Insights & News

TRAINING BLUES

The title does not reflect what I am thinking now but it is the closest simple description I have found.

Many groups, societies and well ment people make it possible that trainees can join workshops or join the crew onboard to learn the “real things” of the nautical careers they chose. I am picking the example of Phil Wade, of oversize emotional heart and legendary yachting fame, who organised some nine years with another SA yachting friend, a charity for South African unprivileged children, allowing them to learn about yachting and become yacht crew or yachting technicians. Marine Inspirations, inspired in “time to give back to the industry” have since trained both female and male kids and opened for them the possibility of a promising future within the yachting industry. The children are given theoretical training in South Africa, and the ones who better assimilate the learning are taken on a two-week trip to Palma to assist with regattas, visit shipyards and yachting support companies, and sometimes do some sailing too. Other pupils are placed as apprentices onboard or at yachting supplies companies.

So far so good. This organised and recognised ONG can show results with successful cases of youngsters now part of the yachting community, who otherwise would have suffered the traditional limitation to find quality jobs. Beautiful story, but we must now find the first cultural blockage to their further development: the on-the-job training. Of course, someone without experience must start with the basic chores of the trade, but that period must last only the strictly necessary time, and bring the person to the next level, taking more responsibilities and being allowed to make mistakes which are indelible experiences. Assigning higher levels of (surveyed) decision-making is the next step, and letting them fail and learn from it is necessary.

Too many managers accepting trainees keep them away from decisions or machinery operating afraid they could make a dangerous mistake. That does not help in gaining experience; management should limit the mistakes a trainee can make and trust the person to take the proper reaction if things go wrong. If I would have deckhand trainees on a yacht, aiming to get their officer’s ticket, of course I would not go to my cabin letting them take a night watch alone, but instead stay sleeping close by the bridge to check everything now and then and be ready to react on a call for help (I did that during my deliveries). The fear of something going wrong is with us trainers, expressing our insecurity. Our knowledge and experience should give us the peace of mind to see a trainee as another variable in the system that should be monitored but not limited to the new tasks being learned, remembering that making your own mistakes is the best experience. Novel doctors must practice a few years after graduating under (but not limited by) a seasoned doctor’s supervision before they can practice alone.

The method is used in many disciplines, but would not work if the trainees cannot perform under real conditions. In helicopter pilot training, you are sent to fly solo after 30 hours with an instructor. The aerospace industry is highly conscious of safety, but the apparent dangerous learning protocol works. Those two situations can be more dangerous than mistaking fishermen’s lights for shore ones just showing up above the horizon, wrongly tying down a mooring line, or pinpointing a plot in the chart a few miles off. Trainees with special abilities will excel in handling their assigned job situations, and be identified early in their career as an industry promise. These examples can be extrapolated to each and all duties in our nautical (and other) professional worlds. Let us eliminate our fears and give our (needed) followers the opportunities they deserve.

Oscar Siches, CMP, GMBA Spain
Tel: +34 667 494 858
Email: oscar.siches@gmba.blue

Disclaimer: Global Marine Business Advisors is a registered legal entity and is a network of independent marine industry advisors. In all articles the opinions expressed are those of the author and does not necessarily reflect those of GMBA.

AIMEX CELEBRATES A VERY SUCCESSFUL 25 YEARS

AIMEX has celebrated 25 years of operation, no mean feat for any organization in today’s business environment. Marine Industry Organisations in many countries have struggled to survive during tough economic times, have had multiple leaders and have seen their funding and membership bases erode. AIMEX can tell a very different story, one of stable leadership, diversification, growth, and continued relevance. This is a story that needs to be told as I believe the success of AIMEX and how it has developed is something that should be shared. A close look at the success of AIMEX and its leaders is being developed as this article goes to print.

Jeremy Spear, the current President of AIMEX spoke recently at an event at the Sydney International Boat Show talking about these 25 years. His overview of AIMEX and what the organization has achieved was impressive to say the least and he firmly stated we continue onwards and upwards.

Jeremy stated in his address; “AIMEX is truly a National body, representing and providing services and initiatives to members who derive assistance, representation and have business interests looked after in all 7 states and territories of Australia. We are doing exciting things now in the Jobs and careers sector. Moreover, AIMEX is truly an International body – we take part in events and represent Australia and are active continually in over a dozen countries. The AIMEX group, incorporating Australian manufacturers and service providers, the Australian commercial vessel marine group and Superyacht Australia has repeated, regular and strong attendance and representation at many major and significant industry events worldwide servicing the very broad spectrum of the manufacturing, commercial marine and especially Superyacht sectors. “

Jeremy listed the extensive achievements of AIMEX, all of which have contributed to promoting the Australian marine sector globally and to improving the Australian marine industry operating environment by changes to legislation, providing a strong voice to government on issues affecting the industry and above all ensuring AIMEX, Superyacht Australia and Commercial Marine Group members are well informed in terms of the business environment and opportunities nationally and globally.

