2021-06-03

The yacht industry withstands the pandemic

Despite problems caused by the Covid pandemic, canceled trade fairs and the initial uncertainty associated, for example, with global supply chains, the Polish yacht industry appears to have managed to stay balanced. What is more, as of the end of the past year, some of the specialized yards in this segment experienced an increase in turnover.

- The beginning of the Covid pandemic in Poland was a difficult time for our yacht shipyards and other companies from the industry. Although the yacht industry was still operating, major problems were encountered with broken supply chains in March and April, mainly due to the total lockdowns enforced in many countries – Italy, France, England, Spain, as well as China. We have also encountered problems with transport, particularly at the initial stage, or with personal collections, due to closed borders. There were also problems with employees – the general fear of contracting the virus was aggravated by media reports, there were recurring absences caused by sick leave or childcare, because schools were closed  – says Michał Bąk, Secretary General of the Polish Chamber of Marine Industry and Water Sports.

The situation started to change for the better with the gradual lifting of subsequent restrictions and knowledge that sailing a yacht or a motor boat is one of the safest forms of quality time. Since May 4^th last year, marinas were opened with a limited offering of services, without catering and sanitary facilities, and since May 18^th last year, people were allowed to sail with a max 2-person crew or with family only. Of course, many restrictions were still in place, such as the disinfection of vessels after each use, keeping a safe distances to other individuals in the marina or when in customer groups. However, as of the second half of May, charter companies have stopped generating losses and have restored close to normal operations.

- At that time, we started to observe a gradual increase in demand for new sailboats and motor boats. We sold everything that was available right off the shelf - sailboats, motor boats, houseboats and scooters. Predicting that the pandemic would last longer, some people decided to sign purchase contracts stipulating delivery in 2021 – explains M. Bąk.

More or less mid-year, growing interest in yachts was recorded. People started to recognize yachting as an interesting vacation option, an opportunity to escape from the pandemic. The WHO considered yachting as one of the safest forms of recreation during the pandemic, which is why many people who changed their holiday plans last year, resigning from foreign trips, decided to spend their vacation on water.

Shipyards received many new orders. Production lines have been mostly occupied, and will be so until the end of the season. Some people decided to buy, a decision they had been putting off for several months or years. Others decided to give up charter services in order to protect themselves and families against exposure to other crew members. The reason was also the desire to increase the comfort of holidays on the yacht, as shipowner vessels are always configured according to the customer's preferences and usually have more extensive equipment. The trend we have recorded in Poland was an international phenomenon. A similar effect was observed in the countries of Western Europe and Scandinavia, and since 95% of the Polish production of yachts and boats is intended for export, a large part of our shipyards reported an increase in turnover at the end of 2020.

In terms of motor yacht production up to 9 m in length, Poland is Europe’s first and world’s second manufacturer. Although there are only a few large-scale shipyards in Poland, the whole sector of vessel manufacturers in our country is comprised of about 1000 companies which employ about 45 thousand people. This group includes about 120 shipyards, and 95% of the companies are small and medium-sized enterprises. According to a report of the Polish Economic Institute from mid-2019 (newer issues have not been published yet), which is based on Eurostat data, in 2018, Polish export of yachts accounted for 60% of the total export value in this segment in the European Union and doubled in 2014-2018 (from EUR 184.8 million to EUR 395.8 million). Finland (EUR 60 million, 9.1% of EU exports) and Italy (EUR 36.7 million, 5.6%) were are ranked next, though reporting much lower volumes.

The biggest and undisputed asset that distinguishes Polish shipyards are relatively low production costs, as well as the immense potential of numerous companies in technology, quality of finishing and design. As PEI experts stress, Polish shipyards building yachts are among the most modern facilities in Europe. Since yachts can be priced between several hundred thousand and several million euros, the demand for yachts in Poland is still low, which is why, as mentioned above, nearly all production goes to export.

The situation of the Polish yacht industry and its position in Europe and in the world will be a completely new topic, discussed at the upcoming Maritime Economy Forum Gdynia. The 20th anniversary edition of the event will take place on October 8, 2021.

 Article developed with Namiary na Morze i Handel magazine

phot. Namiary na Morze i Handel magazine