Veda Pretorius

Question 1:

WHAT DO YOU SEE AS THE KEY INDUSTRY SEGMENTS IN YOUR COUNTRY AT THE MOMENT, THOSE DOING WELL AND THOSE MAYBE STRUGGLING?

Elisabet:
By and large the leisure marine industry in Finland is doing extremely well. There are three key segments in terms of yards:

1. Outboard powerboats (mainly below 30´ in aluminium, GRP and “hybrid” boats w. aluminium hulls and GRP decks) Here the predominant boat type is a bow rider or day cruiser, with Finnish builders having extremely strong market shares domestically, but also dominating the Swedish and Norwegian markets. Notable brands are AMT, Bella, Buster, Finnmaster, Yamarin, Silver to name but a few.
2. Inboard powerboats (between 25´-46´typically). There are a couple of major boat types; the most successful one being the utilitarian looking but luxuriously outfitted 4*4 of the sea like the Targa or Sargo. There are also several noted builders of more traditional inboard powerboats like Grandezza. For these products the markets are less centered on the Nordic markets with some brands even having global appeal.
3. Sailboats (currently 36´and up) This segment is really comprised mainly of us, Baltic Yachts and our neighbour, Nautor´s Swan. Where Swan typically these days is more engaged in high end production boats below 100´, and we almost exclusively build full custom yachts above 100´.

There is also a healthy ecosystem of suppliers; everything from stainless steel and titanium hardware to hydraulics to upholstery. Geographically the Finnish industry is divided into three major geographical clusters; the Ostrobothnian cluster on the west coast (sailboats and inboard powered powerboats mainly), the largest aluminium boat building cluster in Europe in Ähtäri (central Finland) and the GRP outboard boatbuilding cluster further North in Kuopio.

Due to a very active MIA (Finnboat) we have really good statistics and are pleased to note annual double digit growth in all sectors over the past few years.

Helene:
We see a continued surge of interest in leisure boating worldwide, as well as in Scandinavia. During the pandemic, we have seen an increased desire from people to get out in nature and this has led to record levels of people turning to boating – across the full leisure segment, from day boats to superyachts.

For the Nordic markets, this has translated into increased sales of both new and used boats across the leisure segment. We welcome this increased interest in boating and look forward to how we can continue to introduce new people to boating.

Our easy boating philosophy is an ideal fit for tapping into this trend. We aim to making boating as easy and accessible as possible. One recent example of this is the launch of our Assisted Docking technology this year, which aims to make docking a boat even easier than ever before. The easier we can make the experience, the more people we can introduce to the joys of being out on the water.

In parallel to this increased interest in leisure boating, we are seeing increases in accelerating sustainability ambitions, which is leading to growth in certain segments in the commercial marine business. One example here is the continued growth in the offshore energy segment. We are contributing to this growth by exploring new, innovative solutions for crew transfer vessels, as we are doing together with Danfoss Editron and Danish owner, MHO& Co.

We have developed a fully integrated solution made up of a Danfoss Editron electric motor supported by Volvo Penta variable speed gensets that drive two of the first Electric Volvo Penta Inboard Performance System (IPS) units. This is one way that we are working towards increased sustainability and tapping into this market trend.

Question 2:

WHAT ARE THE CRUCIAL ISSUES MOST BUSINESSES ARE ADDRESSING TO ENSURE SURVIVAL AND SUCCESS?

Elisabet:
Addressing the question from our own, slightly skewed perspective I would raise the push towards sustainability as the strongest “must win battle” today. This development was already palpable before the pandemic, but the lock down period really hit the afterburner, with us seeing ALL new commercial projects being seriously discussed having an unforeseen level of demand for sustainable solutions being paramount. Fortunately for us, this is an existing competitive advantage we already have, and are thus well positioned in the global marketplace to lead the way towards zero emissions boating.

Helene:
Climate change is one of the greatest challenges of our time. We are continuing to see more and more signs of the urgent need to accelerate actions towards increased sustainability. Momentum is gaining, as there is demand around the world for more sustainable solutions, combined with a shift in investments. This is a transformation that we welcome and embrace – not only within Volvo Penta, but also across the Volvo Group.