Well done CEO David Good, Chairman Jeremy Spear and the committed AIMEX board. A true example of a successful organisation looking after its members.

Maryanne Edwards, GMBA Australia / New Zealand
Tel: +61 41 291 6036
Email: medwards@gmba.blue

TRANSPORT COSTS. EVOLUTION AND MITIGATION

Sources: the Wall Street Journal and Statista.

The pandemic has wreaked havoc on the transportation infrastructure since the beginning of the pandemic, with extreme disturbance on land (resulting in the disruption of supply chains) and sea shipments.

In the yachting industry, in 2021 new shipyard orders went through the roof in all segments of yachting, particularly in the mid-size and superyacht sectors.

For a good part of 2020 and 2021 many ships were stuck in harbor or on anchor, and couldn’t sail internationally. Goods were piling up in ports and warehouses. When ships started sailing again in small numbers container shipments were up five to seven-fold.

Between 2020 and 2021 domestic shipping rates for moving goods by road and rail in the U.S. were up about 23% and warehousing prices up 14%. Sea shipping went up 75% YOY. (Note: the sea carries more than 80 percent of the world’s traded goods).

Domestic prices in Asia, and especially China barely saw any changes due to a number of specificities. (Very efficient domestic logistics; very advanced network and infrastructures). International shipments prices were dampened by the belt & road rail system that reopened as soon as lockdowns were over.

With the pandemic over, the demand was still far outweighing the capacity of the freight sector, and transportation and logistics providers were still seeking big boosts in prices for contracts in 2022. (Contracts are annual and generally negotiated at the beginning of each year).

Shippers have been trying various ways to keep the transportation inflation at bay, such as consolidating more loads to minimize truck trips and renting truck trailers for storage rather than paying rising warehousing rents. But experts say companies have little choice other than absorbing the cost or passing it along to their customers.

Now it’s 2023 and the costs have kept decreasing since mid-2022 and dropped at the end of the year. They are now back to pre-pandemic level since March 2023.

However the inflation, as well as the rise in oil prices will have lingering effects for quite a while. According to the IMF data from 143 countries over the past 30 years, it appears that shipping costs are an important driver of inflation around the world: when freight rates double, inflation picks up by about 0.7 percentage point. Most importantly, the effects are quite persistent, peaking after a year and lasting up to 18 months.

Luckily shipyards that had full order books have been able to keep production, and are now able to ship yachts worldwide at reasonable rate since the second quarter of this year.

Pandemics and other catastrophic events are not new; what is indeed is the fact that they are now scientifically documented and quantified thanks to information technology. Should we ponder on the impacts and envision emergency plans for the future? Certainly some transportation alternatives exist when it comes to general goods shipped in containers, but when considering yachts, viable solutions are hard to come by.

Godfrey Zwygart, GMBA China & Asia
Tel: +86 188 0899 8617
Email: godfrey.zwygart@gmba.blue

Supply chains and Greedflation. Reflection on skyrocketing prices.

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way–in short, the period was so far like the present period that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.” Charles Dickens; – Opening phrase of “ Tales of Two Cities. Published in London 1859.

The Covid period turned economies upside down and IMF has estimated that the pandemic cost the global economy in the region of USD 12, 5 Trillion.

Trillions of costs and losses to be recovered we must assume.

On a microeconomic level, the pandemic hit viciously on our labor force and absence from their daily tasks led to a huge vacuum in the supply of our products and services to soaring markets.

Businesses and operations were not fed with the ingredients, components and material required and with domino effect, vertically and horizontally, our traditional supply chains defaulted with the consequence that individual companies quickly found themselves in loss positions.

But Covid also triggered the sales boom at the retail end and the pressure to accommodate our markets was frantic.

The human nature, as well as the true spirit of well managed companies, are organisms with a strong desire to survive. New plans are quickly put into action; – we change, we adapt, we adopt, we adjust and do what is needed to survive. In the worst of times we also had the best of times.

We were fighting the horrors of the pandemic, and, at the same time, fighting to meet demand. Our frustrations also became our motivation to get back on track – in partnership with our sources of supply, and deliver to the buoyant markets in front of us.

