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Insights & News

Meet the Team

Jouko Huju, GMBA Finland, is one of the founding members of GMBA and an industry veteran with over 25 years of experience in the recreational boating sector. He “retired” a few years ago to spend more time with his family and on the golf course, but life had other plans for him, and you will find him hard at work most days, advising small to medium size firms, both in Finland, and in boating markets around the world.

  1. GMBA has celebrated its 2nd birthday in January 2022. What was the main reasoning behind the creation of Global Marine Business Advisors?
  • Quite soon after I retired from my work as Finnboat’s CEO I started getting calls from smaller companies in the industry asking for help mainly in their export business. I had a few colleagues I had known for years and they also felt that loosing all that accrued tacit knowledge would be a real waste. A few months later GMBA was formed and it now covers 19 people in 18 countries on 5 continents.  Normally we would have one advisor per country.  In bigger market areas like the US, we now have two.
  1. Does that vision remain or has the organization’s focus shifted in the last year?
  • There are really many companies in the marine industry that struggle with their international business. They need advice, contacts, ideas, encouragement, and somebody to talk to.  If one of our 19 members cannot help, we would certainly know someone who can.
  1. The last year has seen unprecedented growth in boat sales across most of the world. We are seeing big investment in the marina sector, and the global superyacht fleet continues to expand. How do you perceive the growth and stability of our sector?
  • The COVID 19 pandemic really created an unusual peak in boat demand. In the past two years many countries have had all time high numbers in boat sales. In some cases, the manufacturers have not been able to respond to the demand. People were not able to travel so they invested in local leisure activities.  A notion of “staycation” was created. The pandemic is still with us but people have now started travelling almost on the same level as before Covid. This has already made its mark in demand.  The war in Ukraine has brought consumer confidence down at record speed and fuel prices have jumped to all time high.  People are now more unsure about their future.  Although boat deliveries are still in full speed, the traffic in dealerships, at least in some areas, has been much slower.  This is the situation with smaller family boats. In the Superyacht sector the changes are much slower and the demand depends on somewhat other factors.
  1. What are your predictions for our industry over the next 5 years?
  • In general, our industry is cyclical. The overall economic development has a great impact in the sales of family size boats. The global geopolitical challenges, price of fuel and other competing leisure activities have their role too in consumers’ discretionary investments. I expect that with the present realities we should expect a slight downturn in the overall interest in boating.  Also the unusual high sales of new boats during the worst years of the pandemic may bring quite a number of  1-3 year old boats into the market thus competing with new boat sales.
  1. What advice would you give to a company looking to increase their export markets today, that will have the most impact in the LONG term?
  • I have always said that we all have to do our homework first. If you wish to expand your markets, make sure that your capacity both in production and people can meet the growing demand. I have often been asked what is the secret to succeeding in exports?  There is no secret.  If your product meets the demands of the market in style, design and price, all you will need are  hungry enough sales people who have the strength to be on the road all the time.
  1. What is the biggest / most common mistake you see firms making at the moment?
  • I do not think one can mention one single thing. I often see companies taking part in exhibitions just because they have received a grant from their government.  Their inhouse work has not been completed and that will make all offshore work totally obsolete.  In my view everybody should prepare an internationalization strategy.  It should be prepared as a team effort within the company.  Based on that it will be easier to decide how to invest the often-limited resources.

A few personal questions:

  1. If you were to go back in time, would you select this industry and your career path again?
  • I probably would. Out the 43 years of my working life I have spent the longest time in the marine industry. Trying to help the Finnish companies to succeed has been not the easiest of tasks but the challenge has made us all think, plan and prepare.  The Finns are a small nation but out of our boat production we export 70-80%.  That is an achievement.  I have also been lucky to work with many international marine industry organizations (like ICOMIA, EBI and IMCI) and have through that work been able to get a wider view of things. Not to speak of huge amount very interesting and wise people I have encountered.  Many of them have remained life time friends.

Q & A – Boat Shows

We invite our readers to send in any industry related questions and in each edition one of our sector specialists will unpack the issue. To date we have received quite a few questions surrounding boat shows, so we thought to bundle them together in this edition.

