sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery

 

Sail-World.com : Gladwell's Line: America's Cup investment a smart move for New Zealand

Gladwell's Line: America's Cup investment a smart move for New Zealand

'Kiwi Magic, KZ-7’s performance in the 1986 Louis Vuitton Cup helped set up the multi-billion dollar a year NZ marine industry'    © Rolex/Daniel Forster

On the back of the Emirates Team NZ funding and America's Cup challenge announcement there has been a lot of media comment, most of it negative on whether NZ Economic Development should be investing in the New Zealand team.

Most of this comment has been negative and ill-informed and comes off an 'eat the rich' mentality that pervades so much of what passes for media commentary in New Zealand on pretty well any topic.

In New Zealand, earning more than the average wage makes you a 'high earner'; anyone who earns more than $100,000 per year is considered to be 'wealthy'; and houses of more than a million dollars are 'mansions'.

And so the cliches go on.

Much to the socialist media's dismay the public support for the NZ Govt/Economic Development investment in the AC has been fairly good, and the beat up has been confined to those who believe that in hard times, hand-outs come ahead of investment.

Construction at Core Composites - Wingsail assembly - Warkworth (NZL) -the AC45 project is reported as being worth $20million to NZ -  Ivor Wilkins-www.americascup.com©?nid=83003   Click Here to view large photo

The economic return on the AC is reckoned to be about $70 million for a challenge and $800 million for a Defence, of which NZ has enjoyed two. The latter does generate additional tourism and 'walk-up traffic' that has a downstream effect on business.

Emirates Team New Zealand press conference to announce their participation in the 33rd America’s Cup and the signing of Nespresso as a sponsor. -  Chris Cameron-ETNZ©?nid=83003  
During the week on Radio Live Emirates Team NZ CEO discussed the economic impact of the New Zealand investment. Click here?nid=83003 to listen

Began in the early '80's

The superyacht industry was in its infancy when NZ entered the America's Cup game in 1984, now it is a major industry in NZ with some ambitious targets. Currently it is a $1.7 billion a year industry and plans to grow to $2.6 billion in 2015, 70% of its output is for export. It employs more than 10,000 people in 1300 companies.

If you hark back to the early eighties, in fact 1980/81 to be precise, when Ian Gibbs had Swuzzlebubble built by Cookson Boats, with some very innovative interior design by Bret de Thier and - she was probably the beginning of the international marine industry, that is now measured in the billions of dollars.

The 100ft supermaxi Speedboat was constructed in NZ by Cooksons, spars were supplied by Southern Spars, sails by Norths NZ and she was exported for a US owner -  Daniel Forster ©?nid=83003   Click Here to view large photo

Gibbs' boat went onto win be the top scoring yacht in the 1981 Admirals Cup - then the world championship of offshore racing and was subsequently purchased straight after the event by the CEO of Volvo, who would be expected to have an eye for a quality product.

Other top race boats were built around that time, but mostly by a project building process where a large warehouse/factory was leased, a building team assembled and the boat built - before the infrastructure evaporated.

It was not until the 1986/87 America's Cup that the ongoing boat building facilities really started, with McMullen and Wing (who had built Peter Blake's Ceramaco) and Marten Marine coming together to built and fit out the first two fibreglass 12 Metre, sailed in the 1985 World Championship and then Kiwi Magic, KZ-7.

That relationship continued with the building of KZ-1 for the Big Boat Challenge for the 1988 America's Cup.

The next step was the construction of Fisher and Paykel for the 1989/90 Whitbread, by Marten Marine, along with Steinlager 2 under the oversight of Tim Gurr.

Behind those projects a large group of builders, designers, sub-contractors and suppliers were created, which rolled from project to project.

Southern Spars are one of many New Zealand suppliers who have developed highly successful export businesses on the back of America’s Cup involvement over 25 years. -  © Richard Gladwell?nid=83003   Click Here to view large photo


Alloy Yachts managing director Tony Hambrook is presented with a leadership award by the International Superyacht Society. -  NZ Marine   Click Here to view large photo
New Zealand punches above its weight

Their products were also developed to compete, or be the best in the world and give New Zealand the reputation of being a small country that could punch well above its weight, to the point of being unbeatable, on the world's grand prix yachting circuits.

