It’s been a tough summer: war, drought, raging fires, flaring fuel prices, lingering Covid, extreme heat, political unrest, flagging economies and the still-gagging global supply chain. Some days it’s hard to get a clear view of the horizon.
But the world is not all dark clouds and lightning bolts. I spent a week in June visiting shipyards and designers on Italy’s Adriatic and Mediterranean coasts, and the view was patently upbeat, with order books bursting at the seams and clients breaking down the doors. What the heck is going on?
Historically, a trip like that usually nets some grumbling, even in the best of times, but this was different. The CEOs, marketing managers, sales managers and designers I met with were downright buoyant about the current state of affairs and feeling pretty good about the future. Naturally, underlying the effusiveness were some headaches: uncertainty about effects of the lingering war in Ukraine, the detention of Russian-owned yachts, spiking steel and aluminum prices, labor shortages and challenges with expanding their yards. But in the past, those concerns would have aired over the first espresso. Not so today.
By now, we all know that Covid has a) dumped copious amounts of cash into the accounts of many current and potential yacht owners, and b) reminded us how fragile our mortality is. Carpe diem apparently has become a war chant among yacht owners and the yacht-curious alike. Family time is more precious than ever, and what better way to activate that than on a mobile island loaded with toys and the best restaurants on the planet?
A particularly well-reported article in The New Yorker in July quoted the CEO of a major yacht brokerage and management company saying, “Covid and wealth—a perfect storm for us.” He meant that in a good way, of course. While clients may not appreciate the longer delivery times that builders are quoting and the premiums that higher materials costs are adding to the prices of new yachts, it beats the alternative—on the supply side, anyway.
But the upside for owners present and future is that more cash in builders’ coffers tends to foster innovation. Many builders are developing more efficient power schemes, from improved diesel-electric systems to fully electric and hydrogen fuel cells. They’re not operating in the clouds, though. Demand for more eco-awareness is on the rise, especially among younger buyers, and builders and designers are stepping up. Two stories in this issue—one about a maker of sustainable materials, and another that profiles three designers and their move toward greener interiors—reflect this trend. Good.
Three other notable trends emerged on my Italian adventure this summer. First: The percentage of American buyers of Italian boats is increasing beyond its previously significant number. I’m not sure why that is, but it affirms where Yachts International is positioned in the media market. Our tagline, “Bringing the World to the American Yachtsman,” rings the bell now more than ever.
Second: Amid the flood of clients shopping in Europe are a substantial number of first-time boat buyers, and they’re ordering big ones versus the usual path of starting small and trading up. Wait until they find out what they’re missing.
And, finally: The average age of large-yacht buyers is falling. One CEO told me the 50s, 60s and 70s profile is moving toward 30s, 40s and 50s, with some 20s in the mix. Fresh blood is good for business, and young blood, better still. We’ll see how they influence the pace and direction of design.
The young ones know how to live for today.
This article was originally published in the Fall 2022 issue.
