Marine Industry Business Broker Mick Godwin Explains
Australia’s marine industry is a thriving and diverse sector with a wide range of opportunities for investment and expansion; for entrepreneurs and investors wishing to capitalise on this expanding market, purchasing a company in this industry can be both lucrative and exciting.
This article examines a few advantages you can leverage when buying a marine business in Australia. If you want to see what opportunities I have listed right now, contact me using the details at the bottom of this article.
1. INCREASING DEMAND
Australia’s population growth, rise in recreational boating, and demand for commercial and military vessels have contributed to a steady increase in the demand for marine goods and services. The recreational boating sector in Australia is estimated to be worth over $12 billion annually by the Australian Bureau of Statistics, and growth is anticipated to continue in the years to come. In addition, given the rising need for ships, equipment, and services, the commercial and retail sectors provide tremendous expansion potential.
2. A ROBUST AND VARIED MARKET
The marine sector in Australia is broad and includes several subsectors, such as recreational, world-class sailing, aquaculture, commercial, manufacturing, retail and other maritime services. This diversification offers a wide range of growth and investment options and the capacity to insure against market volatility in any sector. The marine industry in Australia is also well recognised and trusted, with an established supply chain, a competent and skilled workforce, plus a motivated industry growing through research and development.
3. SKILLED WORKFORCE AND RELIABLE SUPPLY CHAIN
Engineers, designers, retailers and tradesmen with in-depth knowledge of the marine sector and its requirements make up Australia’s highly qualified and experienced personnel. This knowledgeable workforce offers a strong base for companies working in the industry, ensuring the calibre and dependability of goods and services. In addition, a robust supply chain supporting the workforce includes raw materials suppliers and Australian-made parts and equipment, giving you a choice to find parts and manufacturers locally.
4. CAPITAL AVAILABILITY
Australia’s economic landscape generally provides those looking to purchase a marine business with access to various financing options, including, but not limited to, Government financing, assistance programmes, and private investment opportunities. This access to financing can support continuing operations and expansion while funding new projects and growth efforts.
5. FAVOURABLE GOVERNMENT POLICIES
The Australian government is committed to assisting the marine sector and has implemented several laws and initiatives to promote development and innovation. The government consults with the industry on various policy measures, including amendments to liability and insurance standards for the maritime industry and tax incentive operations for Australian corporations with eligible Australian-registered vehicles. In addition, the department provides functions to uphold its commitment to continuing a vibrant and efficient maritime industry through the Coastal Trading (Revitalising Australian Shipping) Act 2012. This assistance may come from grants, loans, tax advantages, and access to specialised facilities and resources.
6. POSSIBILITY FOR SIGNIFICANT GROWTH
Given the rising demand for marine goods and services, purchasing a business in the maritime sector in Australia offers substantial growth potential. Australia relies on sea transport for 99 per cent of its exports, with a considerable proportion of our domestic freight also depending on coastal shipping. Reliability of this size ensures new efforts and programs are available to help companies enter new markets, continuing to drive this expansion.
Additionally, there are many prospects for innovation and growth, given the industry’s diversity and stability. Locally, the Gold Coast has established itself as a solid and dynamic economic centre for all types of marine industries, supporting what is happening nationally, thanks to its strategic location. Additionally, the region’s maritime sector is expanding, primarily due to population expansion.
The area continues to see an increase in interstate migration and tourism, bringing a professional workforce that benefits from the year-round, ideal climate and way of life, helping to drive the recreational boating industry to ever-higher levels. As a result, the city offers investors and operators a unique chance to develop their businesses and be successful in this booming and dynamic sector.
Purchasing a marine business, either right here on the Gold Coast or the broader Australia, is a smart move for those wishing to capitalise on a dynamic industry. This industry offers many prospects for growth, and thanks to a solid and experienced workforce, access to financing, and long-term economic conditions, the sector provides a substantial opportunity for investors and business owners.
So whether you want to invest in leisure boats, commercial vessels, retail, manufacturing or any other marine subsector this great industry offers, you can do so while living in Australia’s best place!
If you have a business in this industry and wish to talk about what exiting looks like, or how you can get into the marine industry, then phone or email me now.
Mick Godwin Ph: 0416 638 154
mickgodwin@benchmarkbusiness.com.au
Published in print April-June 2023
