SuperyachtNews.com - Business - The Big Refit Brains Trust – part 2

By SuperyachtNews

The Big Refit Brains Trust – part 2

CEOs and leaders at established refit yards share their thoughts on where the sector stands today and what should be done to secure its future…

In our recent Refit issue of The Superyacht Report, we asked CEOs and leaders at established refit yards three questions:

1. What are your biggest concerns, frustrations or threats in the refit sector?  

2. In terms of working with owners, captains or managers, what changes would you like to see in the way refit business is conducted?

3. What investments or improvements to your shipyard infrastructure, operations or processes are on the horizon over the next three years, and how will they impact your business and clients?

The questions obviously touched a chord as many opened up about the burning issues within this vital segment of the industry. Here are their insightful responses to Question 2 (in no particular order). Their responses to Question 1 have already been published and those to Question 3 will follow in the coming days

...

IN TERMS OF WORKING WITH OWNERS, CAPTAINS OR MANAGERS, WHAT CHANGES WOULD YOU LIKE TO SEE IN THE WAY REFIT BUSINESS IS CONDUCTED?

 

Alberto Amico, President, Amico & Co
The prior definition of the work required is, unfortunately, still a wishlist, often rearranged by on-shore managers without a necessary level of detail being added or achieved regarding the data of the systems and machinery involved, the problem detected, the proposed solution, the consequent work scope, etc. We then receive wishlists of hundreds of items that are impossible to quote for, and for which quotation becomes a gamble or a mockery, often made for commercial purposes only.

We receive wishlists of hundreds of items that are impossible to quote for, and for which quotation becomes a gamble or a mockery, often made for commercial purposes only.

The drivers for the choice of shipyard should be based on other aspects: organisation, experience, references, reliability, competitiveness verified ‘a posteriori’ and real availability of adequate resources. This hardly ever happens, except for the range of vessels over 75 metres LOA.

Once a shipyard has been chosen, it should become a trustworthy partner in solving technical problems and setting up service and refit periods. Fortunately, this is the kind of relationship we are increasingly establishing with our clients but it requires a couple of years of experience together and a professional and loyal owner’s team.

 

Pedro Paiva, Director, Feadship Refit & Services
Just like running a superyacht requires good communication, teamwork and common goals, preparing and delivering Feadship refits require a similar level of partnership and dedication. We see a strong correlation with very successful projects having proper preparation time in advance before the maintenance or refit period commences. This enables us to plan and allocate the right number of resources to the project, as well as to prepare everything prior to the arrival of the yacht at one of our facilities or service partners.

Our service-level agreements play into this; they allow us to plan ahead and to arrange sufficient capacity months in advance, ensuring a smooth operation that makes a major difference. The best refits are usually pleasurable experiences as all participants are working together with Feadship to conceive solutions and deliver on the client’s expectations. Having a common goal and a determined scope, along with easy access to the decision makers along the way, is key for us to deliver on those expectations.

 

Tony Gale, CEO, Icon Yachts
Define the scope [of work] to be carried out well in advance of docking. Sign a contract early enough. Once in the dock, make fewer changes to the scope and keep ‘scope creep’ to a minimum. It also seems odd to say, but don’t reduce the scope that was already agreed for the refit. This is also disruptive to the yard and its subcontractors. Contracted scope means more secure pricing up front, and availability of subcontractors or suppliers more assured. This is especially relevant when wishing to use those subcontractors or suppliers who were involved in the original build.

 

Hidden or unknown scope, lack of drawings, multiple layers of decision-makers and indecisive owners hinder the process, often leading to projects going over budget and beyond the planned timeline.

Joel Shine, Chief Commercial Officer, Derecktor
The quality and timing of information from the customer are the two most significant factors that determine how well we can estimate, plan and execute complex projects. Some of our customers provide us with well-defined scopes of work and comprehensive supporting information, which works to their advantage. This results in more precise estimates and better-planned schedules. On the other hand, hidden or unknown scope, lack of drawings, multiple layers of decision-makers and indecisive owners hinder the process, often leading to projects going over budget and beyond the planned timeline.

 

Image: © Damen Yachting/Amels

Michel Coens, Head Of Refit & Service, Damen Yachting
This links to the first question, really. Often refit locations are chosen based on itinerary, price or time slots but, in my opinion, the decision should be made based on so much more, especially with the main question: Which is the right yard for the refit I’m looking for based on skill set, track record and experience? Then price, refit slot and delivery time become the negotiables rather than the decision-leading factors. They are, of course, important measures for a refit, but a decision should always be based on having the right yard in the first place.

When it comes to new builds, owners tend to take a lot of advice from their team and really assess which yard and build would be best suited to them for the entire process – the product, the delivery time and the price. It would be great to see a more in-depth and advised approach to refit as well. I’m not saying it doesn’t happen for refit because it does, but it would be good to see it happening more, so decisions are made taking many more factors into account.

