The yacht-building industry in Britain has faced significant challenges, particularly in the wake of the pandemic, which resulted in heightened demand for private maritime getaways.

Supply chain disruptions hindered access to essential components, causing prolonged lead times and unpredictable production costs. Even as recently as six months ago, sourcing electronics remained a struggle, while embargoes on Myanmar teak and the increasing emphasis on sustainable materials compelled manufacturers to explore alternative timber options.

<p Spirit, a prominent builder of sailing and motor yachts, experimented with lignia for decking—an innovative material heat-treated and resin-infused—but eventually opted for Canadian Douglas fir for certain models. This research was undertaken in collaboration with Pendennis shipyard, one of Europe’s leading superyacht production facilities located in Falmouth.

Despite supply chain improvements in the previous year, the order books at Spirit were not overflowing, as noted by Julian Weatherill, the company’s sales director. He remarked, “Last year was a quiet year.” However, in the final quarter, the Ipswich yard successfully secured four new orders, capable of producing up to six boats simultaneously.

Motor-yacht manufacturer Princess also reported a transition to more stable conditions in the industry. Joe Hill, Princess’s sales director, acknowledged, “We faced significant hikes in the costs of steel and petroleum products integral to GRP [fibreglass] construction,” but noted that delivery delays were nearly a thing of the past and yacht pricing had begun to stabilize.

The British Motor Yacht Show recently celebrated the resilience of the £1.4 billion leisure marine market. Positioned at the high-end of the sector, this event served as a critical platform for introducing new products to the UK, including premier launches by luxury yacht maker Sunseeker. The event also highlighted British craftsmanship, featuring bespoke brands like Cockwells and Rustler Yachts, which displayed their hand-built models.

Weatherill expressed concern that larger shipyards may have encountered more severe challenges in their recovery. He explained, “If you can’t procure parts to complete a boat and meet essential milestones required for issuing payment invoices, cash flow can rapidly become problematic.” He elaborated that those producing greater quantities of vessels could face cash flow issues despite having a solid order book.

Such financial constraints can result in delayed deliveries, which may lead to customer dissatisfaction and potential contract withdrawals.

Job losses have emerged as a consequence of these pressures. Last December, Princess announced the elimination of approximately 260 hourly positions in Plymouth, following an acknowledgment from CEO Will Green about the “most challenging commercial conditions in the company’s history.”

Similarly, Fairline reduced its workforce by over a hundred in Oundle, and Sunseeker indicated it would temporarily lay off a comparable number of employees until the end of January.

Sunseeker attributed its disruptions to cash flow issues impacting its supply chain, coinciding with a recent penalty exceeding £350,000 for importing teak from Myanmar, which is currently under embargo. According to Sunseeker’s latest filings with Companies House, the company had £15 million in cash reserves as of April 30.

All three motor yacht builders are backed by private equity firms. Sunseeker was acquired by Orienta Capital Partners in partnership with Italian Lionheart Capital, following its previous ownership by China’s Dalian Wanda Group.

Fairline entered administration in late January after being purchased by Arrowbolt Propulsion Systems from Hanover Investors the previous month. Recently, it was acquired by Bronzewood Capital.

Princess was sold to KPS Capital Partners in 2023, succeeding the prior private equity ownership by L Catterton.

Mark Richards, the Unite officer representing Princess’s workforce, expressed concerns regarding delayed payments to suppliers, revealing that KPS intervened to settle much of the £43 million owed to creditors prior to initiating layoffs in their HR and assembly departments.

Richards fears that Princess may not achieve profitability or break even this year, despite reassurances from management, due to challenges from US tariffs and rising national insurance costs that took effect last month. He speculates that the owners aim to position the company for sale as soon as possible.

“Investment firms like KPS often seek to acquire companies such as Princess Yachts with the intent of turning them around within a few years to make them profitable for resale,” he said.

In contrast, Hill emphasized KPS’s commitment to long-term investment in Princess. “I understand the perception that private equity firms seek quick returns,” he acknowledged. “However, that’s not the approach with Princess.”

Hill highlighted that the firm’s investments have driven positive changes in the business, and they continue to support the company’s growth.

The first quarter saw a 45 percent increase in orders for vessels measuring 75 feet and above compared to the same period last year, signaling a rebound following a period of stagnation.

“We’re witnessing increased confidence, indicating a potentially pent-up market… The volume of orders is rising,” he noted.

Weatherill remarked that current interest is primarily from affluent customers, which subsequently benefits lower-budget buyers. Spirit recently secured a £5 million order for a 78-foot yacht and is negotiating for additional similar orders.

Hill revealed that the firm plans to introduce a more affordable yacht model following the launch of its Explorer line designed by the Italian car designer Pininfarina, aiming to attract younger clientele in their late thirties to early forties who seek modern designs.

Oyster, another sailing yacht manufacturer, reported that it has defied the flat sales trends experienced by competitors by embracing the adventure lifestyle. The Oyster World Rally, a 16-month circumnavigation exclusive to its yacht owners, has completely sold out for 2026 and is nearly sold out for 2028, with some boats still under construction.

Ashleigh Highfield, Oyster’s CEO, stated, “More than half of our sales come from individuals who are drawn to the adventure, and interestingly, many of them are not seasoned sailors.”

To further engage newcomers, Oyster has launched the Explorers Club for shorter voyages lasting three to six months, targeting those interested in taking a mid-career break, and has plans to establish a sailing academy to offer comprehensive training for families and beginners.

Sunseeker declined to provide comments on current developments. Fairline was also contacted for statement.