Lots of have watched the marine sector of our economy go by way of some pretty choppy seas in the last couple of decades, but are there additional to stick to? Yes and no, and let me inform you why. Initially, this sector normally gets hammered by the altering financial tides, and of course the occasional economic sector calamity – call it a Hurricane storm surge or Tsunami if you will. There is a definite ebb and flow to the marine and boating sector. Nowhere is this more evident than in the sport and luxury boat creating sector in the US. Florida is all in when it comes to marine jobs and boat developing, so let’s speak shall we?
The Herald-Tribune had an exciting article posted on July 26, 2013 titled “Boat developing business makes a comeback,” by Michael Pollick and I suppose the title sums up the information and facts offered effectively sufficient, but a single has to ask why?
Very first, quite a bit of the luxury yacht sector has been siphoned off by Chinese boat builders and also Taiwanese – they have less expensive labor and industrial capacity and they’ve discovered all of our technical know-how. Second, the 2008 economic tragedy was a super storm heard globally. China also has wealthy buyers to purchase luxury boats and yachts, it is but a different status symbol, and just as corporate jet sales will rise, that tide will raise all boat sales there too. So, will China sail away with our boating business as they have so quite a few other sectors of our economy?
Challenging to say, because in medium sized yacht market, it really is a difficult job to transport the completed merchandise. Significant 100-foot plus yachts can be sailed across the ocean, or transported in the hulls of specialized boats and that tends to make sense for cost. Ibiza boat trips can be shipped in container form ships or in auto-transport ships. The labor costs becoming what they are, give a enormous benefit, plus fewer regulations on suppliers, worker safety troubles, boat painting EPA rules, and so on.
Also plaguing the marine sector boat building business in Florida and elsewhere in the USA will be the ObamaCare rules and these insane quick rising overall health care insurance fees. And not to place dark clouds on a nice summer season sailing day, but there are headwinds ahead, so the sector will will need to be cautious how it handles all these future challenges. Also, with an anti-rich, class warfare, populist push by our leadership we can also expect additional use taxes on the horizon, luxury tax laws, to resurface as sea mines in the coming years. Please consider all this and think on it.
