On the crest of a wave
With summer just around the corner, it's time for mariners to set sail and take to the seas and lakes. From the sweltering Mediterranean to brisk Scandinavia, many of the vacationers riding the waves and soaking up the sun on the decks of their sailboats and yachts will have something in common - their vessels began their journey right here in Poland.
Not only are original Polish products designed by Polish craftsmen finding ever more customers abroad, but reputable yacht producers, such as the French Jeanneau or Marine Power Europe, are relying on a highly skilled Polish labor force to produce their craft. So if you see a Quicksilver motorboat majestically cutting through the waves on the French coast, you might be looking at a boat built in the modest shipyards of northeastern Poland.
Yachts are becoming Poland's flagship export product and the country's most recognizable brand. According to the Polish Boats Industry Association Polskie Jachty (Polish Yachts), the total value of yachts, recreational boats and rowing boats exported in 2002 amounted to zł.236.6 million. A year later the figure rose dramatically to zł.414.6 million and exports kept growing - reaching almost zł.463.9 million at the end of 2004. The bulk of the boats is sold to customers coming from old Europe, with France and Germany being the main importers, receiving approximately 23 percent and 17 percent of Polish boat exports respectively. Other chief markets where Polish yachts are popular include Norway, Holland, the UK, Sweden, Spain and Italy. Producers here have witnessed significant expansion in the Scandinavian markets, with sales doubling in Sweden and rising nearly four-fold in Norway between 2002 and 2004.
Sailing to Russia
Russia is a giant market with great potential, but Polish shipyards only managed to export zł.4.9 million in vessels eastward last year. Furthermore, experts do not see much of a chance for Polish producers to expand. "In Russia only the most expensive, luxury brands are selling well," says editor-in-chief of sailing and marine magazine Przegląd Motorowodny, Dariusz Kazanecki. The president of Polish Yachts, Wojciech Kot, says that of Polish producers, only Galeon could compete in the Russian market, though he adds: "We have noticed an increase in the number of Quicksilvers exported." The president of Ostróda Yacht, Piotr Jasionowski, also sees "positive tendencies on the Russian market. Since two to three years ago, we have been witnessing constant growth of exports to Russia." But, as experts agree, the growth of the middle class in Russia is essential for Polish exports to grow further.
Poland's membership in the European Union is expected to further boost sales. "Entering the EU has removed a lot of hindrances, especially tariffs and those related to transport - thus reducing sales costs," Jasionowski said. While a sputtering economy means the situation in the German yacht market is not as favorable as it was, the growth of new markets, such as Spain or Portugal and the expansion in Scandinavia, has maintained the Polish producers' high incomes. EU membership could be very helpful in improving the perception of Poland overseas. "It has changed the way Americans and Canadians view us and our products," says Kot.
Shipyard boom
Polish shipyards have capitalized on the growing interest. Ostróda Yacht made around zł.90 million from sales last year - a 20 percent growth in comparison with 2003. "We expect sales to reach zł.120 million this year," Jasionowski said. Balt Yacht increased its sales from zł.25.9 million to zł.34.1 million and Delphia Yachts witnessed a 57-percent rise in sales.
There are a number of reasons for Polish boat producers' success in the Western markets. Poland's cheaper labor force means lower production costs, which in turn makes the boats' prices in the West much more competitive than local products. But for the discriminating sailor, lower price means nothing without quality. Kot sees no problem with this: "In the last few years Polish boats have become a recognizable brand abroad, known for their high quality."
Ostróda Yacht's Jasionowski puts it simply: "High quality, low price." He also points to the fact that although exports have been constantly growing since the early 1990s, Poland's yacht production has been export oriented even before the system change. "Poland has been building its brand since at least 20 years. The change in 1989 opened new possibilities for the industry," he added.
Future investment
Polish shipyards use the most modern technologies in boat-building and have invested significantly in new technologies as well as the development of distribution channels. However, Kazanecki points out that most of the yachts made in Poland are not original Polish brands, but are made for Western producers. Balt Yacht specializes in building Quicksilver motorboats for Marine Power Europe and Saint Cast Marine, Delphia Yachts makes Quicksilvers and Catinas, and Ostróda Yacht, which is owned by the French company Jeanneau, cooperates closely with both its owner and Marine Power Europe. In view of the above, "we should be particularly proud of Delphia Yachts' own Delphia sailboats and of Galeon, which makes its own luxury motorboats," says Kazanecki.
All this means the yacht industry's success is almost entirely based on its exports. While the French or the Scandinavians are lining up to buy Polish-made sailboats or motorboats, the domestic market is almost non-existent. Delphia Yachts exports over 90 percent of its products, 98 percent of Balt Yacht's products go abroad and Ostróda Yacht sends almost all of its boats outside Poland's borders.
The lack of demand for world-class homemade yachts might be surprising in a country with a long coast and an abundance of lakes, but growth in the domestic market depends on the growth of Poland's middle class. "As the standard of life in Poland increases so will the sales of yachts," Jasionowski says. The most expensive Polish yachts can reach as much as EUR 50,000-60,000 (zł.208,000-249,000), but even the best-selling middle-of-the-road vessels command between EUR 10,000-20,000 (zł.42,000-84,000). That's a hefty chunk of change most Poles can't afford to drop. And, as Jasionowski points out, "yachts are not a necessity product." As Kazanecki explains, Poles are starting to buy more motorboats, but the potential buyers fall into two categories: those who look for cheaper vessels and those who choose expensive, luxury products.
Kot points to another factor. He blames government regulations that significantly limit sailing at the Baltic coast for low domestic demand. "Moreover, the infrastructure at the coast is insufficient," he says. As far as the lakes go, the lack of clear regulations concerning registration is proving detrimental to the growth of the sport. "Previously registration was not required, which opened the doors for unregistered companies to bring cheaper, uncertified boats into the market," Kot explains.
New laws are expected by the time the next season starts, which could improve the situation. Yet even when yachts are sold in Poland, they are unlikely to be used domestically. Acquiring a license to sail in Poland is an ordeal that could take years, while in many countries it can be obtained in days. For this reason, many Poles register their boats abroad.
Successful navigation
While growing sales are an obvious source of pride for the producers, there are other reasons to cheer. Most of the shipyards are located in northeastern Poland - in the Warmińsko-Mazurskie voivodship or the Suwałki region - where unemployment is highest, exceeding 30 percent in many communities. The shipyards are often the major employers in their areas. Delphia Yachts, from Olecko, provides work for 220 people. Augustów-based Balt Yacht as well as Galeon from Straszyn also employ more than 200 people each, while more than 400 employers work in the Ostróda Yacht shipyard. With producers investing in new assembly halls and prospects looking bright for the industry, many more are likely to find work building the boats that are sure to be navigating Europe's waters for years to come.
