Insights & News

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

Design for Profit | David Lewin, GMBA-UK

Times are good – at least for the boating industry. Order books are full and dealer inventories are low so everyone is pushing on to produce as many boats as possible in the shortest possible time.

But there is a line squall up ahead. We can all see it – Covid has left the supply chain fractionated, interest rates have been too low for too long and we now have rapidly increasing inflation. The war in Ukraine has shocked us all as energy costs have spiralled and grain and fertilizer becomes scarce.

It has to have some effect. However we try to navigate around this squall it will require some change of direction.

It has always been my contention that to make money building boats (or any other complex low volume capital item) it’s not just about the margin you feel you can apply, but the amount of extra costs you can avoid whilst constructing the craft. How many times have I been told when things aren’t going well that ‘we are where we are and we just have to get this thing over the line’! So money is thrown at it, the production process is compromised and another chunk of cash comes off the bottom line.

Several things usually come into play when this happens. Often the production schedule is unrealistic, based on cash flow requirements or an upcoming boat show launch rather than current supply chain realities. Materials that once had a lead time of 8 weeks are often now quoted at 12 weeks plus so if the deck has been planned to be fastened down in the former time period, the furniture might not fit through the apertures and certainly won’t be so easy to fit.

But there are ways mitigate these losses with some judicial design work.

One of the best ways is to design out the ‘difficult bits’. How many different door designs and sizes does your range of boats have? One boat builder recently told me they had over 30 different shapes and sizes and were working on cutting it down by two thirds. With the advent of ‘repeatable’ veneers such as Alpi or the modern trend to HPL or painted finishes, doors and frames (and maybe other parts) could then be held in stock.

If the facades of the interior furniture have different or special finishes, then design them so they can all be fitted separately and after the base carcass. I recently came across an assembly that incorporated lacquered panels, upholstered panels and inserts of stainless steel and carbon fibre – all integrally constructed into a wooden frame. It looked wonderful but it was a logistical nightmare as it could not be installed until all the items from several different subcontractors had arrived and been assembled. If this had been designed such that the frame could have been installed and then the façade pieces attached via Fastmount or similar, the build process would not have been interrupted.

If the deck should need to be fitted before sub-assemblies have arrived, design all assemblies so they can fit through the companionway where possible. As an example, designing the master bed so it can be made in two parts might be prudent. This will also help with any warranty work if necessary later.

There has been a scrabble over the last year to find more production. There is definitely a shortage of skilled labour in all sectors but with headwinds on the way should we be so keen to expand in-house production. In 2008/2009 many companies went bust because they could not shed personnel fast enough. Many European countries (rightly) have employment laws that prohibit the simple laying off of workers and if any downturn is severe that can cause problems.

However by outsourcing some of the production, whether it be complete boats, sub-assemblies, detail work or finishing, if volumes fall back, their services can easily be curtailed.

Using sub-contractors is therefore attractive but brings its own disciplines. Drawings, specifications and control systems have to be a lot tighter; no fudging can be allowed here as you can’t walk down to the workshop to get it fixed. It might have been made in another country. Again, design is the key, so that outsourced items with possibly extended and less reliable delivery times can be seamlessly integrated into the build schedule.

So remember, it’s not what we earn, it’s what we don’t lose so let’s start designing that out now.

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

Hemingway and the guy from the Canaries | Oscar Siches CMP, GMBA Spain

Macho and quarrelsome, he was saved by the tales he created in the minds of those who read him. I came across “The Old Man and the Sea” when I was 13 years old, and throughout reading it, I developed an admiration for the fish, a dislike and fascination for sharks, a compassion for Santiago and a certain boredom at the long description of his thoughts.

That reading left its mark and led me, years later, to look for other of his works that took place at sea. “Islands in the Stream,” posthumous, is a story that takes me with almost telepathic meticulousness to the Caribbean I met in Bimini and the Bahamas in the late 70’s. I became interested in the person, the Ernest Hemingway who was born, lived three lives in a single lifetime and shot himself with his shotgun of choice 19 days short of his 62nd birthday, when he realized that he could neither control nor run away from his ghosts anymore. With “To have and have not” I confirmed myself as a horny South American because what comes back to my memory is Lauren Bacall in her 30s, the heroine of the movie based on the book, playing a tough girl with legs as long as from Cuba to Miami. The book reading is great.