Sustainability is an area we believe is critical to success for the future.

Question 3:

HAS THERE BEEN A NOTABLE CHANGE IN SUPPLY CHAINS FOR MARINE INDUSTRY BUSINESSES WITH A MOVE TO SOURCE MORE LOCALLY?

Elisabet:
Due to the nature of our business, we have really built up our own ecosystem of local suppliers for key components and materials over the past decades. Also due to our genuine sustainability push we have managed to create a circular economy for many materials and components where our waste (like the wood and plywood materials used for our molds) is reused by local actors. We also do a fair amount of R&D on new materials such as flax, and are currently looking into recycled carbon fibre which is looking promising in the long term.

Helene:
Worldwide there are impacts to global supply chains at the moment, with shortages of components like semi-conductors impacting many industries. It is too early to say whether this has stimulated any trends to source more locally.

Question 4:

WHAT ARE THE KEY CHANGES YOU HAVE HAD TO MAKE IN YOUR BUSINESS DURING THIS PANDEMIC TO SURVIVE AND THRIVE?

Elisabet:
We have been blessed in the sense that we managed to keep production running all through this intensely challenging time. However, our internal restrictions have been pretty draconian from early March 2020; a key factor in being able to weather the challenges this well. Internal communication has been one of the key challenges. Here we have introduced a number of new measures to enable us to efficiently reach out to the entire staff despite there being no possibility of gathering everybody together for traditional “company info” type events. Our video versions of company info´s have been well received, and interestingly we now find ourselves communicating more frequently than before the pandemic.

Another interesting notion at the beginning of the pandemic was that marketing as we knew it was essentially shut down. So we decided to focus heavily on digital platforms instead, and as a result we increased to volume and frequency of content there; and this has been a highly successful approach. One that we could happily validate at the recent Monaco Yacht Show. Never before have the average visitors on our boat seemed to be so well aware of recent developments at the yard.

Helene:
Speed and flexibility at implementing new ways of working has been key. During the pandemic, we have accelerated our digital transformation, deploying new ways of working digitally to get closer to our dealers and customers – in spite of lockdowns and travel restrictions. For instance, we managed to successfully, remotely commission solutions on commercial vessels like we did for a crew transfer vessel for Northern Offshore Services.

We have seen an acceleration of the digital transformation happening also across the leisure boating sector – with consumers looking for new ways to search for and buy boats online. This includes the introduction of online boat shows, virtual show rooms and yacht tours, and online solutions to stimulate boat purchase.

We expect this trend to continue, hand-in-hand, with traditional approaches to the boat buying process, like physical boat shows and events.

Question 5:

WHEN INTERNATIONAL BOAT SHOWS RESUME, WILL THEY BE AS IMPORTANT AS BEFORE?

Elisabet:
Coming off the Monaco Yacht Show there is certainly a pent up demand for live events. All boats, but maybe especially custom superyachts are “touchy, feely” products, where you definitely need to immerse yourself in the actual product to be able to sense the quality, and to some extent the luxury as well. So for us, the few boat shows that we do continue to be an important tool in the marketing tool box.

Helene:
Connecting face to face will continue to be an important touchpoint for the leisure industry, as the boat buying process is an emotional decision. What we imagine going forward is more of a hybrid approach, where digital touchpoints will have a key influence on the boat buying process, but people will still also want to see and experience boats through boat shows and private events.

Question 6:

WHAT DO YOU VIEW AS THE MAIN OBSTACLES WOMEN FACE IN THE MARINE SECTOR?

Elisabet:
That there is still a need for these kind of questions meaning a woman has to work harder and be better at her work than her male colleagues to be recognised.

Helene:
I don’t see that women face any specific obstacles in the marine industry. The challenge we have on the leisure side of the business today is to get younger people into boating. Across the leisure boating industry, we need to team up on painting the benefits of the experiences you can have through boating. There are many unique experiences you have by getting out on the water – beyond just the trill of boating itself. We need to tap into the experience-driven mindset of a younger generation by making boating an attractive alternative.

