the shipbuilding and offshore marine supplies · pdf filethe shipbuilding and offshore marine...

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© BALance Technology Consulting 2014

Including selected results of a study

for the European Commission 2013/2014

Joachim Brodda

BALance Technology Consulting, Bremen, Germany

WORKING PARTY ON SHIPBUILDING (WP6)

WORKSHOP ON SHIPBUILDING AND THE OFFSHORE INDUSTRY

The Shipbuilding and Offshore Marine Supplies Industry


WP 6 Meeting 2014

Various Markets for Marine Supplies

• Newbuilding of Merchant Ships and Offshore Ships (shipyards, boatyards and shipping companies)

• Ship repair and conversion of merchant ships (shipyards, boatyards and shipping companies)

• Retrofitting - a special conversion market for ships following new regulations (shipyards, boatyards and shipping companies)

• Naval shipbuilding incl. maintenance and repair (shipyards and governments)

• Offshore O&G Platforms, Jack-ups etc., (offshore- and shipyards, oil and gas companies/operators)

• Offshore Wind (offshore- and shipyards, e-energy companies/operators)

• Boatbuilding (boatyards, shipyards)

• Other marine and marine supply markets Offshore underwater equipment and services

Traffic management, logistics support and environmental surveillance

Safety and security markets

Polar technologies, marine science technologies

Harbour technologies

Shipyard technologies

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WP 6 Meeting 2014

Average World Market for Marine Supplies 149 bn €/a (2006 – 2010)

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

An

nu

al

do

me

stic

de

ma

nd

in

mil

l. €

Annual national demand (Top 20) for marine supplies in mill. €Data: averages from OECD and Eurostat (2006-2010), OECD Input Output tables 2005, publications

Total global purchasing volume: 149,05 bn €

5.750,81; 4%

22.333,73; 15%

58.913,24; 40%

3.464,68; 2%

8.999,34; 6%

34.523,13; 23%

1.100,67; 1%

3.223,72; 2% 10.736,70; 7%

World Market Marine Supplies EUR 149,05 billion/a(average 2006-2010)

Asia - Total External Services

Asia - Total Half Raw Materials

Asia - Total Components and Systems

Europe - Total External Services

Europe - Total Half Raw Materials

Europe - Total Components and Systems

RoW - Total External Services

RoW - Total Half Raw Materials

RoW - Total Components and Systems


WP 6 Meeting 2014

The economic downturn created insourcing tendencies

50%

55%

60%

65%

70%

75%

80%

85%

Ratio purchase value / production value

Italy Germany Korea Japan USA EU 28

Source: OECD, Eurostat, BALance TC

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WP 6 Meeting 2014

Value chains in shipbuilding: Major 1st tier suppliers consolidate and grow …

vertical, pyramidal co-operation

Horizontal co-operation

Shipyard A Shipyard B,

module factory

„1st tier supplier“

Supplier Subcontractor

Material Component Systems

Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design

„2nd tier supplier“

„market level“


WP 6 Meeting 2014

Value chains in shipbuilding: … and globalise their supply chains

vertical, pyramidal co-operation

Horizontal co-operation

Shipyard A Shipyard B,

module factory

„1st tier supplier“



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design



Manu -

facturing

Assembly

Engineering

Design

„2nd tier supplier“

„market level“

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WP 6 Meeting 2014

( )

Value chains in shipbuilding: More fragmentation and globalisation

Shipyards

Material Suppliers

Steel/Pipes/Paint …

System/Component Suppliers

Manufacturer

Subcontractor Design/Engineering

Subcontractor Sub-Assembly/Service

Subcontractor Assembly/Service ( )

+/- 30% +/- 30% +/- 40%


WP 6 Meeting 2014

Europe Production Value

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

Tota

l P

rod

uct

ion

in

mil

l. €

EU 28 + Norway + Turkey - Total Production in mill. €(average 2006 - 2010) - 61.8 bn €

EU-28 alone: 52,5 bn € (abt. 35% world production)

(abt. 41,5% world production)

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WP 6 Meeting 2014

Europe Export Value

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

Ex

po

rt v

alu

e i

n m

ill.

€

EU 28 + Norway + Turkey - Total export value in mill. € - 27,43 bn €

Source: Eurostat (average 2006-2010), BALance TC calculations

abt. 44% of the production goes into export abt. 33% is ex EU-28+N+TR export abt. 11% is inner European trade


WP 6 Meeting 2014

Globally >11.500 marine supplies companies exist based on analysis of certificates

0

200

400

600

800

1.000

1.200

1.400

1.600

N° of Companies in top 20 Countries

Source: BALance TC calculations

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WP 6 Meeting 2014

Asian Manufacturere show significant growth rates in MED certificates 2010-2014

+ 125% + 125%

+ 16%

+ 120%

Source: MarED DB 10/2014


Economic drivers and market outlook

for 7 markets

including market forecast 2013-2017 Shipbuilding, Shiprepair, Retrofitting,

Naval Shipbuilding and MRO, Boatbuilding

Offshore Oil&Gas, Offshore Wind

Future Projection Marine Supplies

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WP 6 Meeting 2014

Marine Supplies Market Forecast 2013 – 2017

• + 13,0 bn/a USD – Offshore Subsea Market – Drivers: Offshore O&G, World Energy demand, Energy mix, Long Term: Deep Sea Mining and Exploration, Marine Science

