UK Leisure Marine Industry Turns Over GBP2.8bn

by Robert Lee, Tax-News.com, London

11 January 2007

In the 2005/6 financial year, the total turnover of the UK Leisure Marine Industry was GBP2.8 billion (US$5.4 billion), with manufacturing forming the foundation of the industry's success, according to the British Marine Federation's (BMF) annual Leisure Marine Industry report.

Unveiling the new report at the Collins Stewart London Boat Show earlier this week, the BMF said that in terms of value added contribution - the principal measure of national economic benefit - this equates to just over GBP1 billion (37.6% of turnover).

The report shows that with the industry having grown consistently at a rate of 7.8% per annum since 1997, there are over 4,300 businesses involved in the leisure marine market, employing in excess of 35,000 full-time staff.

The manufacture and distribution of leisure and small commercial craft accounts for GBP1.01 billion (36.5%) of the industry's total turnover. The next largest contributors are the providers of consumer services (GBP944 million or 34%) and the manufacture and distribution of equipment (GBP540 million or 19.5%).

Of the GBP2.8 billion industry turnover, GBP918 million (33.1%) is raised through the export of products and services. Of this figure GBP445 million (49%) is made through exporting manufactured boats.

Small businesses account for half of the 35,000 people employed in the industry (50%), and also contribute the greatest amount towards total revenue, creating GBP1.18 billion (42% of industry revenue).

The South East contributed just over GBP1 billion (36.8%) of the industry's total turnover - of which GBP383.1 million is Value Added contribution - followed by the South West (23.1%) and the East of England (12.3%).

Rob Stevens, Chief Executive of the British Marine Federation, speaking at the Collins Stewart London Boat show, commented:

"The leisure marine industry in Britain continues to go from strength-to-strength and remains a successful manufacturing sector and a vital element of the British tourism industry. The marketplace remains confident and it is great to see that the industry is employing over 35,000 people."

"The industry prides itself on the high quality of its products and services, and by maintaining its innovative edge has managed to succeed in a time when British manufacturing faces increasing global competition."

Joel Plasco, Chief Executive of Collins Stewart, added:

"At a time when the UK economy is strong and the FTSE 100 has recently reached its highest level for over 6 years, Collins Stewart's private wealth management business is seeing increasing wealth creation in the UK. This thriving economy is fuelling the growing UK Leisure Marine Industry by driving both industry demand and investment, underpinning the UK's excellent reputation for high quality marine products and service."

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