Hemingway lived in Cuba from 1939 to 1960, and his visits to the fishing village of Cojímar and long talks with the local fisherman Gregorio Fuentes, originally from the Canary Island of Lanzarote and future skipper of the “Pilar”, were the basis for “The old man and the sea” and its main character, Santiago. This novel won him the Púlitzer Prize in 1953 and the Nobel Prize (Literature) in 1954. Hemingway always liked challenges. He had to permanently prove how macho he was: he did it as a war correspondent, hunter in Africa, fishing marlins in the Gulf Stream off Cuba or the Bimini Islands where he kept sharks away from his catches with a Thompson submachine gun that he always carried on board, and befriending bullfighters what would, by being close to them, associate his image to the tough, bravest guys.

More than the sea, he liked deep-sea fishing, fights in bars and shagging anything that moved. In 1934 he commissioned Wheeler Shipbuilding, Brooklyn Shipyards, New York, to build his “Pilar”, a nearly 12m mahogany and oak motorboat. He paid her $ 7,495 that he requested in advance for the articles he would write, to Arnold Gringich, editor of Esquire magazine. “Pilar”, nickname of Pauline, his second wife, had a Chrysler 75 HP gasoline engine with which it reached 16 knots, and a smaller Lycoming engine (also gasoline) each with its shaft and propeller. The Lycoming served to propel Pilar at a very low speed when she dragged the baits. Hemingway was a heavy spender, he liked partying and luxury. He did not go through money difficulties because he married wealthy ladies and knowing that his novels always sold, the publishers advanced what he needed when he was short of funds. “Papa”, a nickname that he gave himself and by which his followers know him to this day, vividly described scenes of fishing, seduction and bravery, but we nautical enthusiasts lack reading how the waves hit the bow and exploded In an uncontrollable spray, how the clouds could almost be touched with the hand or how the roll knocked down the beer bottles from the cockpit table. Gregorio Fuentes was in charge of the Pilar until Papa’s death, and he was the one who really knew about the sea. He died of cancer at the age of 104 there, in Cojímar, stating that he longed for his fishing trips with Papa every day. He who was the inspiration for the character Santiago could not enjoy the story: Gregorio did not know how to read or write.

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

N.B. 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.

South African Boatbuilders gather again after 2-year hiatus to celebrate excellence | Veda Pretorius, GMBA South Africa

The boatbuilding industry Awards Dinner took place on the 18^th of May in central Cape Town. Maker’s Landing at the Cruise Terminal was the perfect venue to accommodate the more than 200 people who attended The Master and Makers of Magic event.

Alderman Vos from the City of Cape Town was on hand to congratulate the winners. He also spoke at length about Cape Town as a premium destination for Super Yachts and the great work being done to develop the necessary modern infrastructure and world class services the sector is accustomed to . OSASA, the Ocean Sailing Association of South Africa, presented on all that is being done to ensure that South Africa remains a desirable cruising destination. Their online portal proved a true lifeline for many cruisers visiting South Africa during the epidemic. Michael Dehn, Messe Frankfurt South Africa Managing Director, got the audience talking about BOATICA Cape Town, taking place again this year in October. The industry is excited for the opportunity to share their love of boating with not only their clients, but also the general public.

The 9 categories of the 2022 awards recognized masters of their trade and people responsible for production on the shop floor or in the design office.

