Will the Luxury Yacht Manufacturing Industry All End Up in a Chinese Port

September 27th, 2020 by admin Leave a reply »

It is widely known in the general aviation business that the manufacturing of small aircraft, corporate Jets, and even airliners is slowly shifting to China. The same thing is happening in the recreational marine boating business, and they are starting to build luxury cruising yachts in China. Previously, they were making many of the components, now they are making entire luxury yachts. But before you complain, realize that China is a huge market for yachts, and the Chinese are just naturally boat people (remember the Treasure Fleet), especially those that live close to the water, or in the major cities and have accumulated a lot of wealth.

There was an interesting article recently published in Bloomberg Business Week (May 9 – May15, 2011) titled “China’s Next Port of Call: Luxury Yachts” which stated that the industry is headed to China, and the luxury yacht makers of Europe, Australia, and the US will slowly see the disappearance of companies making high-end yachts, as there is no way they will be able to compete. A couple of reasons things are floating over to China as per the article;

1. – Lower Costs and rising wealth fuel growth at mainland boat builders.
2. – They use boats no differently than they would a karaoke lounge.

Okay so not only can the these boats be made less expensively with low-cost labor, but the Chinese luxury cruising yacht business is booming with many wealthy Chinese seeing this as the ultimate for their wealthy status. The article also stated that the Chinese lack the intensive knowledge to build these yachts, but that they are catching on quickly with the help of foreign partners. In analyzing the situation, I see the Chinese as capturing this industry as well.

No, that doesn’t bode too well for those in Florida who are yacht builders, and employ thousands of people. Each time we talk about manufacturing in the United States, we talk about how jobs have increased, and we are the major manufacturer to the world, but in reality China is passing us, and they are creating jobs quicker than we are, and even if their economy sputters, they will end up over time with a good chunk of our manufacturing industrial base.

Along with such super specialties as the making of airliners, corporate Jets, luxury yachts, and other things that Americans currently seem to excel at. Of course, there are a number of yacht manufacturers in the Mediterranean, and they too may lose those jobs to China. Would you buy a luxurious cruising yacht from China? Even if you say no, what if I said you could buy it for a third of the cost, or even half? You see, even you had to stop and think about that. Please consider all this.

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