The price of nautical equipment is rising
For many marine suppliers, the beginning of the summer rhymes with a revision of the price lists. In 2021, this could increase in proportions rarely reached, to the point that some distributors were keen to alert their customers, like Tecmar echoing the announcements of manufacturers such as Mastervolt, Marinco, BEP, Attwood and Garelick providing strong increases on July 1, 2021. "This affects certain product families, very diverse, with different levels. There are 2 impacts: the cost of raw materials, with steel, copper, oil derivatives or acrylic. This also starts with aluminum. Big manufacturers like Coca-Cola are buying up all the stocks at any price to make sure they can make their cans for 1 or 2 years. Diodes that used to cost a few cents have gone for some to several euros. There is less material available and more demand. On the other hand, the costs of approach and transport remain higher than before the Covid" exposes Thierry Lambot, boss of Tecmar.
Playing with inventory and price depreciation
Faced with this, distributors are trying to smooth out prices with their guns. "We have already had rate increases and there are regularly. It is difficult to postpone them on the sites, especially since it is difficult to deliver them with the difficulties of supply and availability of products. We try to manage with the existing stock to keep a similar pricing until the end of the summer season 2021. It is easier to make the increases on the retail, because the stores will pass it directly to the boater. On textiles, we already had some in March and we didn't have much choice. Globally, it is difficult to get deliveries, so we can't overstock" explains Patrick Carro of the distributor Interdist.
At Tecmar, they are trying to fill the sheds as much as possible. "We inflate the stocks wherever we can to limit the increase and to have the availability of the products, but it is not enough. Often we have 90% of the order available, but there is still the small part at 30 euros that blocks the site. In first assembly we work on forecasts, so it's easier. It is more worrying for this summer, the yachtsman who breaks a part on his boat. That's why we no longer sell products, but solutions. Not necessarily the ordered part, but a system to help the store and its customer to spend his vacations" reports Thierry Lambot.
A year 2022 which remains unpredictable for a nautical industry with little influence
Unfortunately, the increases in the summer of 2021 are probably not the last. Distributors expect a volatile situation for many months to come. While there is significant speculation on materials, the influence of boating on a global scale remains small in comparison to large industries. "The next 18 months will be unprecedented for the marine industry, with a surge in boat sales volumes not seen for a long time, double-digit growth for everyone, which will dry up the distribution channels. Those who are not able to foresee, anticipate and stock will have a problem. We are used to an annual rate or even 2, but here, the products will increase several times a year or decrease because there will also be overstocked materials. We directly transcribe the decreases and we try to minimize the increases, but we juggle a lot!" concludes the manager of Tecmar.
