Boat builder goes inland

Cheaper commercial land has seen Palmerston North beat Napier in a tussle for the multi-million-dollar business of boat builder Profab Central Engineering.

The company - now located 40km from the sea - last week completed a $2 million Barnett offshore passenger cruiser in its Palmerston North yards and began talks about two bigger vessels, one a luxury yacht likely to cost $10 million.

"We looked for suitable land in Napier first, but couldn't find any near the water," Profab director Carl Ferguson said. "If you can't get near the water, it doesn't really matter where you go, because you're going to need a truck anyway."

He said the business could be even stronger, but it was restricted by a shortage of skilled labour.

"A lot of people are now going into IT and working with computers rather than the hands-on trades."