Latest marine industry news
Following Management Board last week and Council today I thought
I would feed back on 
the latest news
from the marine industry.
The last four months have been extremely
difficult to assess. There is no doubt that our companies are
doing business but the underlying concerns about bank credit and
the sustainability of the market makes it a very fragile
period. The determination of the banks to recoup cash and
re-pay their loans, growing unemployment, and reducing government
spending will make this a very challenging winter. We have
been lobbying Government ministers about the need for banks to take
a flexible approach and to understand marine business and the
nature of our market.
Having established the need for caution there
are also grounds for optimism. Despite the recession all of
our major companies are still trading which means that the UK
companies are probably holding their market share rather than
making significant profits. In Marine House, membership
numbers are strong at 1,430 members; and with over 50 applications
in the pipeline and the London show looming, where traditionally a
number of companies join, there is a good chance of continuing to
remain close to the 1,500 level to which we aspired at the
beginning of the year. This reflects well on our
customer service and the services we offer at Marine House and is a
very creditable result in this climate.
The PSP Southampton Boat Show was also a real
success. We finished on a par with last year’s attendance,
bucking the general trend of consumer boat shows being down by
approximately 10%. The ambience was very well reported and an
encouraging number of sales took place. METS have also done
well so perhaps the tide has turned. The indicators for the
Tullett Prebon London International Boat Show are also
encouragingly good. The innovative thinking by the NBS team
has produced a very appealing show, at lower costs with an
encouraging exhibitor base. There is more work to be done but
the signs and advance ticket sales are already good.
In Marine House itself, the last four months
have been dominated by the enormous amount of work that has gone
into government lobby during this period. We have a very good
working relationship now with the ministers in the Department of
Business, Innovation and Skills (BIS), DEFRA and the DfT. We
have achieved negotiated amendments to the Marine & Coastal
Access Bill, campaigned for improved credit from the banks, had a
strong BMF input into the UK Marine Strategy, and applied continued
pressure to improve waterways funding, as well as prevent the sell
off of British Waterways property portfolio which would damage
their income and hence waterway maintenance.
In all these subjects, I sincerely believe
that the BMF view is held in considerable respect in all government
and parliamentary circles and that we have a strong influence on
government policy that affects our industry. Our next step is
to try to convert Industry and Government intent into action, in
our ambition to establish ‘marine’ as a ‘sector’ in its own right
within government. I have taken a personal interest in
this initiative and, along with Brian Clark (Bclark@britishmarine.co.uk)
we have establish a framework document to launch in
January. The aim is to link all the marine industries
together in the technical, manufacturing techniques, skills,
regulatory matters and export fields to create a common policy
within the marine sub-sectors and improve the UK productivity and
market share. Robert Hill, MD Chemring and the chair of
the industry/ government export group (MSAG) has been leading the
charge on this matter in his area as well.
Finally you will all be pleased to hear that
our finances in Marine House are in reasonable shape.
The Economic Conditions Discounts (ECD) that we put in place: price
freeze at the PSP Southampton Boat Show, 20% discount on the
Tullett Prebon London International Boat Show, plus the 10% on
membership has needed very careful managing but by managing our
costs carefully we have been able to offer you all these
benefits. We, like you, are not immune but hopefully, with
steady trade through the winter, there is scope for a little very
cautious optimism running into London.