As Martyn Fiddler’s marine practice rapidly expands into tax and ownership, Martin Kennaugh, Director of Client Services decided it was time to attend SYI London 2024. Here are Martin’s top takeaways from the conference:

The USA dominates

It was clear that many people in the room, not just myself, were surprised at just how much of the yachting market is accounted for by the USA; over 50%! With this level of activity happening in just one country, it is no wonder that many people, whether they are into politics or not, have an eye on the upcoming US elections. Whilst not everyone would claim to be a Trump supporter the consensus was that a Republican in the Whitehouse would be good for the industry as tax breaks would be sure to follow, meaning more disposable income to spend on what people like doing, and that includes yachting. A good example of that reasoning is seen in the state of Florida; low taxes and high growth rates have led to an economy that outperforms the country as a whole and supports a strong yacht industry. As we all know, what happens in the USA is felt around the world, so what is good for the American market is usually good for the industry as a whole.

Is ‘full’ service better?

Whether yacht brokerage or marine management, delegate opinions were divided on the best way to service owners.

The large full-service management & charter companies believe their model offers yacht owners with the best support; from building deep and wide relationships to offering multiple services in house. The counter argument from smaller independent brokers and managers is that they offer agility; they are able to build the most suitable support teams from industry specialists according to what the client needs at that time.

It is clear that both models are successful and owners continue to choose the most appropriate for them, creating a healthy dynamic in the industry. No matter which side of the debate people were on, they all agreed that owners should do their due dilligence and employ professionals based on experience and skill – not on who offers the lowest price.

The future is up for grabs…

Over the course of the two days the future was examined from many angles. Here are the top three issues.

1. The skills shortage (like in many other industries) is causing intense debate over where to find the future participants, how to attract them and how best to retain them. The passion delegates presented was clear – this is an issue was of genuine concern – especially as most new employees in yachting leave the industry within the first few years. While it was clear that the right salary would attract the right people, issues of employee treatment, leadership, burnout, crew politics, ongoing training and development were all acknowledged as key deciding factors to remain in the industry. Attendees and speakers all acknowledged the industry must do better to retain talent.
2. Insurance costs will inevitably rise; recent tragic events in Baltimore and the resulting insurance claims and lawsuits were predicted to have a wide-ranging knock-on effect on the global marine insurance markets; effects would be felt for a long time to come.
3. Environment, sustainability and power created lively and inventive discussions (including a proposal for on-board nuclear power plants). While an audience poll suggested nuclear wasn’t the future, it is clear the industry needs to address the issue of sustainable power and how this will be distributed fairly amongst competing industries (shipping, aviation and ground transport are all competing for sustainable aviation fuel).

All in all, SYI 2024 was an informative and fun event, good presentations and discussions on stage were matched with good opportunities for networking. Louisa and Al’s team did an excellent job of hosting (as always) and I will certainly be attending next year!