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MaryAnne Edwards

NZ Marine Industry Maintains its Global Position | MaryAnne Edwards, GMBA New Zealand & Australia

December 2021

 New Zealand is considered one of the safest countries in the world and it certainly appears the current NZ government wants to keep it that way. Whilst safe has taken on a new meaning since the Covid 19 pandemic, New Zealand is determined to protect their world renown clean green image. In their battle to maintain a relatively covid free country the New Zealand government is keeping its borders closed until May 2022.

New Zealand has been one of the few countries with minimal covid cases and currently 90% of the population over 12 years is double vaccinated. The government’s plan which some would say is overly cautious is to open borders to vaccinated foreigners in stages from 30th April 2022.

NZ Marine, Executive Director, Peter Busfield, is working with government requesting that when NZ borders start to open from 30th April, superyacht owners, family and their entourage including crew for rotation, are part of the first role out of this staggered opening. Be it the visitors arrive on their yacht or via the air border.

Garry Lock, President NZ Marine Industry Association stated, ‘‘We are excited about the gradual reopening of iconic South Pacific Cruising destinations such as Tahiti, Fiji, New Zealand and Australia. One of the initiatives that these and other South Pacific countries are jointly focused on is letting the cruising and superyacht market in the Northern Hemisphere know that the South Pacific cruising season commencing in May 2022 is achievable. It’s time to prime the pump to get South Pacific voyaging back on the agenda!’

REFITS, NEW BUILDS & INFRASTRUCTURE

In the meantime, cruising yachts and superyachts are able to obtain a border exemption to travel to NZ on the basis they are having at least NZ $50,000 refit /service work done. There have been some issues with superyachts coming in for refits where crew have not been able to obtain the necessary visas. However, despite this, over 100 visiting yachts have come to NZ over the past 18 months, this includes approx 35 superyachts and 65 cruising yachts under 24 m.

Peter Busfield, Marine NZ advised,” In regards to new builds it has been business as usual -in fact an increase in demand particularly for superyachts in the 24 to 30 m length. It is fair to say however there has been a decline of refit work due to less visiting boats due to restrictions on owners/crew rotation etc between countries.”

Peter reported a significant investment by the NZ industry in infrastructure to service visiting boats and NZ will be extremely well positioned when borders are fully opened. “Over the past two years we have seen major developments completed in the Far North at Bay of Islands Marina, in Whangarei with additional superyacht berths and new 540 ton travel lift about to be installed, in Auckland with Orams new 840 ton travel lift and large vessel haul out yard and a new superyacht dedicated paint shed at the large vessel haul out facility at Vessel Works Tauranga.

The local demand for recreational boats has like in many parts of the world been exceptionally high as people are spending money that otherwise would have been spent on overseas travel. The very low interest rates have also assisted many first-time boat buyers into the market and like most countries NZ boat builders order books are full. This period in New Zealand has also been a bonus for imported boats with boatbuilders like Riviera having record sales.

TRAINING & EMPLOYMENT

With the very real need for qualified trades people NZ marine like their Australian counterparts launched NZ Marine Jobs.  Peter said, “To assist the industry retain connection with skilled people we recently launched NZ Marine Jobs,  www.nzmarinejobs.com and we are very pleased with the initial response and utilisation of this service. It is definitely seen as a benefit for the industry”

Peter also pointed out the importance of NZ Marine’s relationships with government. “We continue to work closely with various government departments and in the main they appreciate the value of the marine industry to NZ. With one in 3 people going boating at least once a year boating is the number one recreational participation activity in NZ and it is important that we as the industry body keep ensuring the government is aware of this.”

To assist with the growth in boat building activity in NZ, the globally respected NZ Boat building and related trades apprenticeship system is running at an all-time high with 260 companies employing 650 apprentices through the scheme. New Zealand has always had one of the world’s leading apprenticeship systems and NZ trained trades people are always in high demand. The marine training programmes are delivered through the NZ Marine Industry Association’s 100% owned Marine and Specialised Technologies training academy (MAST).

INNOVATION

The ocean has been a natural playground for generations of New Zealanders. With over a third of the population participating in boating each year, coupled with an undeniable love for the sea, New Zealanders are true marine enthusiasts. It’s a mindset that has contributed to New Zealand’s long legacy of innovation in the industry. New Zealanders were first in the world to pioneer the development of water jet propulsion, and they were the first to develop the technology to transform all-terrain vehicles into oceangoing speed boats, among many other innovations.

New Zealanders never settle for less, and their marine products and services are no exception. Their willingness to take innovation to the next level – encompassing everything from boat building and sail making to electronics and equipment hardware – has earned NZ global recognition.

Whilst there are many examples of innovation coming out of NZ, Peter advised, “An exciting part of our current innovation in NZ is the development of electric powered vessels. Several companies are leading this and an example is a new fully electric, carbon fibre ferry, currently being commissioned for use in NZs capital city Wellington.

EVENTS

New Zealand’s “Festival on Water” will kick off in March. Running from 17-20 March 2022, the Auckland Boat Show will transform the central city’s Jellicoe Harbour into a festival on the water that celebrates New Zealand’s marine heritage, boating innovation and some of the largest and most-luxurious new releases in the marine industry released in the year prior.

The Auckland Boat Show has become a hub of innovation and new release products. In the 2022 show, local company. Sealegs will have its world-leading amphibious vessels on display, and available for sea trials, including a new 3.8 metre tender, a 7.5 metre Hydrasol RIB and tough 8.5 metre Alloy cabin model.

Fellow Kiwi company Extreme Boats will be launching its new Legacy Marine range of high-end sport fishing yachts at the show. The aluminium yachts built in New Zealand will range in size from 35 to 70 feet.

After a hiatus in 2022, the New Zealand Millennium Cup will return to one of the great natural playgrounds of the world; Northland’s Bay of Islands for the world’s most-southerly superyacht regatta running on 13-16 February 2023.

“Having been involved with most other superyacht regattas globally, I can honestly say that the NZ Millennium Cup was the most enjoyable event I’ve ever done. The organisation of the racing and evening events was second to none. We thoroughly look forward to taking part again,” said captain Tim Michalick, of competitor S/Y Sassafras.

For the first time, the Cup will be joined by the Superyacht Fishing Competition, showcasing another example of the adventure to be found on New Zealand shores. The competition is open to yachts over 24 metres with entry for up to five anglers per yacht. Dubbed the angler’s El Dorado by Western novelist Zane Grey in the 1920s, the Bay of Islands has a reputation for producing record-breaking striped marlin, blue marlin, black marlin, broadbill swordfish, yellowfin tuna and kingfish, as well as tropical mahimahi for those ready to battle for them at the peak of summer.

With so much happening within the marine sector down under, New Zealand will continue to be a much-desired destination for those wishing to do business in or visit this part of the world.


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

Business is Booming Down Under but Challenges Exist | MaryAnne Edwards, GMBA New Zealand & Australia

The marine industry down under like most global markets continues to do well with high demand and significant business transactions across most sectors with the industry expecting a huge summer season. Both countries also have an ongoing Discover Boating Campaign designed to attract more of the population into the recreational boating market.

It is also very exciting to see a marine industry player, Riviera, as a finalist in the 2021 Australian Export awards showcasing the resilience of the marine industry and its importance to the Australian economy.

Riviera have exported a significant number of vessels to the US recently. Currently around 50 vessels are being built in the Coomera shipyard which employs 900 people. The success of Riviera which has continued during the pandemic is indicative of what has happened in the vessel manufacturing sector in both NZ and Australia.

However, the tentacles of covid have frustrated importers and exporters with border closures, lockdowns, extended lead times, freight costs, limited movement of vessels, reduced manufacturing capacity, pricing of raw materials and staffing. The good news is that with high vaccination rates now achieved in most states of Australia, NSW and Victoria have opened their borders without quarantine allowing fully vaccinated people to move freely between states. Queensland is expected to follow suit on the 17th of December then allowing vessels and crew in these 3 key states to move around freely. Western Australia continues to maintain a strong stance stating they will not open borders until their population over 12 years is 90% vaccinated. The federal government has opened Australian international borders for fully vaccinated residents to come and go which again is a big plus for everyone coming into the Xmas holiday season. As covid rules change daily it is important to check the Australian government website that lists updated international border rules, exemptions, and restrictions. https://covid19.homeaffairs.gov.au/

The NZ border currently remains closed but again the NZ  government is reviewing these decisions regularly so it is important to check .https://www.immigration.govt.nz/about-us/covid-19/border-closures-and-exceptions  Whilst NZ & Australia originally pursued a zero covid strategy both are now strongly focused on vaccination levels.