 

Please send in any questions you might have to info@gmba.blue and we might feature it in the next edition.

 

  1. I am a small ski boat manufacturer and have a full order book until end of 2023. Is it worthwhile for me to exhibit at boat shows if I don’t have boats to sell?

Boat shows, as any other exhibition are a temporary, recurring marketing event. It enables manufacturers or sellers of a product or service to display, explain and sell it.

 

At a trade show, customers have the opportunity to compare the offers of different suppliers and to get an idea of the market situation. Exhibiting companies are interested in acquiring or refreshing customer contacts, raising their profile and exchanging information. From an overall economic perspective, trade shows contribute to creating market transparency.

 

So the answer is, their presence at the show, serves not only direct sales, but the initiation and especially the maintenance of customer contacts. With the appropriate marketing measures, your trade show appearance contributes to positively occupying your brand, making it a tangible product, and building trust. Existing customers will come and see their purchase decision confirmed, new customers come into contact with the people behind the brand. This builds trust and charges your brand.

 

  1. Innovation is a hot topic in our industry. How are boat shows innovating to bring more value to their exhibitors, and/ or the visitors to the show? As an exhibitor it feels as if it is the same old stuff over and over again

Producers of boat shows are constantly challenged by market conditions to innovate their product, or it will be the “same old stuff over and over again”, indeed. Show producers, like the members of the International Federation of Boat Show Organizers (IFBSO), are well aware of the challenge to stay up to date. Boat shows are a mirror of daily life and the closer the image is staged as a fair, from reality, the more the visitor feels picked up. In his world, the visitor opens up, gains trust and is open to conversation. Modern boat shows are not just a string of exhibits, but today they see themselves as choreographers of experience worlds, knowledge brokers and network operators. The ice can be broken much easier.

 

  1. Sometimes I feel that my presence as an exhibitor at a show is not really paying off.

The success of a presence at a boat show is heavily dependent on how you set up your marketing mix beforehand. All channels must be set up to lead to your show presence, the highlight, where you meet face to face.

 

During the show, it is important to have motivated and knowledgeable stand personal in order to carefully address visitors and to lead them to your product or service your offer. It is active duty, not just spending your time.

 

To secure the success of your show presence it is of great importance to carefully work on your follow up. Within the first 72h of a contact made, a reminder should follow to keep the flow going. At this stage, if not handled well, the highest loss of leads happens if the processes for trade fair follow-up are not set up and executed as carefully as the trade fair appearance itself.

 

We hope, this Q & A points out the importance and business chance of a boat show presence. For any further information don’t hesitate to contact our GMBA member, Goetz-Ulf Jungmichel, our fair and exhibition specialist.

New Zealand Inflation Reaches 32 Year High of 7.3 Percent but Marine Sector Remains Vibrant with Borders that Opened on 1 August

New Zealand inflation reached 7.3% in the last quarter, a higher-than-expected result. Central banks around the world are rapidly raising interest rates to regain control of inflation, which is spiralling as demand outstrips supply amid pandemic bottlenecks and the war in Ukraine. The issues driving the 7.3% inflation rate in New Zealand are the same as the issues driving inflation across the globe.

 

  • Prices for construction of new houses were up 4.5% for the quarter and 18% for the year
  • Gasoline prices rose 6.2% in the quarter and 32% for the year
  • Food prices gained 1.3% in the quarter and 6.5% for the year
  • Tradable prices increased 1.9% from the previous quarter and 8.7% for the year
  • Non-tradable prices rose 1.4% from the previous quarter and 6.3% from a year earlier
  • Consumer prices excluding food, fuel and energy rose 6.1% from a year earlier.

The marine sector in NZ as in Australia has been experiencing many supply-chain issues, freight costs, higher labour costs, and also higher demand, which have pushed up costs for many industry sectors especially construction.

 

BORDERS OPENED 1 AUGUST
The New Zealand marine sector has spent the last 2 years perfecting their global offering and with New Zealand’s sea and air borders that reopened on 1 August they are looking forward to inviting superyacht owners and crew back to one of the most desirable locations in the world.