Sources of supply to our industry are now more or less operating at capacity and with some exceptions, they are in a position to accommodate us with the capacities we need.

Some Long –Covid effects are closely observed by all builders; – including, but not limited to inboard engines, and labor (Poland, for instance, depending on a significant portion of Ukrainian labor and general shortage of skilled labor).

Components like resin, steel, glass, upholstery, semi-conductors, outboard engines are back on a track.

I took the liberty to use the opening phrase from Tales of Two Cities by Charles Dickens as my metaphor for the two very different world we have been through; – the pre – and post Covid- years. Why? Simply because I just love this phrase, but also because I find it well suited to describe the parallel worlds we experiencing today.

And this is my reflection.
In the 3- year period before the Covid, world-rich prices rose by 6 %.
In the 3- year period after the Covid, world-rich prices have risen by 20 %
Retail prices in several boat segments have risen more than 20 %. Some above 35 %.

With global Covid losses of USD 12, 5 Trillion followed by global energy shortages and inflation out of control, we see that industries and large corporations are increasing their prices and margins far beyond inflation levels. Companies and services that survived the pandemic with some serious dents and losses in their business, have discovered a window of opportunities which they admittedly take advantage of. Their operational margins are soaring while the operational margins of their customers are defaulting. From our traditional sources of our supply we have to accept new terms of business and significantly higher prices which in my book are far beyond cost & loss coverage levels.

As governments and Central Banks announce measures to get inflation to below 4 % , we see our industry raising prices to new levels. I recognize that this is not happening across the board, however, in the wake of the fundamentally growing inflation, corporations, organized industries, and coops are grabbing the opportunity to increase prices and profits far beyond cost coverage and contribute to the spiral of inflation. Greedflation.

Economists, bankers, politicians, and the international business community are to some extent divided in their views of what they define as “Greedflation” or “Egg-flation”. The latter from the time dominant egg producers in the US actually used the pandemic as the opportunity to extract super- profit and prices went up by 300 %.

So if they can do it; – I can do it!

Our industry and the individual companies operating within must be profitable We also know that some dominant players in our markets are not.

We should also recognize that we are in an industry which offer products and services for pleasure and comfort. A huge market and growing, however, very sensitive compared to life’s necessities. We should bear in mind that in times of inflation and the cost of living is severely hitting your wallet, people, for obvious and less obvious reasons, change their purchasing habits.

My concern is that an “over-pricing” of the products and services we offer, vertically and horizontally in aggregate will drive the cost of boating to a level that triggers changes the purchasing habits.

Knut Heiberg-Andersen, Norway
Tel: +46 70 675 65 20
Email: knut.heiberg-andersen@gmba.blue

Economic and Geopolitical Instability Risks and Their Impact on Expectations for the Global Recreational Marine Industry

As recently as March of 2022, marine industry associations and major marine companies were euphoric about the surge in demand for recreational boats during the global pandemic and offered predictions that interest in boating and demand for boats would continue growing for years. Dealer inventories were at all-time lows if not completely non-existent. At the time, I wrote an article expressing the point of view that the laws of economics had not changed during the pandemic, the industry had not suddenly become great at customer retention, and the cyclicality of the industry would soon bring the inevitable cooling off and slowing of the industry.

In the US, inflation, demand that outstripped supply, and supply chain issues led to significant increases in the price of new boats in the past three years, with some models seeing price increases of 30% during this period. Studies have shown that in normal times the price of boats is highly elastic. That is, as price increases, unit volume decreases. And as new boat prices have risen, pre-owned boats become more attractive to first-time boaters.

In the US, new boat sales have fallen in the past 12 months to pre-pandemic levels, dealer inventories for the most part are back to pre-pandemic levels, customers have become more scarce, dealers need to sell again, and some manufacturers are cutting production. And, the recession has not even begun, except perhaps in Germany.

According to McKinsey and Company, business executive confidence is fading, and global business prospects are viewed far less favorably than six months ago. Only a third of global executives believe business conditions are better today than they were six months ago and only a third believe they will be better in the next six months.

According to the McKinsey survey of global executives, inflation and geopolitical instability top their list of concerns, and two-thirds now see these two things as a risk to global growth. Banking issues with regional banks in the US and Credit Suisse have also raised concern about financial volatility which is now viewed as the number three risk to global growth and has resulted in declining availability of credit.

