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.

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.

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. Brazil, for example, registered one yacht on the order book in 2001; this year’s list shows three yards building 11 yachts. As Smith noted, demand is outstripping supply for slots in custom yards. This is evident in some of the new yard names in the list: AMY (CNL), ThyssenKrupp, Hanseatic, Cyrus Yachts and Vegayachts. While some new yards may represent a single ad hoc build, the majority are enthusiastic businesses—many fronted by old hands in the business—representing exciting new projects and putting lots of talented people to work.

Italy, as Before

Italy retains its lead as the top yacht-producing country. Footage increased 31 percent, up to 39,104 feet from 29,804 in 2006. The number of Italian builds is up by 87 yachts to 347 units, claiming an astounding 45 percent of the world’s total production of yachts over 80 feet. Of the top 20 builders of luxury yachts over 80 feet, eight of the yards (40 percent) are Italian.

Stalwarts Azimut-Benetti and the Ferretti Group continue to impress with unit increases of 35 percent and 7.8 percent, respectively. In 2005 and 2006, the Ferretti Group showed more projects but less footage than Azimut-Benetti. This year, the dual-brand builder’s totals in both columns lead the list of top 20 builders.

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