Between these campaigns the superyacht construction and servicing developed trading off the reputation earned in the racing circuits for innovation and excellence. New Zealand got a reputation for building fast, high quality boats that worked.

Home grown designers like Bruce Farr, Ron Holland, Paul Whiting, Laurie Davidson, Greg Elliott, Brett Bakewell-White and others made their mark on the international scene and were able to direct racing and other work back to New Zealand

The wins by the New Zealand Olympic Yachting team in the 1984 Olympics, helped the industry's reputation, as did success on the world match racing circuits with the great Russell Coutts vs Chris Dickson rivalry.

Behind all this sporting success the superyacht and marine industry continued to evolve, but made the transition from using project contractors to building the boats completely in-house - giving better control over quality, developing intellectual property and know-how, and being able to achieve delivery deadlines. All of which was reflected in a higher quality product, built by people who understood yachts and racing, and could deliver on budget.

The New Zealand share of the valuable superyacht refit business is a substantial export earner. The spar in the foreground is from Southern Spars who have a facility nearby. -  © Richard Gladwell?nid=83003   Click Here to view large photo


In 25 years an industry had shaken off its cottage industry root, and developed into an industry that has a turnover of $1.7billion and will be worth $2.5 billion, 30 years after its revitalisation.

The backbone of that growth, some now call an arrowhead - because the industry has outgrown the event - is the America's Cup.

High added value industry

Every economic strategy session we have every attended has always espoused the need for New Zealand to be involved in export industries with a high local content and added value. What could have a higher added value than the superyacht and marine industry?

The NZ tradition of chopping down trees and exporting logs, or exporting coal and semi-processed meat and dairy products are not high added value exports although they do provide some employment.

The NZ Marine industry now employs 10,000 people and trains over 500 apprentices a year. The industry is competitive but well organised, and ably led by the Marine Industries Association.

The America's Cup and Whitbread RTW and to a lesser extent the Volvo Ocean race have been the shop window of the marine industry as the technology and know how developed for these events flows back into other areas of the industry, and particularly superyacht production.

The Viaduct Basin adjoining the America’s Cup bases in downtown Auckland is a magnet for superyacht refits -  © Richard Gladwell?nid=83003   Click Here to view large photo


In good times, NZ builds about 12 superyachts a year, which is only a small percentage of the world production, however most of the craft are at the higher end of the price and size scale - again punch above its weight. The revenue earned from the superyacht industry is substantial - regardless of whether the boats have been built in New Zealand or offshore.

Many of those who are now marine industry leaders, were sailors in the various campaigns and have come ashore and applied their skills and know-how to develop business within the industry.

Mention was made at the Emirates Team NZ AC Challenge announcement last week of the involvement of hundred of NZ suppliers to the team, underlining the real value that this shop window brings to the industry.

And if the tent had folded?

What would have happened had Emirates Team NZ folded their tent and said it was all too hard?

Not only would NZ have lost one of its sporting icons but the NZ marine industry would have lost its shop window. And, if you do the maths off the numbers quoted above the chances of bumping exports by $630million a year in 2015 would have been greatly reduced.

New Zealand has two iconic teams - the All Blacks are one and Team NZ are the other. While many are quick to rag the sailors about losing the America's Cup in 2003, they tend to overlook that the All Blacks have only ever won one World Cup - almost 25 years ago.

A stainless steel superyacht anchor is packed ready for export by Manson Anchors. 10,000 people are employed by the marine industry in New Zealand. -  © Richard Gladwell?nid=83003   Click Here to view large photo


Both the All Blacks and Team NZ offer NZ trade and tourism opportunities that others cannot - because they have the mana (prestige/respect) of being very well performed teams on their respective world stages and most of the movers and shakers of world industry are happy to be on the same stage as people who are perceived as being winners.

