2. Leisure craft
      2.1  Boatyards manufacturing leisure craft
      2.2  Export
      2.3  Manufacture in Tuscany and Livorno
      2.4  Conclusions

2. Leisure craft

Companies operating in the nautical sector in Italy can be divided into three categories: 1- leisure (boatyards), 2- accessories and 3- engines. A case could be made for a further category of 4- nautical tourism which is considered a particular off-shoot of this sector with extremely high potential for employment.
On average there are 15 employees for each company producing leisure craft. This is lower than the European and USA average of 16 people. Only 8% of firms have more than 50 employees. The situation is polarised, with 60% of employees, 79% of turnover, 88% of export and 38% of import in all three categories being concentrated in just 20% of firms.

41% of boatyards are in the north (114 in Lombardy), 31% in the central region and 28% in the south and the islands. Tuscany has 11.1% of companies and 6.3% of employees in the three categories.

Tuscany is third for the number of companies and employees in the three categories after Lombardy and Liguria and ahead of Emilia Romagna, Campania, Lazio and Piemonte. (Source: Ucina 2002).

Despite the crisis, business is growing in all three categories. As can be seen from the following table, boatyard manufacture (by units of craft) has almost doubled in the four years since 1998.

Tab. n. 1 Turnover by nautical category - millions of Euro

Source: Ucina 2002

2.1. Boatyards manufacturing leisure craft.

There are more than 510 boatyards in Italy producing boats and various types of leisure craft. Each boatyard can be identified from its products by a three-letter code stamped on hulls between 2.5 and 24 metres (directive 94/25/CE, in accordance with the international standard ISO 10087). Hulls of more than 24 metres are considered to be ships, or mega yachts. Beyond 24 metres no code is required.

Ucina states that in 2001 total growth in boat construction was 20.6% based on total turnover, with the emphasis on exports. Exports have almost doubled in five years and increased by 20.6% in 2000.

The ten larger boatyards, according to Ucina data, have a turnover of 350 billion lire, 95% of which is for overseas (2000 figures). The larger boatyards produce the majority of mega yachts of more than 24 metres. All the companies are geared towards exports. The internal market is also growing but in absolute terms remains limited. In 2000 the share of exports was unchanged on the previous year even though total orders increased (a rise of 20.6% in turnover). Tuscany boasts 10.1% of companies producing leisure craft and 5.3% of employees. The national market accounted for 21.8% of turnover of leisure craft (worth 331,000 million lire) and overseas purchases grew by 18.9% (worth 281,045 million lire). The ewxport market grew by 20,6% ( worth 1,241,000 million lire). Total turnover of the national market, import and exports grew by 20.6%. In the same way, as mentioned above, national production grew by 20.6% on 1999.

The largest part of production, making up 79.9% of total, is that of outboard and inboard/outboard engine units mainly in fibreglass.

Medium-large units, that is those under 24 metres, make up 74% of national production. Turnover has trebled over five years and production has quadrupled over eight. The internal market grew by 23.3% on 1999. Exports have grown for eight years now, and from 1993 to 2000 have grown by 430%. All in all the sector has grown by 21.2%. In the year 2000 however, shares of internal, export and import sales are slightly down in regards to exports due to the worldwide slowdown, but this has been compensated for by internal growth.

Tab.n.2 Comparison 99-'00 of turnover of inboard and inboard/outboard engines

Source: Ucina 2001

Units with outboard motors have also grown, accounting for 8.2% of total, followed by the production of sailing units and inflatable boats. In the year 2000 outboard units grew by 22% and in 1999 by 30%. In 2000 the national market was 3.1 times the market in 1996. The relative percentage shares show a decrease in exports compensated for by the internal market, which has benefited from recent legislation.

Tab.n. 3 Comparison '99-'00 outboard engine units.

Below is a table showing the main construction materials used for leisure craft. These can be a source of particular chemical risks.