Businesses continue to work hard to maintain high service levels to their domestic and global customers. Relationships are critical and loyalty to these relationships continues as a high priority.

In both NZ and Australia freight costs have increased. Duthie Lidgard, Catalano Shipping Services NZ, commented, “As an agent we are seeing a minimum of 20% increase across the board. We are seeing many sea freight orders being bumped due to over booking, lack of ships and space. We understand yacht transporters also have a long waiting list for vessel bookings to move yachts around the world.”

In Australia feedback suggests these increases in freight costs are even greater with the same delays applying. Peter Dowdney, Australasian Sales Manager, Ronstan International, commented, “Freight can be a logistics nightmare causing many businesses to increase stockholdings as opposed to the traditional JIT method. Ronstan normally air freighted all orders however due to minimal flights out of Australia and elsewhere we have had to revert to sea freight. This is challenging with delays often of 2-3 weeks with little explanations as to why. This has affected our service levels to customers which is a huge concern for us as service within Ronstan is a high priority.”

Supply chains in many sectors of the industry have been disrupted. Given cash flow and other challenges many manufacturers are requiring payment ahead of time before receipt of orders. Customers in the main appear to be understanding of this and complying. Relationships with suppliers is critical and nurturing long term relationships is important. Trying to source new suppliers and do due diligence on them without being able to travel and meet face to face is again a very challenging exercise. Duthie advised, “NZ is starting to see limited stocks, engine and pump parts, steel, plastics etc, with word from some major brands we could be seeing a 9-month supply delay, advising to order your parts now.”

There continues to be staff shortages across many industries in New Zealand and Australia and this is also felt within the Marine Sector – Welders, Engineering, Boatbuilders, Painters, laminators etc. Superyacht Australia, the Marina Industries Association and the Boating Industry Association in Australia and NZ Marine in New Zealand have developed marine industry employment websites as a membership benefit which is certainly a very timely initiative for the industry in both countries. www.marinejobs.org.au. www.nzmarine.com/jobs/

Tracey Stevenson, Lloyd Stevenson Boat Builders NZ, talked about staffing. “The staffing issues are getting worse as the closed borders continue to mean that we cannot accept applicants from offshore. As all manufacturing businesses are experiencing shortages, this puts more pressure on the ability to retain staff. We are fortunate to have a loyal and stable core team – but the pressure is mounting. Our recent government decision to grant residence visas to work visa holders currently in New Zealand is a good step in the right direction – but a bit too late for some of our workforce who had already decided to head home as they were unable to visit family and had no pathway to bringing family to NZ.”

Suzanne Davies, CEO Marina Industries Association, corroborated this view in relation to staffing. “As the industry is starting to gear up for a busy summer which will be less impacted by restrictions given the increasing vaccination rates, the industry is struggling to secure staff for many roles. It is hoped that the winding back of government payments to individuals translates into a greater number of people seeking work opportunities.”

The refit market in both countries is solid although in Australia with state border closures, vessels moving between states has been challenging. Project delays create challenges for scheduling. Many businesses advise that they are struggling to secure contractors on smaller projects as there are so many larger jobs available where they would rather focus their efforts. Feedback is advising forward planning is critical to lock in contractors.

Tracey also talked about the inability to travel to see customers and attend trade shows. “At this stage, the inability to travel has not had an enormous impact, however, as we move forward, I can see this becoming a major issue. Selling our product offshore involves building relationships. There is a fair amount that can be done remotely but nothing beats meeting in person when negotiating a new project.”

Given the latest changes to border regulations Superyacht Australia was able to have representation at Ft Lauderdale with CEO David Good flying the Australian flag. It is expected there will be a NZ and Australian presence at METS this week. Many companies have international distributors who will represent them but for those who cannot be there it is important that the flag continues to fly for businesses down under.

Peter Dowdney talked about having diversified markets, i.e., offering products to multiple regions and multiple sectors. “Ronstan is well established in both the sailing market and various commercial sectors, and this has always been a valuable strategy. Our traditional sales of 1/3 Asia, 1/3 USA and 1/3 Europe has continued through the pandemic, with sales into China increasing considerably for our commercial sector. One area however that has affected a segment of our business and many others is the cancellation of so many regattas and sailing events.”

Suzanne reinforced this view. “We have again recently seen the cancellation of several yacht races and regattas in Far North Queensland, including the Australian Yachting Championships, due to boarder restrictions with most fleets coming from the southern states. This influences all businesses.”

Suzanne provided an update in relation to marina operators and ancillary services, “Many marina owners and operators are also experiencing very strong demand for permanent vessel storage.  The fortunes aren’t universal however and will depend upon the location and the market that the marina is reliant upon.  While business in NSW and Southeast Queensland is booming, those operators that rely on tourism, particularly those in North Queensland are having very different experiences. Marinas in that part of the world have seen many of the tour operators whose businesses were based at their marinas close, and for those left, many are not yet operational and are not able to pay marina fees.    Additional demand for new vessels, very strong trade in second-hand vessels and the increased usage of boats in the areas where boats can be used, is generating increased demand for the servicing of vessels. While some operators are reporting very strong business conditions, it is certainly far from industry wide. Depending on location, restrictions have hindered access to vessels, meant that certain trades aren’t able to move around freely and many owners unable to deliver their vessels for maintenance. Furthermore, the Covid Safe business practices have added additional cost for business operators particularly around monitoring of compliance and social distancing of workers. “

Whilst there are challenges which businesses & trade associations are working to address, the positives outweigh the negatives. The push now in both NZ & Australia is to get a high percentage of their populations vaccinated as the key to returning to some form of normality. Both countries have major boat shows and conferences scheduled for 2022.


For further information
Maryanne Edwards
Email: medwards@gmba.blue or info@gmba.blue
Mobile:+61412916036
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 Consultant Honoured with ICOMIA Golden Cleat Award | MaryAnne Edwards, GMBA New Zealand & Australia

The ICOMIA Marinas Group (IMG) “Golden Cleat Marina Award’ is a newly created distinction designed to honour outstanding individuals who have demonstrated a true commitment to the global marina community throughout their careers.

It will come as no surprise to those in the industry that this prestigious honour was awarded to Majorca based Oscar Siches at the ICOMIA World Marinas Conference in Dubai. The conference attracted 200 delegates from 24 countries making it a truly global event despite covid travel restrictions.

Suzanne Davies, CEO Marina Industries Association commented, “On behalf of all members of the Marina Industries Association in the Asia Pacific region, our congratulations to Oscar Siches on receiving a Golden Cleat Award.   While this award recognises a ‘lifetime of dedication’, we certainly hope it doesn’t end there.  Oscar has been a great contributor globally and has shared his insights and knowledge over the years addressing our biennial Marinas International Conference and Trade Exhibition and we look forward to that continuing for some time yet.”

The criteria for the award were set around 2 key areas:
Dedication – Exceptional leadership, advocacy and dedication to the betterment of the world’s marina industry
Sustainability and Innovation- An industry leader who has demonstrated leading edge mindset and commitment that would result in sustainability, innovation and environment protection

There is no one who is more deserving of this award than Oscar Siches. His consummate professionalism alongside his infectious humour and style is well known to many.

Oscar who was totally surprised by this honour stated, “Well established awards reinforce the feeling of belonging to any organization. Awards send two messages: the first is the recognition of an exceptional performance by the winner. The second is that the reception of the award is not over when the ceremony finishes. The recipient should remain, as much as possible an example to be followed, encouraging peers and fellow industry colleagues to excel in what they do and become candidates for the award’s following editions.  The honour of receiving the first Golden Cleat Award is humbling and I will work to be the best ambassador possible for our industry.”