List of Winners:

Excellence in Boat Building: Alistair Dickson – Two Oceans Marine Manufacturing

Women in Boat Building: Margaret Hannie – Two Oceans Marine Manufacturing

Rising Star: Ikraam Abrahams – Two Oceans Marine Manufacturing

Project Manager/Supervisor: Euclid Nkuna – Robertson and Caine & Johannes Kabane – Nexus Yachts

Customer Care: Marguerite Vockerdoct – Robertson and Caine

Safety and Environment: Shivani Naidoo – Robertson and Caine

Excellence in Boat Design: Howard Loveday – Robertson and Caine & Anton Du Toit – Du Toit Yacht Design

Mentorship: Jaco Warrington – Viking Life-Saving Equipment & Kevin Wustefeld-Janssens – Robertson and Caine

Life Commitment: Steven Fisher – Sparcraft Masts

A special mention should be made of Margaret Hannie, or “Margie”, as she is known to her co-workers, who is the Laminating Manager at Two Oceans Marine Manufacturing. Margie is 66 years old this year and has worked at Two Oceans Marine with MD Mark Delany for 25 years, since 1997. Margie was supposed to retire last year, but her commitment to her work and her team have kept her from doing so.

Margie is a trained teacher but turned rather to the world of fibreglass after she qualified, first building fibreglass boxes at Golnox and then small watercraft for Stan Rob Marine for 12 years before joining Two Oceans Marine Manufacturing in its early days. Margie has managed the lamination of hundreds of catamarans up to 110 foot and loves every moment of her job. She supervises a very big team of both men and women, who have huge respect for her.

To quote journalist Bobby Jordan: “To achieve this she overcame not just gender inequality, but class and race barriers that came to define South Africa in latter half of the twentieth century. Now 64, Hannie’s career has spanned several governments, the end of the Cold War, and the advent of democracy. Not to mention marriage and three kids.”

She is an example to the entire boatbuilding industry and a role model for many women looking to enter the still male dominated sector.

Congratulations to all the winners from GMBA!

For further information
Veda Pretorius
Email: veda.pretorius@gmba.blue or info@gmba.blue
Mobile: +27 82 975 1156
Website: www.gmba.blue

N.B. 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.

GMBA Congratulates the 2022 Australian Marine Industry Awards Winners

Maryanne Edwards with Richard Chapman Past President AIMEX

GMBA Consultant Mary Anne Edwards who was also Chair of Judges for the 2022 Australian Marine Industry Awards attended the gala dinner which was held on Wednesday 18^th May at the Southport Yacht Club. With their state or the arc superyacht marina built by Superior Jetties, the yacht club was an impressive venue for this event. Maryanne also paid tribute to AIMEX CEO, David Good and his team who had organised the evening leaving no detail uncovered including live entertainment provided by sponsors Pantaenius and Aqualuma. Maryanne stated, “The capabilities of the marine industry in Australia never fails to impress. Australia continues to cement its position as a key player in the global marketplace”.

The awards were about recognising and awarding the outstanding achievers across the Australian Export, Superyacht and Commercial sectors. The Commercial Category offered two awards, with the first, “The 2022 Commercial Marine Project / Design or Manufacturer of the Year’ going to Spear Green Design for their impressive work on two new vessels that will service the Isles of Scilly and designing the marine interior for a fleet of 12 new build vessels to service Windfarms in SE Asian and Europe.

‘The 2022 Commercial Marine Service Provider of the Year went to The Yard Brisbane, with the judges impressed by the facility’s ability to support a myriad of commercial clients, enabling them to deliver and maintain their high quality of service to the Australian transportation, logistics and marine industry, both locally in Queensland, and nationally.

The Superyacht Industry Service Provider of the Year Award went to The Boat Works selected by judges for its impressive design, marketing and development over 2021. Chris Blackwell Echo Yachts described it as “a luxury resort and spa for boats.” The vision of Tony Longhurst and his investment in this dedicated Superyacht facility is making a big contribution to the reputation of the Gold Coast as a superyacht hub.

The Boat Works was also successful in winning ‘The 2022 Superyacht Industry Project/Design or Manufacturer of the Year Award. The outstanding submission detailed a significant project that involved installation of an upgraded stabilizer system on a 30m charter yacht, requiring a complex reinforcement of the vessel’s hull – the second time only that such a project has been undertaken in Australia.