 

Foreign flagged yachts visiting New Zealand benefit from a superyacht-friendly framework that includes newly completed refit facilities, a 24 month Temporary Import Entry (TIE), and refit services and supplies which are exempt from New Zealand’s 15 per cent goods and services tax (GST).

Peter Busfield, CEO of Marine NZ commented; “The NZ economy is still vibrant despite the inflation rate, however the pressures felt in most countries are being felt here. Our government has been very restrictive on immigration and as such this has added to previous covid restraints, and we are very short of people. With Inflation at 7.3%, mortgage interest rates back at 5% and house values dropping 10% ytd, there is evidence that the boom years of 2020 to 2022 may soon be over. “

 

Peter continued, “Having said that with the sea border opening on 1st August 2022 we have a lot of superyachts and cruising yachts intending to visit NZ. With what is going on in Europe many yacht owners are looking to escape to the beautiful South Pacific and NZ of course -so that is a positive for us.”

TRAINING
Skilled labour shortages are a world wide phenomenon nowadays which has led to New Zealand’s world leading apprenticeship system booming.  New Zealand has a global reputation for the quality of their training and the work ethic and skills of New Zealand trades people.  Peter Busfield advised, “the NZ boatbuilding apprenticeship program is breaking records with now over 700 apprentices registered in 270 New Zealand companies and it is great to see many graduates of the program in their 30’s now running/owning  marine industry companies -the future of the NZ marine industry is in good hands.”

 

INNOVATION
There are some exciting developments coming out of New Zealand which continues to put a spotlight on the NZ marine sector.  Two companies that have come to our particular attention are TruDesign and Zerojet.

 

TruDesign is an innovative New Zealand manufacturer specialising in the design, tooling, manufacture and testing of high-quality marine composite valves and associated products.  As a multiple Dame Award winner Trudesign is a key global player and with new innovations recently launched could possibly be set to yet again to enter the prestigious 2022 Dame awards which are announced at METS in November.

Zerojet, based in Auckland NZ are making their mark and ready to make inroads into the global marine market and are seeing huge demand in Europe and the USA for their boats. ZeroJet is the first jet propulsion system to be designed specifically for an electric motor, delivering the perfect balance of performance and runtime. Zerojet’s mission is to eliminate the need for combustion engines on small watercraft. No pollution, no noise. Just you, the ocean, and a rechargeable battery. The super low profile of the jet system allows it to beach easily and skim over shallow reef ecosystems. Optional drop-down wheels make for easy manoeuvring on the beach. Talking to CEO of Zerojet, Bex Rempel about the issues that have affected Zerojet, she said; “ Our biggest issues over the past 2 years have been the covid lockdowns in NZ, supply chain disruptions and shipping delays. These have all been challenging but these issues are not unique to us.”

Bex went on to say; “We see a future where there’s no need for small combustion engines. We care about the ocean and most people who spend time on yachts and boats feel the same! We are proud to be pushing technology forward which can make an impact – almost all our customers say that they have electrified everything in their life except their yacht and tender. These are the last things which they haven’t yet found a good solution for – until now.”

 

Another iconic New Zealand manufacturer continuing to make inroads into global markets is Hamilton Jet who are expanding their Christchurch factory operation as global business booms. There is no doubt despite the current inflation and the issues affecting all manufacturers, New Zealand businesses remain resilient and clearly looking forward to being back in person on the world stage and having their borders finally open.

GMBA Honoured with British Marine Association Export Award | David Lewin, GMBA-UK

Global Marine Business Advisors (GMBA) was last night awarded the 2021-2022 David Coleman Excellence in Exporting Award at an enthusiastic and well attended UK Marine Trades Association Awards dinner at the Grand Cafe in Southampton.

 

British Marine is the trade association for the UK leisure, superyacht and small commercial marine industry. Our 1,500+ members come from a broad range of businesses including boat builders, chandlers, brokers, marinas, passenger boats and engines.

Receiving the award on behalf of GMBA was chairman David Lewin pictured here with Suzanne Blaustone, CEO (and owner) of Barton Marine who presented the award and gave the following citation:

 “GMBA has created a unique group of some of the world’s most experienced marine professionals located in most of the developed boating countries around the globe, ready and able to offer any company or organisation increase their business through enhanced foreign trade.”