Yes, New Zealand has been hit by some pretty hard natural disasters lately. But the road to recovery comes through investment and some hard marketing.

On TV the other day there was a news item about a South Island tourism operator saying that their business had dropped by 50% after the earthquakes (and she wasn't based in Christchurch). How do these people get back on their feet - by getting a Government handout?

Or, by being part of a hard focussed marketing program funded partially by the Government to get tourists coming back into NZ - as can be done off an America's Cup World Series travelling to probably a dozen locations, plus the exposure off the America's Cup itself?

It is an economic reality that left to the small operators, promotion of the New Zealand brand and destination doesn't happen, for obvious reasons. The only way to get the tourism and export growth for the small operators is for the Government to invest on a macro level and get the benefits back at a micro level in terms of employment and tax revenue.

Without the New Zealand investment in itself the country won't get the dividend.

Maybe some would be better to open their eyes before they engaged their jaws or picked up their pens.

The New Zealand brand will be clearly visible to a worldwide audience at the next America’s Cup as a result of the NZ Economic Development investment -  Gilles Martin-Raget-Oracle Racing.com ©?nid=83003   Click Here to view large photo




by Richard Gladwell

  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=83003

1:02 AM Sat 30 Apr 2011 GMT






Click here for printer friendly version
Click here to send us feedback or comments about this story.

Click for further information on
2013 America's Cup

Related News Stories:

29 Sep 2014  America's Cup: Oracle Team USA's AC72 takes to the streets
27 Sep 2014  America's Cup: Then and now - Coutts on why Oracle won, and the Venue
09 Aug 2014  America's Cup: Former Artemis crew member says danger is being ignored
27 May 2014  America's Cup: Oracle Team USA under stress
23 May 2014  America's Cup: Oracle and Team NZ designers reveal AC72 secrets
22 May 2014  America's Cup: Artemis death verdict 'result of an human act'
10 May 2014  A year after the Artemis incident, the sailors tell of the pain
01 May 2014  America's Cup: Oracle and Team NZ tech insights - Free lecture tonight
16 Apr 2014  America's Cup: Expected de Ridder penalty should be reduced
14 Apr 2014  America's Cup: Dean Barker's Blog - A sail with the Duke and Duchess
MORE STORIES ...

News - USA and the World

2014 RORC Transatlantic Race - The inaugural RORC Transatlantic Race, in association with the International Maxi Association (IMA), starts on Saturday 29th November 1200 CET from Lanzarote, Canary Islands bound for Grenada, West Indies, 2,995 nautical miles across the Atlantic Ocean. ... [more]  

ISAF Sailing World Cup Final Abu Dhabi 2014: Smiles were present before racing at the Abu Dhabi Sailing & Yacht Club, on the waters off of the Corniche and around Lulu Island and back ashore upon the conclusion of racing. A north westerly breeze that ranged between 9-14 knots greeted the sailors across the four race tracks. The outside courses saw big waves to add some spice to the sailors’ lives. ... [more]  

Volvo Ocean Race - Team Brunel: Sailing against the wind and ramming into waves is not exactly comfortable. But it can get worse, because right now we are heading straight into a tropical storm. 'Tro-tro-tropical storm?' I stammer in fright to Louis Balcaen. The young Belgian sailor quickly makes it clear that I’m not the only one who is afraid of this particular weather condition. ... [more]  

The Commodore of the San Diego Yacht Club, which has hosted three America's Cups and one America's Cup World Series, appeared on local TV, commenting on the apparent decision to award the 35th America's Cup to British Overseas Territory of Bermuda. In this replay of the video Commodore Chuck Sinks, deftly stays within the confines of not confirming that Bermuda has won the hosting rights. ... [more]  

Overall race leader, Abu Dhabi Ocean Racing has slipped in the Volvo Ocean Race having led for most of Leg 2, and won Leg 1. But as has been done before Abu Dhabi has caught up, and now playing storm-watch. ... [more]  

Mast track issues have dogged the Chinese Volvo Ocean Race entry, Dongfeng Race Team on Leg 2 on the 40,000nm round the world race. The problem is not fully repairable in the current upwind and bumpy conditions, and is certainly an issue of concern for Charles Caudrelier led team. ... [more]  

