Like the rest of our industry, It should not come as a surprise to anyone that also Scandinavian builders continue to be challenged by bottlenecks in the supply chain.
Whether building in their home country or having their production bases in Poland or Lithuania, the challenges remain and some of them are having a severe effect on timely production, deliveries to end clients and consequently to their bottom line.
The two most known Swedish builders are faced with increasing shortages in the engine supply and current imbalances between supply and demand have put tremendous price pressure on commodities and components in the supply chains on top of it all. For some builders, engines ordered in late 2020 have not yet been delivered making it close to impossible to plan and as one of the results; -putting their financial position at risk.
The backlog of engine orders is not improving, as promised. Consequently, there is a great concern amongst them all when this is going to turn around for the better as darker clouds are emerging over some market segments.
The softening of markets seems to be on everyone’s agenda and fuel prices alone are the direct reason for lower use of newly delivered boats and new boat sales in the lower segments. This is a common observation in all of Scandinavia.
Two builders we communicate with regularly, expect a plus 30 % drop in sales ( and production) in the coming 12 months period. These are dramatic figures for the industry but most of all for the builders who on top of it are battling tough bottlenecks in the supply chain, increased direct material prices, and higher absence due to new variants of covid.
Is it all going the wrong way? Absolutely not; – there is a strong undercurrent of interest and demand for boats and boating however the economies, inflation, energy prices, the pandemic, and the Ukrainian war have all unpredictable outcomes that need positive outcomes.
