custom yacht building

Hargrave Custom Yachts and Yacht Building Industry

Originally used by the Dutch to target pirate vessels, today’s yachts are luxurious ships used by the rich for leisure and sport. The yacht building industry, as a result of the expensive nature of the product being produced, has a very small consumer base able to support it. Even the least expensive yachts available cost at least several hundreds of thousands of dollars on average. Further compounding this problem, is the variety of different options consumers with these kinds of discretionary funds have available for their leisure options. Not only are the manufacturers competing with other yacht builders, but also the distributors of sports cars and other expensive toys for the rich and influential.  Competition within the yacht construction industry itself is fierce, with about a dozen manufacturers controlling close to eighty percent of the total market share. With high starting costs in material and labor, it is a difficult industry to gain entry into. An aspiring entrepreneur needs architects, engineers and managers to oversee the construction of the yachts, and highly skilled employees of this kind are paid at a rate commensurate with their talents. Although in recent years there has been a reduction of the costs of the materials used in the construction process, the price of the finished product has also gone down, keeping profits at a fairly stable level. Those who have the ability and the drive to work past these challenges however, find themselves supplying some of the wealthiest customers in the world with a …