We shouldn’t forget that refits are often complex and require specialist skills, knowledge and experience, and it’s essential that these are well researched and applied by the right people in the right shipyard.

 

Alberto Perrone Da Zara, Sales Director Yacht Refit, Lürssen
What concerns me is what I see happening with smaller yachts and tighter budgets. I feel for those involved because it’s often just a basic repair or maintenance job that doesn’t get the same attention.

Take smaller projects with a budget of €200,000, for example. It’s rare to see a dedicated project manager for those. Instead, you’ve got shipyard staff, the captain or maybe the chief engineer trying to keep things on track and it all becomes a bit chaotic. That’s a formula for trouble. Protocols for acceptance and redelivery aren’t usually in place, so work gets signed off without a clear spec or contract. It might get by for a while but if you’re a captain needing to redeliver on time and on budget it’s a recipe for headaches.

We recently had a project where the contract was signed in just 44 days, which is too quick. The yacht arrived and we were just scrambling to finish the paperwork. Ideally, we’re planning projects years ahead. Right now, we’re booking boats for 2026, which lets us ensure all specifications will be up to date when we start. Unlike new builds, refits live in a sort of ‘state of emergency’ where the pressure is constant, especially by April or May when everyone wants their yachts ready.

Captains should feel empowered to demand proper protocols and accountability. They should insist on acceptance for each job, describing protocols in detail.

You can’t expect top-tier work in April from people who don’t have the necessary training or environment. It’s like expecting the same craftsmanship as the man who paints the line on the side of a Rolls-Royce; that level of skill and quality can’t come from a place that’s only set up to repair lawnmowers. But there must be a way to introduce a bit more professionalism.

One thing I always advocate for, especially with captains, is to insist on stricter standards. Captains should feel empowered to demand proper protocols and accountability. They should insist on acceptance for each job, describing protocols in detail. And if something’s completed but a minor detail is missing, there should be a 12-month commitment to address it and that promise needs to be upheld.

If an owner has purchased a yacht, they have every right to expect proper specifications to be met. If things aren’t clearly defined, it leaves endless room for ambiguity and any savvy shipyard will see that as an opportunity. They’ll exploit that gap …

Frankly, if we bring this up at the next industry forum, I’m sure representatives from other shipyards in Spain and Italy will be waiting for us outside with long screwdrivers at the ready. But I’m willing to risk that because this change is needed.

 

Stewart Parvin, CEO, Cantiere Rossini
Improving collaboration and communication among owners, captains, managers and shipyards would have a significant positive impact. A proactive, rather than reactive, approach to refit planning would benefit all stakeholders, enabling shipyards to allocate resources more efficiently and reduce stress by avoiding last-minute adjustments.

Educating and involving less experienced owners in the intricacies of refit could help them make more informed decisions, contributing to better long-term care for their yachts.

We also see value in having captains or representatives not just involved but also fully immersed in the refit process from start to finish. Their ongoing presence ensures alignment on technical and logistical requirements, allowing for smoother decision-making and fewer rushed choices. Additionally, educating and involving less experienced owners in the intricacies of refit could help them make more informed decisions, contributing to better long-term care for their yachts.

There’s a real opportunity for the refit sector to unite and strengthen itself as an industry. By forming collaborative networks or associations, refit companies can share insights, address mutual challenges and advocate for best practices in sustainability. Working together can also help smaller shipyards stand out amid the influence of the larger players, creating a more cohesive and resilient refit industry.

 

Evan Kortman, CEO, Balk Shipyard
What is most important for us as a refit yard is to manage expectations and have a comprehensive understanding of the state and needs of the yacht. Early conversations are paramount for success. For example, for the motoryacht Ursus, we had early conversations with the client about the rebuild. We decided to make a 3D scan of the motoryacht. As a result we were able to minimise surprises and offer our client a rebuild with a six-metre extension.

In addition, these early conversations ensure that we build close relationships with our clients and their team. This is extremely important to us at Balk Shipyard because we want to fully comprehend our customers in providing all their needs.

 

Carlos Albons Llompart, Production Manager, STP
Rather than changing the way repair and maintenance companies are run, we believe there’s a strong need for new companies to continue to be set up so that rates remain competitive and overpricing is avoided, and also so that the quality standards they offer and the workmanship remain qualified. 

 

Giorgio Campini, CEO, Tecnopool Refit
One of the biggest challenges is sometimes feeling like the other side (managers, crew and owners’ representatives) don’t fully understand the difficulties we face. More often than not they expect everything to be ready instantly, demanding flawless organisation, but sometimes they bring requests at the last minute and expect them to be done right away, not always realising that we may need to coordinate subcontractors who might not be immediately available.

