Boatbuilding

Building a recognised brand for High Quality Boat Building in the Western Cape

The boatbuilding sector is a producer of a range of high quality boats, and is a well-established and important contributor to the regional economy of the Western Cape. The industry is characterised by a number of small entrepreneurs and dominated by a few large companies – 56% of the workforce is employed by the largest four companies. South Africa is a recognised producer of high-value luxury yachts, with the Western Cape as the recognised hub of the industry in the country. The Cape Town Boatbuilding sector is also highly competitive in four other niches: power and sail catamarans, large custom boats, inflatable boats and commercial craft.

Export demands are the key demand driver of the industry, originating from Europe and the US/Caribbean, with growing markets in Asia and Australia. The sector was relatively sheltered from the effects of the global recession during 2008/09, and therefore the growth of the sector is expected to grow by 10% p.a. between 2007 and 2014. Major firms in the Western Cape include Southern Wind, Quantum Sails, Robertson and Caine, Veecraft and Two Oceans Marine Manufacturing.

The Industry in Numbers:

• South Africa is the world’s second largest producer of catamarans after France, indicating a strong export sector for luxury yachts
• The Western Cape accounts for 85% of the total South African market
• There are over 40 registered companies within the Western Cape under the Marine Industry Association of South Africa (MIASA), reporting a total revenue of ZAR 1.31bn
• The export revenue for these companies in 2010 was ZAR1.16bn, indicating that exports account for nearly 90% of the market revenue in the Western Cape
• There are nearly 2,000 direct employees in the Western Cape Boat-building sector

Main Advantages of Investing in the Western Cape in Boat Building:

• The local boat building industry in the Western Cape has initiated two sector skills training academies, namely the False Bay College Boatbuilding Academy, and the Whisper Boat Building Academy. MIASA also offers short courses and professional development
• Cape Town is recognised as a competitive location in terms of affordability for companies looking to invest in or establish operations in the boatbuilding industry
• The Western Cape has a wide range of suppliers for materials for boat construction, supply industries of sail making, mast builders, naval architecture, outsourced manufacturing of component parts as well as post-production parts

Incentives

The incentives offered include the Manufacturing Investment Programme (MIP), as well as some R&D incentives for technology design and research. There is also industrial financing and job creation skills funds that can be accessed through the Industrial Development Corporation (IDC) and Development Bank of Southern Africa (DBSA). For more information, please click here to be directed to our incentive brochure, or alternatively contact the portfolio manager listed below.

Contacts

For further information, please contact the Portfolio Manager below:

• Laura Peinke – Investment Promotion: Market Research Analyst,

Email: laura@wesgro.co.za

Tel: +27 (0)21 487 8600