Rob Stevens BMF CEO Update

The highlights of this quarter have been a successful PSP Southampton Boat Show, the establishment of strong links with the Coalition Ministers and MPs at all three party conferences, two industry leaders (Derek Carter, Fairline and James Grazebrook, Halyard) joining the strategy team to support the Department for Business, Innovation and Skills (BIS) who is now writing the UK marine strategy, a BMF induced hearing at the EU to oppose the 46% tariff on Chinese fibreglass imports and, crucially, a steady take up rate for space at London which encouragingly is already over 90% full.  

However the underlying theme in the UK is a relentlessly tough economic climate, characterised by the banks who are still accumulating capital and reducing their exposure to risk and this, together with a coalition government invoking the painful but necessary spending cuts, paints a bleak economic picture.  

The industry and the BMF is being squeezed by these trends.   Although the majority of our companies are grinding out sales, profit margins are very tight and stock and staff levels are being kept deliberately low.  We are seeing a similar situation in the BMF with some member companies stopping trading which has reduced member numbers to just over 1400 at the time of writing and the NBS boat show profit margins being squeezed hard.   Encouragingly only 1% of the BMF members left because they felt that the BMF was not offering the right services but that is 1% too many and our customer service training and our membership drive will I hope reverse the trend.   

However not everything is bleak news.    There are 89 companies exhibiting with the BMF at METS.  The new MLA General Manager Tracy Wilson has settled in well at Marine House and is also looking after British Sailing.  The External Relations team attendance at all three party conferences yielded dividends in connection with ministers, particularly in the Tourism, Olympics and Waterways areas.  This was followed up with Howard Pridding advocating our industry and questioning the Prime Minister on television at the CBI Conference.  We continue to work with the British Bankers' Association on the access to finance for businesses. The resolution of the size of the crew accommodation called for by the Maritime Labour Convention for superyachts is also a notable success and a detailed update on this will be given at a seminar at the 2011 Tullett Prebon London International Boat Show.  The implementation of the requirement for RCD compliance is also a step forward in improving standards and our work with Department for Transport on the Fuel Quality Directive has reduced the likelihood of the supply of the problematic bio-fuel.  We also continue to work hard with members to update our constitution and more on this will follow after Council in December.  

This has been another successful period but tempered by all our concerns about the persistently difficult financial situation.