A Boat Building perspective on challenges and Industry growth 14 April 2014 Vanessa Davidson CEO
MIASA Established in 2011 (previously represented by CTBi) Nationally represents the boating value chain, from design to manufacture, to sale, to mooring, to boating activities Membership of ICOMIA (International Council of Marine Industry Associations) Membership of ABYC (American Boating and Yachting Council) which works on industry development and skills training globally Board members of IMCI (International Marine Certification Institute) Chairman SABS TC 188 (small craft and life preservers)
INDUSTRY OVERVIEW Directly employs about 3200 people in boat building Produces goods and services valued at R1.2 billion (excl commercial) 85% is located in the Western Cape 90% of production is exported Second largest producer of catamarans globally Growing commercial boat/ship reputation Globally competitive (numerous international Boat of the Year awards) Major growth potential (Africa, commercial)
IPAP Boat Building Skills Development Programme Industrial financing Designation of working boats for public procurement
POSITIVE TRADE BALANCE
COMMERCIAL GROWTH
VALUE CHAIN Expanded considerably in the past two decades Industry growth from 4 builders in 1994, to 75 builders in 2010, and 68 builders in 2013 Growth of commercial and job creation significant Broad value chain including manufacturers, importers, retailers, suppliers and allied services The number of suppliers to a manufacturer ranges between 5 and > 150
Recreational vs Commercial Monohull vs Multihull Sail vs Power Trailerable vs non-trailerable Inland waters vs Ocean going Boat vs Ship Manufacturing material Manufacturing methodology Manufacture and Repair/Service Production Build vs Custom Build Regional variations DIVERSITY OF SECTORAL NEEDS
Manufacturing space close to the water Launch facilities Cranes/Travel lifts/slipways Commissioning /mooring facilities Space for shoreside support services Longevity of tenure Reasonable costs and escalations Trained and experienced personnel Labour rates that accurately reflect work COMMONALITIES
CURRENT SUCCESSES Well positioned international brand for SA built catamarans Proven track record and international recognition Growth of the commercial sector (military and private) Strong global position Innovation driven by passion and entrepreneurship Customisation
BROAD INDUSTRY CHALLENGES Protracted engagement with TNPA (1994, 1998, 2002, 2005, 2007, 2010) Cyclical build and fluctuating demand Infrastructure Competition vs Collaboration Labour rates/productivity Cash flow issues and organisational capacity Transformation Skills and enterprise development Lack of progress on industry identified priorities (COFISA report 2008)
SPECIFIC CHALLENGES Manufacturing space close to the water Availability (up to 20 000 sqm for one commercial) Cost Tenure Permits/restrictions Escalations Type of manufacturing Closed/open Multipurpose user conflict
SPECIFIC CHALLENGES Launch facilities Access for monohulls and multihulls from roadways Permits Shoreside infrastructure (containers, forklifts, equipment, staff, storage, offices) Draft Protection from weather Multi user demand and scheduling
SPECIFIC CHALLENGES Commissioning /mooring facilities Availability (port and private) Cost No fixed arrangement/user conflict Weather protection Access for mast stepping Metal and industrial pollution (recreational GRP)
SPECIFIC CHALLENGES Cranes/Travel lifts/slipways Floating dock (cannot wait for fixed infrastructure availability - commercial) Travel lift (500t for commercial, 30t for recreational width critical) Cranes for mast stepping (high reach) and keel installation Synchrolift (commercial and recreational) Investment tenure
SPECIFIC CHALLENGES Space for shoreside support services Trained and experienced personnel Labour rates that accurately reflect work (GRP)
GROWTH OPPORTUNITIES Commercial and military craft - Africa Custom build recreational boats (large) - International Steady market demand for catamarans (power) Superyacht re-fit - International Cruising boat maintenance and repair International JVs with International yards constrained by space Weaker ZAR Labour intensity/jobs Increase local content Leverage off South Africa s geographical position Accelerate decision making Transformation
Port Elizabeth Mandela Bay Composites Cluster Land GROWTH OPPORTUNITIES
GROWTH OPPORTUNITIES Durban Strategy in place Shoreside build and repair facility with SMME clustering
GROWTH OPPORTUNITIES Cape Town Commercial and recreational export growth Dry dock and synchrolift Superyacht re-fit International yacht races
NEW ZEALAND Destination New Zealand Superyacht Attraction Initiative A partnership between Tourism New Zealand, Auckland Tourism, Events and Economic Development (ATEED), New Zealand Trade and Enterprise and NZ Marine have an active campaign to attract superyachts to the Pacific nation.
USA Mod Marine Centre, Ft Lauderdale
Multi-faceted approach (one size never fits all) Optimise Resources World class facilities Foreign Investment Integrated artisan development programme National strategy The reality of SMME operations Red tape/policy/decision making Government inter-departmental engagement Unintended consequences and mitigation R&D and design innovation Reproduction CLOSING REMARKS
THANK YOU Securing our Future Strengthening our Future As Boat Builders Globally Vanessa Davidson vanessa@miasa.co.za 072 8363998