Heesen at MYS 2023

Heesen at MYS 2023: Press conference recap

The 2023 Cap Gemini World Wealth Report predicts that global economic growth will remain uncertain due to ongoing macroeconomic instability.

On a positive note, the supply chains have largely recovered. Shipping costs and suppliers' delivery times are back to pre-pandemic levels. But forces that stalled growth in 2022 persist. Inflation remains high and continues to erode household purchasing power.

The IMF World Economic Outlook update from June shows that despite these headwinds, global economic activity was resilient in the first quarter of 2023, with that resilience driven mainly by the services sector.

In 2022, if we look at the regional breakdown of the Ultra-High Net Worth group, North America dominated with 53%, followed by Europe and mainland China.

2022 was the first year of lowest wealth growth since 2008. It does not come close to repeating the negative growth experienced in 2008 once exchange rate changes are discounted.

According to UBS projections, global wealth will rise by 38% over the next five years, reaching 629 trillion US dollars by 2027. Growth by middle-income countries will be the primary driver. UBS estimates that the average worldwide wealth per adult will reach 110,000 dollars in 2027, and the number of ultra-high-net-worth individuals will likely rise to 372,000.

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According to the World Economic Forum's Global Economy Outlook, geopolitical factors will ensure that things remain volatile in the coming year. But there may also be positive changes, such as a decrease in inflation and a slowdown in interest rate increases. However, most chief economists surveyed for the report agree that the global economy will weaken in 2024.

Fears of a global recession may be receding, but there are new concerns about China's economy dipping into deflation. Geopolitical and domestic political issues will continue to unsettle the markets.

The effects of all this uncertainty are reflected in the superyacht market. In 2023, charter, brokerage and new constructions are all lower than in 2022. In the 30 to 80-metre segment, as of September this year, 109 new sales were completed, which is much lower than the 244 completed in 2022 and the record 312 in 2021. The picture is just as challenging in the 40 to 80m segment, with a projected 55/60 new sales by the end of 2023, down from 77 in 2022.

At Heesen, we contributed to this count with the sale of Project Akira, the first in our new 57m aluminium class, with exterior styling by Omega and interior design by Harrison Eidsgaard. We are one of less than a handful of shipyards that sold a new construction in 2023. We are sold out for this year and almost sold out for 2024.

Italy and Turkey account for the largest percentage of the new-build superyacht market.
The difference in price between North and South makes things more challenging for the Northern European builders. In the Netherlands, our labour costs rose 6.6 per cent last year, according to the Dutch Central Statistics Office.

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As the Superyacht Builders Association report shows, our industry is still strong. This year could very well be the first to exceed 100 launches. There have been 78 launches in 2023 so far, making it a highly successful year already. The number of planned deliveries this year is off the charts at 165 in total. Sybass's best estimate is that 2023 will see 119 launches.

The outlook for next year also seems exceptionally healthy, with 96 superyachts expected to launch in 2024.
We have been very busy this summer with the delivery of our largest yacht to date, the mighty 80-metre Project Cosmos, now named Genesis. We are all very excited that she can finally sail.
We recently delivered Project Gemini, now named Reliance, the first in our popular 55m class, with an interior by Luca Dini Design and Architecture.

The sea trials of two custom yachts, Ultra G and Sparta, are also keeping us busy.
With a yearly turnover of approximately 200 million euros and 15 yachts under construction whose deliveries extend through 2027, Heesen is in a comfortable position.
We continually invest in R&D to improve the performance of our yachts, as we announced with our BlueNautech programme.

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We are investing in lowering our shipyard's impact on the environment. We recently completed a 1.2 million Euro investment to cover 80 per cent of our roofs with solar panels, for a yield of 1.3 megawatt-hours. Our solar farm produces 60 per cent of the power we need.
Earlier this summer, we joined other businesses in our local community in the development of Het Bos van Oss, a fantastic initiative to plant a beautiful new 50-acre woodland in our home town.
Supporting the Water Revolution Foundation is another way we take our environmental responsibilities seriously. In this regard, we are delighted that the Sustainability Hub has reappeared at the Monaco show, which aims to be carbon neutral by 2050.

Mark Cavendish, Heesen CCO, discussed the following:

Heesen’s Custom Yachts:
This includes Genesis, Sparta and Lusine, as well as the Winch Design XV67 announced at last year’s conference
Heesen’s Series Yacht Jade, Venus and Orion are under construction at the shipyard.

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