As with many marine industry events, due to Covid this normally annual event has not been held for 2 years. It is one of the biggest events of the year organised by the largest leisure marine association (part of the British Marine Federation) in UK.

 

David Lewin, GMBA UK said, “It’s always nice to be recognised by one’s peers but I’m thrilled that the award went to a group of people who together have invested over 500 years in the leisure marine industry and have now come together to help others develop their global strategies. We’ve all known of each other during our careers and now by forming GMBA we are able to invest our knowledge in international trade as well as local market intelligence.“

 

The international presence of GMBA extends to 18 countries around the globe ensuring a significant global footprint and the ability to offer extensive expertise to the marine industry.

 

The consultants currently reside in the UK, France, Finland, Holland, Singapore, Australia, Dubai, Spain, Italy, South Africa, Turkey, Poland, USA, Sweden, Norway, Germany, Croatia and China. Their combined expertise and experience is impressive. The contacts GMBA consultants have and the extensive networks GMBA has access to, are assisting marine businesses across the globe to drive growth and success in this current environment.

 

The Global Marine Business Advisor group (GMBA) has grown considerably over the past 2 years with their main focus on working with businesses who wish to expand their export markets. Currently there has been strong emphasis from businesses wanting help with securing supply chains, developing award applications and support with environmental and sustainability issues.

 

Congratulations to David Lewin and the Team at GMBA

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

 


Disclaimer: Global Marine Business Advisors and its associated website www.gmba.blue are not registered legal entities. GMBA 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

A Letter from Spain | Oscar Siches, CMP | GMBA Spain

We as an industry have for long been guilty of not analysing or forecasting in a unified manner. The western world learnt the lesson the hard way and has started to adopt strategic alliances to reduce the possibility of being caught empty-handed by an uncontrollable situation and having to fend off disaster alone.

 

This is happening in multinationals, small businesses and even amongst freelancers. For example: a hamburger restaurant could form an alliance with a bakery and a butcher shop, with whom it would agree to sell x hamburgers per day. The three of them would ensure those sales, and each one would be a priority customer for the other two. Adjusting prices, variety and qualities would be the immediate actions to carry out. And if the business struggles, there will be 3 minds to consider possible options.

 

A week ago, I finished reading a book called Reimagining Industry Growth, by Daniel Varroney, a US business strategy consultant. It narrates how five industries, including the nautical industry, grew and became stronger by strengthening sector associations and applying transparency. He also mentions they hired general managers with proven track records and knowledge, not only in the nautical industry, but of management. The book discusses the impact of the pandemic and how the five sectors (nautical, asphalt, bakeries, automation and frozen foods) managed not only to come out victorious but also achieved more efficiency, with better conditions for workers, and with regulations more adjusted to the daily functioning of a business. How far are we from it, and how it hurts! Yes, the US is its own market of 320 million people, but in Europe we are 720 million, and some countries, especially in the north, are already adopting these practices.

 

Here in Spain ANEN, the Spanish MIA, got off to a very good start by applying those principles, but a few years later it reverted to the more traditional model of doing what was necessary without alienating the government too much. ANEN gets very good results, but still a fraction of what is needed.

 

SYBass, Association of Superyacht Shipyards, was created in 2007 in the Netherlands. Theo Hooning, its founder, is an economist and spent 14 years in charge of the car and truck associations at the Amsterdam Congress Center RAI. Hooning continues today in his position as general secretary of SYBass, which brings together 22 shipyards of yachts over 40m from the Netherlands, England, Germany, Italy, the United Arab Emirates, the USA, Finland, Turkey, Taiwan and Australia. There is no door that SYBass cannot open, and most of the current regulations for superyachts are analysed and commented on by this association, which is also part of IMO, the International Maritime Organization. Yes, it cost a lot of money to get it up and running, but today the benefits are substantial.

 

Meanwhile, here in the Balearic Islands, Spanish leaders in the sailing community continue to cry about the registration tax. The traditional justification that “it is complicated” only speaks ill of those who state it and highlights the lack of desire to make the effort to bring about meaningful change. As I have stated before, we need to find common ground and make representations to government that they just can’t ignore. It doesn’t mean the powers that be will immediately agree to everything, but rather that the nautical sector clearly communicates its needs, and together viable solutions are crafted.