‘The 2022 Australian Exporter of the Year’ award went to Fliteboard and reflects an extraordinary success story which has seen export sales and export revenue double in growth during 2021. Fliteboard was also voted the winner for a second year running of ‘The 2022 Marketing Strategy of the Year’ award. The award reflects Fliteboard’s innovative marketing strategies to promote eFoils globally. Notably, the company held the first-ever ‘Flite Cup’ showcasing the performance side of the innovative product and hosted a community fundraiser that raised $50,000 for two indigenous-led organizations while also making history, being the first-ever eFoil to cross the English Channel.

‘The 2022 Apprentice of the Year Award’ rewards the winner with a return trip to the world’s largest marine equipment trade show, METSTRADE in Amsterdam. This year’s proud recipient was Blake Frazer from Onboard Engineering. Blake started as a marina attendant at the Royal Motor Yacht Club Port Hacking, progressing to work experience at Onboard Engineering which led to an apprenticeship. He is currently a third year Mobile Plant Mechanic. Additionally, Blake works as a casual deckhand on the superyacht Royal X.

The final award of the night, ‘The 2022 Marine Industry Champion’ was presented to Wes Moxey from Riviera. Wes Moxey began his career in the marine industry as an apprentice shipwright for Carrington Slipways in the late 1970s. Wes then joined Riviera in 1982 as a shipwright, just two years after the company was founded. His career quickly progressed, leading him to become CEO of Riviera in 1998. Wes established Riviera’s award-winning apprenticeship program, with Riviera currently training 107 apprentices on-site as the company works to meet global demand for its world-class motor yachts. Over many years, Wes has become a champion of the industry by learning from the best and now he imparts that knowledge freely to benefit the wider industry. Wes’s own two sons are in the industry and are also part of the impressive Riviera Team.

GMBA congratulates all the winners an impressive line-up of Australian skills, expertise and capability.

	Award Winner: Jeremy Spear, Spear Green Design Presenter: Brenton Fischer, Sydney City Marine
	Award Winner: Jeremy Spear, Spear Green Design Presenter: Brenton Fischer, Sydney City Marine
	Award Winner: Mark Phelps, The Yard Brisbane Presenter: Martin Jufors, Volvo Penta
	Award Winner: David Trewern, Fliteboard Presenter: Ryan Carmichael, The Whiskey Project
	Award Winner: Shane Subichin, The Boat Works Award Presenter: Nav Bajwa, BOQ Business
	Award Winner; Shane Subichin, The Boat Works Presenter: Chris Blackwell, Echo Yachts
	Award Winner; Fliteboard Presenter: Barry Teeling, Mulpha
	Award Winner: Blake Frazer, Onboard Engineering Presenter; Simon Hislop, TAFE QLD and last year’s ‘Apprentice of The Year’ award-winner Robert Smith, Superior Jetties
	Award Winner: Wes Moxey, Riviera Presenter: Steve Fisher, Rivergate Marina & Shipyard
	All Australian Marine Industry Award Winners

For further information
Maryanne Edwards
Email: medwards@gmba.blue or info@gmba.blue
Mobile:+61412916036
Website: www.gmba.blueN.B. 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.

Global Marine Export Advisors Appoints Representative in China

Media Release 13 April 2022

GMBA continues to expand its portfolio of clients and advisors and is becoming a valuable resource for the marine industry. China for many years has been on the radar of marine industry businesses globally, either investigating opportunities to export to China, manufacturing in China, supporting infrastructure development or sourcing for supply chains from China. China has been seen as a growth market and with the island province off China’s southern coast, looking set to play a key role in boosting leisure boating in the region, many GMBA clients continue to keep a watchful eye on this market. To ensure GMBA can continue to service clients with quality market information and networks GMBA has appointed Godfrey Zwygart as their representative in China.

Godfrey is a former captain and chief engineer who has spent a large part of his life in Taiwan, Hong Kong, and China. Originally trained in the French Naval Academy he served as an officer on both navy and merchant ships and captain on super yachts up to fifty meters. Godfrey moved to Asia in the eighties as a boat builder in Taiwan. As a dedicated professional with over 40 years of ocean and marine experience and a proven track record in management positions, he now specializes in development, management and marketing of world class international yacht marinas and yacht clubs.