Volvo Ocean Race: The Traemeister's onboard gym session *Feature by Richard Gladwell/Sail-World.com/nz
On Board Reporter, Brian Carlin, claimed he did not know what a Gym before he set foot aboard Team Vestas Wind. And then compounded his issues by saying that he thought 'Gym' was pronounced 'Gime'. Fitness freak Trae has taken on the invidious task of getting the Irish OBM up to a passable fitness level, believed to be 100 push-ups. ... [more]  

Volvo Ocean Race: Thanksgiving at Sea *Feature by Richard Gladwell/Sail-World.com/nz
Although they may be far from home, old traditions aren't forgotten as the US crew aboard Team Alvimedica celebrate one of the great traditions. And the non-US crew partake of their first Thanksgiving, off the coast of Madagascar. There's some of the traditional fare, adapted for the Volvo Ocean Race, and some messages and mementos from home. ... [more]  

2014 Rolex Sydney Hobart Yacht Race - The official launch of Syd Fischer’s super maxi, Ragamuffin 100, will take place next Tuesday, 2 December 2014, at Sydney City Marine Complex, Rozelle. ... [more]  

The new application from PredictWind for Mac and PC is revolutionary for accessing weather data when offshore. Accessing GRIB files, Weather Routing, GMDSS forecasts and Satellite Imagery is now a simple task with the unique and user friendly interface. ... [more]  

Volvo Ocean Race: Mapfre takes lead in Leg 2 as break point looms *Feature by Richard Gladwell/Sail-World.com/nz
The latest position report from Volvo Ocean Race Control has given the lead in leg 2 of the Volvo Ocean Race to Mapfre (Iker Martinez). She takes over the lead from Abu Dhabi Ocean Racing (Ian Walker), who has led from soon after the start of Leg 2, a week ago. ... [more]  

Over 270 sailors from 38 nations have enjoyed a mixed range of conditions since their arrival early on in the week. The athletes have used the time to acclimatise to their surroundings, different sea states and a variety of wind strengths. But now, the practice time is over with racing across the ten Olympic and open kiteboarding fleets to kick start the inaugural ISAF Sailing World Cup Final. ... [more]  

VOR 2014-15: Some of them also wake up in the middle of the night to check the latest position reports of Team Brunel. The crew is aware of that, including our skipper Bouwe Bekking. 'We are not the only ones looking out for the position reports. We know that the home front is eyeballing every move of us. Our wives, children, girlfriends, friends and supporters live this race as extreme as we.' ... [more]  

ISAF Sailing World Cup Final 2014: Among the ten Olympic series represented, Franck Cammas will be participating in the event for the first time aboard a Nacra 17, this time teaming up with the young, light Alizée Desbordes. Having remained in France to satisfy her professional obligations, Sophie de Turckheim will be following the performance of her favourite helm closely. ... [more]  

ISAF Sailing World Cup Final: Bjorn Allansson (SWE), Briana Provancha (USA), Sofia Bekatorou (GRE), Lara Vadlau (AUT) and Anton Paz (ESP) have fully embraced the Abu Dhabi and Emirati life, grasping the opportunities available with both hands. 'There are so many welcoming and friendly people here,' explained Provancha at the opening press conference. ... [more]  

Leading sailing marine electronics manufacturer B&G has been appointed an Official Race Supplier for the Volvo Ocean Race 2014/15. B&G will also be providing full electronic navigation systems, tactical software and race support to the organisers of the 2014 Volvo Ocean Race, which began on the October 4th in Alicante, Spain. ... [more]  

If you missed this week's edition of Adventures of a Sailor Girl, then hear the replay below. Adventures of a Sailor Girl #31 - Pathways and passion! ... [more]  

Star Sailors League Finals: This Bahaman event is about much more than just sailing, however: it promises a blistering week of high emotion, passion and dazzlingly action that will deliver a unique display of sporting prowess from a slew of champions. All in an easy-to-grasp and see format that even non-sailing folk will understand perfectly. ... [more]  

