OECD WP 6 Workshop Paris, 27 Nov Overview of World Shipbuilding Industry. 2. Changing Structure of World Shipbuilding

Transcription

1 OECD WP 6 Workshop Paris, 27 Nov Contents 1. Overview of World Shipbuilding Industry 2. Changing Structure of World Shipbuilding 3. Overseas Business Operations by Korean Shipbuilders 4. Closing Remarks 1

2 1 Overview of World Shipbuilding Industry A. Pictures of World Shipbuilding Industry by Period B. Change of World Shipbuilding Leaders C. Change of Geographical Location of Shipbuilding A Pictures of World Shipbuilding Industry 2

3 B1 Change of World Shipbuilding Leaders Core Leading Factor that affect Global Competitiveness Cost Competitiveness(market beginner) New technology adaption(market leader) Design 2000s ~ Korea Welding 1960s ~ 1990s Japan Rivet 2 nd WW ~ 1950s Europe ~ 2 nd WW The US China Korea B2 World Shipbuilding Market Global Competitiveness depends on Cost advantage and Innovative capacities Competition Structure Government Policy Home Korea China Japan Europe Internal Competition Positive(~80) (90~)Free comp State Enterprise Local Yard + JV Positive allocation M&A Specialization Overhead Support M&A High-End R&D Standards Shipping 7% 50% 70% 70% Materials 90% 40% 95% 95% Strategy Open Competition Cost Advantage Niche Market Special Vessel 3

4 C1 Change of Geographical Location of Shipbuilding Super Power + Bipolar : EU & Japan Loose Multi-polar System : K, J & EU EU 66% Japan 22% EU 18% Korea 22% Japan 43% Source :IHS Fairplay (Completion base) C2 Change of Geographical Location of Shipbuilding Stable Bipolar System : Korea & Japan Loose Bipolar System : Korea & China K/J/C 83% K-39% J-38% C-6% K/C/J 85% K- 28% J- 17% C- 40% K/C/J 85%

5 2 Changing Structure of World Shipbuilding A. Change of Shipbuilding Market Size B. Shipbuilding Market ; More Openness C. Emerging of New Ship Market D. Innovation of Ship Construction E. Rapid Tech. Transfer & Labor Movement F. Increasing Challenge ; Safety & Environment A Change of Shipbuilding Market Size < Completion Trend in 1975~2012 > 120 CHINA EUROPE JAPAN KOREA WORLD M.GT Source :IHS Fairplay 5

6 B Shipbuilding Market ; More Openness ~ The 2nd WW ; Shipbuilding=National Market (Public Sector) Since 1990 & 2000 Foreign Investment Since 1950 Privatization & Tech. Transfer Outsourcing, Tech. Transfer Strategic Alliances Investment, Acquisitions Joint Ventures, Mergers Factors Driving Foreign Investment Government Support Lower Production Costs Availability of Infrastructure Skilled Labor forces Transition of Technology Outsourcing of ship blocs C Emerging of New Ship Market < Needs for New Concept & Technology > Increasing Volume Panama Canal Ultra-Large Container LNG Ship Clean Energy Higher Oil Price Drill Ship Ice-Class Ship Open of North pole 6

7 D Innovation of Ship Construction Rivet Ship Construction(~1940s) Welding Ship Construction Building Dock Ship Construction On-Land Ship Construction Ship is build on land, then loaded out on a semi-submersible barge by using air pad and skid. E Rapid Tech. Transfer & Labor Movement N.E Asia E. Europe W.Europe S.E Asia Tech. Transfer Future Tech. Transfer Labor Movement 7

8 F Increasing Challenge ; Safety & Environment IMO Increasing Safety Environment Protection GHG, CSR, PSPC Shipbuilders 3 Overseas Business Operations by Korean Shipbuilders 8

9 3 Overseas Business Operations by Korean Shipbuilders ŸForeign investment in the shipbuilding industry has rapidly grown since Investment was previously focused on shipbuilding equipment production, but it began moving to shipyard investment since Ÿ The main causes of an expansion of overseas business operations are as follows: - Difficulties finding additional land for shipyard expansion in Korea - Cost competitiveness through cheap labor - Company management environment - Better condition for business - Local contents - Difficulties to meet the needs of ship owners due to aging facilities Ÿ 3 Overseas Business Operations by Korean Shipbuilders Substantial issues - Lack of local skilled workers - Slow productivity improvement - Decreased in benefits for foreign investment companies - Increased logistics cost as raw material are imported from Korea Decreased profitability Increased need for discovering local supplier and quality control - Possibility of triggering the boomerang effect to Korea in mid to long term Increasing risks of losing competitiveness in global market Ÿ 9

10 4 Closing Remarks Specialization in world shipbuilding industry is based on the each countries competitiveness occurred over a period of time - ex) IT equipments for ship : Europe and Japan still have competitiveness despite losing their market shares of construction sector Barriers to GVC in shipbuilding - Shipbuilding industry is a single market and related to national defense sector - Equipments installation requirement from ship owners - Subsidiaries by government - High rate of employment inducement compared to other industries - Knowledge-based engineering industry - Effects on national economy as a general assembly industry 4 Closing Remarks Upgraded Development Challenges Change Market, Tech., Environment, Structure Global Competitiveness 10

11 1 Thank you for your kind attention 11