known that the luxury yacht market is a significant industry, no report like this existed previously so it was the first time we or the superyacht industry had seen the hard facts of our economic impact laid out in print.

- Superyachts contributed €24bn to the economy in 2010.
- Over 6,000 companies operate in the superyacht industry.
- Jobs created by superyachts are worth €5.99bn annually.
- Between 150,000 and 130,000 land-based jobs.
- Up to 100,000 contractor/day worker jobs.
- 33,000 crew employed on yachts.
- Suppliers and manufacturers are the leading industry sector, with 40.8 per cent share of business worldwide.

Un-surprisingly we confirmed…

Despite the economic difficulties, UHNWI’s are still buying and building superyachts. The superyacht fleet continues to grow, and with it the potential and value of the industry also grows.

European shipyards continue to produce the majority share of all new yachts, with Italy the producer of the most yachts per annum. 80 per cent of all delivered yachts are motor yachts. The average yacht is a 45 metre motoryacht, built in a European shipyard.

The average size yacht continues to increase, with 31 per cent of yachts in build over 50 metres, as compared to 21 per cent a decade ago.

“ The average size yacht continues to increase, with 31% of yachts in build over 50 metres, as compared to 21% a decade ago ”

Since the last study…

No dramatic change has been seen to the superyacht industry as a whole. Having endured the fallout of the economic global downturn that began in 2008, the superyacht industry is now on a fairly even keel. 423 superyachts are in build at shipyards around the world. This figure is consistent with those seen in the 2006-2008 editions of The Annual Report, indicative of a level of stability in line with the pre-boom years.

121 shipyards are building yachts in 2012, compared to 140 in 2011

40 shipyards began or secured a new order in 2011, up 32 per cent on 2010

A clear trend noted in 2012 is buyers placing orders predominantly with established and reputable shipyards. Reasons for this seem twofold: firstly, a desire to place orders with those yards offering a secure prospect and quality product, and secondly, to ensure high resale value of yachts, as yachts from top yards have a proven history of value retention.

If we were to conduct this study in 12 months time, we would expect

The Annual Report will be published once again in 2013. Judging on the performance of recent years, we would expect to see similar numbers of yachts under construction in 12 months time as there are now. The major players will have continued to cement their strong position within the industry, while smaller, newer yards will struggle in comparison.

Some 200 new yachts will be launched during 2012, bolstering the superyacht (30m+) fleet to around 4650 yachts.

“ Analysis of 2011 indicates a fairly stable industry. Order numbers far outweigh the numbers of yachts going out of service ”

If readers remember only one thing it should be…

That a superyacht is so much more than one rich man on his yacht. As the results of the Economic Analysis Study showed, as an an industry the economic impact is huge, and one yacht supports hundreds, if not thousands, of jobs throughout its lifetime.

The overall results of The Annual Report show that this impact is only going to continue to grow. Analysis of 2011 indicates a fairly stable industry, and as order numbers far outweigh the numbers of yachts going out of service, the superyacht industry looks set to continue in its path of growth for years to come.

As part of the growth the superyacht industry will increasingly look to attract new clients from areas of growing interest, such as the BRIC nations, and in particular Asia. Serving the UHNWIs capable of buying yachts, and better understanding their changing wants and needs will ensure a strong future for the superyacht industry.

Luxury Society invites our readers to discover The Superyacht Report’s full Annual Report 2012 and download the Economic Analysis of the Superyacht Industry

For more information regarding the research, please contact communications manager Belinda Liversedge using the Luxury Society network.

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