Un blog dédié à l'industrie du nautisme

Diversification like…. exportation ?

Author: Bruno

I recently read an article from Liz Walz written in the webzine « Boating Industry Insider ». My reaction was that this need of diversification for US boat builders could be exporting. Indeed, the vast majority of US boat builders are focused on their domestic market, which is very competitive and saturated.

Thank you Liz, this diversification strategy of Latham Marine is a good example to follow for boat builders… if it’s not too late! Our European boating industry is also deeply impacted by the crisis, particularly in Spain and in the UK. France and Germany are a little better but if we still don’t have so many manufacturers under chapter 11 in Jan.2010, it could change rapidly.

Crisis is also an opportunity to diversify: more time to train the technical teams to new methods and technologies, more time to benchmark and think strategy, more time to think new markets.

Export could be a kind of diversification for US boat builders. Indeed, most of them are focused on their domestic market, which is very competitive and quite saturated.

Exportation is an option, but exporting where?

Asia is not mature enough (Chinese traditionally hate water and Indian market is promising but not yet).

Think Western Europe. Traditionally focused on sail boats, the North and Atlantic parts of Western Europe offer a huge potential to small motorboat builders. Moreover, marinas are completely full, like in the Mediterranean part of Western Europe (Spain, France and Italy).

Consequently, sailboats and large motorboats markets are saturated in Western Europe. But not the salted water small motorboat market: boats less than 7.5 meter long that don’t necessary need a place in a marina, boats that you can park in your garage.

US have a huge number of these boat builders. Why not see the European market as a diversification? Business model could be: Producing in the US, taking advantage of the parity Euro vs. Dollar, exporting unassembled hulls and decks or consoles and creating an assembly line in Western Europe where the market is.

What do you think?

I’ll be in Miami for the next Miami International Boat Show. That will be an opportunity to discuss the idea with different boat builders.

This entry was posted on Vendredi, janvier 29th, 2010 at 11:18 and is filed under Constructeurs, In english, Motonautisme. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.