• + Harbour Technologies, + Shipyard Technologies, + Coastal Engineering

• + Marine Safety and Security Technologies, + Traffic Control Technologies

• + environmental surveillance and cleaning, + Polar Technologies, Marine Science Technologies


WP 6 Meeting 2014

Offshore (floating) dominates the shipbuilding market >130bn USD - ~32%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Merchant Shipbuilding 2013-2017 [bn USD]

Total Orderbook Forecast 410 bn USD total shipbuilding value 252 bn USD marine supplies value

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WP 6 Meeting 2014

Offshore ships clearly represent high value and marine supplies intensive ships

Shipbuilding Forecasts 2013 -2017


WP 6 Meeting 2014

Marine Supplies Industry Structure Simplified Structure of 10 Supply Trades 1. External services and subcontracts - engineering, design and consulting services are

covered, also subcontracts for pre-manufacturing or assembly. But, in many cases these are integrated in post-calculation data of material supplies or system/ equipment supplies, i.e. these are included in the following subcategories.

2. Materials – Steel (half raw materials, subassemblies)

3. Materials – Pipes and Ducts (half raw materials, subassemblies)

4. Materials – Paint, Coating (paints, painting services)

5. Systems/Equipment – Ship Operation (steering gear, anchor, deck machinery, life saving

equipment, MARPOL equipment, general outfitting components)

6. Systems/Equipment - Cargo Handling and Processing Equipment Equipment

and Special Cargo Plants (cranes, sucker, conveyors, cargo lift, hatch covers, Ro-Ro doors and ramps, trailerlifts, cargohold outfitting and fittings, HVAC for cargo holds, LNG/LPG plants, fishing vessel equipment, special equipment for dredgers, offshore ships equipment - production, processing, drilling, exploration, etc.)

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WP 6 Meeting 2014

Marine Supplies Industry Structure Simplified Structure of 10 Supply Trades 7. Systems/Equipment – Accommodation (preprepared cabins, doors, windows, walls,

ceilings, coverings, floor coverings, carpets, staircases, railings, lifts, sanitary rooms, swimming pool equipment, accessories, equipment for public rooms, pantry, bar, restaurant, kitchen, food storage, laundry, furniture and decoration etc.)

8. Systems/Equipment - Propulsion, Power Generation (diesel engines, boiler, steam

turbines, gas turbines, gears and couplings, propeller, shaft and bearings, accessories, auxiliary engines (diesel), auxiliary boilers, etc)

9. Systems/Equipment - Auxiliary Systems, Apparatus & Accessories for engine operation,

ship operation, cargo handling, accommodation (seawater cooling, fresh water cooling, fuel systems, lub oil systems, exhaust system, engine starting system, steam systems, heating systems, ballast water, fire fighting, deck washing, pressurized air, tank heating, cargo hold heating and cooling, cargo pumps, inert gas plants, tank cleaning, tank heating, drinking water, sanitation hot/coldwater/sewage, HVAC, waste disposal, swimming pool technology, general engine room outfitting, roll-damping, anti heeling systems, active stabilizers, etc.)

10.Systems/Equipment - Electrical Plants and Electronic Systems (main plants,

generators, batteries, cable trays, cables, fittings, e-engines, lighting (all rooms and decks), electrical heating, alarm and control systems (ship automation, remote engine control, monitoring, cargo control, communication systems, nautical equipment (compass, radar, log, sat receiver, ECDIS, weather plotter), navigational lighting, entertainment systems (audio, video, cinema, theatre, meeting rooms, hotel management, clocks)


WP 6 Meeting 2014

More than 50% of the demand is coming from China and Korea, followed by EU-27, Japan and rest of Asia with about equal shares and 12% for the rest of the world.

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WP 6 Meeting 2014

The dominant supply trades are propulsion and power generation with about 45 billion USD, followed by cargo systems (35 billion USD), steel and auxiliary systems (both 30 billion USD) and accommodation with 21 billion USD


WP 6 Meeting 2014

Korea creates the highest single demand for cargo systems, caused by the huge orderbook on offshore production and drilling vessels with extremely costly processing plants

Special Effect Offshore

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WP 6 Meeting 2014

Europe creates the highest demand on accommodation systems, caused by the market leading orderbook for cruise ships and superyachts

Special Effect Cruise, Yacht


WP 6 Meeting 2014

Economic Drivers

• Offshore is and remain a major driver

• Niche Shipypes with high technology content (Pax, Chemical, RoRo, LNG, NCCV …)

• Bunker Price

• Change of Paradigm: OPEX drives CAPEX

• MARPOL VI, ECA’s – Nox, Sox, Particulates, EEDI

• Ballast Water Convention

• Retrofitting or earlier replacement

• Innovation and Technology

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WP 6 Meeting 2014

Contact

• BALance Technology Consulting

• http://www.bal.eu

• Joachim Brodda

• Bremen, Germany

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