Production Opportunities for Global Mega Yacht Manufacturers

China maintains a very strong competitive advantage in the very labor intensive boat production process. For example, the standard Chinese labor rate is $0.70 per hour, which is about 1/16th that of the American labor rate. This labor rate will sustain, as China has 1 million rural citizens who could be moved to cities every year to keep the general labor cost at a fraction of the U.S. labor cost. In addition, 60% of all Chinese universities train engineers that provide top notch engineers. China's qualified engineers and sustainable low cost labor rate will continue to provide a competitive advantage and will soon spread to support the recreational boat industry.

Several international boat companies have already jointly produced a range of super yachts varying in length from 45 to 150 meters in China. As commented by an international partner, "These high volume vessels have comprehensive and thorough specifications to match any other leading shipyard anywhere in the world. The only difference is that these yachts will be assembled in China. We have already located international buyers for these Chinese made mega yachts."

At the end of 2006, China had 264 boat manufacturers. One exemplary Chinese manufacturer we have been working with has over 196,000 square meters of space and 700 employees. If you would like to learn of successful stories of mega yacht production in China or want to find capable Chinese boat manufacturers, contact us now.