The UK leisure, superyacht and small commercial marine industry reports a consistent level of performance in its recovery from the recession, according to the latest trends survey from the British Marine Federation (BMF).
Spring 2011 Industry Trends Results November 2010 – May 2011
Encouragingly, there has been slight improvement in the trend reported for the value of the order book, notably for the home market, though the export market continues to perform slightly better overall. The bi-annual survey of BMF members shows minimal change in the trends for the majority of other economic measures from the last two surveys in November and May 2010, with turnover and business activity reported with a positive balance, but profit margins still reporting a negative trend.
Expectations for the next six months are comparable to the previous two surveys with 39% of respondents perceiving prospects as good or excellent, 46% as okay and only 15% view it negatively.
The May 2011 survey results for the last six months include:
– Level of marine business activity: reported to have increased for 38% of members while 26% report that it has decreased, resulting in a net balance of +12%
– Turnover: 44% report they have a higher turnover compared to the same period a year ago and 31% a lower turnover, resulting in a net balance of +13%. The trend over time for turnover is very similar to that of the general economy, mirroring the pattern of Gross Domestic Product over recent years
– Value of the order book: there has been an increase in the trend reported for both the domestic market (net balance +3%) and export market (net balance +9%) compared to a year ago
– Level of investment: trend continues to improve slowly but steadily with 31% investing more and 18% less than the same period in 2010
– Profits: the impact of the economic downturn is still evident given 42% of respondents are reporting lower profits than the same six month period a year ago and 32 % a higher profit, resulting in a net balance of -10%
When asked to spontaneously list the most common problems they are currently facing, BMF members responded: the financial climate/general economy (22%); the lack of finance and credit available (14%); the lack of orders and sales (13%); cash flow/delayed payments (9%); fluctuating/uncertain exchange rates (9%); regulation/red tape (8%); cost of fuel (4%); VAT increases (4%); competition (4%).
Rob Stevens, BMF Chief Executive of the British Marine Federation said: “Once again, these trends demonstrate the strength and resilience of the UK leisure, superyacht and small commercial marine industry at a time when the economy continues to be very challenging. It is encouraging to see some improvements in order books and a consistent positive trend in turnover compared to a year ago and the level of recent marine business activity.
“The BMF continues to work closely with a number of groups, including the British Banking Association, to try to improve the availability of finance and credit. We are also working hard to ensure the forthcoming PSP Southampton Boat Show in September is the best possible industry showcase for sales opportunities.”
