RORY JACKSON BUSINESS EDITOR

For the first time in my professional life, I can say with relative confidence that the superyacht market is looking strong and that its trajectory, at least for now, is heading only in one direction – up. However, remaining true to form, the booming new-build activity must come with a slice of cynicism and a word of warning.

What is perhaps most promising are the reports that this most recent period of new-build sales has also seen record new entrants to the superyacht market. Why this is the case can be argued ad infinitum. Did lockdowns push people off the fence? Was proof that working from a superyacht is possible enough to convince entrepreneurs it would not be detrimental to their business aspirations? Has money just been so freely available to the rich? Or do people consider superyachts safe havens? Do I have the answers? No, but my least favourite theory is the last one. The chances are, however, that it is a mixture of a variety of factors, boring as that may sound.

The problem is that we are not an industry with infinite capacity. With reports suggesting that new-build contracts have been signed for beyond 2025 and that slots are filled at essentially all the reputable yards, a capacity issue is somewhat inevitable. Whether this relates to delays affecting future build slots or a lack of top-level subcontractors, the future is not going to be bright across the board – something has to give.

Consider this in line with the rapidly increasing raw material costs and various difficulties with costing superyachts and designing sufficient margin. My prediction is that those that are able to invest and increase capacity will shine and become stronger than ever before, but those who have signed contracts that they aren’t able to back up are going to seriously struggle when the reality of this situation comes to bear. RJ