Oscar has considerable experience in the boating industry having skippered sail and power yachts in the Mediterranean and the Caribbean, both for private and charter clients. Oscar gained firsthand knowledge of the industry as a partner and manager of two marinas in Palma de Mallorca, over a period of 15 years. He currently consults on the design and operation of marina projects in various countries and is a designer of customized marina elements. He is a Certified Marina Professional, member of ICOMIA’s Marinas Committee, member of PIANC Recreational Navigation Committee, Convenor (coordinator) of Work group “yacht harbours” at the ISO organization and founding member of the Asia Pacific Superyacht Association and the Global Marina Institute, where he served 6 years as a director.  Oscar has also been a speaker at more than 30 marina conferences in 12 countries in the last 14 years. He is one of the main contributors to Marina World magazine, a columnist in a local Mallorca nautical publication and his articles are widely enjoyed in many international publications.  The scope of Oscar’s involvement and his support for the industry has been enormous and has impacted many.

Singapore based GMBA Consultant YP Yoke stated, “I have known Oscar for many years – we were fellow members of the ICOMIA Marinas Group (IMG). Prior to the pandemic we met at least once a year, every time in a different location, for a business meeting, a meeting with the local host & administrators to learn what their challenges were, and a field trip to see the local marina infrastructure. There was always time for camaraderie and fellowship. Oscar is never afraid to speak his mind, and always has a refreshing perspective, even on the mundane. I can’t think of a more deserving candidate for this inaugural award”

The universal mission of the ICOMIA Marinas Group (IMG) is to improve the quality of the recreational boating experience through the development of marinas, yacht harbors, boatyards and small boat launching ramps.  Acknowledgement by the industry of the valuable work so many stakeholders are doing within this sector is important as organisations like ICOMIA and the Boating Industries Association continue working to create the best possible environment for the boating industry.


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

Women Play Key Role in the Australian Industry | MaryAnne Edwards, GMBA New Zealand & Australia

Part two – Women in the Australian Industry

Whether it be providing yacht insurance or trained crew to the Australian and global markets these two women stand out in understanding their clients’ problems and providing solutions with consistent and personal service wherever they go.

Adaptability, persistence, and hard work are the keys to success whether it be in a large corporate or small business and the women I have talked to for this series of articles have these attributes in spades. No one can foresee the future with certainty, but there are clear indications that success in the decade ahead will require a keen focus on delivering positive experiences for all who engage with your business—from consumer to employee, across generations and geographies.

There is no doubt the coronavirus pandemic and the ways businesses had to adjust to ensure their survival changed the trajectory of what our future is looking like and what businesses should do to get ready for 2022 and beyond. As a GMBA consultant we are focused on trying to understand the latest trends and technologies and offer guidance on how to prepare businesses for them.

One thing hasn’t changed during the pandemic: The most successful leaders are laser focused on staying close to their best customers and understanding the strength of their relationship with them. Just as the best leaders have constant, clear communication with employees, they do the same with their clients. Leaders are taking these key questions into consideration: What specific challenges are my customers facing? How will my company adapt our resources to address customers’ current and future needs? What are coverage plans for servicing customers?

Two women who have impressed me over the past decade are Michaela Claes, Pantaenius and Joy Weston, Crew Pacific, industry service providers whose customer focus and can-do attitudes are ensuring their products are top of mind within the recreational and superyacht sectors. It is no surprise how these successful women are dealing with the current environment. The strongest leaders are determining how they can add more value, consistently over deliver plus keep a close eye on the future. I think being prepared for every eventuality is summed up by the Pantaenius email signature “WHATEVER LIES AHEAD”

Best advice I have ever been given. “Opportunity lies in the place where the complaints are”.

Michaela Claes Tweet

Michaela Claes is Operations Manager for Pantaenius, a family-owned company based in Hamburg, launching in Australia in 2012.  I met Michaela when Pantaenius first opened their office in Sydney, she is a woman that impresses you with her warmth and leaves no doubt as to her ability to get the outcomes required for the customer and the company. Michaela manages the entire backend of the Australian office as well as being responsible for the marketing function. 

The biggest challenge back in 2012 was to create awareness that Pantaenius was here in Australia and that policies and claims were handled by experienced, knowledgeable staff with lots of boating industry experience. Creating awareness of new companies in a competitive environment is no mean feat especially when you have global templates to use that do not always translate into the Australian market.  Michaela and the team at Pantaenius impressed me with the way they worked with their German head office to massage the global marketing collateral to develop a marketing campaign that caught the attention of the Australian marine industry. Being a family owned and operated business Pantaenius can quickly adapt, something many large corporates are unable to do. Always with a strong focus on the business Michaela stated, “What made the difference is our product is so different to other insurance products and we are still the only onshore insurer who can offer cover for blue water cruising.” With stability being a rarity in a tumultuous marine yacht insurance market hit by big losses over the past years, the long-standing solid family owned Pantaenius is a rare breed as are people with the commitment of Michaela.

Best piece of advice I have been given in my career is “To have passion, drive, determination and to feel the fear and do it anyway!”

Joy Weston Tweet

Joy Weston owns Crew Pacific, a professional recruitment & training organisation for the international super yacht industry established in 2001.  Prior to starting the business, Joy worked on a number of sailing and motor yachts overseas. Joy is based in Cairns and has earnt her solid reputation as someone who understands the industry and the importance of building relationships and understanding her clients needs.

Life in the crew recruitment industry is no mean feat in today’s environment where borders are closed, and crew cannot move freely. Joy’s practical experience within the industry is extensive and she has an extensive list of global contacts and relationships due to her international yachting experiences and I would encourage you to read her story. www.crewpacific.com.au/about-us/how-crew-pacific-started

INTERVIEW

Q1. Will boat shows continue to be important to your business and do you see it critical to your business to get back to the personal relationship building that tends to be the focus of domestic and global boat shows

Like most women I have spoken to recently the answer to this question is an overwhelming yes from both Michaela and Joy. Michaela stated “Boat shows are one of the most essential ways we market and promote our product. They provide us with the opportunity to connect with our existing and potential clients in a face-to-face setting. This allows us to fulfil our commitment of building strong relationships with our customers as well as identify how we can continually improve our product and service to suit their needs. Whilst we also connect with our clients through the delivery of regular targeted newsletters which provide information relevant to the individual, this method will never surpass the value we get from the participation in boat shows and other events such as regattas.”

Q2 What are the key changes you have had to make in your business during this pandemic to survive and thrive?

Michaela, “When the pandemic hit, we immediately looked to our CRM systems to see how we can optimize the services we provide and ensure that our customers continue to see the value Pantaenius provides. Utilising our CRM system also allowed us to reach new customers. Our main success came from the creation of the targeted newsletters for our customers which received positive feedback. We also revisited previous customers and non-converted customers and provided them with personalised, market relevant news along with information and offers.

Q3. The world is now shaped by technology change, social media, consumer expectations and hyper connectivity how have you embraced these factors to develop your business?

Joy, “We have now moved fully into the digital online and social media space to market out business and deliver our training courses.”

Michaela, “We have built a much stronger social media campaign that echoes the Pantaenius philosophy. Combined with our newsletters we have managed to reach a greater potential customer base, and as a by-product have also improved our customer retention.”

Q4. Many stakeholders tell me that customer expectations have changed since the start of the pandemic, and everyone must work harder to achieve customer satisfaction.

Joy, “Crew Pacific deals with two types of Customers: one, being a young student wanting to work on a super yacht without a real understanding of the industry or desire to undertake any courses and two, being the super yacht owner or captain looking for crew.  Captains and owners can be very reluctant to pay placement fees or have been burnt by other crewing agents. I now offer an option where they can take a crew member on a temp basis and be charged a temp fee. If the crewmember works out, then the difference of the full-time fee is paid to Crew Pacific. This option seems to hit the mark.  We must continually look at ways to satisfy our clients issues.”

Michaela, “Pantaenius’ core identity when it comes to market approach is the assurance that everyone in our team understands boats and the risks that come with them and as such, we are able to confidently engage with our customers on such topics.  Unlike our competitors we can offer informed and relevant advice or information, and all 15 of our staff are able to provide this.  This is a unique advantage and is why we have such a high percentage of customer satisfaction with our service.  We have put service at the very top of the list from day one.  We respond to a quote request inside 24 hours in 95% of cases.  We generally process policy amendments on the day and general customer enquiries are responded to within 1 working day.”