 

I am a romantic, and what I am proposing is this article needs a strong collective will, then we are halfway there!

For further information
Oscar Siches, CMP
Email: oscar.siches@gmba.blue or info@gmba.blue
Mobile:+34 667 494 858
Website: www.gmba.blue

 

Disclaimer: Global Marine Business Advisors and its associated website www.gmba.blue are not registered legal entities. GMBA is a network of independent marine industry advisors.

Recruiting key management personnel just became easier, thanks to Marine Resources. | Dr. Thomas J. Dammrich, DBA

The global leisure marine sector experienced growth during the pandemic, amidst a slowdown in so many other manufacturing sectors. For a sector already struggling with a skills shortage, the problem became more acute. And now in the era of  “the Great Resignation” our sector is under more pressure  to identify AND retain knowledgeable staff.

 

 

Luckily our very own Dr.Thom Dammrich and Nick Hopkinson, former editor and owner of International Boat Industry magazine, has joined international marine specialist recruitment company, Marine Resources. This partnership aims to offer businesses in the leisure marine industry assistance with identifying and recruiting key management personnel.

 

 

Marine Resources offers bespoke headhunting and recruitment services. CEO and founder of Marine Resources Recruitment, James Ward says: “We have invested more in resources, time and people on an ongoing basis. Joining forces with Nick and Thom, alongside Oli Wells our head of executive search for Marine Resources, will strengthen our recruitment services offering and ensure the recruitment jigsaw is confidently put together.”

 

Dammrich and Hopkinson have extensive knowledge of the global market, having engaged with leading figures and companies in the industry for many decades and in numerous countries during their previous careers.

 

Dammrich says: “I am delighted to work with long-time colleague, Nick Hopkinson, in association with Marine Resources to help marine businesses find the talent they need to be successful and executives to find the position where they can make a significant contribution.”

 

“I am very pleased that Thom and myself are teaming up with Marine Resources to extend the company’s reach into the area of top-level international senior executive placement,” says Hopkinson. “Our long experience of the industry means that we are well positioned to provide this service and look forward to working with companies seeking to strengthen their management teams as well as with individuals looking for new opportunities.”

 

Companies or controlling shareholders who wish to have a discussion in complete confidence about their senior executive search requirements and likewise individuals wishing to explore new senior-level opportunities can the contact Thom Dammrich or Nick Hopkinson.

 

Dr. Thomas J. Dammrich, DBA
Email: thomas.dammrich@gmba.blue or info@gmba.blue
Mobile:+1 847 274 5167
Website: www.gmba.blue

 


Disclaimer: Global Marine Business Advisors and its associated website www.gmba.blue are not registered legal entities. GMBA 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

Yacht Fires | Godfrey Zwygart, GMBA China & Asia

Fires are one of the most dreadful hazards for yachts and marinas, and here is why:

  • Fire is scary and might create panic in passengers and crew
  • Most yachts today are in FRP and when burning produce toxic fumes and spread rapidly
  • In harbor, fire can easily spread to nearby boats
  • Fire damages can be extremely costly
Photo credit: BBC.com

In recent years we have witnessed an escalating number of yacht fires occurring worldwide. Why do suddenly fires seem to become so common? I believe there are several factors. Firstly of course is the development of communication. Whilst in the past fires might have remained a local issue unknown to the rest of the world, today with the advent of social media these hazards quickly make the buzz on the internet. Secondly is the tremendous growth of the boating market; it has probably doubled in the last thirty years and there are increasing numbers of marinas, packed tightly with boats side by side. Thirdly, in the past most crews came from the sea-trade and had professional training. But nowadays, while super yacht crews usually have serious education, the high demand means that many small boat owners are amateur boaters; and new crews are stepping straight into the industry without real professional background, and may lack training and systematic safety reflexes.