Inflation is a major risk to recreational boating as it reduces the buying power of consumers who have less disposable income as more of their income goes to food, housing, transportation, and other necessities. While consumer spending in the US has remained strong, we are beginning to see softening.

There appear to be four primary forces that propelled inflation: massive government spending during the pandemic, supply chain constraints, labor shortages, and very low-interest rates for a long period of time. Interest rates have risen rapidly and may be near their peak (though further increases are not off the table) and supply chain issues have moderated significantly, but long lead time remain in some sectors. A tight labor market continues to be a concern for wage inflation.

From a macroeconomic perspective, a recession in the US is expected in the second half of 2023 and the first two or three quarters of 2024 followed by recovery and a strong economy in 2025.

As retail sales of new boats declined by 16% in 2022, dealer inventories are back to pre-pandemic levels and dealers are feeling the sting of higher interest rates on their inventories. Floorplan lenders expect inventory turns to decline and MY 2024 production to be down 9-10% as retail sales drop another 5-8% in 2023. As the recession sets in, economists expect interest rates to begin to fall in late 2023 and throughout 2024 which will provide some relief on floorplan financing costs.

First-time boat buyers surged 21% from an average of 346,000 annually in 2018 and 2019 to 415,000 in 2020 and 420,000 in 2021. When numbers for 2022 are finalized, the number of first-time boat buyers is expected to return to more normal levels around 350,000.

In the meantime, geopolitical volatility impacts business confidence and the stock markets. The stock market impacts the wealth effect which has a more significant impact on large boat sales, which have been holding up well, but are expected to begin declining later this year.

Never get too comfortable with current conditions in the recreational marine industry because you can be sure they are about to change.

Dr. Thomas J. Dammrich, DBA
Tel: +1 847 274 5167
Email: thomas.dammrich@gmba.blue

Because you can it doesn’t mean you should!

It’s pretty well agreed now that the Earth isn’t flat, the sun doesn’t revolve around the Earth and that our climate is warming faster than ever before, mainly driven by human activity.

The rush to reduce our carbon footprint is now well underway with electric cars (albeit requiring renewable electricity), hydrogen production, fuel cells and wind and solar farms coming on stream all the time. Energy has become expensive and we are all slowly coming to the understanding that a fundamental change will have to take place to meet our climate change goals.

Hearts and minds can be and are changing. We are much more careful in our disposal of rubbish, we are more careful in our use of plastic and we think before turning on energy heavy appliances.

We drive slower now, consuming less fuel, we wear seatbelts for our own preservation and it’s good to at least see more lifejackets being worn at sea.

So why does all that go out of the window when it comes to our leisure boating? Why is there an ever greater request for more horsepower? Why are we seeing ridiculous multiple outboard installations (sometimes more drag than power) and why are we still seeing hull shapes that are patently inefficient at the hull speeds at which they are being driven?

Why is the mainstream industry still using glass reinforced polyester (GRP) construction without a means to recover it at ‘end of life’ and in some cases still using old-fashioned polluting methods of manufacture?

It has been argued that ‘all in good time’ these factors are being addressed – that we will see a general move to electrification and more eco-friendly building materials. The superyacht industry knows it’s under the spotlight and is working hard on solutions that will eventually trickle down (or not) to us normal mortals, but it’s the mid-range where the volume is and where the worst offenders can be found.

But we don’t have to wait. There are plenty of things we can do right now which will only help our industry in the future and most of those exist in the minds of our boat builders and their customers.

When a customer arrives at the marina in an electrically or hybrid powered car, why are we trying to sell them a boat with a multiple outboard installation with more power that it can usefully use in its local environment and CO2 emissions to match?

In the larger motor yacht sector where we have an arbitrary ‘superyacht’ regulation and legislation change above 24m we have companies producing boats with the largest internal volume possible within that overall length but still required to go fast. As a result the hull shape is not as efficient as it could be at the speeds at which it travels for most of the time.

We still have this fixation on how fast a boat can go. It’s almost part of the selling package except that in the vast majority of cases, the boats are moored in locations where they must first leave port, possibly navigate a river and estuary with strict speed controls and then frequently meet a sea state that precludes any chance of high speed running. Wouldn’t it be better to have a boat with a lesser top speed that used a fraction of the fuel and was comfortable in a seaway?

The world has changed. We’ve changed our thinking on drink driving, wearing of seatbelts and fuel efficient cars and appliances. We need to do the same with boats.

