Vitelli’s theme was the industry must be ready for change and sounded a warning note that it was easy for us all to be lulled into a false sense of security in the comfort zone a decade of sustained industry growth.

Part of this sense of security, said Vitelli, came from the explosion at the top end of the market, where, according to Showboats International, the number of boats over 80ft in production or on order had gone up by 61% since 2003.

In turn, this proliferation of Superyachts (when will they become Megayachts, I wonder?) has been brought about by the explosion in billionaires around the world. Vitelli said burgeoning economies like China, Mexico and the UAE, plus new wealth in western countries, had contributed to a 106% rise in the number of world billionaires from 476 in 2003, to 793 this year.

But while the top end had gone from strength to strength, the mid-range market for boats between 30 and 50ft had suffered, with sales down 2.9% in the US from 2004-5.

This means it’s vital the industry should concentrate on the potential of emerging markets like China.

‘Everyone says China has the potential to be a big market,’ he said, ‘but it's not that easy and there are still obstacles to be overcome.’

You still can't register a boat in China, he said, and you can’t navigate freely between different regions. Another stumbling point may be that the Chinese don't like the sea or the sun…

The way ahead, said Vitelli, was to target the increasing desire for luxury goods in China and promote boating as a luxury.

These will be harsh words for all those MIAs around the world that are trying desperately to assure their boat buying public that boating is NOT a luxury and that anyone can buy a boat and go boating.

The way into the Chinese market is to manufacture locally. ‘The cost of transport from our European or US yards to China is unsustainable,’ he insisted, citing automobile manufacturer BMW as a prime example.

‘BMW's flagship, the 12-cylinder 760Li, sells more units in China than in any other country in the world,’ he said. ‘And the 3-series and 5-series sell so well that BMW builds them in China.’

Moving on, Vitelli told us industry needed to spend more on R&D, which was a key factor behind Azimut-Benetti’s success. His company operates what he called a ‘platform’ approach to product development that brings together a team of professionals who work together on new projects.

Working towards his finale, he reiterated the findings of a METS Breakfast Briefing of a couple of years back that major suppliers should be part of this team right from the start and should deliver pre-assembled components and sub-systems.

In summary. Vitelli went back to his main theme that industry must be ready for change. ‘Sometimes when the economy is buoyant there's a reluctance to change while the going is good, but you have to re-evaluate continually,’ he concluded.

PN