Question 7:

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?

Elisabet:
I think we are really fortunate to be building custom boats for innovative, bold and curious customers. There is a great dynamic at play when we together embark upon the remarkable journey that each custom build is already during the build time. For us it is an inspiring and iterative process, where we find ourselves mutually pushing the boundaries of what has been done before, and I think, if possible, we have become even more flexible in our approach to new ideas. This is an exciting time, especially considering the advances in hybrid and electric propulsion that will truly shape the industry for years to come. And in our case we find, interestingly, that what is morally and ethically the right thing to do (=actively push towards building our yachts as sustainably as possible) is also financially rewarding.

Helene:
We are working to evolve our unique At Sea customer journey online to ensure customers receive the right information at the right time in the right channel. This includes continuously evolving our online presence through channels like our web site, social media and eCommerce. It also includes identifying ways to increase digital integration across dealer and OEM channels, which are as important aspects for managing the complete digital customer journey.

We are also considering how to create an even more personalized and tailored experience online. This is critical to connecting with our customers for today and will continue to be essential for the customer experience of tomorrow.

Question 1:

WHAT DO YOU SEE AS THE KEY INDUSTRY SEGMENTS IN YOUR COUNTRY AT THE MOMENT, THOSE DOING WELL AND THOSE MAYBE STRUGGLING?

Renata:
Tourism is a big contributor to Croatia’s GDP and nautical tourism makes up a large proportion of that, with significant visitors coming from Europe.  In 2020 total revenues from tourism were naturally much lower, but taking into account seasonal flunctuations, the sector still recorded high revenues. The 2021 season, nearing its end,  is predicted to nearly meet the physical and financial indicators of the excellent 2019 season.

Nautical tourism is quite stable.  Admittedly, the charter segment in 2020 recorded a significant decline, with the absence of visitors from Great Britain and other areas further afield. The hospitality industry suffered the most, with some bars and restaurants to never open their doors again.

The guests in marinas are mostly boaters from Europe. Their boats remained moored in our marinas, and boaters were the first guests to arrive in Croatia when the restrictions where relaxed. Most marinas in Croatia have overcome the crisis very successfully. Boaters are likely to spend more time onboard their vessels for real  rest and recreation, in isolation, at sea, away from the crowds.

Nadine:
The boat industry in Finland is doing exceptionally well. This year will be a new a new record for sailing yachts deliveries from Jakobstad. Nautor Swan and Baltic Yachts deliver over 200 million euros worth. Servicing sector has become a struggle as travelling is restricted. Resales of boats, especially motorboats, is doing also extremely well. However, buyers are more cautious than before.

Question 2:

WHAT ARE THE CRUCIAL ISSUES MOST BUSINESSES ARE ADDRESSING TO ENSURE SURVIVAL AND SUCCESS?

Renata:
In my opinion, it’s the fine balance of fine balance of recognizing the habits and needs of customers and creating new ones, introducing new technologies into the business that will make it efficient, investing in infrastructure and good maintenance. Also the importance of communication and exchange of information not only between service providers and customers but at all levels – employees, management, local community, media, institutions …

However, what emerged as crucial now is the lack of a skilled workforce. Many well-educated and specialized professionals have relocated for temporary or permanent work in better developed EU countries, countries with larger markets. In the nautical industry, we are facing a shortage of mechanics, electricians, electronics, waiters, chefs, receptionists. Providing better working and living conditions in the local community, better connections between entrepreneurs and the local community, scholarship and apprenticeship programs, may be able to reduce the trend of the workforce leaving. If we are not able to curb this trend we too will have to turn to labour imports.

Nadine:
Eco-friendly products and lowering of emissions seems to be the biggest trend right now. These are also regulated and set as a target from the EU. For us, innovation in new technology and being on top of the market is crucial. Foundations and utilizing government funding, for example Business Finland and EU, for innovations and R&D is essential. Adaptation to different external factors is something we have all had to learn due to the pandemic. Sustaining quality in product and service is key.

Question 3:

HAS THERE BEEN A NOTABLE CHANGE IN SUPPLY CHAINS FOR MARINE INDUSTRY BUSINESSES WITH A MOVE TO SOURCE MORE LOCALLY?