America's Cup: Sweden to host World Series regatta in 2015 by Richard Gladwell/Sail-World.com/nz
Artemis Racing and the City of Gothenburg are set to host an America’s Cup World Series event during the last weekend of August (28th - 30th) 2015. Racing will take place either on the Gota River close to the city centre, or at Långedrag, and the race village will be located in Frihamnen. ... [more]  

2014 RORC Transatlantic Race - The inaugural RORC Transatlantic Race, in association with the International Maxi Association (IMA), starts on Saturday 29th November from Lanzarote bound for Grenada, 2,995 nautical miles across the Atlantic Ocean. All of the competing yachts are now safely moored in Puerto Calero Marina and last night an informal welcome drinks reception was well received with crew ... [more]  

2014 Chicago Match Cup - At the end of Chicago Match Race Center's sixth season, the numbers show how well CMRC reached both into and beyond the Great Lakes sailing community. CMRC hosted a total of 12 graded events from May to October. Of these, the five Grade Three regattas were the best attended featuring 23 skippers from nine countries. ... [more]  

2014 Extreme Sailing Series - Act 8 - Tom Slingsby, Australian Olympic Laser Gold medalist, and member of Oracle Team USA, has signed up as skipper of Oman Air, one of two Oman Sail Extreme Sailing teams, for the final act of the Extreme Sailing Series in Sydney, Australia (11-14 December). ... [more]  

Volvo Ocean Race: Big spread in fleet as Abu Dhabi leads *Feature by Richard Gladwell, Sail-World.com/nz
Abu Dhabi (Ian Walker) continues to lead the Volvo Ocean Race. She is the most westerly of the fleet as they approach the coast of Madagascar. In a video, Abu Dhabi skipper Ian Walker explains the weather hazards of the second leg of the Volvo Ocean Race. ... [more]  

ISAF Sailing World Cup Final 2014: With a packed crowd of local dignitaries, VIPS and competitors, the ISAF President welcomed the world’s finest Olympic sailors and kiteboarders who will be battling it out on Abu Dhabi's waters. 'It’s a great honour for me to be here today because we have a very important regatta which will be the future of our sport,' explained Croce. ... [more]  

Sir Keith Mills GBE announced that America’s Cup Racing is to return to British waters when the America’s Cup World Series (ACWS) takes place in Portsmouth 23-26 July 2015 and 21–24 July 2016. The second European location is expected to be Cagliari in Italy, where Luna Rossa Challenge have their base. ... [more]  

Volvo Ocean Race: Welcome to Brian's Gime *Feature by Brian Carlin, Team Vestas Wind, At sea
The irrepressible Brian Carlin, the On Board Reporter for Team Vestas Wind is on fitness program on board, under the watchful eye of race veteran Tony Rae. Today as my personal trainer, friend and fellow shipmate we accomplished a goal, 70 press-ups. I’m sure to some it maybe easy but I ask anyone of you right now sitting at your desk, hit the floor and give me 70 on the spot. ... [more]  

Two of the crew from Overall race leader, Abu Dhabi Ocean Racing look at leg 2 and the race overall. Here are the latest blogs (unedited) from On Board Reporter Matt Knighton, along with an onboard video with Simon Fisher (navigator) musing on what is required to win the race, and skipper Ian Walker on how Leg 2 has panned out for them so far. ... [more]  

Rolex Sydney Hobart Yacht Race 2014 - A new deal for corinthians by Bruce Montgomery – Rolex Sydney Hobart media
Rolex Sydney Hobart Yacht Race 2014: Since 1945 starters in the Sydney-Hobart have raced the equivalent of two circumnavigations of the world, almost 45,000 nautical miles. They have been drawn from the seven seas; they come from all corners of the world; they board boats that range from 100-feet supermaxis to boats littler larger than the Owl and the Pussycat’s. ... [more]  

2016 Hansa Class Combined World and International Championships - The International Hansa Class Association has announced that the 2016 Hansa Class Combined World and International Championships will be held in the Netherlands. ... [more]  