Boating is often seen as elitist and many cases we need to admit that it is. Boating is expensive in real terms, but the notion that you can have anything you want if you can afford it has to change. Just because you can, it doesn’t mean you should! That label of elitism should be seen as a warning sign. It won’t go unnoticed by a future populist government as an easy target for some extra revenue or legislation.

So, what can we do about it? We need to believe and teach others that it’s smarter to own an efficient boat rather than an ostentatious fast one. We could help that by changing the way marinas charge for berths from simply using length to a factor of length x beam, thereby encouraging slimmer more efficient hull designs and we could replace the arbitrary 24m superyacht rule to one of displacement.

We could introduce a form of efficiency labelling just as required on other appliances. We could offer litres/hour at 5 or 6 knots (the maximum speed in most harbours and rivers) and consumption (and CO2 emissions) at the design cruising speed. We could also rate the ‘hotel’ side of the craft for power usage, thermal insulation, solar input and in the case of sailing boats, hydro generation.

If we are prepared to go a little slower, there are plenty of ways to save energy. We might even see the resurgence of the motor-sailer which offers enough power to motor to windward but with sails to augment efficiency at all other points of sail.

The industry needs to do this to move with the times. It is no longer acceptable to counter every argument that we are only producing what the customer wants. We also need to educate the customer. This is not about decrying our excellent motor yacht industry, it’s about adapting to a more frugal (in terms of fuel and emissions) and more socially responsible future.

David Lewin, GMBA UK
Tel: +44 7767 687 987
Email: david.lewin@gmba.blue

Loving Greece

My connection with Greece started in 1983, when I was skipper (captain) of a Dutch 12m sailing boat, taking groups of small boats on a two-week round tour to the south of Peloponnesus. I recognized characteristics of the Greek idiosyncrasy with those of ours in Argentina: the welcoming attitude, the permanent moaning about the state of the economy, the solid resolution to survive any coming bad times, the very strong feeling of the universe ending at the limits of their comfort zone.

When you sail for pleasure, what is important, as Kavafis stated, is to make way, but it is the arrival which always creates a very strong impression. An arrival always touches the heart. It can generate comfort, disappointment, worry, happiness, safety. Greece has the blessing of generating pleasure, happiness, comfort, authenticity. Maybe it is due to the fact that they have been welcoming boats for over 3000 years that has refined this almost religious feeling? Maybe Poseidon decided to make it happen forever?

Everybody loves Greece and the Greek nautical industry seems to ignore it. Is it to protect the country against modern invaders that could spoil the coastal natural resources? If so, I find it a bit of an extreme reaction: Greece is very far from a boat density that could harm the environment, far from a saturation that would spoil the beauty of its coastal features, both continental and islands. I feel a missing pride of the great Greek seafaring nation, and its modern development as a nautical industry. It seems Greeks live with their back to the sea. Is it lack of knowledge of the great yachtsmen of a non-so-distant past? Onassis invented the superyachts with his “M/Y Christina” in the early ’50. He made Monaco his homeport, but all the cruises with politicians, singers, actors and socialites from around the whole world were done on the Ionian and the Aegean seas. Stavros Niarchos bought his “S/Y Creole” around the same time, both boats remaining classic beauties. The Livanos and the Latsis families have yachting histories, dating back to then times when they were the rulers of the world’s shipping routes. When “Greek” was synonymous with shipowner.

They really ruled the waves in a far more realistic way than the British. But I guess that is not taught at schools and not for lack of opportunities or events. Little celebrating was done when King Constantin II won a gold Olympic medal in the Dragon class in 1960. The yachting tradition is fading away and is resuscitated by the nautical tourist, who is good, but cannot replace a national culture, tradition, and pride. It is not difficult to take steps to bring Greece back to the nautical scene but it is the nautical industry that must make it happen. We must spread the word, of course in publications and conferences but in schools, associations, and social gatherings. We must make the effort to broadcast the message and not wait for people to come to us. We can tell stories of ancient and modern sailors, of traditions, of curiosities, of sustainability. We can organize short outings during weekends in municipality boats (police, fire fighting, garbage collecting), brokers and shipyard boats, and voluntary boat owners. We can include people as crew in regattas, both as participants as well as organizers, creating regattas to emulate ancient travel as Troy to Crete or Hydra to Rhodes. We can organize visits to both shipyards and workshops, training sessions for people interested in a career in yachting. The list is unlimited if some effort is made.

