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General Subjects
Shipbuilding - Crisis or Competition? MarineTalk Discussion Forums
All dates are given in mm/dd/yyyy format. General Subjects
  Shipbuilding - Crisis or Competition?
    Post Reply




  Member: Bill Moses Post Date: 10/7/2000  
An EU report concluded that 'Shipbuilding is in crisis.' and that the EU would '...pursue the future conclusion of an agreement establishing a level playing field in the sector.'
In discussion with 12 shipyards recently we have found that European yards have started to consider ways of building ships more cheaply and efficiently.

Isn't the crisis that the EU Commission refers to simply a 'blip' in what has always been a competitive market?

Isn't it about time that Western yards sharpen their pencils and consider ways in which they can offer a better service at a cheaper price?

------------------
Bill Moses
Ferry Management Services

  Reply | Email Edit/Delete  

  Member: onl002 Post Date: 4/7/2001  
There has been an opportunity for this to happen spanning some 11 years so far. Many western European shipbuilders are still too tied up in killing off competition in their own areas to do anything about it however.
They can't seem to get their heads around the idea that while they are doing this, Far Eastern builders are streamlining their operations and reducing costs. It may be some time before W.E. builders finally realise that their policies of destroying local competition is actually ruining the whole European industry and sending business out of the area.

...................
Eric Warren
OCL
[This message has been edited by onl002 (edited 4/7/2001).]
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  Member: yrehani Post Date: 5/30/2001  
Hello Bill

There is a very fine line between cheaply built ship and a ship built well. When the yards do resort to price cutting, quality will have to be sacrificed or ship building will be a very poor business to invest in.

yrehani
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  Member: onl002 Post Date: 6/4/2001  
Hi yrehani
This is true especially of far eastern shipyards, where further cost - cutting will almost certainly affect quality. In the UK however, several major shipbuilders have managed to reduce costs drastically without reducing quality. It is quite difficult to do though. That is why consultancy firms exist, but many shipbuilders refuse to make use of them.

Eric Warren
OCL

[This message has been edited by onl002 (edited 6/4/2001).]
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  Member: yrehani Post Date: 6/5/2001  
Hello Eric

What quality are you stressing here...visual or non visual type of quality.
Western yards if cut corners in non visual quality nodoubt will churn out good looking ships but they will be nothing less than floating coffins.

yrehani
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  Member: onl002 Post Date: 6/5/2001  
I was referring to build quality generally. It is very easy to make a shoddy vessel look good as you said. But the builders in th UK who have taken the plunge into productivity development cut their costs by being less wasteful while still producing the same high quality of build and finish.
The cost- cutting part comes purely from elimination of wasteful processes and bad practice, which in some cases has led to improvements in quality, rather than deterioration. I would be interested to hear of your experiences of this.

Eric Warren
OCL
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  Member: Jeom Paik Post Date: 7/6/2001  
It does not necessarily mean that 'cost-cutting' results in loss of quality (It might be true in some cases). With modernized production facilities such as welding robots, building period and costs can be greatly reduced while fabrication related initial imperfections (e.g. initial distortion) can rather be decreased (that is, production quality increases). Application of the CAD/CAM system can also reduce design-related costs greatly, while the design quality rather increases. Many Far Eastern shipyards have installed very modernized production facilities and advanced CAD/CAM systems. I beleive that these efforts made them possible to be competitive!

Jeom Paik
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  Member: onl002 Post Date: 7/31/2001  
Hi sorry it took me so long to reply but I had a ship to build. You are quite right about the use of modern methods, especially robotics. However, there is a limit to how much these methods can reduce costs on their own. I believe that far eastern yards in general have probably reached the limit. Western yards are still far behind them and need to get their acts together and catch up.
All the best
Eric Warren
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