BUSINESS STRATEGY HATS ON, PLEASE.

[Mike_JT]

France have their Beneteau/Jeanneau, and Gibsea/Dufour.
Germany their Bavaria.
The US their Hunter/Legend.

The world's top volume producers of sailing crusier yachts.

This island nation (UK), with all its martime history, expertise and small yacht innovation in the 60/70's, has some strong niche companies, but no volume producer - nothing on the scale of those named above.

The only explanation I have seen for this in the yachting press, whilst reporting yet another UK company's demise, is to blame the exchange rate.

This is your chance to help a business researcher with opinions (or facts if you'd rather!) on why the UK hasnot emerged with a world class volume yacht producer.

All comments gratefully received.

 

[tcm]

Easy. UK land values far too high as it had never been divvied up since 1067, whereas all the places you mention wer divvied up 200 years ago. So, UK lenders want (and can get) the security of land/buildings to lend against which guarantee upward-only rent and returns of 6% when bad (like now) and 15% or more when good. Foreign banks can't get these levels of security so will fund flaky boat-building idea which ocassionally works out.

 

[pandroid]

So how come the UK has all the volume Powerboat builders?

The usual response to the original question is that UK yacht builders underfund and overstretch. Every now and then a couple of customers back out and they go bust. A certain French builder managed to get breaks from the government to help her build her empire.

 

[tcm]

Re: powerboats

the Uk doesn't have "all" of the powerboat builders. Far bigger companies in the USA (searay, bayliner) and others in france and italy shift more boats. Relatively, the brits are faling behind, it seems.

 

[pandroid]

Re: powerboats

True,
I should have more correctly said 'European' which I thought was what we were arguing about. (After all, the Yanks have the biggest Yacht builders too (Hunter, Catalina etc) - and they do have the biggest market)

 

[Twister_Ken]

Search, and all shall be revealed

Mike, this has been done to death recently on the fora. Try using the search facility.

The thread starting at
http://www.ybw.com/cgi-bin/forums/s...ber=250639&page=&view=&sb=&o=&vc=1#Post250639
is one example

 

[petery]

We produce in volumes we know we can sell

I have found in all areas of business I have ever been in that UK manufacturers (and their banks) never take risks.

They work out the market volume that they are 100% sure of selling and tool up for that - which means small batch production.

It must be a relic of Empire where we had guaranteed, eager markets and no competition.

Other countries work out the volume they need to sell to achieve a target price; build a factory just to make that product and bust their guts to sell that volume.

I recall trying to source a 2 ton hydraulic jack and telexed a Taiwanese factory at 0100 hrs their time. A reply came back within the hour. They had a whole factory devoted just to making that one model of jack.

 

[Mike_JT]

There is no doubt that the UK has achieved significant dominance in the power boat market. But given this success - surely it makes it stranger still that we have not come to dominate the sail cruiser market ? Why do so well in power boats, and get blown away in the sail crusier market ?

 

[jimi]

When you say dominance in the market, please define the market. Uk? Europe? World?

Jim

 

[halcyon]

Long envolved story, but back in the 60/70 we were producing large volume of yachts, Westerly, Hurley, Offshore, a lot going to the USA.

The USA market callapsed. killing Westerly and Birchwood mainly, never got back to the volumes again.

Add to this the British banking system, the unions, and consecutive governments that do not beleive in a manufacturing base, prefering to import and employ everybody in service industry.


Brian

 

[Celena]

One reason put forward is that we have a strong domestic market for power boats (have a look in any marina; then compare with a French one) this in turn assists the export market for that item. According to the RYA, this is a valid reason for continuing to allow the use of "red"diesel for pleisure purposes.)