Q5. Many businesses say that they now must think more locally than globally given the many covid restrictions and border closures. You have aspects of your business that are global and local – has the mix changed.  Have you refocused your business offering in any way to meet customer needs/expectations?

Michaela, “During the early days of the pandemic we saw a significant fall in both clients use of their insurance product and enquiries associated with boats located outside Australia.  This has changed in the last 6 months as we have seen a return to 2019 figures associated with offshore business.  Much of this increase is related to the sharp increase on high value purchases of boats in Europe and the USA by Australia clients.  Most of these boats have or are destined to be imported back into Australia.”

Joy, “Crew Pacific is an international recruitment agency which means I have a large data base of crew located overseas. I still can place crew in Europe, America, and world-wide. Here in Australia and New Zealand placing crew and running training courses is a little harder with the constant border closures and crew not being able to move around. With this overflow of students not being able to attend training courses it has reduced the number of qualified staff available here.”

Q6. What is your view be of the current Australia and where do you see the opportunities/threats if the borders remain closed?

Michaela, “The boating market is very strong in Australia and NZ.  COVID has undoubtedly led to significant growth in our industry, we anticipate continuing to see the trend of increased participation and use.”

Joy, “Right now for any recruitment agency it is a huge struggle to find qualified and experienced crew in Australia. There is a large shortage right now and with more super yachts being built and new owners buying yachts and building yachts it is only going to get more difficult to fulfill these job roles. Borders need to remain open, and people need to get vaccinated.”

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

Australian Interior Design Specialists Meeting Market Needs | MaryAnne Edwards, GMBA New Zealand & Australia

Part three – Women in the Australian Industry

Maryanne Edwards GMBA consultant recently interviewed 2 Australian based women – Sarah Egan, Boat style and Angela Burlizzi, Analu asking for their opinions on how they are driving their businesses in the current environment. Both women offer a range of interior design services to the Australian and global marine industry. Both have been in business for many years and have an in depth understanding of the industry and their clients desire for style and functionality. Successfully turning customer design briefs into reality has become a passion for both these women.

Traveling overseas at least once a year, staying in luxury accommodation and eating at the best restaurants was a passion for many and afforded by a large group of Australians and international clients. This lost experience due to the current pandemic has translated into increasing numbers of people buying boats, refitting an existing boat or depending on budgets simply upgrading furnishings on the family boat.

"Style is a way to say who you are without having to speak."

Rachel Zoe Tweet

The trend to upgrade interior fixtures and fittings has now become de rigieure in the current climate. This has led to a boom in work for Sarah and Angela who have carved out their niche in the market and built a solid reputation both in Australia and globally over the past decade.

Both have been regulars on the international boat show circuit.

“The two-best pieces of advice I have ever received have been creating my own label and expanding into the marine industry. Having a brand has enabled me to express my creativity and our business to have a point of difference, expanding internationally. That is particularly relevant in an era where internet has made all other brands readily accessible to everyone.”

Angela Burlizzi Tweet

Angela Burlizzi has owned Sydney based Analu since 2003, creating bespoke interiors for elite vessels and private residences. Due to her extensive experience in the high end of the luxury market Analu has built a strong reputation and brand presence in the industry.

 Whether it be a new build, refit or restyle Burlizzi and her team guide their clients through selecting the most fitting and stylish interior items to ensure the space is both aesthetically pleasing and functional. www.analu.com.au

The best piece of advice I have ever received “Choose what you love, do it well and solve your customer’s problems”

Sarah Egan Tweet

Sarah Egan is the owner of Boat Style, a yacht interior design company established in 2010.  Boat Style utilises a global supplier network and team of talented craftsmen and contractors to deliver Boat Style’s luxury goods and custom design services.

 As Sarah states on her website “Boat Style translates your ideas into reality. Since 2010, Boat Style has worked with luxury yachts and superyachts throughout Asia, Pacific and the Mediterranean. www.boatstyle.com.au

INTERVIEW

Q1. The value of Boat Shows

Both women have a strong view on the value of Boat Shows to their business and see boat shows as critical to building personal relationships and driving their business forward.  Both in the past have been regulars at Monaco, METS and key boat shows in the Pacific Region. Sadly, the requirement to quarantine in a hotel for 2 weeks on return to Australia at a cost of $3k pp is a major deterrent to any Australians currently attending boat shows. Both are members of Superyacht Australia and are positive about their links to this Australian Industry body and their presence at International trade shows.

Q2. What are the key changes you have had to make in your business during this pandemic to survive and thrive

Angela, “The past 12 months have been so busy with local demand that we have not had the need to make any drastic changes.”
Sarah, “Our design work is deeply personal and seeks to imbue a lifestyle rather than just a current trend or look. The biggest adjustment during COVID is how we now communicate with our clients and contractors. As we increasingly deliver design projects remotely, the challenge is to relate how something looks and feels when you don’t have face-to-face contact. We have become creative with video conferencing and visualisation tools such as digital mood boards, technical drawings and photorealistic renders. Seeing and touching textiles and finishes is powerful, so we compile comprehensive story boards of samples, images and renders and deliver these to the client.”

Q3. The world is now shaped by technology change, social media, consumer expectations and hyper connectivity how have you embraced these factors to develop your business.

Angela, “We are striving to accelerate the process to update our website and digital presence. However, I find it challenging for a small, hands-on business like ours to allocate the required financial and time resources to develop the high-quality presence I feel our business deserves. Nevertheless, it has become imperative to feature products & projects through social media, to engage with clients and maximise business exposure at the fast pace of current times.

Sarah, “We’ve recently completed 2 major superyacht refits for Australian owners in the Mediterranean, without ever stepping aboard. Utilising only photo images, GA plans and lots of video walk throughs, we’ve been able to clearly interpret the owners’ vision and translate our design concepts into successful outcomes. It’s both challenging and rewarding.

Q4. Many stakeholders tell me that customer expectations have changed since the start of the pandemic and everyone has to work harder to achieve customer satisfaction or over deliver have you experienced this and how do you address it.

Angela “We experience it in basically all the projects we work on. Customers have higher expectations, anticipating a fast response almost 24/7. However, I find that since the start of Covid clients have also become a little bit more relaxed. They seem not to “stress” as much when things take longer than planned or there are unforeseen situations needing addressing.” 

Sarah, “Personalised, ‘above and beyond’ customer service is one of our hallmarks. The same expectations for quality still exist, it simply takes more time and energy to deliver them during a pandemic. 

Q5. Many businesses say that they now must think more locally than globally given the many covid restrictions and border closures.  You both have aspects of your business that are global and local – has the mix changed.  Have you refocused your business offering in any way to meet customer needs/expectations

Angela, “Since the start of Covid, our business has organically focused more on the domestic market, driven by the strong local demand? Clients’ expectations are very high, and projects have a super tight time frame, requiring our upmost attention to execute and deliver the job to highest level of details.”

Sarah’ “Many foreign flag superyachts have found safety in Australian waters during COVID, however, without owners onboard, the impetus to do more than basic maintenance is not there. On the upside, the local Australian yacht market is on fire, with people seeing yacht charter and ownership as providing the perfect opportunity to get away when overseas holidays are not an option. I’ve seen a shift in the mindset of how Australian owners are using their yachts and a change in demographic with a younger generation now yachting. I’m currently working with several next gen’, first time yacht owners. Their pragmatic approach is a breath of fresh air, as they seek authentic experiences free of the burden of traditional boating mores. They want spaces that embody a sleek and modern aesthetic with a pared down style. With many manufacturers operating well below full capacity for the past 18 months, product supply levels are critically low in several sectors. This has led to price increases and extended lead times. Freight delays and a dramatic increase in the tariffs for airfreight, have driven the cost of delivering our projects up and caused many a sleepless night tracking consignments. Wherever possible I source local materials and several colleagues are now pooling regularly used items.

Q6. What is your view of the current Australia marine industry and where do you see the opportunities/threats if the borders remain closed

Angela, “As in every situation, there are two sides of a medal. So far, the border closure has delivered an extraordinarily strong demand in Australia. People have seen yachting as a great alternative to travelling and have invested their financial resources in this sector, keeping the money in the country. New vessels have been purchased and old vessels refitted. They will require ongoing maintenance, marina facilities, supplies and services for the benefit of all. It is a market that has grown in numbers and value and is there to stay. On the other hand, the inability to travel may lead to a slowdown in R&D and product innovation and the weakening of trade relationships, with possible consequences particularly for local companies highly dependent on export.”