Most of the nearly 300 sailors on 216 boats in 21 classes in Alamitos Bay Yacht Club's 67th Turkey Day Regatta came to enjoy sunny sailing in mild conditions, which the weekend delivered beautifully. By tradition, the winners received turkeys, not trophies, but for a few others it was another important stopover en route to Rio de Janeiro and the 2016 Olympics. They hope. ... [more]  

Everyone was expecting a battle between Besson and Cammas. In the end, Morgan Lagravière took the Champion’s title of the seventh edition of the St-Barth Cata Cup with a near-perfect journey. The Marché U day ended with a friendly race to Public. ... [more]  

Robert Scheidt talks to us just a few days before the Nassau start of the Star Sailors League Final. How do you feel inside? I feel very calm. Myself and Bruno have tons of experience with the Star. We’ve been competing together for 10 years now. ... [more]  

The US Optimist Dinghy Association (USODA) has selected Pensacola Yacht Club (PYC) to host their 2015 National Championships. This championship will be a week-long sailing spectacular on Pensacola Bay sailed by International Optimist Dinghy sailors from eight to 15 years old. ... [more]  

Sir Robin Knox-Johnston, an inspirational legend
ISAF Sailing World Cup Final: Inspiring the next generation in the UAE
Airwaves Noumea PWA Dream Cup – Albeau completes world title hat-trick
Volvo Ocean Race – Team Alvimedica pushing harder
Volvo Ocean Race – ADOR continues to inspire youth
Volvo Ocean Race – Team SCA’s super fan
ISAF Sailing World Cup Final: Abu Dhabi Sailing Instructions published
ISAF Sailing World Cup Final - Italian 49erFX duo ready for action
St Barth Cata Cup day 3
Volvo Ocean Race: Racing between a Rock and a Hard Place
Volvo Ocean Race - Position report at: 24 Nov 0700 UTC
2014 RC44 Championship Tour trophy – Video highlights
Volvo Ocean Race - Position report at: 23 Nov 1930 UTC
Volvo Ocean Race - Position report at: 23 Nov 0748 UTC
Gladwell's Line: The America's Cup is now Bermuda's Cup? *Feature
VX ONE Winter Series - Norris and Family earn first weekend victory
RC44 Oman Cup - Nika wins and Team Aqua clinch their fourth RC44 title
18ft Skiffs: Club Championship, Cordukes Clubhouse Trophy - Race three
Volvo Ocean Race: On board with Abu Dhabi - torn sail and where to go? *Feature
2014 Argo Group Gold Cup - Bermuda shines
2014 Turkey Day Regatta – Day 1   
Airwaves Noumea PWA Dream Cup - Delphine Cousin officially world champ   
Volvo Ocean Race: A man's got to do what a man's got to do   
RC44 Championship Tour - A great sailing day on the Gulf of Oman   
Sail-World Team holds first Continental Conference at METS   
ISAF Sailing World Cup Final - Open Formula Kiteboarding event preview   
Volvo Ocean Race: Fleet heads into the Southern Ocean + Videos *Feature   
ISAF Sailing World Cup Final - Set to be an 'experience of a lifetime'   
America's Cup: Source named in Bermuda venue leak *Feature   
2014 RC44 Oman Cup - Challenging day + Videos   
Volvo Ocean Race: A bumpy, hard driving ride in the Southern Ocean   
EPA punts on renewable fuel standard   
Yates Cup: US supermaxi Rio100 wins first offshore race + Video *Feature   
Airwaves Noumea PWA Dream Cup - Men’s title race takes a twist   
RC44 Oman Cup - Consistency hard to come by   
Volvo Ocean Race - Discomfort takes over for Team Alvimedica   
Volvo Ocean Race - Rapid change for Team SCA   
Viper 640 event at Lake Garda - 22-26th June 2015   
British Cycling grows by over 500%, can sailing do the same?   
GC32 Racing Tour 2015 - Dates and venues   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News







Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL NEW US
LocalAds   DE  ES  FR  IT