Communication is essential here. We need clients to share their requirements in advance, not at the last minute, so we can plan and organise effectively.

Another major shift is the demand for faster response times. Now, it’s not enough to answer within a few days; clients expect immediate responses to emails and queries, sometimes within the hour. That urgency applies not only to technical matters, but also to the crew’s requests. If the crew has a good experience at the shipyard, they’re likely to want to return the following season, so keeping them satisfied is important for staying competitive as well.

Communication is essential here. We need clients to share their requirements in advance, not at the last minute, so we can plan and organise effectively. Ideally, we’d be able to come in, do the work in a planned period and finish on time without constantly shifting demands. That would allow us to provide a higher level of service and make it easier to handle future projects as well.

When it comes to larger projects, we do often get sufficient planning time, but for smaller yachts, it can feel chaotic. It’s not the technical staff or crew causing this, but rather a lack of structured expectations from the owners or managers. If we had more consistent standards and timelines, it would make planning much easier for everyone.

 

Image © YachtShot

Toby Allies, CEO, Pendennis
I think it really comes down to ensuring a unified approach to each project, with clearly defined responsibilities across both the owner’s team and the shipyard. It’s not so much about needing a change as it is about making this approach standard across every project.

Not all captains and owners invest the same time in planning, and that’s where differences arise. Today, for instance, I was on a call with a captain and a fleet director who had a very clear vision of what they wanted to achieve, understood the time frame and were open about the boat’s complexities. It’s all on the table and that collaborative approach allows us to optimise the project and meet their goals as a team.

The more preparation and the stronger the partnership, the better the outcome for everyone involved.

The challenge is that we can’t control rotational crew situations where captains and engineers change frequently. If we’re dealing with limited knowledge of the vessel, we just have to handle what comes up. But the more preparation and the stronger the partnership, the better the outcome for everyone involved.

We work hard to retain clients, supporting them wherever they are, whether that’s in Falmouth or the Mediterranean. Maintaining that relationship throughout is crucial. There’s no guarantee a yacht will return, and sometimes issues arise in other parts of the world where they can’t get back to us. Flexibility is essential. With our own trained teams, we’re able to adapt, whether it’s hydraulic service, engineering, exterior joinery or anything else our clients need.

 

Norina Edelman, CEO and Co-founder, IMM Yachting
As much as I believe we – as members of the refit sector – need to do better for owners and owners’ representatives, I also think there are some changes that could be made on the ownership side that would also positively contribute to the refit experience.

In our business, we consider ourselves partners with the crew, captain and owner’s representative. We all have the same goal – to achieve the best results at the most fair price, to deliver on time and on budget, and to achieve excellent quality. To accomplish this, a relationship of trust and confidence going both ways is essential. To create this partnership, a few things would help.

First, be open and transparent. it’s critical that the refit yard understands the reality of the programme, the timing, the likelihood of a job coming to the facility and a variety of other things. If this information is not fully represented or hidden, it can negatively impact the project, but can also change the way refit facilities view clients, resulting in scepticism, lack of trust and ultimately undermining the relationship.

Many owners don’t make early decisions, making shipyard planning incredibly challenging. But if we are open and transparent about this fact, it allows shipyards to trust what they are hearing.

We all understand what the industry is like – many owners don’t make early decisions, making shipyard planning incredibly challenging. But if we are open and transparent about this fact, it allows shipyards to trust what they are hearing. When very valuable spots are reserved despite the fact that the management is aware there’s only a 50 per cent chance of the period materialising, it undermines confidence overall and leads to more complicated planning on both sides in the future. This result is ultimately bad for owners, in my view.

Second, I do think we need to have a recalibration on pricing and expectations. As we all know, the world has radically changed post-Covid, inflation is high and salaries have risen significantly. An increase in hourly rates must follow. Raw-material prices are higher, also resulting in higher prices. Refit yards are expected to deliver exceptional results in a short time frame. To achieve this, having the right people in place is critical, and the right people must be appropriately compensated.

To give an example, a top welder who finds work in a highly technical field (aerospace, nuclear plants, etc) will be at a level of compensation often more than twice what a refit yard or yacht contractor can pay based on market pricing. This means we lose much-needed talent. To keep that talent, and better serve the sector, we must compete in compensation, but to do so, we must be able to sell at higher prices.

Again, achieving the best result requires a partnership between the refit yard and the owner’s team, understanding that the goals are the same on both sides. Anything that contributes to the strength of this relationship on both sides (transparency, clarity, fairness, etc) will lead to better results. 

 

Ferdinando Pilli, General Manager, Lusben
A change we hope to see is in the relationship with owners, captains and managers. Cooperation among all involved parties needs to be strengthened, shifting from viewing the refit yards as mere suppliers to seeing us as true partners in the refit process.

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