Sarah, “I believe there’s an outstanding opportunity for superyachts from Asia and the Northern Hemisphere to cruise and undertake maintenance within ‘A South Pacific Bubble’. Australia, New Zealand, Fiji, Tahiti, the Cook Islands, Samoa and Tonga offer some of the world’s most extraordinary and largely unexplored cruising grounds. Our aim should be keenly focused on promoting the region as a safe haven, an oasis with world-class service facilities and iconic destinations. Vaccination and quarantining requirements will be key to the success of such a strategy and warrants a collaborative marketing response from our industry and governments in the region.”

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

Australian Women Play Key Role in the Industry | MaryAnne Edwards, GMBA New Zealand & Australia

PART ONE -Two women making their mark in the Australian Marina Industry

Adaptability, persistence, and hard work are the keys to success in small business and the women I have talked to for this series of interviews have these attributes in spades. No one can foresee the future with certainty, but there are clear indications that success in the decade ahead will require a keen focus on delivering positive experiences for all who engage with your business—from consumer to employee, across generations and geographies.

Whilst I have selected 7 key Australian businesswomen to interview there are many dynamic women currently operating with the Australian industry. My discussions have centred around two prominent stakeholders in the marina sector, two interior designers who have made significant inroads into the superyacht and leisure marine sector, two key service providers whose customer focus and can-do attitudes are ensuring their business services are top of mind within the recreational and superyacht sectors plus an exporter who has a different take on some of the questions posed. To understand what is happening in the Australian Industry and how these successful women are dealing with the current environment read their views on what they are doing to stay relevant and viable during these uncertain times.

THE AUSTRALIAN MARINA INDUSTRY

I asked Andrew Chapman, President of the MIAA, to provide a brief overview of the industry. He advised “the Marinas sector has generally fared well over the last 2 years as recreational boating in most jurisdictions was seen as a safe social distancing activity when rules applied. With over 350 marinas across Australia incorporating clubs and commercial activities we have seen some downturn in the more remote tourist-based marinas who are still waiting on borders to reopen however we are back to seeing waiting lists at some marinas that we hadn’t seen for many years. The boatyards have been very busy with so much additional discretionary money available to recreational boating as overseas holidays and cruises were off the list. That’s not to say it hasn’t been without challenges as each state has enforced their own rules a little differently. We have worked with the BIA’s across Australia to engage with Government to keep the essential work undertaken by marinas on track and we assist by providing the services for other essential workers to carry out their work ensuring environmental and emergency services on water are available and maintained. Our industry like the general community is looking forward to increased vaccination rates allowing Government to open up the domestic lockdowns and state borders ahead of the international inbound tourism market that our northern marinas rely so heavily on”.

“Your business is the people in it”

Nicky Vaux Tweet

Nicky Vaux is a partner and Business Development Manager at Empire Marina Bobbin Head, NSW. This Platinum 5 Gold Anchor offers 200 berths, a full-service hardstand, boat brokerage, the Waterside Bistro and all of the services on site one should expect for the ultimate care of your vessel. Her Degree in Hospitality and Catering Management meant that creating Waterside Bistro at the marina in January 2020 was an exciting project for her, and her expertise is evident in the recently received Marina Restaurant of the Year in the MIA Awards.

Nicky is a passionate advocate for getting more women into boating and into the boating industry. She holds a position as a Director on the Board of the Marina Industries Association, contributes to Ocean Magazine and enjoys an extensive network within the industry, both in Australia and overseas, along with an active following on social media and on her podcast in her pseudonym as The Boat Princess. https://www.theboatprincess.com/  https://www.empiremarinas.com.au/

“Allow yourself time to think” Taking the time to slow down and allow yourself the chance to reflect often lets your mind explore other possibilities and opportunities that you simply don’t see when you are bouncing from one task to the next.”

Suzanne Davies Tweet

Suzanne Davies is chief executive of the Marina Industry Association Australia (MIAA).  The MIAA is the leading marina industry association across the Asia Pacific Region representing club and commercial marinas, boatyards, and suppliers. The MIAA represents 300 businesses, connecting over 2000 industry leaders and decision makers and is well known for the provision of high quality and professionally run training and accreditation courses.  The MIAA also runs a bi annual industry conference and annual awards programme.  For over 12 years, Suzanne was the General Manager of the Royal Prince Alfred Yacht Club before moving on to take the role of CEO of the country’s largest marina group, d’Albora Marinas.  In October 2020 Suzanne commenced as the CEO of the Marina Industries Association. Suzanne was previously a director and the treasurer of the MIA for 8 years and is currently on the board of Australian Sailing. Her experience in the marina industry is impressive. https://www.marinas.net.au

INTERVIEW

Q1. Will boat shows continue to be important to your business and do you see it critical to your business to get back to the personal relationship building that tends to be the focus of domestic and global boat shows.

Nicky, “Boat Shows are an incredibly important part of our business. People still need to look at and feel our products and lifestyle. This can never be entirely replaced digitally; people are accepting it temporarily but won’t do so for the long term in my view.  The collaborations formed between businesses at Boat Shows can be crucial in moving businesses forward.

Q2 What are the key changes you have had to make in your business during this pandemic to survive and thrive

Nicky, “As a family run marina we have a very “client focused” approach and our clients can visibly see the continuous investment we are making in our facility and in all we do, thus creating a strong loyalty towards our business. We can’t just hope it gets better we have to make it get better. To this end we have focused on supporting local suppliers for our restaurant and are continually looking at how we can improve our offering to meet the current environment, obviously moving to takeaway food during restricted periods. An advantage many marinas food and beverage outlets have is our outdoor spaces and it’s important we make the most of this going forward.”

Suzanne, “the pandemic has forced us all to do things differently and has presented us with many new opportunities that we otherwise may not have ever considered or realised. The MIAA responded to the pandemic by quickly transitioning several courses to online formats. We also held some of our traditionally face to face management courses virtually.  This allowed some who were often unable to access the courses due to location or cost or time to attend, so we attracted a different audience.  We also trialled a virtual marina tour of Empire Marina at Bobbin Head.  As a 5 Gold Anchor Platinum Marina it attracted a lot of interest from overseas.  We weren’t sure what to think before doing it, but it worked tremendously well and will do it again. We have seen a real desire from members for more online, short courses and as a result have two more under development which will be released in the coming months. It seems that people have become a lot more comfortable with online formats because of the pandemic and realise the considerable time, cost and convenience benefits.

Q3. The world is now shaped by technology change, social media, consumer expectations and hyper connectivity how have you embraced these factors to develop your business.

Nicky, “Whilst we don’t have Boat Shows available to us it’s important, we retain and expand connections keeping our social media channels active and interesting, and provide engaging and useful information to our clients through socials, newsletters, podcasts, calls and smaller events.”

Suzanne, “Boaters are constantly on the move and need convenient ways to locate services at their next destination.  Gone is Yellow Pages!  The MIAA is just completing the development of My Marinas Guide, a map-based, online marine services directory providing a comprehensive listing of all marinas, yacht clubs and boatyards in Australia.  It will assist boaters in their passage planning by enabling them to locate marinas, maintenance facilities and service providers suitable to their needs in particular geographic locations.  In collaboration with Superyacht Australia and the Boating Industry Association, this year we launched an online jobs board specifically for the broader marine industry called Marine Jobs.  It functions in much the same way as SEEK but is focussed on our industry and profiles a range of career resources for our workforce.

Q4. Many stakeholders tell me that customer expectations have changed since the start of the pandemic and everyone has to work harder to achieve customer satisfaction

Nicky, “Customer expectations have been changing since the GFC not just since the pandemic. They expect more value, greater service and attention to detail for their hard-earned cash. In addition to this I believe the pandemic has emphasised those that are doing what they do well and those who were just riding the wave. Businesses that were more driven and engaged have pivoted to create better outcomes for their clients and this in turn has put pressure on other businesses to do likewise. It’s been tough with rising costs in all areas as we adapt to higher expectations and safety requirements that’s for sure.”

