Feb 26, 2010
High tech marine manufacture sails swiftly into global water
by Robert SmithAn innovative method of making high-tech boat building as smooth as possible has seen New Zealand marine manufacturer High Modulus snapped up by a global composite materials giant.
The company — now known as SP/High Modulus — was founded by Bob Rimmer 31 years ago as a supplier of composite materials such as fibreglass and resins to the marine world.
While it has provided materials to everything from commercial vessels to production motorboats, it made its name in the sailing superyacht business through its long association with the America’s Cup competition.
It was part of the landmark 1986 campaign, developing composite structures for the New Zealand Challenge’s 12 Metre yachts — the world’s first fibreglass 12 Metres.
Seen as a major step forward for the use of composites in the marine industry worldwide, High Modulus has continued its involvement in the world’s biggest yachting regatta, providing structural engineering or composite materials to three of the 2007 syndicates.
Over the years, its structural engineering team has built on its superyacht reputation to spearhead a wave of innovative engineering production methods that has seen the company gain a global profile.
European foray
It established a presence in Europe with the launch of a UKoffice in t995, with operations in Australia and Asia established in 2008.
Late last year, it was bought by Swiss composite material company Gurit Holding AG and now essentially serves as that multinational’s marine division, out of its North Harbour headquarters.
SP/High Modulus topped the marine manufacturing sector in NBR’s monthly Exciting Companies series with a 62% rating in surveys conducted by strategic business consultancy New River. It was followed by Navico, Elite Marine Design and C-Quip international.
The company has primarily built its reputation on its B3SmartPac (read B-cubed Smart Pac) boat construction system, which offers builders all core and reinforcement pre-cut materials that they need in one package.
The process reduces build time, labour costs and material waste, making the notoriously cost-heavy boat construction process more cost effective, while also ensuring a high level of quality control throughout the construction process.
B3SmartPac sales and marketing manager Sian Raynor said while there were several manufacturers around the globe that offered similar kitset products for the high-tech race market, the local version offered a full package.
“It’s a fairly unique construction solution because it offers both pre-cut reinfotcements and core materials, unlike other operators who just supply the core composite materials.
‘Builders benefit from the expertise of our structural engineering team and straightfotward approach to materials supply, without the usual complexity of the purchasing and building process seen for this type of marine project.”
Miss Raynor said the Gurit acquisition was not just a sign of confidence in the process but also helped put the newly owned company into a stronger position.
“The acquisition means we now have access to a different set of resources, a greater range of materials and new support. The overall company has good technology behind them and a strong research and development focus.
“The key thing is it allows us to he more flexible with our offerings, and that’s what will be needed for future growth.”
Kiwi branding
Despite the loss of several high profile players in the local marine manufacturing industry, more businesses are feeling positive about the future.The New River survey of 20 companies in the business found 52% of respondents rating business as buoyant, with just 32% finding it difficult and 16% classifying business as neutral.
It’s been a hard two years for the industry, with receivers called in at long-term manufacturer Salthouse Marine earlier this month, while Genesis Marine, VaudreyMiller Yachts, Sovereign Yachts and Calibre Boats have also recently sailed into troubled waters.
But respondents to New River’s survey found demand had picked up in both Australia and New Zealand in the new year, with increases in sales, enquiries and orders reported.
Another silver lining can be found in the sinking of competitors with the marine manufacturers left floating able to pick up the extra work.
Companies that carry out repairs and supply parts have also benefited from the drop in new boat building.
While the future does look a little clearer, there are still words of warning in the report. Although demand has rebounded, it has not picked itself back up to the levels seen before the recession.
Overall, the image of the New Zealand marine industry is still seen as a strong one around the world, with good demand for locally made boats and marine technology, despite competition from low-cost counterparts in Asia.
“New Zealand boats are well regarded overseas,” said one respondent. “Overseas buyers are looking further afield, looking at New Zealand favourably.”
*$1.8 billion: Annual sales of the New Zealand marine manufacturing sector
*10,000: Number of people employed in the sector
*$535 million: Annual exports from the sector
*$34 billion: Global annual sales of yachts and leisure boats
Top 10 Marine Manufacturers companies
Rank / Company/ Excitement rating1 SP/High Modulus
2 Navico
3 Elite Marine Design
4 C-Quip International
5 Q-West Boat Builders
6 Sea Tech
7 Sealegs
8 Yachting Developments
9 AMF Boats
10 Feadship
