The aftermarket is ahead of the game

Bainbridge Marine is one company that took action last year. 'Anticipating market conditions which we believe will last well into 2010, steps were taken in the 4th quarter 2009 to restructure our operations to ensure that the long term stability of our business,' said head of sales and marketing Gordon Coventry.

The change of emphasis to the aftermarket has, he says, signified a change in spend from new boat purchase to refurbishment and upgrade of existing models.

'This has been evident both in power and sail with sailcloth, running and standing rigging hardware sales proving numerous and popular,' he told BB.

Bainbridge also represents Lewmar, predominantly in the aftermarket, re-fit yards and the small volume boatbuilders, and the company is noticing winch and windlass spares selling well, backing up the repair theory.

Hatch and portlight sales, although not exceeding 2008 levels, are still outperforming expectations.

Barton Marine Equipment's managing director David Coleman agrees, pointing to significant downturn in sales, particularly from the OEM sector.

'However,' he added, 'it would seem that the aftermarket is holding up fairly well with end users spending money on refit and maintenance rather than changing their boat. Subsequently our dealer market is fairly healthy at the moment.'

But Mr Coleman points out dealers and distributors have been reducing stock to generate cash. This, he says, has affected sales and resulted in smaller orders on a more regular basis, but told BB: 'This situation now seems to have worked through.'

Ian Cooke, a director of C-Quip, put things more directly. 'As a more traditionally OEM focused business we didn't expect a year ago that we would be saying "thank God for the chandleries" in 2009.'

Mr Cooke says the company is seeing good sales through chandleries, especially those that have invested in their on-line sales capabilities. As result, C-Quip now has a much increased range of retail-orientated equipment. 'This,' says Mr Cooke, 'has also encouraged an increase in sales of our standard parts like vents, cleats, fairleads and hatches.'

C-Quip is convinced that versatility is the key to success in this economic quagmire. 'We've actually seen an increase in R&D investment for custom designed parts, which will go along way to strengthening our position in that market as the economy improves,' said Mr Cooke, adding the company has also been focusing on sales to the commercial market, with sales growth in both hatches and exterior lighting.

'We are also looking forward to Seawork 2009 with a view to further developing this side of our business,' he said.

Allen has seen a big increase in orders from around the world and the company says business is buzzing.

‘We’re benefiting now from the investments we have made in our design and toolmaking technology and CNC machinery,' said MD Kim Allen. 'We have the ability to quickly and easily produce bespoke products for the boatbuilding industry.'

Customers are coming to us now for special integral products for their builds, as well as for off the shelf products, he added.

Mr Allen insists the future of sailboat hardware lies in innovative design and technology: 'producing high quality products and being able to react to customers requirements pdq’.

Another company aiming at the retail market is Seldén Masts, which recently launched its retail range of products including blocks, rope, wire and rigging fittings.

MD Steve Norbury commented: 'We use over 100,000 blocks each year in spar production, so to design and develop our own range is a logical step.'

Our long term plan is to offer a full range of deck gear so we can provide yacht and dinghy builders with a complete package of deck fittings, spars, rigging and rope, he added.

Seldén reports strong demand for spars, despite the downturn, with carbon mast sales in particular continuing to grow. Mr Norbury told BB: 'We make two large carbon yacht masts per week plus booms, spinnaker poles, gennaker bowsprits and dinghy spars.'

The company also has a specialist range of dinghy ropes from Liros that was first shown at the RYA Dinghy Show this year. 'They will be used in all Seldén dinghy spars and will be available to retailers so sailors can now co-ordinate sheets, control lines and halyards, said Mr Norbury.

Now in its 40th year of manufacturing deck hardware, Cooney Marine says it's fair to say business has fallen over the last eight months to a point around 30% down from the previous year in the leisure marine supply sector.

'I put most of this down to boatbuilders rescheduling to meet the new reality of demand,' said operations director Andrew Sims.

But the trend is not completely consistent, he insists, and the company's product range has seen normal levels of sales year on year and enquiry levels of project work remain high.

'Material and labour costs have, at last, started to stabilise, enabling a better forward vision at the new operating levels.'

But he believes the current economic situation should be seen as an opportunity for the supply chain to consider expanding its range of services, product and design to go the extra mile for its customers.

For Cooney, this meant opening a new business in Southampton to tackle the bespoke stainless market and making an entry into the aluminium fabrication sector.

Like Gordon Coventry, David Coleman an Ian Cooke, Mr Sims says the weakness of the pound is a help in the current circumstances, but emphasises another aspect.

'One thing the supply chain has going for it the developing ability to deliver quality product on time to point of use in the quantity required, reducing stock cost to the customer.'

Hyde Sails is another company that did some smart strategic planning. 'It’s hard work out there at the moment,' explained sales and marketing director Richard Franks, 'but we're busy expanding the business overseas.'

Over the past two years Hyde has been widening its distributor network across the globe, with latest additions being distributors in Turkey, Australia, Japan and Ireland.

Hyde moved its production overseas six years ago, setting up its own loft in the Philippines. The move enabling its UK-based workforce to concentrate on customer service and product development.

The loft has expanded massively from an initial staff of 16 and today employs over 200 highly skilled staff.

There have been many changes in rigging over the past few years and Sta-Lok says much is now talked about with the advances in PBO fibre technology.

'It's clear that the weight saving on fibre over high performance wire and rod rigging is significant,' acknowledges Sta-lok MD Terry Barfield, 'and this may reflect on the demand for rod rigging which has been predominant for many years on larger yachts, superyachts and the serious racers.'

'But,' he added, 'for the majority of sailing yachts up to 55/60 ft little has changed and wire rope is still king.'

Wire rope manufacturing is a global business, not solely reliant on the marine industry, producing wire rope products which we all use in our daily lives, says Sta-Lok. With significant volumes and finely tuned logistics the supply of wire rope has become very cost efficient.

Rod rigging offers significant advantages in terms of strength over wire rope; however the difficulty in handling and logistics of this material is such that it has appealed to fewer companies. The result is that it has become more specialised and more expensive.

This too has been a similar story with fibre technology to date, says Sta-Lok.

But that fibre technology is becoming ever more prevalent, according to Mark Barwell of Ocean Yacht Services. 

'We've seen amazing new product growth for the current climate.' He told BB, adding the superyacht rigging market has changed hugely over recent months. The general speed with which designers and manufacturers have accepted lightweight composite rigging has been a quite a surprise, says Mr Barwell.

'In the past we have noticed small technological advances filter down year by year from the cutting edge of racing,' he said. 'But this has been something quite different.'

OYS says almost every project over 40m has either already specified, or is seriously considering, a lightweight alternative to the traditional Nitronic rod rigging.

The awareness of saving weight aloft has meant a significant increase in the amount of custom titanium manufacturing, leading OYS to work hard on producing lightweight designs specially engineered for production in titanium.

With some new projects being on hold, due to the economy, OYS says this is freeing money up money for the upkeep or upgrade of their existing boat. And, as OYS has some 300 superyacht clients out there, that's a lot of business.

'Recently we've upgraded both a 50m and 56m yacht to our 75% lighter PBO rigging system,' said Mr Barwell. 'And there are many more big boats more in the pot...'