Suzanne, “The expectations are different.  The support, and the way we deliver it, to our members has changed as a result.  When lockdowns and restrictions come into play, our members really looked to us for support and guidance to help them to interpret the rapidly changing advice and regulations coming from government.  There was also a need to ensure the government understood the implications for our industry and that certain functions needed to continue to mitigate safety and environmental risks. Yes, I agree that you do work harder because there are new functions to take on.  In addition to this, much of what you have planned needs to ‘piviot’ a word that has been popularised by the pandemic, but it is true – you have to remain agile, flexible and ready to change course”

Q5 Many businesses say that they now must think more locally than globally given the many covid restrictions and border closures.  Have you refocused your business offering in any way to meet customer needs/expectations

Nicky “Almost all of our marina clients are permanents, so our focus has always been local, although we do collaborate with other marinas on the East Coast of Australia to facilitate reciprocal berthing for our clients when cruising.

Suzanne, “It has been challenging remaining relevant to our international members when we are unable to get out to them.  Much of what we offer in the international space requires us to conduct accreditation assessment or deliver education.  We have had to look at creative ways to continue to conduct these services and provide value to our international members.  Again, we have reverted to virtual and online methods.”

Q6. What is your view of the current Australia marine industry and where do you see the opportunities/threats if the borders remain closed and the uncertainty, we continue to face in regards to this pandemic every day.

Nicky, “I believe the pandemic for the boating industry in Australia is in fact an incredible positive, but we do have to be reactive, ready to pivot and adapt at a moment’s notice. We are introducing our boating lifestyle to new audiences, and I hope boating becomes a habit that continues when overseas travel reopens. With the positive global view of Australia, I see tourism thriving in the future.  Superyacht Charter is seeing increased demand, again driven by lack of overseas opportunities and that disposable income still being available. Let’s not forget the Australian spend overseas is not dissimilar to the incoming tourism spend, so it has a reasonably positive net effect. Also, with all the new boats on order right now, supporting boat builders, brokers and related services – they will all need a marina berth…therefore I believe the future of boating in Australia and New Zealand is bright. We will face issues on supply and thus maintenance delays though, and I am hopeful this will encourage the creation of new businesses in Australia to address this problem.”

Suzanne, “Recreational boating has largely been a beneficiary of the pandemic and many of our local marinas and shipyards are very busy and doing very well.   As we all know, it is currently hard to buy a boat.  Second-hand boats often sell before they hit the market and orders for new boats are now being taken for 2022/23 and beyond.   In addition, we have seen many boats arrive from overseas as their owners seek to berth their boats closer to home – and there are more on the way.   Owners need somewhere to keep and maintain their vessels and so it flows that marinas are busy.  That said we have many marinas that rely on tourism, particularly those in Far North Queensland and in Asia and the Pacific.  They have been challenged and we need borders to reopen and tourism to start again to ensure these marinas and the businesses that reside with them survive.  I believe that the challenge we face now is to ensure that people stay boating after the pandemic is over.  We want them to embrace the boating lifestyle for life. “

SUMMARY

Whilst many sectors of the Australian marine industry has thrived during the global pandemic it is becoming increasingly frustrating for the industry with the continual uncertainty around lockdowns. Currently 3 states in Australia are in lockdown preventing charters going ahead and people using their boats. Residents are only allowed to move around within a 5-10km radius imposed in these states. It is becoming more and more evident to everyone that vaccination appears to be the only way out.

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

Women Making Their Mark in the NZ Marine Industry | MaryAnne Edwards, GMBA New Zealand & Australia

In a country where women for many years have been in significant leadership roles in politics and commercial life it is not surprising to see women making their mark in the New Zealand marine Industry.  Maryanne Edwards of GMBA asked several of these women to share their views on how they are managing in the current domestic and global environment.

The 4 women Maryanne spoke with are positive examples of what is happening in the small business environment in the NZ industry.  The way businesses globally have responded to the pandemic is either driving their success or causing them to question the future. These NZ women are not sitting back waiting for things to change they are driving the changes needed for their businesses to thrive and survive.

“Treat your suppliers like you do your customers and they will always have your back.”

Linda Berry Tweet

Linda Berry has had 25 years in the marine sector having also spent 7 years as the Marketing Director of Alloy Yachts.  She Is now the owner of Studio Linda Berry, a marketing and event management consultancy, specialising in the superyacht sector. Linda is most recently associated with the event “The NZ Superyacht Gathering.  https://www.thesuperyachtgathering.com

“If your gut feeling says something is not right, stick to that.”

Sofia Ambler Tweet

Sofia Ambler has owned and operated Heletranz Helicopters with her husband for the past eight years. When they started the business, they had 2 helicopters and now manage 14. They have since expanded their heliport and their nationwide reach. Sofia works with the marine industry at boat shows supporting super yachts with guest shore excursions.  The business also undertakes maintenance of onboard helicopters. Heletranz have created extraordinary experiences all over NZ and were the official filming helicopters for the Americas Cup together with Tony Monk Films.  www.heletranz.co.nz

Nicola Webster

“Rome wasn’t built in a day” and ‘if it was easy, everyone would do it” It takes many years of consistent, hard work to build a trusted and respected brand.

Nicola Webster Tweet

Nicola Webster and her husband started Coast New Zealand with the specific goal of establishing a luxury brand that would reflect New Zealand’s unique quality of life. They hand-make in New Zealand a collection of soft furnishings, bags, cushions and textiles, including their award winning, Marine Bean collection – the original outdoor beanbag. They borrow many of the materials and methods that were previously the reserve of luxury yacht-building: Contemporary ocean-going sailing yachts must be comfortable, even opulent, and yet withstand the harshest conditions at sea. Coast NZ aim to emulate the exacting standards of modern boat builders in their choice of materials and use of good design.www.coastnewzealand.com

“Get really good advice and surround yourself with really smart people that can inspire and challenge your business to grow and develop.”

Tracey Stevenson Tweet

Tracey Stevenson with husband Lloyd own Lloyd Stevenson Boatbuilders, manufacturing custom boats from their Auckland based yard for the past 35 years.  They serve the local demand for custom yachts and power boats, and the international market for custom super yacht tenders and other specialised craft.  Their capabilities cover a diverse range of vessels from traditional timber to fully composite vessels. Tracey is currently Vice President of NZ Marine and a member of the NZ Marine Industry Training board. https://lloydstevensonyachts.co.nz

 

Q1. Will boat shows continue to be important to your business and do you see it critical to your business to get back to the personal relationship building that tends to be the focus of domestic and global boat shows?

Sophia,“We don’t normally attend Boat Shows on behalf of Heletranz but we have attended several with clients. Both in NZ as well as in Monaco. This is a great opportunity to see the new boats but for us also to see the demo of new helicopters that will go on the larger super yachts.”

Nicola,“Boat shows will always have a place in our marketing, but as the pandemic has shown us, the use of Skype, Zoom, social media and being involved and supporting local events can maintain and even grow your business and customer connectivity. The way companies reacted during the pandemic and their ‘voice’ during the lockdowns, either cemented or eroded customer relationships.”

Linda,“In my opinion nothing replaces Boat Shows. They are essential for building relationships not only in the industry but facilitating introductions to potential clients. If it wasn’t for Boat Shows, we wouldn’t have so many international friends and contacts in the industry that have led to business opportunities and certainly have sustained many of our businesses during the pandemic.”.

Tracey, “We have always seen boat shows as the best way to connect with our clients both locally and internationally.  There is nothing that compares to being able to meet with people face to face and build relationships with customers, suppliers and those able to influence purchasing decisions.“

Q2. What are the key changes you have had to maintain your business during this pandemic?

Sophia,“For us, our main business has always been domestic but we were extremely nervous 15 months ago with lockdowns in NZ. In the end, we have still had a very good year and strengthened our focus even more on corporates and local HNWI’s. There has been a desire by New Zealanders to explore their own stunning backyard, so this has helped us a lot in delivering extraordinary experiences.”