Renata:
We have experienced certain delays in deliveries, but what is evident is that the prices of materials and services have risen significantly. Thus, for example, the steel constructions we order for boat cradles and dry-docks cost us up to 40% more than before. Construction projects are difficult to plan for and contract – on the one hand, because the contractors lack skilled labour, on the other hand, the prices of materials and services are fluctuating, and the work must be contracted in a timely manner, much earlier. This is a big problem for us in planning.

Nadine:
Due to the covid situation, companies have been forced to source locally as travelling was restricted. This did harm our business as a huge part of it is servicing onboard around the world. Now we have had to find ways around it. Solution finding is always a process and our customers (yachts and yacht builders) abroad could not wait for us to support onsite, so were forced to look locally. Unfortunately in the long run, this harms our business as not all companies have the professional know-how and can sometimes create more harm than assistance. We are also fortunate have big global partners (like Bosch Rexroth and Emerson) that helped the customer locally. We had some shortages in parts, however we (luckily) carry a high volume in stock, so this did not affect us badly.

Question 4:

WHAT ARE THE KEY CHANGES YOU HAVE HAD TO MAKE IN YOUR BUSINESS DURING THIS PANDEMIC TO SURVIVE AND THRIVE?

Renata:
Safety comes first.

We adjusted immediately to all prescribed restrictive measures and recommended measures to prevent the spread of infection.

There were restrictions on movement but sailing in Croatia was never banned. Even at the time of the strictest lock down there were boaters who sailed and used the services of the marina. Restaurants in our marina provided a takeaway service and delivered to boats, at the request of guests. As soon as the measures relaxed in May 2020, the first guests to visit Punat or Croatia in general were the marina guests. With reasonable and appropriate behaviour of employees and guests of the marina, adherence to the prescribed measures, with a high percentage of vaccination of our employees, we manage to successfully deal with pandemic circumstances. Very few employees fell ill, fortunately with milder symptoms. We have not recorded a single case of illness of our guests in the marina. Although Croatia now has a rise in cases there are still several guests in the marina.

Nadine:
Providing more remote service and assistance. Going more digital with our whole business process and database and finding solutions remotely for customers and suppliers. Focusing on partners geographically ´close by´ and developing our current business and technological innovations, as now there was time to do it. Of course, finance and budgeting always play a big role in survival, especially in a small business. Safety and health regulations have also become a part of the everyday life.

Question 5:

WHEN INTERNATIONAL BOAT SHOWS RESUME, WILL THEY BE AS IMPORTANT AS BEFORE?

Renata:
I believe that fairs for the nautical industry are important – above all, for our guests – boat buyers, who will see and feel the boat on the spot. Fairs are very important for marinas – there are in one place, at the same time, all important stakeholders in our industry – ship manufacturers, ship sales agents, marinas, clubs, professional associations, journalists, representatives of institutions, suppliers and competitors. I think that it is necessary to go beyond the framework of the everyday environment, travel is important, we can always learn something new. In my opinion, it is very important to maintain human contact, otherwise we are reduced to numbers only. And our job is to work with people.

Nadine:
Definitely, I do not see a radical change in this sector. I was at Cannes and Monaco Yacht Show, and these shows were and are just as important as before the pandemic. Maybe buyers and exhibitors will focus more on certain shows than before, but f2f contact is still crucial. I do see a change in digital marketing, and this has improved drastically during the pandemic.

Question 6:

WHAT DO YOU VIEW AS THE MAIN OBSTACLES WOMEN FACE IN THE MARINE SECTOR?

Renata:
It seems that women may have to prove themselves a little longer, louder and stronger, but, as far as I notice, women are already present in large numbers in the nautical sector, although to a lesser extent in leading positions. I don’t see any obstacles for women to work in nautical, they are just still quite traditionally focused on jobs exclusively administrative or reception positions. In our marina there are many women in key, leading positions – shops, catering, boat sales, reception and marketing. We also had a female maintenance manager and at one time a civil engineer. Personally, I believe that more women should be encouraged to undertake pertinent technical education and training and this could bring more women into the marine sector.

