Industry Insider News

8.30.10 Insider News

Nordic Tugs announced that it will temporarily close its Burlington, Wash., manufacturing plant on Tuesday. Most employees will be furloughed, according to a company statement, but a skeleton staff will remain to field customer inquiries and maintain the plant to keep it prepared to resume production when business improves.

The action “has been forced by the ongoing effects of the Great Recession and the reluctance of customers to order new boats,” according to the manufacturer.

But there is more.  Rumor has it, there is a 54 at the shipyard which the customer did not accept and now the lawyers are involved. Nice boats, good company and another sad story.  Like most manufacturers their prices just were too high, forced up by the cost of goods, transportation, etc. (read oil price increases) and labor costs (read health insurance).  With  plenty of much less expensive used models on the market buyers are, and will continue, looking to the pre-owned market for value.  This trend explains the increase in activity and sales in the yacht brokerage business over the last ten months.

Nordic Tugs was founded in 1979 and builds tug-style yachts ranging from 26 to 54 feet that are sold through dealers in Europe and Asia, and across the United States.

8.26.10 Insider News

A deal on a 1972 Burger just closed, which had been on the market for four years.  Buyer had had a Broward that burned so he had cash in hand from the insurance company.  Boat (last asking $745k) sold for mid 6′s after price reductions and this was the only bona fide offer that the CA ever got on paper.  A beautiful boat she was sold the previous two times by Luke Brown Yachts.

An older 126’ Christensen (same company that built Tiger Woods yacht) went to auction yesterday.  Minimum bid was set at $2.85m and tendered offers didn’t even come close.  Last word was they were open to whatever it took to sell her immediately.  While she had languished in a local yard and had fallen on very rough times she was moved to the gulf coast for a $2m refit and now is ready to cruise.  Only exterior upgrades are needed to be in yacht condition.

Call me for more details!

We need listings on quality yachts.

The recent increase in sales activity has depleted our inventory of quality listings.  If you are thinking of selling, please contact me.

We will gladly provide you with a free vessel evaluation of what your vessel is worth in today’s market, based on recent sales, similar vessels currently on the market and recent offers on these yachts.

Reply below with your yacht information including length, year, manufacturer, power and location, plus any additional information you care to provide.Please include your phone number in case I need to contact you for additional information to provide you with an accurate evaluation.