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Grant Thornton’s Solent 250 Sector Watch


Challenges and opportunities in the UK’s marine sector


The marine industry, including its suppliers in naval, commercial, leisure and marine renewable sectors, is an important sub set of the UK’s marine economy.


The majority of UK trade is via the sea, with over 90% of goods and 50% of our energy needs being transported from across the world. Research by Marine South East and SEEDA estimates that the wider marine related economy generates around £46 billion of the UK’s GDP and around 3% of the estimated global marine related market, which Marine South East and SEEDA suggest stands at £2 trillion.


In recent years the industry has seen significant change. While traditional industries such as shipbuilding have declined others, such as marine renewables, have experienced considerable growth.


Opportunities – growth for the marine leisure, commercial and renewals sectors


The UK marine leisure sector, made up of over 4,000 businesses (primarily SMEs including globally-recognised motor and sailing yacht manufacturers, marine and holiday companies)


Ones to watch


The marine industry incorporates a variety of businesses as the following selection demonstrates


Berthon Boat Company


Established in 1877, the family-owned business operates yachting services (including brokerage, service, refit and berthing) from its riverside site in Lymington. Employing over 100 staff, the company has a strong balance sheet and a turnover in excess of £12 million.


Walcon Marine


International specialists in design, construction and installation of marinas, yacht harbours and berthing facilities, Fareham-based Walcon Marine was formed in 1963. Employing over 40 people, the company has undertaken projects across 30 countries on all five continents. The company


www.businessmag.co.uk


counts Dubai International Marine Club, Jumeirah Beach Resort Marina and Bahrain Marina Club among its clients.


Ocean Safety (Besse & Mill)


Southampton-based Ocean Safety specialises in the worldwide supply, distribution, service and hire of marine safety equipment. In the past few years the company has seen rapid growth and boasts a diverse range of customers including ship and superyacht builders, round the world racers, cruising yachts and the MOD. With a turnover of £9.6m the company recently expanded its operations, opening an office in Greenock, Scotland.


For more information


on the marine industry in this region and throughout the UK, contact:


Richard Bowtell Senior audit manager 023-8038-1122


richard.bowtell@uk.gt.com www.grantthornton.co.uk


has seen revenue grow by 14% over the past four years. With the BMF estimating that the sector generates some £3b of revenue per year and employs over 34,000 people, it is a continually burgeoning market that presents opportunities for UK businesses.


There are also opportunities for the UK commercial marine sector to grow market share in the Far East, particularly with the reported shift of shipbuilding, ship repair and conversion that has been suggested by The Shipbuilders and Ship Repairers Association, as well as the Society of Maritime Industries.


The renewable energies sector, which could attract up to £4b per annum of investment by 2050, will offer business opportunities for many aspects of the marine sector, for example through the exploration of the transfer of technology and know-how from the UK’s existing shipbuilding and oil and gas businesses.


The challenges ahead – drivers for change


The naval sector, which is made up of a small


number of large companies supported by a number of supply chains (including many SMEs), will undoubtedly see challenges in sustaining capability against a reduced Royal Navy fleet and more widely spaced new build programmes, developing international markets and delivering cost efficiencies over the whole life of its products.


Businesses such as those in the UK’s commercial marine sector, which depend on public procurement, may well experience fewer domestic contract opportunities and will need to diversify and increase their focus on adjacent and export markets.


Collaboration – the way forward?


Growth for the UK businesses is not guaranteed. The domestic market is limited and competition for high-value international markets is intensifying. Countries such as France, Germany, Norway and Canada have recently mobilised their industries behind shared marine strategies to improve global competitiveness. Greater innovation, skills training, improved productivity and focus on international customers will be key to improved competitiveness.


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – SEPTEMBER 2011


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