Nadine:
I have faced some stereotypes as I am quite young and a woman in a very technical marine industry. However, if you are professional and have the knowledge, then it is possible to turn “being a woman” to your advantage. I was and am positively surprised about the response from most men. I always try to look at the positives and obstacles make me more motivated.

Question 7:

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?

 Renata:
We in our marina Punat have always tried to be innovative. It is important to us what our guests think of us, what they would like, what they are not satisfied with, so we continuously conduct market research. The research has helped us to develop our proactive boat care system, which is the world’s 1^st App of its kind.

In short, our dock staff record their daily activities in the mobile system, and then together with a surveillance report of your vessel, the information is sent to customers on a weekly basis. This system aenables all our users to check reports and photographs of their boats in the customers PROACTIVE BOAT CARE free mobile app. The application connects the boat owners with the Marina, allowing the owner to check the gallery with all photos of the vessel taken during the contract period and offers a unique opportunity to check the activities of the staff in real time. It provides a streaming view of the marina video cameras and other multiple functionality: contract data, financial card with balance, important information for customers (for all or segmentally, as needed), news and offers.

All our contract customers are provided with SENSE4BOAT sensors for smoke (or heat) and bilge sensors. Their sensors are linked to our integrated marina system, so it can immediately alert us to any risk situations in our facility. Our integrated marina system is connected with video cameras, contains our own booking system and all processes  are performed automatically wherever it is possible. It makes the work more efficient and leaves more space and time to communicate with our customers, who are our first priority.

So, yes, in my opinion, using technology to connect people and things is today’s everyday life.

Nadine:
Remote meetings through Zoom, Teams, etc. have become a part of our everyday now and communication methods have improved drastically which assist in exchanging information quicker. We could definitely utilise social media and digital marketing better with more resources. The downside with hyper connectivity is that people expect us to be “online” 24 hours a day.

INTERVIEW

Question 1:

WHAT DO YOU SEE AS THE KEY INDUSTRY SEGMENTS in SA AT THE MOMENT, THOSE DOING WELL AND THOSE MAYBE STRUGGLING?

Tariq:  Purely on instinct I would say that the market for private clients in more buoyant than the charter segment.

Shereen: Looking past the often talked about industry segments, I think that the companies that are doing well are the ones that are forward thinking, innovative and willing to adapt in these uncertain times and those that continue to deliver great customer service.     

Question 2:

WHAT ARE THE CRUCIAL ISSUES MOST BUSINESSES IN SA ARE ADDRESSING TO ENSURE SURVIVAL AND SUCCESS?

Tariq: Access to finance is a major hurdle for most small businesses. The funds established during the Covid pandemic and subsequent lockdowns to provide finance (for example the Oppenheimer family’s SA Future Trust) were oversubscribed and business have nowhere to access bridging finance. Many companies might have orders but do not have the cash to fulfill the orders. We were in a very lucky position to have a strong relationship with our bank, and we were able to get an overdraft. Our cash flow is still in a weak position more than a year later and it will take us a while to remedy that. We were very lucky

Shereen: Most businesses are learning to adapt and work even harder to achieve success.  It is important to know your customers, focus on delivering quality products and to have good employees to help you achieve this.

Kirsten: We build great vessels in South Africa, but it is important that we keep innovating and exploring and implementing new technologies, have access to the relevant skills, and manage to keep our pricing competitive.  Due to general industry challenges in South Africa, most manufacturers are focussing on bringing a lot more of their specialised production in-house, rather than outsourcing/procuring, which can often prove challenging.

Question 3:

HAS THERE BEEN A NOTABLE CHANGE IN SUPPLY CHAINS FOR SA MARINE INDUSTRY BUSINESSES WITH A MOVE TO SOURCE MORE LOCALLY?

Tariq: Yes and No. We were affected by the Covid related shipping delays as a major customer of ours provides us with the materials for their orders, and due to a delay in supply last year we were not able to do any work for them for more than a month. The cost of shipping has increased and most alarmingly, there are major fluctuations in price, erratically.

