More of this Feature • Part 1: Warning Signs • Part 2: Warning Signs continued
Related Resources • Spectator Index
Elsewhere on the Web • tomfexas.com

Mike Joyce is CEO of, among other enterprises, Hargrave Custom Yachts and Monte Fino Custom Yachts. Since meeting him in 1978, we've collaborated on many new construction projects. During the last Fort Lauderdale International Boat Show, we were having a nice buffet lunch Joyce had arranged for owners and clients at Bahia Mar. I was scarfing down a couple of roast beef on rye sandwiches when Joyce uttered two truths (numbers one and two below). As soon as I heard them, I tapped him on the knee and said, "That's an article!" Serendipity! Free lunch and two articles to boot. So I wish to thank Joyce, my office staff (Mike, Nick, George, Dave, and Wyatt), and others in the business (who shall remain anonymous) who have contributed to this article.

Some of you may get your shorts in a knot over what follows, but everything I write here has been gleaned from experience on the part of those in my office (with a collective 130 years in the business) and me, plus some of the big players in the motoryacht industry who I've come to know over the years. Everything I describe here has actually happened. Before you get upset and start writing snotty letters to the magazine, remember that truth is power. So read, learn, and hold the snotty letters. And remember, if any of the following items apply to your builder, it doesn't necessarily mean the firm is heading for trouble, but it does warrant careful investigation.

TWELVE SIGNS YOUR CUSTOM BUILDER MAY BE HEADING INTO TROUBLE

1. The yard just signed a contract for its biggest boat ever. Time and time again in the industry, builders have gotten into big trouble building boats much larger than they've ever built before. Believe it or not, many reputable builders have started huge projects without really knowing what the vessels will even cost. Project lengths should increase in reasonable increments. For example, if the builder's largest launch is 120 feet, it will probably have no problem building a 130- or 135-footer. However, jumping to 180 feet could be big trouble. It's hard to believe that management would bet the future of the company on a huge megayacht, but the glory of such projects is often just too great to resist.

2. The yard just moved into a new, state-of-the-art, multimillion-dollar facility. Builders who had perfectly adequate (although maybe a bit primitive) boat shops get all glassy-eyed about a huge, new facility with multiple overhead cranes, polished concrete floors, mega-lumen lighting, hot- and cold-running secretaries, and private offices for everybody including the sweeper. In their original facilities they put out excellent vessels with low overhead, but the exact same boats built in the new facility now cost the buyer 15 to 25 percent more.

Next page > Warning Signs, Part 2 > Page 1, 2