Since February 2020, in less than 18 months, the global yacht market has been on a veritable roller coaster ride, as well as many other markets. (probably all), as a direct or indirect consequence of the Covid-19 pandemic.
Universally, since around February 2020, boat builders, be it builders of small trailer boats to superyachts have experienced economic and management effects. Generally, these ups and downs have so far been absorbed by the builders for the largest part.
However, a small part of those effects must eventually be shared with the consumer. The whole Covid affair is certainly a “Force Majeure” that has justified extraordinary sacrifices in 2020 and 2021 and could see further increases for the boat buyer.
Since December 2020, globally and on average, suppliers have applied price increases for goods, raw materials and services at an extraordinary rate of growth, motivated by a generalised and strong growth in upstream costs. Figures published recently have seen an increase in oil (+100%), natural gas (+70%), steel (+123%) and copper (+98%).
One of the products for boat building, resin (base for fibreglass) has increased +60%. Interestingly one of the three largest resin producers globally has gone out of business and the two remaining ones are struggling to meet demand. Wood is up +45% and then when you need to ship the boat to market transoceanic freight has increased upwards of +70%.
Since early this year many suppliers that specialised in nautical components of all sorts have issued price lists with increased prices. Some have issued several editions, adding increase after increase. Depending on the type of goods, we are seeing increases in the 15%-60% range on average: these increases are usually non-negotiable and are imposed by the suppliers.