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The Dutch marine market seems to have bounced back from the slump of 2005, a year overshadowed by a struggling economy and low consumer confidence. These problems were compounded by a turbulent political situation, resulting in power being handed to a caretaker government. The weather also held a few unwelcome surprises, and this Spring many would have been forgiven for battening down the hatches and writing off 2006 as another forgettable year for the Dutch marine business.
However, most of the companies canvassed by IBI for this report noted an increase in 2006 sales, with growth rates returning to nearer those experienced in 2004. Further good news is that the Dutch consumer is slowly starting to spend money again, and nowhere was that more evident than at the Amsterdam Seaport Show in IJmuiden in September. Bright sunshine helped boost visitor turnout and the mood was positive on the pontoons. Most boatbuilders said business was on par if not slightly better than in 2005, though a handful reported a slight dip in sales.
In recent years the relative strength of the Dutch market has been underpinned by its superyacht sector. With that market booming, the handful of key Dutch superyacht builders have been reporting packed order books and swelling coffers, which has been good news for Dutch equipment manufacturers and other support services feeding off them.
However, other sectors of the Dutch market are also showing signs of expansion, notably the builders of classic steel boats from 10m (33ft) upwards. Dutch superyacht builders have always enjoyed global recognition, but with its own domestic market sluggish and the continued slump of its main export market Germany, builders of smaller boats have been forced to look further afield to grow sales. A common goal amongst the majority of Dutch boatbuilders interviewed for this report was to increase exports. “There are so many people building beautiful boats in Holland but they are not sales and marketing people,” says Michel Schuuring, founder of the Just Nautic Yacht Agency. “We have to look over the border. Up until recently Germany was the only real export destination for the majority of those builders exporting.”
Schuuring recently launched the first edition of Just Nautic - Gallery, a magazine showcasing 11 smaller Dutch boatbuilders. That number will increase to around 20 in the next edition, with a 2007 Just Nautic guide to feature another 180 — all with the express purpose of helping to sell Dutch marques to overseas markets. So far it appears to be working. According to Schuuring, a number of boatbuilders in the Gallery have registered sales to Russia and Eastern Europe this year.
“The real potential lies in exports,” says Schuuring. “We’re finding in particular that the Russians are developing a taste for a classic-styled steel boats.”
As a result there is a growing consensus that perhaps the recent slump in domestic and German markets might not have been universally dire, having forced builders to capitalise on their export potential.
Those companies that are boosting exports are in a strong position. According to HISWA’s Jeroen van den Heuvel: “Boatbuilders had been relying on the German market until that started to slow and then looked to other markets, like the UK and Ireland, which have been going well. Now there are indications that the German market is finally on the rebound.”
According to HISWA’s annual survey of its 1,200 members, boatbuilder sales have grown three per cent in 2006 compared to 2005, both in terms of value and units. “Order books are full and waiting lists are increasing,” van den Heuvel adds. This year’s poor spring was followed by a reasonable summer and good September, which has helped restore some confidence in the market. “Our members are tentatively optimistic about 2007,” says van den Heuvel.
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Summarised from the Dutch Business Report in IBI's November 2006 issue.
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