In 2010, Zwygart moved to Sanya to build and act as general manager operations of the multi-award-winning Sanya Serenity Marina. The marina has been a host twice for the Volvo Ocean Race, as well as the Clipper Race and the youth world sailing championships. In 2018, Serenity Marina gained worldwide recognition by becoming the second yacht marina in the world to obtain the ” 5 Gold Anchors Platinum” accreditation from MIA. Zwygart stepped down in 2020 and now serves as a special consultant for Sanya Serenity Marina.

As an author and columnist Zwygart has published two books as well as many articles in Chinese and he is a prominent figure in China’s yachting and marine industry. He has been listed in Asia’s 100 most influential yachting personalities. In 2019, Godfrey was awarded the highest honour for foreign experts in China “the Chinese Government Friendship award” In 2020, Zwygart also received the coveted “China green card” for permanent residency in China.

Jouko Huju GMBA stated, “The addition of Godfrey to the GMBA team further broadens the level of knowledge, expertise, and networks we can provide to our clients. With the commitment being seen to develop the leisure boating industry in China Godfrey is a valuable addition to our team.

No Time for Complacency | Dr. Thomas J. Dammrich, DBA

The marine industry globally has been on a strong run for nearly two years now. Many, if not most, new boat manufacturers are reporting record backlogs of sales; some stretching into 2024. In the US, nearly half of these new boat buyers are first time boat buyers. Clearly good times for the boating industry!

But let us not forget, this is a cyclical industry and while new boat sales have been growing for over 10 years now, we are still subject to the laws of economics. And boat sales historically ebb and flow with consumer confidence, growth in GDP, and other leading indicators. There are clearly some red flags ringing alarm bells for the boating industry. I hope we are not so busy trying to figure out how to build more boats, how to manage difficult supply chains and how to hire more workers that we miss the telltale signs that the cycle may be changing.

In a recent Axios/Ipsos poll, 40% of consumers cited inflation as their biggest worry. While the same total said wages were rising faster than they have in more than a decade, 94% said their salaries weren’t keeping up as their costs of food, gasoline and housing were rising faster. And the price of new boats have risen into the stratosphere. Historically, there is strong evidence that the price of boats is highly elastic. That is, as prices rise, demand falls.

In an NBC News survey done the third week of March, 71% of U.S. adults said they felt the country is headed in the wrong direction versus 22% who think it is heading in the right direction. Sixty-two percent said they believe their family income is falling behind their costs of living as the US government reports inflation is at 8.5%. Eighty-three percent of Americans are concerned the cost of goods and services like gas will continue to increase as a result of the Russian attempt to redraw country boundaries.

In a March Tracking Poll by the Kaiser Family Foundation, 55% of Americans said Inflation was their top concern; 71% say they are “very/somewhat worried” about being able to afford gasoline or other transportation costs followed by unexpected medical bills (58%), monthly utilities (50%), food (47%), long-term care services (45%), health insurance deductible (44%), rent/ mortgage (43%), prescription drugs (43%) and health insurance premiums (36%).

And, let’s not forget, that once inflation concerns are ingrained in the consumer psyche, it becomes self-fulfilling and becomes very hard to break. That is why the Federal Reserve system is acting quickly and aggressively on interest rates with as many as ten increases in interest rates expected over the next two years, with some talk that the next two will be 50 basis points each. In my experience, economic policy is a fairly blunt tool. It will be difficult to manage inflation successfully without throwing the US and world economy into recession.

While there is a need to refill dealer inventories, is your production backlog as solid as you think it is? Will it hold in the face of inflation, rising interest rates and a coming recession?

The latest numbers from NMMA showed boat production up 6% earlier this year but new boat sales up only 1.5%. This diversion between the increase in boat production and boat sales warns of an inventory buildup. Some of that is clearly needed, but when is enough? We need to continue to watch these numbers because production can exceed sales for only so long.

