Superyacht sales surge sets off wave of boatyard growth

An unprecedented surge in sales of superyachts has led to a wave of expansions and upgrades among boatyards along the Miami River.
“The important job-generating marine industry on Miami River is growing,” said Miami River Commission Chair Horacio Stuart Aguirre, “with recently completed significant improvements at RMK Merrill-Stevens and Apex Marine Boatyard and a sizeable expansion of Norseman.”

He thanked RMK Merrill-Stevens for giving the commission a tour of its recently completed $35 million modernization, featuring new shiplifts, seawall and office building.

The company, established in Jacksonville in 1885, relocated in 1923 to the Miami River, where it now operates two boatyards facing each other across the river.

RMK Merrill-Stevens’ updated Superyacht Yard, 1270 NW 11th St., reopened for business in February. Its 2,700-ton shiplift is the largest in South Florida, said Marketing Director Nicole Squartini. Built by Pearlson Shiplift Corp., the lift is the largest with full keel capture in South Florida, she said, and is capable of lifting power catamarans and superyachts with a keel-to-keel distance of 36 feet.

“We are still finalizing our building fit-outs, anticipating completion around March 2022 for the administrative offices,” she said. “To date we have hauled superyachts ranging from 100 to 240 feet in 2021.”

The South Yard, 881 13th Ave., which services yachts up to 80 feet long, has remained in continuous operation, Ms. Squartino said, throughout the modernization. New offices and conference rooms have been constructed, she said, with more upgrades planned to continue into 2022.

While many industries have suffered setbacks in the past couple of years, sales of yachts have soared. Brent Allsop, RMK Merrill-Stevens’ north project manager, said yacht brokerage rose 46% in the first quarter of this year, and the company has seen month-to-month increases on vessel repairs and maintenance in the 35- to 100-foot range. The company was recently named Sealine Yachts’ North American Dealer of the Year for the third consecutive year.

“The larger yachts have also been completing maintenance, repair and refitting on their usual scheduled programs” Mr. Allsop said. “Shipyard availability for larger yachts was stretched to limits this quarter, with the majority of South Florida shipyards at capacity.”

Apex Marine Boatyard recently completed significant improvements, said President, Owner and Founder Issy Pereira. His company is the authorized dealer for Miami-Dade and the Florida Keys of Tiara Yachts and Pursuit Boats.

Until six and a half years ago, Apex Marine was in Fort Lauderdale, but when Mr. Pereira was asked to leave to make room for condo development he moved his business to the former Allied Marine site at 1995 NW 11th St.

“When we moved in it was basically an abandoned marine facility,” he said. “We refurbished and turned it into our showroom and sales offices.” Apex Marine also acquired five acres on South Fork Canal to display smaller vessels.

Mr. Pereira said South Florida’s growing demand for yachts and superyachts has drastically reduced available inventory.

“The industry has been on a tear,” he said. “We sold our inventory of Tiara yachts through the end of next year, and have only a handful of our Pursuit boats are not yet sold. On the repair side, business is up about 25%.”

A chronic shortage of qualified employees continues to challenge the industry. “When we moved here from Fort Lauderdale,” Mr. Pereira said, “we brought about 18 of our employees with us. Some went to our Pompano Beach location. Since then we’ve hired 20 to 30 people, plus subcontractors. We offer good benefits, so we have very little turnover. And every once in a while we pick up a good experienced worker.”

A greater threat, he says, is the scarcity of marinas and other places to store large boats, fueled by a trend of turning waterfront land into condo sites.
“We have lost sales because people could not find anywhere to keep the boat,” Mr. Pereira said. “That is very concerning.”

Mr. Aguirre said Hurricane Cove Marina and Boatyard, 1884 NW North River Drive, will soon commence construction of a marine retail building.
Norseman Shipbuilding and Boatyard, 437 NW South River Drive, has been in business since 1940 but dropped the shipbuilding side in 1968 to concentrate on yacht repair, said owner and Manager Marty Martell. A major expansion is scheduled to begin Jan. 2. Included in the upgrade is a shiplift that can haul vessels up to 230 feet long, with a maximum beam of 27 feet.

“This will give us the ability to work on catamarans,” Mr. Martell said. “We are really excited about that.”

Norseman’s location at the mouth of the Miami River gives it another advantage over competitors, he said, particularly Fort Lauderdale shipyards. “Their clients have to navigate New River, which takes a long time.”

The marine labor shortage is an issue. “We’re going to need more of everything – bottom painters, carpenters, electricians,” Mr. Martell said. “We will be nearly doubling our full-time employees, from around 30 to 50 – plus there are 10-20 subcontractors here every day.

“The biggest challenge is finding people with experience. There’s no response to listings on job boards for the kind of people we’re looking for. We’re now talking to people who are somewhat mechanically inclined and putting them through a training program.

“In the meantime, we’re doing a lot of overtime.”