Shereen: We source most of our supplies locally, with the rest being international.  During the pandemic we have experienced a few delays on international shipments from our local suppliers, but we have managed to work around it.

Kirsten: We have always been focussed on using local suppliers where possible. It just makes sense on so many levels; we have a lower labour rate in South Africa than most of Europe and the USA, so it is more cost effective, and it makes economic sense to support a local business and feed more of our own countrymen. It is also far more practical to use a supplier close by, especially when sourcing bespoke items. Since COVID last year, like most of the world, we have had big delays and challenges in getting goods shipped quickly and effectively into the country, so there has been an even bigger shift to sourcing locally. General industry challenges have also driven a shift to specialised in-house production.

Question 4:

WHAT ARE THE KEY CHANGES YOU HAVE HAD TO MAKE IN YOUR BUSINESS DURING THIS PANDEMIC TO SURVIVE AND THRIVE?

Tariq: Our finances have become the key area of focus for me personally. It is crucial that we manage our budgets and cash flow very carefully.  We have also had to implement stringent health and safety protocols and the safety of our staff is paramount. However, the general nuts and bolts in the factory have remained the same.

Shereen:  We focused on updating our website and streamlined our customer database.   We kept customers informed and updated by sending out newsletters regarding new boat launches, etc.  By utilizing various social media platforms we have continued to engage with our customers, which is vital.  In order to improve and maintain a good relationships with our customers we have spent more time on ZOOM calls to communicate with them on a more personal level.

Kirsten: We have of course had to implement strict protocols to keep COVID out of our factory as far as possible.  We have increased local outsourcing versus purchases from abroad where we can and have brought a lot of specialised production in-house in order to efficiently control our supply chain. Due to shipping challenges, we have had to increase stock holding of many supplies and be more self-reliant.

Due to heavy travel restrictions, an interesting shift has been taking customers in other countries through the production of their vessel online. Generally, a customer in the USA, for example, would come and visit the factory and see their vessel in production and go through options at least once before it is launched. Now we are walking them though their vessels in the factory on ZOOM, sending them videos of the production, and doing that all online. We have increased our online video marketing and are offering our customers far more explanatory online video content.

Question 5:

WHEN INTERNATIONAL BOAT SHOWS RESUME, WILL THEY BE AS IMPORTANT AS BEFORE?

Tariq: Boat shows will be more important than ever. In an industry like ours where we deal with aspirational lifestyle products a physical presence is crucial. Customers want to feel the fabrics, experience the textures, see the colours in real life. Seeing our customers face to face, where one can chat in a relaxed atmosphere, is priceless.

Shereen: Boat shows are extremely important and will always be the best form of advertising for our products.  Customers want to step aboard our yachts, see it, touch it and get a feel for it – imagining themselves living the lifestyle.  It also gives us a chance to speak to prospective clients on a one on one basis, which helps build relationships on a more personal level.  It is also an opportunity to meet up with our existing customers who have become brand ambassadors and friends.  Boat shows allow us to network and see what other products are available in the market, as well as source new products and suppliers.

Kirsten: I do believe they will – whether to a lesser extent, time will tell. Buying a boat is a big investment, and buyers will still want to touch, feel, and test a production or semi-custom vessel before they buy it. They want to immerse themselves in the interior layout and space of their future investments. The big international boat shows will still offer a great opportunity to be able to physically experience a few different vessels a buyer might be looking at. Very importantly, these boats shows promote the interest in boating, which is vital for people to experience. That said, I do think more research will be done online now than ever before, so companies have to ensure they have a strong online presence.

Question 6:

WHAT DO YOU VIEW AS THE MAIN OBSTACLES WOMEN FACE IN THE MARINE SECTOR?

Tariq: I have been very lucky that I have never experienced sexism or discrimination in the male dominated fields of architecture, my other passion, or boatbuilding. I have never allowed anything to hold me back from achieving my goals, have always been someone who speaks freely and goes for what I want.