Nicola, “We have always sold online and have been active on social media platforms for many years.  Online sales have grown significantly over the pandemic.  We have had to make ourselves available and active on these platforms including, whatapp, messenger, website chat, text or whatever is the preferred communication channel of the customer.  Answering questions, providing quotes and getting back to customers quickly is important for building trust and long-term successful relationships in a virtual environment.  Providing relevant, interesting content on social media and having an up-to-date website helps customers to understand and trust your brand.

Linda, “Probably the biggest change I have made to my business during this pandemic is to rely more on digital media as a means of general communication. Electronic newsletters, Instagram, websites and LinkedIn”

Tracey, “The biggest impact of the pandemic for us has been staff shortages as it is impossible to recruit from offshore, and some of our existing team members have returned to their home countries as they were unable to bring family into New Zealand. At the same time the construction industry and other growth industries recognise the all-round skills of our well-trained boat builders. We have started to look to outsourcing and technology solutions to get through a period of increased demand without being able to recruit offshore. Despite the investment in training, we also need to have a path to be able to bring in offshore talent.”

Q3. The world is now shaped by technology change, social media, consumer expectations and hyper connectivity how have you embraced these factors to develop your business.

Sophia, “We pride ourselves in delivering a very personal customer experience and have always been very high touch, this is not always easy to combine with technology change and moving to more automation but this is an area we have spent a lot of resources on and we are lucky to have a good team as this is not an area I excel in at all☺. Social media is important for story telling but always hard to measure the direct effect.

Nicola, “Being present and available across a number of platforms is important and now expected.  You need to be able to respond quickly and be available when the customer wants to chat or message. This can be late or early, depending on the client’s time-zone and can mean sending samples, etc to far-flung places.  A good remote set up and flexitimes are very much part of everyday business nowadays.  Technology has helped us to communicate with our customers, but there is no substitute for the human touch – all interactions are with a real person – very often me!”

Linda, “I find that I can only do so much personally when it comes to working with new technology and with digital media etc and so for the first time have hired a graphic design and communication company to help with everything new that is coming out.   It is a full-time job keeping up with it and the time was right to hand it to the experts rather than clunking around myself. I have learned through the pandemic (or perhaps it is just with years of experience) to do what I do best and hand the rest to others that do it better.”

Tracey, “We have an online presence, but this is an area of challenge for a business that thrives on face to face connection. We have embraced technology but see room for growth and are investing in both a strong digital presence and in production technology.  Our design team are now 3D printing prototypes to test before final manufacture.”

Q4. Many stakeholders tell me that customer expectations have changed since the start of the pandemic, and everyone has to work harder to achieve customer satisfaction or over deliver have you experienced this and how do you address it?

Tracey Stevenson summed this question up for everyone by stating “Building customer relationships and delivering excellent customer service which meets or exceeds our customer expectations has been something that we have always had as part of our DNA.”

This statement was corroborated by everyone I interviewed stating successful businesses today must have the customer first philosophy front of mind if they want to survive.

Q5 Many businesses say that they now must think more locally than globally given the many covid restrictions and border closures.  All of you have aspects of your business that are global and local – has the mix changed?

Sofia, “Yes we definitely are working harder to reach larger companies that prior to the pandemic might have organised incentive trips with clients to experience NZ.  This was a target market for us.”

Nicola, “Our local market (New Zealand and Australia) – and especially the marine sector – has really grown in the last 18 months. The lack of overseas travel has fuelled both the marine and the holiday home (bach) market in New Zealand which has refocused our marketing efforts in these sectors. We manufacture our products locally in New Zealand so have been lucky that our supply chain has experienced minimal disruption compared to some companies.  However, the increased cost and timeframes for freighting goods has been a pain point.  We have had to redouble our efforts in managing fulfilment and customer expectations.”

Linda, “Yes definitely with our event “The Superyacht Gathering” in the past 2 years we have had to ensure the speakers and guests are within the Oceania region in case of lockdowns and border closures but the interest here in hearing what is happening globally is still strong and with digital technology and the sponsorship support we have managed to provide great speakers and profile some key international companies.”

Tracey,
“The mix of global vs local has always been a cycle for us that can swing either way depending on the projects that we have on the go.  Local demand has certainly increased because of the pandemic and we have a strong network of local customers and suppliers. Marketing globally is more challenging currently. However, we need to focus on both markets to survive in the future”

Q6. What is your view of the current Australia/NZ marine industry and where do you see the opportunities/threats if the borders remain closed and the uncertainty we face in regards to this pandemic continues?

Sofia, “I think Australia had a slightly more relaxed border approach for super yachts during the America’s Cup with at least one very large super yacht for whom we had work booked in going to Australia instead of coming to NZ when crew/owners were denied entry. Incidences like this have a detrimental effect on our economy when, if allowed, and risk is mitigated, these vessels could bring significant revenue and jobs into New Zealand.

Nicola, “Localised interest in boating/sailing is strong, particularly with the lack of overseas travel and we think sales will remain solid in the immediate term. There is still more opportunity to develop and explore the new local interest in the industry. It remains to be seen, if there is still an appetite to head overseas when we can travel again, or if people will feel more comfortable staying closer and holidaying in the Pacific.  I think we will see more cruising closer to home in the medium term.”

Linda, “The marine industry in Australia, New Zealand and the Pacific need to stop seeing themselves as individuals but as a destination when it comes to attracting superyachts. As Covid continues to roam the globe I believe certain regions will be seen as “safe” or “safer” at the very least. We need to promote our Oceania region.  By doing this we will be able to take advantage of travel bubbles that will allow superyachts to travel around the South Pacific, Australia, and New Zealand without restrictions. We have already seen an influx of superyachts returning to our regions so the owners can enjoy their yacht in home waters, we need this to continue and to use this to attract more.  Once boats are here the individual companies can compete, but the region needs to do the work first as a collective.”

Tracey, “The New Zealand marine construction market is very buoyant on the back of strong local demand; however it is difficult to see it staying at the current levels if the borders remain closed for a significant period of time. As I said earlier, we are investing in ways to be able to connect digitally with our international markets– including cameras for clients to monitor projects remotely and tools to assist communications, however nothing beats being able to build relationships and connections in person, have customers come to us and for us to be able to visit overseas markets to generate leads. We are also looking to connect more with our Australian neighbours to see if there are more ways that we can collaborate within our Trans-Tasman bubble.

Q7 Lastly I asked everyone what was the best bit of advice they had been given since starting their business?

Sophia, “If your gut feeling says something is not right, stick to that.”  I think it took me too long to allow myself to trust my gut feeling if people who I perceived to be more experienced advised differently.

Nicola, “Rome wasn’t built in a day” and ‘if it was easy, everyone would do it”
It takes many years of consistent, hard work to build a trusted and respected brand.

Linda, “Treat your suppliers like you do your customers and they will always have your back.”
and a quote by a Canadian Hockey Player that I subcribe to, “you miss 100% of the shots you don’t take.”

Tracey, “Get really good advice and surround yourself with really smart people that can inspire and challenge your business to grow and develop.”


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

ASMEX Showcases a Positive Future for the Australian Industry | MaryAnne Edwards, GMBA New Zealand & Australia

Maryanne Edwards, Global Marine Business Advisors, attended the 2021 Australian Superyacht, Marine Export and Commercial Industry (ASMEX) Conference held at Sanctuary Cove last week.  AIMEX successfully delivered a diverse and engaging event looking at the Australian economic recovery, growth in marine exports, defence innovation, electric hybrid engines, importing a superyacht into Australia and the latest superyacht visitation data for 2020. “Congratulations must go to President of AIMEX Jeremy Spear, the AIMEX board and CEO David Good for probably one of the most engaging conference days I have experienced.”

Alistair Murray AM

Alistair Murray AM, Chairman of Ronstan and Vice President, Australian Sailing, returned as conference MC bringing with him significant industry experience and a strong understanding of export markets.

