Benetti Yachts faces a boom in new orders, exposure to the Russian market, a shortage of craftsmen, and alternative propulsion systems.

Rationalization of shipyard space, a post-lockdown sales boom, a particularly challenging delivery schedule, exposure to the Russian market, the risk of artisanal staff theft between companies, and new decisions to be made regarding propulsion and sustainability. These are some of the many current topics explored by Sebastiano Fanizza, Benetti Yachts' commercial director, in this exclusive interview with SUPER YACHT 24.

Fanizza, let's start with Benetti Yachts' 2021 results, which were exceptional: what are your predictions for the current year?

Closing 2021 with sales of more than two kilometers of boats, for a total of over €1,1 billion, is a remarkable result, but it inevitably brings with it a certain headache during the delivery phase and will lead to a reduction in supply for short-to-medium-term deliveries over the next two years; 2022 will therefore be penalized in this regard. Naturally, the situation is different for the supply for delivery in 2025-2026.

How much do you think the war in Ukraine will impact your business?

“We are aware that the current geopolitical situation will have a social and economic impact internationally, not only on the Russian market.

We are constantly and closely monitoring the evolution of the scenario, however, given the complexity and potential rapid changes in the context, we prefer not to share information and perspectives at this time."

Have you considered expanding your production capacity to keep up with the growing demand for yachts?

We did something different: as soon as the pandemic shutdown hit, and we didn't know what to expect, at the beginning of 2020, we worked to rationalize all possible spaces to prepare for a possible future increase in demand. In May, during the lockdown, we made our first sale; from then on, we started to grind out work and sales began, and in September 2020, thanks to our previous rationalization, we were already ready to face the increase in demand that—against all statistics—occurred. With the greater product availability we had compared to others, precisely because we had already rationalized every square inch of the Benetti shipyards, we were able to enjoy this advantage at the peak of the market, with a product that is still popular and with a very well-organized sales team, achieving the best possible results. I believe that modifying the warehouse structures to expand them could be risky because in a possible future phase of reduced activity, we could have unused spaces. I believe the right approach to take is to enjoy the moment of advantage that perhaps in ten years it might no longer exist, without risking the company with investments that, at that point, would prove fruitless.”

What was the best-selling product type for your shipyard?

"In terms of product size, we have one of the widest ranges in the nautical industry, from 34 to over 100 meters in length. We've sold a huge number of 40-meter and 50-meter models. In 2021 alone, we made 16 sales of 50-meter models. Considering that a 50-meter model can start at €35 million, rising with the customer's customization requests, this is an impressive figure. Almost more than that achieved with the 40-meter model, which is also extremely high."

Skilled labor shortage: how much do you feel about this problem and how are you addressing it?

We're aware of the problem: the nautical industry is made up of artisans, and many of them, who work to build our ships, have thrown themselves into the unknown, accepting orders even before they were fully organized and able to handle them. While Benetti Yachts is a huge industry with highly skilled management and—as any business should—provided with forward-looking plans, not all artisans have these resources, and for this reason, many of them are now unable to cope with the workload. This means that some of them—unwillingly—have to renege on their commitments, and others are witnessing their resources being "stolen" by competitors. This situation is clear for all to see: we ourselves see our resources being targeted by various headhunters in Italy and Europe. Since the nautical industry is made up of artisans, the problem must now be addressed. As a company, we've organized ourselves with the resources we had planned in our acquisition plan, and we're proceeding accordingly. We're only experiencing a few slowdowns due to the artisans' problems, but we're here for our artisans to help them. to organize themselves in this difficult time. What is worrying is that in the future some strategic suppliers may fail due to a lack of resources.”

What is Benetti's focus on engine and propulsion?

We are studying all aspects. As for propulsion, we are studying all possible solutions applicable today, including those with truly futuristic potential: all solutions are being analyzed, including nuclear power. Some solutions, such as methanol reforming, remain futuristic; hydrogen is extremely complicated to maintain the minimum required temperature, and currently, it's not possible to achieve this on a ship of this type for various reasons. Other solutions, such as biofuels or synthetic fuels, are more feasible; from what is emerging from studies currently underway, these fuels could be immediately applied to diesel engines currently on the market. Among the many solutions available today, the most popular seems to be diesel-electric, with or without batteries, but it must be kept in mind that these costs must be managed, as the choice of these technologies adds to the cost of the ship. Currently, some shipowners are choosing these solutions, while others consider diesel the best technology while awaiting new, more economical solutions that can save fuel. It also depends greatly on the shipowner.

How do you follow the ship once it leaves the shipyard with its new owner?

Three teams, each dedicated to its own segment, provide differentiated support for the ship once it leaves the shipyard for the first two years. This includes both the ship itself and the ability to build future vessels. Then there's our dedicated after-sales team, trained to respond 24/7, who provide global support, and a team of our key suppliers, built over years of work, who support us worldwide. We have two very strong bases, one in the Mediterranean, of course, and one in Fort Lauderdale, where we personally handle all our clients' issues. We're currently building a strong base in Hong Kong to handle all our Pacific Rim clients.

What will be the next launch for Benetti Yachts?

Following the recent launch of Luminosity, one of the largest floating hybrids in the world, in mid-April we will launch a 37-meter B.Yond, one of the smallest floating hybrids in the world. B.Yond has dual propulsion—traditional and electric—which allows for an increased variety of vessel usage styles, with greater comfort and ease of handling. Having two types of propulsion also ensures the vessel is more protected from any emergency.

According to our studies, in the typical operating scenario of a 37-meter vessel, the B.Yond with the SCR system in the hybrid version can emit approximately 20% less carbon monoxide and up to 70% less NOx; this is a significant reduction compared to a normal vessel. And that's exactly what we set out to achieve."

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