Kirsten: My frame of reference is leisure boat building in South Africa. Personally, I find the acceptance of women and complete lack of any misogyny a real pleasure. I see more and more women every day on our factory floor doing a fantastic job, and many of our management and design team are women. Like most industries, it is a male dominated one, but there is no reason why women can’t have long and happy careers in leisure boat building.

The only tough area to overcome is the physical aspect: boatbuilding often requires physical strength and hard manual labour – but there are plenty other jobs in the build process that women have taken over, such as laminating, carpentry and finer bespoke work.

Question 7:

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?

Tariq: We have truly embraced the concept of meeting remotely and ZOOM with our global customers regularly. We are now able to present ideas to them, ship some samples and then have a virtual meeting where we each have the samples with us, and together we can explore the options and the possibilities. It has added a depth to the customer experience we didn’t really utilise until now. It has been AMAZING!

Shereen: It is important to maintain a good online presence, especially in the absence of boat shows.   We continue to engage with our consumers via the various social media platforms by providing interesting information relating to our company as well as news on our products.  Sending out targeted newsletters have also been very useful during the pandemic.  

Kirsten:  We have always put a big focus on digital marketing, so it has been easy for us to embrace the increased shift to online. We constantly focus on increasing our digital offering – more video, and more online resources for owners and potential buyers. There has certainly been a bigger shift to educating buyers and owners online and providing increased relevant and interesting digital content. We are interacting far more with customers online now and due to travel restrictions, taking some customers through their entire builds online.

INTERVIEW

Question 1:

WHAT DO YOU SEE AS THE KEY INDUSTRY SEGMENTS in SA AT THE MOMENT, THOSE DOING WELL AND THOSE MAYBE STRUGGLING?

Vanessa: The IT and BPO sectors are doing very well at the moment. The SMME sector has been hit hard by Covid and the services sector, tourism, hospitality and retail have been the worst affected. The boat building sector is reporting strong order books from private clients with the supply of boats into the charter industry less buoyant.

Toni: In the busy port of Cape Town, and personally for me, there has been no time to make any deep comparisons. Too many activities and action required to protect RCYC. With the “floating” Covid measures we are adjusting our business, staff, schedules, budgets and organograms almost weekly. What I have seen is a huge reaction to increased boat sales. Both new and second hand. In SA the second hand boat market is the majority of boat movement and here at the Club we have seen a sudden increase in membership due to many boat purchases. First time boat owners are arriving at the Club every month. It quite surprised me but is in part a reaction to COVID- 19. I miss the networking events such as the boat show, the meetings with partners to have the opportunity to share views and to feel the different industry segments. Right now we are all very busy maintaining our own businesses. Having a 7 day a week members’ restaurant and bar, part of the hospitality industry, I feel the risks both socially and financially. 

In the marine sector in Cape Town one of the key industry is boat building. We play a key role in the catamaran building industry as we provide facilities for this sector. In fact I have been surprised at how busy our hard space has been. The suppliers were under huge pressure, but they are all still there.

Question 2:

WHAT ARE THE CRUCIAL ISSUES MOST BUSINESSES in SA ARE ADDRESSING TO ENSURE SURVIVAL AND SUCCESS?

Vanessa: I think South Africans in general are survivors. In order to succeed, I think businesses need to seriously look at how they leverage technology and how to find alternate selling channels. With reports of serious market contraction for businesses, driving efficiencies becomes key and finding a distinct value proposition for the business, especially for small businesses.

Toni: To be relevant and, what next? At the beginning of the first lockdown it was impossible to imagine and shape our current business, even just to protect and adjust the business within a time frame. In fact, this lack of visibility is the main challenge and the main issue. It really has not been easy when you depend on a government ministry whose priority is fighting for survival at their own level and not making the necessary adjustments for the leading industries within our province or country.

It has impressed me no end to find service providers, suppliers and small businesses that despite Covid related challenges, strived to adjust and maintain their services,  not just use it as an excuse. These companies are to be applauded as I only came across a few.

Question 3:

HAS THERE BEEN A NOTABLE CHANGE IN SUPPLY CHAINS FOR SA MARINE INDUSTRY BUSINESSES WITH A MOVE TO SOURCE MORE LOCALLY?

