Shipbuilding:Opportunities in the Depression
Since 2011, Chinese shipyards have deeply felt the cold snap in shipbuilding industry and the three main industrial indicators further demonstrate the depression. The new orders and orderbook have both seen declines in the last one year while newbuilding output is also slowing down.
As an important section of shipbuilding, the ship parts import in China features big amount, high frequency, CCC involvement. Most yards face following challenges in future development, but also these could be good opportunities for transformation and upgrading.
Firstly, those small shipyards can adjust development path by strategic cooperation with brother shipyards to set up a more solid and coherent external competitive mechanism and better bargaining advantages.
What’s more important is the enhancement of technology and innovation. Shipyards are supposed to strengthen its investments in LNG carrier, offshore plant and other high-value-added ships to improve the overall competitiveness. The transformation from cost advantages to technology and product strength is essential for Chinese shipyards.
Besides, the new international standards and regulations in ship industry should be paid more attention. The development of new ship types is to be in strict accordance with new energy saving requirements to avoid technical barriers.
Profit is the food and blood for an enterprise, how to save cost and make more profits is the forever pursuit of shipyards. To improve management, strengthen efficiency, lower cost and raise steel utilization are all the measures to increase profits and decrease the delay in delivery caused by time and product quality.
Moreover, the adhesion with banks is also of great significance for shipbuilders. Apart from the cooperation with ship finance leasing company, shipyards could also try to set up an industry-chain financing model relying on the ship-related funds.
It is estimated that the depression will go on until 2015 with recessive opportunities. While bulker and tanker sectors go downturn, high-value-added vessels, green ships and offshore plants orders see better performance. Besides, the ending of newbuidling boom means the beginning of ship repairing business peak. In a world, it is an opportunity for Chinese shipyards and supporting enterprises to “grow bigger and stronger”.