Yacht building industry is struggling with economic crisis all over the world. Every related business is trying cost cutting ass a happy medium to avert decrease of profit and keep adequate financial results.
The main question arising is how to do that? Decreasing workers salary is out of question as in effect company could lose most skilful employees, which would probably lead to worsening product quality, losing clients and market share. Moreover the biggest competition being far east industry European minimal wage laws would not make it possible to get salaries low enough to compete with them.
A lot of western yards try to outsource production to less developed countries. In the beginning difference in salaries and worse labor environment allow to produce cheaper thus generating more profit. Unfortunately with time product quality is dropping significantly or workshops demand more money, as life expectancies start equaling between both countries. What is even more dangerous company can loose clients who wish to cut off the middleman and buy directly from the yard.
The main question arising is how to do that? Decreasing workers salary is out of question as in effect company could lose most skilful employees, which would probably lead to worsening product quality, losing clients and market share. Moreover the biggest competition being far east industry European minimal wage laws would not make it possible to get salaries low enough to compete with them.
A lot of western yards try to outsource production to less developed countries. In the beginning difference in salaries and worse labor environment allow to produce cheaper thus generating more profit. Unfortunately with time product quality is dropping significantly or workshops demand more money, as life expectancies start equaling between both countries. What is even more dangerous company can loose clients who wish to cut off the middleman and buy directly from the yard.