Vanessa: We have seen significant disruptions in the supply chains particularly with import delays which have a knock-on effect on production timelines for manufacturers. I think the move to source more locally is going to take time. We have commercial boats designated for local procurement with a 60% local content provision. There is a support programme run by our Council for Scientific and Industrial Research (CSIR) to assist marine component manufacturers in particular, to reach international accreditation and certification standards to support localisation. In the recreational marine manufacturing space we don’t have a designation so there is less impetus to source locally and price and quality are the main procurement drivers whether local or international.

Toni: I do not feel any change at my level as sourcing locally has been our main principle at RCYC.

Question 4:

WHAT ARE THE KEY CHANGES YOU HAVE HAD TO MAKE IN YOUR BUSINESS DURING THIS PANDEMIC TO SURVIVE AND THRIVE?

Vanessa: As an industry association, SABBEX worked extremely hard last year lobbying with government to allow the boat building industry to return to work at 50% during our Level 4 lockdown period, along with the automotive sector. If we had not achieved this milestone I think we may have had industry casualties. Adapting to the pace of work virtually and with online workshops and conferences, I have had to learn a new way of networking and engaging. What I have particularly enjoyed with virtual engagements is being able to chat to international colleagues more regularly and share experiences. Maintaining a positive outlook and taking all opportunities that present themselves has been key.

Toni: More Flexibility with all aspects of your business.

3 key changes:

First one: To divert our standard communication towards the members. To explain regularly all our adjustments and how it affects them and their Club, remaining connected so there is value for them. It is highly recommended to inform and maintain a strong contact with our members, our suppliers too, regarding what we can do together to maintain our sailing activities. Committees were working as brainstorming groups.

Second one: Maintain a social cohesion within our staff team, even for, or after retrenchments.

Third one: prioritise activities and expenses. The annual budget was not easy to close. With many ifs and hypotheses, we developed a geometrical budget.

Question 5:

WHEN INTERNATIONAL BOAT SHOWS RESUME, WILL THEY BE AS IMPORTANT AS BEFORE?

Vanessa: Yes, I believe so. In a poll conducted by the owners of the Cape Town Boat Show, almost 70% of exhibitors said they were ready to exhibit in person. I also think buyers are ready for more than just virtual engagement.

Toni: They definitely will be important as before, but the clients could be different and may be unexpected. If you see what is happening in the Building industry in Europe, where the lockdown has created a need to be outside the city, to escape the routine, and to travel differently. What does this mean? Rentals are changing and many start to buy a house or a flat or a boat in advance of their retirement plan. I think the Boat show will start slowly with less products, but they are present to create a stimulus, and to answer to the demand.

Question 6:

WHAT DO YOU VIEW AS THE MAIN OBSTACLES WOMEN FACE IN THE MARINE SECTOR?

Vanessa: I would like to see higher levels of women ownership in the marine sector. What do we need to do to make ownership easier for women?

Toni: I think we have only two big obstacles for women within the marine sector: first a society and cultures not yet ready for the inclusivity process (although it is not the case at RCYC as you can see with a female GM). Second issue for women who are not qualified as engineers, they face the struggle to be heard and to enter into a very conservative group. The industry here is still very conservative.

Question 7:

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?

Vanessa: In my view embracing the technological change has been accelerated with Covid and we need to keep up with the changes and the hyper connectivity. This means running your business in a different way and adapting on a daily basis. Being understanding of those who are resistant to the technological advancements, has also been important – how to stay connected with those people. This was quite evident in two research projects we undertook last year with some respondents very comfortable with online surveys and interviews and others very resistant, preferring to only engage face to face.  Keeping an open mind and staying connected are important

Toni: We have several arrows to our bow.

By chance, working through our constitution, we have a committee that can be renewed annually with new members. These are volunteers coming from different industries, with different rich backgrounds, and they add value to the business. This fresh blood regularly is our richness.

Second is to pay attention to the role of marketing. The marketing focus is to ensure we pay attention to the youth, our members and partners.  With an experienced open-minded person in this role we can stay in the market and up to date with modern tools and methods.