Slow but steady as industry recovers
Rob Stevens: ‘optimistic about the future’
The British Marine Federation’s Spring 2010 industry trends survey shows the industry is continuing to recover, with many viewing the next six months prospects as ‘good or excellent’, while only 14% view it negatively.
INDUSTRY: The UK leisure, superyacht and small commercial marine industry is continuing to recover from the recession, according to the latest trends survey from the British Marine Federation (BMF).
The bi-annual survey of BMF members shows confidence among businesses has increased since the last survey was published in November 2009 and turnover is now showing a positive net balance for the first time in 18 months (since May 2008).
The survey showed:
• 40% of respondents perceive the next six months' prospects as good or excellent while only 14% view it negatively
• 36% have increased their marine business activity over the last six months, compared to a decrease for 26%, resulting in a net balance of +10%
• Nearly half of all respondents (46%) reported a higher turnover over the last six months compared to the same period a year ago and 34% of respondents reported a lower turnover, resulting in a net balance of +12%, a noticeably more positive situation than recent studies.
• 23% report that they have invested more over the last six months compared to the same period a year ago. 18% say it was less. More are maintaining investment levels than decreasing them, compared to the last survey results.
• However, the impact of the recession is still evident as profits are resulting in a negative balance of -4%, given 39% of respondents reported a lower profit than the same six month period a year ago, compared to 35% reporting a higher profit
When asked to list spontaneously the most common problems they continued to face, members responded:
• The financial climate/general economy (26%)
• The lack of finance and credit available (15%)
• Fluctuating exchange rates (15%)
• The lack of orders and sales (10%)
• Increased costs of raw materials (9%); and
• Cash flow problems and delayed payments (7%)
‘While I’m pleased BMF members are reporting a positive balance for turnover for the first time in 18 months, there’s concern that government spending cuts could dampen this recovery indicator,’ warned Rob Stevens, BMF chief executive. ‘It’s encouraging that many members are optimistic about the future, but clear that many of them continue to face difficult times.’
Mr Stevens said the lack of readily available credit is still an issue that’s affecting many small and medium sized BMF members and the volatility of exchange rates is unhelpful to exports.
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