The CEO of custom yacht builder Hargrave, Mike Joyce, predicted the company is on track to have a record breaking year over the next twelve month cycle.
According to reports in the recent Show Management Newsletter, “Joyce explained that his outlook for Hargrave, the boating industry in general, and the US economy were based on several key factors.”
“The history of the boating business has repeatedly shown that the only way out of a nose dive recession is to have hot new product available for the consumer” said Joyce.
“We will have more new yachts for sale this year than at any time in our history and what that means is we are is now playing on a level field with competitors like Westport, Hatteras, and Lazzara who have always offered new models and immediate delivery.”
“In times of uncertainly customers don’t want to wait for anything and frankly I don’t blame them. I just bought a new 2013 Lincoln today and I wouldn’t even wait 60 days to build one so they pulled a car with my color and equipment choices from another dealer” he added.
Joyce was quick to emphasize that his company was not abandoning their custom boat building roots. “When clients walk from boat to boat at our display at the Fort Lauderdale Boat Show they will see and understand that our boats are all different – different exterior designs, different interiors, different hulls shapes, different equipment packages. Our competitive advantage comes from the fact that we are a small family run company and can afford to make the kind of difficult changes that many sophisticated buyers appreciate.”
Joyce said the boating industry itself has done a great job of reinventing itself over the past three years citing the Caterpillar engine company as his prime example. “I built this company around Cat power, and we live or die based on their success. Cat has a new engine series that will be unveiled on the boat show circuit later this year that is ideally suited for our size range, and will immediately trigger a wave of new Hargrave designs once the engine series is certified and approved for sale” he said. “Our company has historically pulled over 50% of our new orders from existing Hargrave owners and these new Cat engines will have the kind of “wow factor” that will give our owners a great reason to reorder in the coming year.”
Most of this blog post is attributed to news carried by Show Management. Read the full article here.
We welcome any good news as it pertains to the yachting industry, especially in regards to naval architecture and custom yacht design. Builders as well as brokers, tend to have an inside feel for how owners and buyers are feeling about the economy and whether those feelings will positively or negatively impact the industry as a whole.
Generally at this time of the year, with the major boat shows coming up on the schedule, there is a buzz – an excitement – both with the end consumer as well as the industry insiders.
Only time will tell, but if Mike Joyce is positive about the direction of his company and the overall industry, then that’s a good sign. We’re feeling quite positive about the direction of the industry as well!