I am now thinking that a simple magazine with yachting and nautical stories and facts could be published monthly and distributed through local marinas, harbour offices, brokers, and yacht agencies. Another way would be to elect a Prime Minister that is already a consummated yachtsman, more difficult but not impossible😊. But those shock moves and reactions fade as fast as they happen. I believe in consistently laying the groundwork and creating the foundations for something to grow and transcend. Over time it can reach the critical mass necessary to generate the momentum to keep the activity in motion. It is us who can initiate it, and the young generation (no exclusions) that must perpetuate it. Greece has the enormous advantage of being able to learn from the mistakes of other Mediterranean countries. Greece is pure and unspoiled; the deep blue of her sea and her infinite coast is there to be loved and enjoyed by locals and visitors.

Oscar Siches, CMP, GMBA Spain
Tel: +34 667 494 858
Email: oscar.siches@gmba.blue

Diurnal Emissions – Part 3

In our past newsletters, we discussed diurnal emissions and what the USA has done to reduce them. In addition, we described the basic ways these systems work. This month we’ll talk about different fuel system design goals and costs.

Boat builders often have different fuel system requirements. Perhaps safety is primary. Or, maybe installed cost is the focus. It could be that customer satisfaction from the ease of refueling is the goal. Maybe system simplicity or commonality of design across many models fits a builder with a continually changing workforce. Another builder may want to reduce long-term maintenance costs. And for some, achieving the maximum range possible is paramount. The list is endless.

Some of these goals are complementary. Others are mutually exclusive. Numerous factors make these goals easier or harder to achieve. The supplier matters. So does the shape of the tank and the size of the boat. Regardless, deciding on the performance requirements for a fuel system should be the first step of the design process.

So, what goals are common? And, what are the characteristics of those systems?

Safety – Generally, the safest systems operate at atmospheric pressure and may use more control valves. The lack of daily pressure swings puts less strain on seals, hoses, and clamps. Adding additional valves and more complex plumbing reduces the likelihood of venting problems. But that also adds to the installed cost.

Range – Adding more control valves or using two small tanks versus one large tank can increase the fuel a boat can carry. However, both will increase the installed cost.

System component cost – A pressurized system will cost less than an atmospheric system on smaller boats with one engine and one tank. That will be reversed for larger boats with a couple of tanks and two or more engines. The reason is that every additional engine and tank each requires its own fuel demand valve to prevent engine feedline pressurization. That isn’t the case with canisters. Many tanks and engines can share the same large canister. At 30 Euros or more per fuel demand valve, more engines and more tanks quickly add additional cost to pressurized systems.

Low Maintenance – There are systems available that use only one valve or have almost no moving parts to fail. They use air-fuel separators and stanchion tubes instead of tank-mounted valves. These systems are also among the least expensive options to purchase.

Ease of refueling – Adding an additional vent to handle only refueling vapors can significantly improve the ease and speed of refueling, but it will add slightly to the cost of the system.

Installed cost – Connecting valves in series can reduce hose length and the number of connections involved, lowering installed cost. But safety can be compromised in long-term storage at angles much beyond static rest.

So, what might one of these systems cost? The components (valves and canisters or FDVs) for a common 1-tank, 1-engine system would run around 110 Euros for a boat with one engine and one tank. Getting fancy might up that to nearly 135 Euros, and getting creative could drop it down to as little as 60 Euros. Installation and higher costing tanks could add another 100 to 150 Euros. So, systems for small boats probably cost between 175 and 275 Euros more than today’s systems.

For that, you get increased safety, easier refueling, cleaner air, and cleaner water. And over time, you will save on fuel. But, unless you understand these systems, it is easy to fall short of your goals in the design process. American fuel system component manufacturers and consultants developed a high level of expertise by working with these systems for a decade. Any of them can help European boatbuilders determine approaches that best fit their goals.

That is a significant advantage that American builders lacked. The EU will likely implement similar regulations on boats sold throughout Europe in the next three years. Then, no one builder will have a “green advantage” over any other. A proactive approach to move in this direction before competitors offers European builders two advantages. First, numerous people have the time and expertise to help builders design the best system for their needs. That will not be the case when this is regulated. The number of builders needing help will stretch the few groups with that knowledge too thin – just like they did in the USA 10 years ago. Not every builder will get the type of help to make a cost and performance difference. And second, there is no green advantage to promote when all your competitors are doing the same thing.

It won’t be long before all European builders install these systems. Now is the time to determine whether the best strategy for your company is to be proactive or reactive. Two years from now, that strategic option will likely be gone.

George B. Bellwoar, GMBA United States
Email: george.bellwoar@gmba.blue
Tel:: +1 954 646 5920