GOVERNMENTS ARE PLAYING AN IMPORTANT ROLE IN THE ECONOMIC RECOVERY

Given the important role governments are playing in Australia and globally since the pandemic it was important to have Deputy Premier Hon Dr Steve Miles, Minister for State Development, Infrastructure, Local Government and Planning outline current and future marine industry investment plans that will continue to support the economic recovery for Queensland. He made the point that one of the critical issues facing the industry is access to skilled labour and stated the government was placing more emphasis on how to attract and retain skilled workers in the industry.  Dr Thomas Wechselberger, Project Manager from the Queensland Department of State Development also attended the conference.  Dr Wechselberger has been working closely with industry to drive the QLD superyacht strategy, a significant government initiative that has been a huge benefit for the industry. It is exciting for the superyacht industry in Australia to see the level of not only government support but significant private investment in the refit, boatbuilding and marina development sectors being undertaken particularly in the state of Queensland.  The Palaszczuk Government’s Superyacht Strategy Champion, Member for Cairns Michael Healy was also present ensuring the issues facing the industry continue to be at the forefront of the Queensland government.  The Australian Marine sector voiced their concerns that other state governments have not been as progressive in supporting the industry with AIMEX working to drive more state government involvement particularly in WA and NSW where they have a strong concentration of marine industry players.

ECONOMIST A BREATH OF FRESH AIR

It was refreshing to hear a straightforward and easy to understand presentation from Peter Munckton, Chief Economist, Bank of Queensland.  Peter certainly impressed the audience with his commentary on a variety of issues that are important in understanding the current and future state of the Australian economy.  Housing prices, interest rates, defence spending, shortage of labour, current tax regime, government debt, importance of vaccination against Covid and the current influx of money coming into the economy from the latest government budget.   He stated the marine sector is a volatile but growth industry and suggested the sector is ahead of the pack in terms of supporting economic recovery. He also reinforced the importance of immigration to counter worker shortages and further drive the Australian economy.

EXPERIENCED EXPORTERS PROVIDE GREAT INSIGHT

The export sector in the Australian industry continues to be strong with Australian made products sought after on the global stage.  The export panel session with Kane Bygrave, Director, Aurora Global Logistics; Grant Amor, Director, Aqualuma; and Peter Dowdney, Australasian Sales Manager, Ronstan International was very interesting as they all recounted their first reactions to the pandemic 12 months ago and how their businesses changed as a result. The panel felt demand would continue as the global desire for Australia made products continues.

Grant Amor Aqualuma talked about his company’s desire to get more into a “need” rather than a “want” market. To this end Grant said Aqualuma have put more emphasis on their commercial lighting division which has produced positive results. He also advised the pandemic had allowed time to focus on R&D.

Kane Bygrave Aurora stated that in the beginning air freight options were reduced by 80% and as demand for air freight continued prices soared.  He advised freight schedules could be unreliable, containers difficult to access and prices across the board had increased.  Kane advised the pandemic has changed the freight environment and specifically lead times when you are looking to export.  Despite these challenges he stated Aurora were busier than ever and working hard to meet the logistic requirements of their clients.

Peter Dowdney spoke about how important and valuable their large distribution network had become since covid.  He said Ronstan had gone from a conservative mode when covid hit the globe to after 3 months having sales continuing to exceed forecasts.  He said like everyone the pandemic had provided the opportunity to really look at the business and make the necessary changes to ensure resilience in the future and like Aqualuma focus on R&D.

In conclusion the panellists were united in the areas that all exporters should focus on to ensure a sustainable long-term future in the industry.

  • Supply chains must be reviewed to ensure manufacturing capability is not compromised in the future
  • Distribution strategies and networks are essential to ensure a close relationship is maintained with clients
  • Marketing strategies need to be reviewed to take account for the lack of face-to-face interaction and the renewed importance of the digital environment and social media
  • Freight/logistics options must be reviewed to ensure companies can meet client’s delivery expectations
  • Everyone should use this time to improve your product range and ensure a continuing focus on R&D
  • Service and reliability are an important USP and must be reinforced
  • Australia made branding is becoming more important and in demand so promoting where you manufacture is important
  • Staffing – getting and retaining the right people will continue to be a critical issue within the industry and across the globe.

The panel stated reviewing the above areas was an eye-opening exercise and every company should do it. Repeated statements were the need to be nimble and resilient. A common theme being don’t underestimate how good you are at what you do. We must pull the future towards us not wait for it to come.

Ryan Carmichael, COO and Co-Founder of The Whiskey Project Group was impressive with his presentation and depth of detailed information on the requirements and development of defence solutions. With the purchase of Yamba Welding and Naiad late last year, the Whiskey Project Group now offers an end-to-end sovereign capability under one integrated company.

Chris Blackwell, Sales & Marketing Manager, Echo Marine Group and Sander Toonen, Chief Operating Officer, Silver Yachts represented Western Australia with Blackwell providing an overview on marine activities and updates on the WA Australian Marine Complex including Austal, BAE and Luerssen / CIVMEC and Echo Yachts as the major ship and yacht builders in Western Australia. Toonen delivered an in-depth presentation on Silver Yachts including its new Explorer Series. An interesting concept being managed by these shipyards is the sharing of staff during troughs and peeks within the business.  A concept that many other businesses should look at to combat staff shortages and the down time sometimes experienced between projects. It was noted the WA government had supported Silver Yachts in locating to a new site within the AMC.

ELECTRIFICATION -THOUGHTS FOR THE FUTURE

The electrification of vessel engines appears to be a current hot topic so having Martin Skoglund, Head of Volvo Penta Oceania and Gavin Rooney, Director Volvo Penta Australia present their vision for Volvo’s continuance in innovation and sustainable power systems was of keen interest to the audience.  Lynelle Johnson, Managing Director, E-Class Outboards talked about the company’s newly released electric outboards, their efficiency, range, and ease of recharging with comparisons to two-stroke diesel engines. Looking into the future there was talk about the need for marinas to have the capability to charge a fleet of electric vessels.  When one considers what is happening in the automotive sector this is certainly a space to watch out for.

Captain Richard Morris, Managing Director, Australian Superyachts tackled the importation of superyachts into Australia, the considerations and process, and the current unprecedented boom in superyacht importation largely due to COVID-19. Richard highlighted the importance of enticing the large contingent of overseas based Australian crew members back to work in Australia where there are now growing opportunities.

Martin Baum, Managing Director of Pantaenius Yacht Group, currently residing in Australia presented an update on the superyacht industry in Europe having another record year. He noted the high demand for new builds since the start of the pandemic was keeping shipyards busy, and that many who had been regular charter clients were now looking to yacht ownership to be able to enjoy the benefits control over their own vessel provides.   Pantaenius have made a significant mark in the Australian industry with a strong focus on the leisure marine sector and building strong relationships with their clients and other stakeholders.  It has been interesting to watch this company’s significant progress within the Australian market and how the Australian arm of Pantaenius stamped their unique brand on the industry.

SUPERYACHT SECTOR THRIVING

David Good, CEO, AIMEX released the new superyacht visitation data for 2020 showing foreign flagged superyachts stayed an average of 128 days in 2020 compared to an average of 73 days in 2019. This represents a 75% increase in the length of stay, translating into a contribution of over $100M to the Australian economy. David and his team have undertaken considerable work with both state and federal governments during the pandemic to ensure the steady flow of superyachts coming into Australia.  62 superyachts arrived in Australia during 2020. David also talked about his “reach, catch and deliver” marketing strategy detailing how their international events prior to covid had supported the strong visitation currently being seen.  AIMEX is focused on returning to the global stage when borders open but in the meantime have been working on new projects designed to promote Australia as a number one cruising and refit destination.

Returning to ASMEX by video was Martin Redmayne, Editor-in-Chief, The Superyacht Group and Kiran Haslam, Chief Marketing Officer of Princess Yachts. Martin shared his latest research findings from ‘The Pacific Superyacht Report’ detailing the future is bright for the region as owners look to use their vessels to travel further afield from their stock summer and winter locations.

 

HNWI AND HENRY’S

Finally, to wrap up what had been a day where you could see how engaged the audience were and how excited everyone is to be back in a face-to-face environment AIMEX had secured Kiran Haslam, a favourite presenter at ASMEX.  By video Kiran presented an upbeat and uniquely developed presentation on the changing landscape of luxury consumption and results of a survey by the Economists Group.  He talked about the transfer of wealth and referred to HNWI’s and HENRY’s (High earning not rich yet) and the opportunities these people represent to the superyacht industry.  Kiran also touched on the merits and attractiveness of Australia as a superyacht destination ending what had been one of the best conferences yet by confirming what many had said during the day and that was ‘Australia has it all’.

 


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

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