In the latest University of Michigan survey of consumer confidence, 32% of surveyed adults anticipate their finances will worsen over the next 12 months–the largest recorded share since the survey started in the mid-1940s. Consumer sentiment sank to 59.4 from 62.8 in March– down from a year-ago reading of 84.9 and the most pessimistic sentiment in 11 years. And, Morning Consult reported that consumer confidence dropped 7% among those earning more than $100,000 a year with a much larger dip among those earning less than $50,000 a year.

As we focus on solving supply chain issues and building more product, let’s not fail to pick our head up and look around at the signals telling us boat sales may have peaked in the first quarter of 2022 or may be peaking now. A recession and consumer confidence induced drop in demand by 20% or 30% from current levels doesn’t need to be a disaster for the industry if we are prepared for it.

Now is not the time for complacency. Hold on. The boating industry is about to experience some turbulence.

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

The Perception of Country-Specific Risk in the Marine Industry Related to Finland has Changed – But What is the Reality? | Dr Jouko Huju, DBA, GMBA Finland

As we went to sleep on February 23^rd 2022, the overall international perception of the country specific geopolitical risk affecting Finland was zero, or at best negligible.

As we woke up to the bleak morning of February 24^th, all this changed, literally overnight. Whilst not discounting or belittling the complete and utter humanitarian catastrophe and the plight the Ukrainian people currently face, we still remain as an industry directly responsible for some 3,500 jobs in Finland generating almost a billion € in revenue. However, while doing our best to help the Ukrainians, we simultaneously need to focus on matters closer to home. To paraphrase our President, Mr. Sauli Niinisto in a recent CNN interview reflecting upon the situation specifically for Finland, “Finns are not scared, but surely we are fully awake.” Despite this, we have to accept the fact that the country specific geopolitical risk affecting Finland has changed in terms of perceptions, and also potential outcomes – even if military outcomes still seem less than likely. In this story we will try to reason around why we feel there is certainly no need to panic, despite recent global events.

Over 60% of the Finnish population now supports a NATO membership (61%, Helsingin Sanomat, March 30^th 2022 – survey done by Kantar) whilst in the decades prior to the Ukrainian crisis support was on a stable level hovering around 25% (continuous survey 1998-2021 as done by EVA) – a significant increase. In other words, joining NATO now seems closer than ever.

A description of the constitutional, parliamentary process would be good (i.e. favourable vote in the Finnish parliament required PRIOR to sending membership application) and the application still needs to be unanimously ratified by ALL existing NATO countries. Also, the Kremlin already considers Finland to be very much a part of the Western sphere of influence, despite the optical “sovereign, neutral nation” moniker.

The real risk here is less the ending of exporting goods to Russia or lack of Russian customers buying boats to be kept outside Russia, and more the lack of belief in a stable future operating environment. Further, rather than geopolitical, the risks are: inflation and the increasing price of raw materials; both leading to challenges of remaining competitive. This combined with “decision anguish” on behalf of customers and dealers (often related to economic or geopolitical instability) can have detrimental effects on short term revenue.

Recent events have brought into focus the importance of democracy, transparency and real facts rather than alternative facts or outright lies. Therefore we need to keep a level head also within our industry, and make sure that customers and partners have access to REAL facts to support their decisions. Some of the conclusions may be that, while the optics are definitely leaning towards an increased geopolitical country risk concerning Finland, the fact is that:

we do not have strong signals that military aggression from Russia to Finland is viable in the short term.
The Kremlin may have underestimated the disastrous effects on Russia that the current aggression has caused, as the full impact of international sanctions is yet to hit the Russian economy.
There is significant pressure; both political and economic to resolve the Ukrainian crisis, and President Zelensky understands that a peace treaty allowing Putin to save face with a “graceful exit” is necessary- hopefully increasing the odds for ending the current war sooner rather than later – giving way for a period of relative stability.

So, there is really no reason to believe that Finnish industries by and large, and even to a lesser extent the leisure marine industry should be adversely affected by the above. We expect the impact to be of a more long term nature possibly concerning big strategic, non-mobile investments such as large scale manufacturing plants, infrastructure related projects and such.

Dr Jouko Huju DBA, GMBA-Finland
+358 40 5509310
jouko.huju@gmba.blue

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