As highlighted in this article by Alfonso Postorino, a professional with long-standing experience in the yacht industry and in the refit of large yachts, the set of activities involving major maintenance, overhaul, repair, technical upgrades and/or aesthetic–functional refurbishment of an existing yacht is increasingly taking on the characteristics of an autonomous industry, with processes and skills distinct from new-build construction. Within this context, Italy is establishing itself as one of the most structured and competitive hubs in the Mediterranean.

Refit as an industry? But isn’t refit simply a derivative activity, closely interconnected with new builds? Yes and no. Yacht refit does indeed stem from new-build production, but it is characterised by dynamics that are absolutely distinct and unique, making it a completely different industry in its own right. It is common to see new-build shipyards opening dedicated refit divisions, but they typically do so for two reasons:

employing excess labour and/or occupying existing spaces during a slow-down in the new-build market;
maintaining contact with clients (or gaining new ones) in order to be first in line when the owner decides to commission a new yacht.

In reality, however, the dynamics of a refit yard do not align well with those of a new-build yard. First, the scale of values is entirely skewed toward new construction: the value of a new yacht is measured in tens of millions, whereas a refit rarely reaches several million (and often remains below one). Consequently, management attention naturally focuses on new builds, often to the detriment of refit.

Then there are the timescales: refit projects often begin and end within a few months, and therefore the yard must be able to deliver answers extremely quickly. There is little time for in-depth technical analyses, for evaluating multiple contractors, or for long waits for specific supplies. Priority must be given to what is readily available and easily integrated with what is already on board. As a result, the technical and purchasing departments of a refit yard must adopt an approach completely different from their counterparts in new-build shipyards. Ultimately, the much-invoked “synergies” that new-build yards believe they can deploy in refit operations often turn out to be disadvantages.

In conclusion, the world of refit must be considered an industry in its own right, with dynamics entirely distinct from those of new-build construction.

According to SuperYacht Times, in 2024 a total of 2,200 refits were carried out worldwide on yachts over 30 metres. This figure, which may appear high, corresponds to around one-third of the global fleet, which grows by approximately 200 units every year. Naturally, it is important to clarify what is meant by refit. It does not only include major refurbishment work with internal/external layout changes, hull extensions or repowering; the term also includes routine maintenance, which for a 40–50-metre yacht may amount to around €300,000–400,000 per year.

According to Confindustria Nautica, “refit, repair and storage activities consist of repairing hulls, interiors and complete leisure units, including routine maintenance, refits involving full reconstruction of the vessel, and storage and haul-out services at land-based facilities, together with all the necessary handling operations.” Every refit yard handles a mix of different projects each year, and there is not always a “major job” on the schedule. Much more frequently, work is made up of dozens of smaller tasks, the simultaneous management of which represents an additional organisational challenge.

Again according to SuperYacht Times, in 2024 the United States led the global market, securing 21% of refit orders for yachts over 30 metres, across 29 different yards. Spain followed closely with 20%, concentrated in two hubs: Barcelona and Palma de Mallorca. Italy boasts the highest number of active refit yards (40 in 2024) and is global leader in the 40–60-metre segment. France, on the other hand, has only 13 refit yards, although they all benefit from being located where many yachts remain year-round.

To better understand certain market dynamics, attention must be paid to the so-called key selling points a refit yard must have and to the actual decision-makers in this industry. American yards operate in a category of their own, working with a local clientele composed of a very large fleet usually based in the United States, the Bahamas and the Caribbean, especially in the 30–40-metre range.

Contrary to common assumptions, the owner is almost never involved in choosing the refit yard. The choice is usually made by the yacht manager or directly by the captain. This is why the geographical location of the yard plays an important role in the decision-making process. Yacht managers and captains will prefer not to stray too far from their place of residence to avoid long stays away. This particularly benefits yards on the Côte d’Azur and the Balearic Islands, at the expense of Italian yards. For the same reason, Croatian, Greek and Turkish yards tend to work almost exclusively with clients from their own countries.

It should also be considered that part of the crew remains on board during refit activities, making it important for the chosen yard to be welcoming and located in a town offering recreational opportunities for these predominantly young professionals. Mild winters, proximity to international airports, cafés, restaurants and low crime rates are all factors that significantly influence the decision.

Another important factor is the yard’s ability to offer adequate services also through external subcontractors. From this perspective, Italian yards are certainly at an advantage. Italy is the world’s leading producer of yachts over 30 metres; therefore, all Italian refit yards have easy access to the same subcontractors who may have built the yacht in question or who have the skills to work on any onboard system, fittings or equipment. This explains why the main refit hubs in Italy developed close to the two major yacht-building centres: Tuscany and the Marche. This is particularly relevant because, due to the strong seasonality of refit activity, yards must maintain lean structures, with few direct employees, bringing in subcontractors during the winter season as needed.

No less important is the infrastructural capacity a yard can provide. Some refit yards have equipped themselves with large lifting systems (dry docks or synchro-lifts) capable of hauling out yachts of 80–100 metres. Other yards have gradually acquired increasingly larger travel lifts to meet growing demand, the result of a fleet made up of ever larger yachts.

Let us now turn to the Italian refit market. According to Confindustria Nautica (La Nautica in Cifre), refit turnover in 2024 exceeded €500 million, more than half of which came from foreign-flag yachts. The striking figure is the extraordinary growth of recent years: in 2014 the sector generated just over €140 million.

To achieve these results, Italian refit yards have had to invest significantly in equipment and seek new spaces. Contrary to what one might think, the refit industry has a very high entry barrier. Specialised and high-value equipment is required for hauling and launching yachts. Moreover, a refit yard must necessarily be located in a port area to provide berthing for yachts undergoing work and to enable fast, cost-effective haul-outs and launches.

Fortunately, such facilities are abundant in Italy. Italy is the country with the highest number of active refit yards (40 in 2024). However, all available spaces, particularly in the Upper Tyrrhenian area, are now close to saturation. This represents a limit to further growth in the Italian refit industry. Another structural constraint is the limited number of berths available for large yachts, especially south of Civitavecchia (with the sole exception of the Gulf of Naples) and across the Adriatic and Ionian Seas. If a yacht must travel a thousand miles for a refit, repositioning costs must be factored into the budget.

In conclusion, refit activities constitute a genuine and fast-growing industry, with the current demand–supply ratio under strain. Due to structural and organisational constraints, the entry barrier remains high, and the current shortage of supply is likely to persist.

Final advice for owners, yacht managers and captains: book your next refit well in advance.

Alfonso Postorino