|
|
|
The 2005 global order book breaks all records.
by Editors of Showboats International
|
01/01/2005
|
| The 2005 Order Book |  |
Luxury yacht order book up 28.4% • 14 miles of yachts under construction
• Italian industry continues to surge • U.S. & Asian orders up dramatically • 80-foot to 89-foot segment up 59% • Open yacht market up
256%
VICTORY AT SEA
From an historical point of view, ShowBoats International’s
2005 Global Order Book is nothing short of staggering. Consider that since 1997,
the year that 80-foot to 90-foot yachts were added to the database, the global
market for luxury yachts has more than tripled. This year’s 144-yacht increase
over 2004 is almost the same size as the entire global yacht market of 1992. The
increase alone represents an estimated U.S. $1.22 billion jump in the value of
the industry’s new-yacht construction.
While the numbers speak clearly and
eloquently for themselves, understanding the reasons behind the dramatic growth
the industry is enjoying is not so easy to fathom. Continued economic growth in
the U.S., Europe and Asia is a contributor, as well as an extraordinary level of
new large-yacht orders from the Russian market. Perhaps the most important
factor, however, is the stability of the Euro/U.S. dollar exchange rate. Though
it has stabilized at a level higher than many European builders would wish, its
predictability has allowed companies and consumers on both sides of the Atlantic
to adjust their expectations and pricing. Thanks to significant recent
investment in their manufacturing infrastructure, Italian production and
semi-custom shipyards have increased their efficiency sufficiently to enable
them to price their yachts competitively and still retain adequate profit
margins. The existing exchange advantage has proven a boon to U.S. builders, who
are also in-vesting heavily in infrastructure that they hope will continue to
pay dividends in future order books.
ITALY STILL LEADS
In 1992, Italy’s luxury yacht order book included 33
boats totaling 3,359 feet. This year’s increase in Italy’s order book alone
totals 6,489 feet. Italy is up 32% over 2004 and continues to own bragging
rights as the leading luxury yacht-building nation with 249 units and 27,595
linear feet of boats – or 5.2 miles – under construction. In 1992, Azimut
and Benetti were separate companies with a total of five yachts under
construction. Today the world’s largest builder, the Azimut-Benetti Group has 64
yachts over 80 feet under construction and on order, up 14% (by unit production)
over 2004. Back in 1992, Ferretti wasn’t even on the luxury yacht radar screen.
Twelve years later, the Ferretti Group (including Ferretti, Pershing, Custom
Line, Riva and CRN) is ahead of Azimut-Benetti in unit production with 69
yachts, though it remains in second place in overall builder rankings due to 291
fewer linear feet of yachts under construction. Still, the Ferretti Group,
thanks to its aggressive introduction of new yacht series, showed a dramatic 78%
increase in total 80-foot-plus production over 2004. Showing similar
growth – especially in semi-custom production at ISA, its burgeoning new
large-yacht facility in Ancona – is the Rodriguez Group, which posted a 96%
order increase over 2004.
The United Kingdom, due in part to new model lines
at Sunseeker, showed a strong 75% increase in orders. Sunseeker International,
with the biggest increase among the industry’s major production manufacturers,
rose 116% this year and remains fourth in the top-builder rankings.
ASIA ON THE RISE
Perhaps the most dramatic increase in the builder nation rankings is
in Asia with Taiwan rising one notch from sixth to fifth place and China, in
eighth place, making its first top-10 placement. China’s 2004 production
increase totals 217%, calculated by linear feet. Taken together, the
China/Taiwan order book would place them third in the rankings based on unit
production, and fourth on the basis of linear feet.
RUSSIAN INFLUENCE
Without question the most dramatic and meteoric consumer
market is in Russia. Yachts have become the highest symbol of wealth among
Russia’s small but ultra-wealthy elite. Several individuals own not one but two
or more superyachts. One family has placed an order for five yachts at Sensation
Yachts in New Zealand and another has placed two orders at Burger Boat Company.
Russian owners, many relatively new to the market, have a passion for
performance and are helping to fuel the rapid growth in the market for offshore
or open-style yachts.
Once a class of yacht relegated to the under-80-foot
market, open boats comprise the fastest-growing segment in the industry,
evidenced by the 256% increase from 25 orders last year to 89 units in 2005.
Leopard, Codecasa, Palmer Johnson, Pershing, Baglietto, Mangusta and Sunseeker
all are building 100-foot-plus open yachts.
View the complete 2005 Global Order Book here.
|
|
|
|
|
Email This
Printer Friendly Version
Reprints & Permissions
Most Popular Searches