Feature 2 | Norway’s MariNe iNdustries
Record orderbook not without challenges
The Norwegian shipbuilding and marine equipment industries are thriving,
with orderbooks that stretch to the end of 2010 and beyond, but such a
boom is not without its problems. David Foxwell reports.
S
peaking to The Naval Architect
towards the end of November,
Birger Skår, a spokesperson for
the Norwegian Shipbuilders Association,
said he was obviously very happy with the
current situations at yards in Norway, but
added that any market, however busy, has
its good side and downsides.
‘The shipbuilding industry in Norway
is almost too busy at the moment,’ said
Mr Skår, noting that delays in deliveries
are becoming more prevalent, and that
these delays in deliveries were worrying
for several reasons.
‘Norwegian yards have always had
a good reputation for building ships
on time,’ said Mr Skår, ‘but when there Norwegian yards are full, but many report problems in the supply chain and/or in
are delays it costs yards money because recruiting sufficient skilled workers.
of penalties in contracts and it makes
life difficult for owners. It spoils yards’
reputations too, even if the delays that are The value of this order backlog is at an all supply chain that even this kind of work is
being experienced are not their fault, but time high – some Nkr65 billion (US$11.84 being delayed at times.
due to problems in the supply chain.’ billion) – but such a huge orderbook also Erik Jakobsen, an analyst at Menon
Mr Skår said that to his knowledge yards needs large numbers of skilled workers Business Economics, agreed with Mr Skår’s
were experiencing delays of two to three to execute it. Increasingly, therefore, analysis of the situation. ‘The offshore
months with deliveries. Asked how many Norwegian yards have turned to workers shipping part of the maritime cluster
vessels were delayed, Mr Skår said, ‘too from Eastern Europe, from countries such seems very healthy at the moment,’ he
many’, and added that delays were mainly as Poland. In some yards, the number of explained. ‘Yards specialising in building
due to problems in the supply chain with Polish workers now far exceeds the number anchor handlers, PSVs, and construction
the delivery of key items of equipment Norwegian workers, and Norwegian yards vessels are having a very good time at the
such as engines, generators, pumps, are still looking for more. ‘The Norwegian moment. This segment of the industry is
cranes, propellers, and switchboards. industry could easily take another 20,000 very ambitious and very innovative, but it
These problems are, of course, hardly such workers,’ Mr Skår explained, noting remains to be seen exactly how profitable
unique to Norway, with the ongoing that to try to fulfil this demand for workers, they will be.
newbuilding order boom having placed campaigns were being run in the Baltic ‘There is no doubt that there will be
many manufacturers worldwide under states and elsewhere in eastern Europe. further delays in the future, and that the
increasing strain. Given that there are very many migrant supply chain is very brittle at the moment,’
Mr Skår estimated that, of the vessels workers in Norwegian yards – many of Mr Jakobsen said. ‘Delays will undoubtedly
being built in Norway at the moment, which yards are located in small, fairly affect profitability, although unlike other
some 80% are intended for the offshore rural communities – there have, said Mr sectors of the shipping industry in Norway,
industry, with the rest comprising ferries, Skår, been fairly few problems integrating it is hard to see a chain of events – at least in
seismic ships, a few reefers, live fish them, socially, and in terms of required the next two to three years – which will lead
carriers, fishing vessels, and a few tankers, skills and expertise. Yards also continue to to a significant negative effect on demand.’
as for example at Floro shipyard, plus a sub-contract hull work in countries such Turning to what he described as ‘the
few examples of one-off vessels, such as a as Poland, have the bare hulls shipped to more volatile and vulnerable’ tanker and
unique cable carrier/maintenance vessel Norway, and finish vessels themselves, but bulk shipping sectors, Mr Jakobsen said
for Statnett. again, such is the level of demand in the success in this sector of the market was
40 The Naval Architect January 2008
NA Jan - p40+41.indd 40 04/01/2008 15:32:52
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