Yacht Makers React To The Economic Crisis
The yacht industry is starting to feel the pinch from the economic crisis. In December we saw Carver yachts double its holiday work stoppages. This week brought bad news from two major yacht companies. North Carolina's Hatteras Yachts cut another 330 workers this week. The company already cut 300 workers last August. The company hopes to rehire workers when the economic climate improves. Hourly employees will receive a severance package with two months' pay and full benefits.
Across the Atlantic, the Financial Times reports that Ferretti, the world's second-largest yacht maker, is preparing for the worst after sales of its megayachts have plummeted. The company's private equity owners are looking to hire advisers for debt restructuring. The company was flying high just six months ago, earning record profits and preparing to be offered on the Milan stock exchange. Ferretti owns the brands Pershing, Riva and CRN.
The London Boat Show was held last week and as Sky News reports the mood was cautiously optimistic with a modest but steady flow of orders.