Tab. n. 4 Division of % of units matriculated in 2000 by type of construction material

Source: Ucina 2001

2.2 Export

Italian leisure craft are exported to the following countries: France 19.7%, the USA 19.35% (growth of 17.73% on 1999) and England 17.9% (figures for the year 2000). The largest purchasers are the UE countries as a whole. Another 15% of exports are destined for countries such as the Virgin Islands, the Caymans, Luxembourg and Gibraltar, where they benefit from significant tax breaks. Most imports come from the USA and the UK, followed by Germany, the Caymans and Luxembourg.

Despite strong exports the nautical industry remains strongly rooted in Italy, and shows only modest signs of relocating.

Up until 1998 Italy was leader in the 33-metre (100-foot) class, specialising in yachts of around 25 metres, or 80 feet. The situation is rapidly changing however, due to the growth in demand for larger yachts linked to the worldwide development of the chartering phenomenon. This has caused an increase in orders for large boats for hire.

Italian mega yachts enjoy an excellent reputation throughout the world.This is due to the "brand name" attached especially to Italian luxury boats of over 24 metres. The Viareggio name is one of the best known.

There is a continual increase in sailing mega yachts and mega yachts with engines, in particular the 80- to 89-foot band of mega yachts with engine. In 2001 the 150-foot band yachts also grew, with 65 orders as against 40 in 2000. Orders for sailing mega yachts in 2000 were concentrated in the 100- to 119-metre band with 17 units ordered. The 120- to 149-foot band and the 80- to 89-foot band had 16 orders each.

Italy is leader worldwide in the production of mega yachts, ahead of the USA, the Low Countries, Canada, New Zealand and Germany.

As was mentioned earlier, the other two categories in the sector, accessories and engine manufacture, are also growing, even though engines produced overseas are far more in demand than Italian ones. Of the two categories, the more important is that of Italian-produced accessories which are used to fit the boats out, to make them comfortable and to enhance performance.

2.3. Manufacture in Tuscany and Livorno

According to a census on leisure boats undertaken by the Tuscan Regional Authority, the Union of Tuscan Chambers of Commerce and Assonautiche Tuscany, companies in the sector (that is all three categories) grew by 10% between 1997 and July 2000, going from 893 to 987 units.

Tab. n.5 Company location, %

N.B. The Fratelli Orlando shipyard is included in the companies in the Livorno province as it also manufactures leisure craft, while the Sec shipyards (neither the Apuania shipyard or the shipyard in Massa) are not included in the Lucca province as they produce only commercial ships and not leisure craft.

Source: AAVV, 2000,Tuscan leisure boat building, the Tuscan Regional Authority, the Union of Tuscan Chambers and Assonautiche Tuscany, s.l.

In Tuscany, the sector is characterised by small to medium local units which do however have the capacity to operate at the cutting edge of technology. The Esaom boatyards at Portoferraio manufacture large boats and have ISO 9002 certification. They promote themselves as re-fitters of large leisure boats and providers of assistance and services. Production of "Calafuria" and "Gabbianella" leisure craft is also an important feature in the Livorno area

Boats are continually increasing in size and degree of luxury while demand, encouraged by recent laws on leasing, involves an ever-greater number of clients. Tuscany and in particular Viareggio is one of the most important production centres, especially for yachts and mega yachts in steel and fibreglass.

Repair work and overhauls of large boats is a not insubstantial source of income for the boatyards. This activity is frequently found in the 25 or so shipyards in Livorno and Livorno province.

2.4.Conclusions

Leisure craft building is in expansion and Italy is the second largest producer in the world and the foremost exporter of mega yachts in particular.

Livornese companies are small in size, as is the average in Italy. There are 25 companies in Livorno and Livorno province which produce and repair leisure craft and they employ around 150 people. Only the bigger of these are dedicated exclusively to boat production, while the majority are centres of production and repair or repair only.

The new opportunities offered by law for purchasing through leasing should give a boost to the internal market and thus also to those companies in the Livorno province which have for years provided a professional service.