 

Fires are a terrible threat for marinas and even those with excellent facilities are at risk. So marinas need to be prepared and be fitted with proper safety equipment in accordance with laws and guidelines. In addition to standard fire stations, professional marinas should also consider owning an aluminum work boat fitted with a foam fire pump and stainless grapnel and chain (to tow boats if needed) as well as a dedicated fire golf cart which is the only way to access any point in the marina very quickly. That allows attending shortly from both shore and water to contain a fire until the fire brigade arrives. Fires ought to be contained within minutes, especially with FRP boats. Once FRP catches fire it is extremely difficult to handle and it spreads very fast! It is equally important to carry out frequent fire drills, and to organize training sessions with the local fire department. Large marinas should have 24H watch, and patrols through the premises even at night. This will also avoid other accidents such as boats sinking during the night.

 

Despite all precautions the risks remain very high, even with proper equipment and training. The problem is that fires nearly always occur on boats, not on the docks, and usually due to lack of knowledge or negligence from the crew, as well as lack of maintenance. Many in-harbor fires occur when nobody is on board. In such case it is frequently due to power lines, shore power supply or batteries failure. Personally, I only saw one case of small shore fire, in a garbage bin. All other incidences were always onboard a yacht.

 

So what can marinas do about it? Education and prevention are the keys. And these should not be limited to marina staff, but instead involve yachts crews.

 

For example there are a lot of procedures for preparing a trip, starting engines etc., but actually very little for safety checks or procedures for leaving a boat after a day’s work. While on leave-aboard yachts fires are usually accidental and happen in the galley or are caused by gas leaks, on day-boats the day crew should be given a step-off checklist. Additionally all boats should be equipped with sensors and detectors for temperature, gas, etc… Usually on medium size boats these are autonomous devices and crews/owners often forget to change the batteries as required or check regularly to make sure these are working properly.

 

Training can be done by organizing quarterly meetings and events for crews; for example a morning meeting with some reminders about the marina services and regulations, followed by some safety advice and training and an afternoon of fun events. Crews will love it if you close the day with a buffet or a crew party. Moreover this builds up team spirit and enhances communication between the yacht club and the members.

 

Share your knowledge with boat owners (and they might as well be happy to share some of the crew training costs). Keep in mind that if a boat is damaged or lost, the legal responsibility is on the captain but the financial burden is on the owner. Insurance companies cover only part of the losses.

Keep safe!

Godfrey Zwygart
Email: godfrey.zwygart@gmba.blue or info@gmba.blue
Mobile:+86 188 0899 8617
Website: www.gmba.blue

 


Disclaimer: Global Marine Business Advisors and its associated website www.gmba.blue are not registered legal entities. GMBA 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

The Benefits of Award Ceremonies | David Lewin, GMBA-UK

 

We’ve all watched the Oscars. All the ‘stars’ on the red carpet, gushing on stage when they win a category, name-dropping and thanking everyone they can think of – not forgetting their mothers! It is undoubtedly narcissistic and to some extent self-serving – but we all watch it and it does the participants, even as just nominees, no harm in their search for greater publicity and awareness of their ‘brand’.

 

And so it is with award ceremonies in our industry. It may look like an excuse for a good dinner and a night out on company expenses while we pat each other on the back and hand each other dubiously styled ‘nautical’ trophies but there is a competition and whether the winners are technically the most superior, they have communicated it best to the judges and that’s what’s important and makes award ceremonies relevant.

 

To win an award you have to have done something new, well or for a long time, but not only that, you are using the award ceremony to tell everyone about it. It is a means to notice and be noticed, to be driven along with the impetus of the ceremony but then to drive the publicity offered by the awards to build the business.  After you have extolled the virtues and technical prowess of your product so many times there is nothing better than third party approval of that product in the form of an award that can be trumpeted loud and clear to your desired market. It indicates that your product or service is amongst the best in its category and that there is a compelling argument to check it out.

 

To win an award category, however contrived you might think it has been, is a golden marketing tool to be used at every opportunity to spread the word about your business. But you have to be in it to win it, so next time the opportunity presents itself to take part in such a competition, don’t say to yourself that you don’t like going to industry dinners, think longer term about what you could do with the PR from winning a category. It’s not the prize, it’s what you do with it!

 

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

 


Disclaimer: Global Marine Business Advisors and its associated website www.gmba.blue are not registered legal entities. GMBA 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

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