Warren Yachts – the downturn continues

by Bob Wonders on 2 May 2008 Brisbane-based luxury builder, Warren Yachts has retrenched 20 of its 150 personnel in what it terms 'pre-emptive action in the face of lower projected sales.'

It follows the decision earlier in the week of Riviera which let go 136 staff from its Coomera headquarters.

Warren Yachts, established by industry identity Dave Warren, is now part of the Shipworks Group, which acquired the company four-years ago and moved its operations from the NSW Central Coast to Brisbane.

The company builds luxury cruisers and superyachts in the $5.5 to $20 million range.

Warren Yachts’ managing director, David Price, said a 5 percent drop in sales had been forecast for 2009. For the same period, Riviera is bracing itself for a 14 percent drop.

'Although the luxury end of the boat market is hardly bullet proof, it is not as volatile as the lower end affecting companies such as Riviera,' Mr Price said.

'Warren Yachts is looking to build superyachts up to 54.0-metres (180’) and that’s a segment of the market that rates as ‘red hot’,' he added.

Riviera, to the company’s credit, is making every effort to assist re-trenched contractors and employees to find alternative work in the Gold Coast Marine precinct.

Maritimo CEO Bill Barry-Cotter said he understood 'about 50' former Riviera staff had sought work with the company.

'We haven’t engaged any yet, we’ve just been too busy with the Sanctuary Cove show on our doorstep, but I’m sure we’ll place a few. 'How many will depend on what skills we’re offered and what skills we need,' he explained.