Survey on European Shipbuilding -Panel Study 2008-1
Presented at the 2
In the frame of EU Social Dialogue Shipbuilding Financed by: Hans Böckler Foundation, Düsseldorf Otto Brenner Foundation, Frankfurt / Main CESA - Community of European Shipyards Associations, Brussels 3
The Survey 4
The Survey The current survey bases on the previous report Shipbuilding in Germany and Europe (2003-2006) In consequence of those results, the current questionnaire contains some questions from 2003 adapted to the current requirements 5
Topics of the survey General questions: types of ships, share of production, yards capacities, orderbook, number of employees Working time, income and labour costs Recruiting and qualification Image of shipbuilding industry European Initiative Leadership 2015 Cooperation 6
Responses 7
Dispatch of the questionnaires University of Bremen CESA EMF National shipyard association Union Information Information Shipyard Management Works council/union 8
Responses overview Responses 2004: 109 questionnaires from shipyards in 20 European countries (yards-focussed approach) Responses 2008: 47 questionnaires from shipyards, shipyards associations and unions in 14 European countries (associationsfocussed approach) The survey 2008 represents 139,158 employees (compared with 154,000 direct employees in 2004) 9
Responses overview Survey 2004 Survey 2008 Bulgaria Croatia Denmark Estonia Finland France Germany Greece Italy Latvia Lithuania Montenegro Netherlands Norway Poland Portugal Romania Spain Sweden United Kingdom The Survey on European Shipbuilding - Panel Study 2008 covers 14 European countries: 12 EU-Countries 1 candidate country (Croatia) 1 associated country (Norway) This sample represents all CESA-Member Associations 10
Results - on the basis of the survey in 2004 and 2008-11
Recent Developments employees capacities orderbook - new orders 12
Number of direct employees in European shipbuilding industry Number of employees 2004 Number of employees 2008 Eplanatory notes Bulgaria 4.034 3.520 1 yard missing Croatia 9.529 9.698 Denmark 2.902 4.000 Estonia 1.200 2.500 Finland 5.565 4.500 France 15.230 17.000 Germany 18.489 20.178 Greece 3.111 2.473 Italy 12.033 (9.041 Fincantieri) 9.055 (Fincantieri) other yards than Fincantieri missing Latvia 1.620 1900 Lithuania 3.755 2.125 Montenegro 747 1 yard missing Netherlands 10.000 11.500 Norway 2.272 3.913 4 small yards missing Poland 23.106 17.000 Portugal 1.937 1.242 Romania 13.401 12.600 Spain 10.850 7.818 Sweden 1.467 1.152 United Kingdom 16.224 18.181 2 small yards missing Total 157.472 150.355 Considering the employees of the missing yards and the reconstruction in Poland and Spain, the employment in European Shipbuilding Industry has increased in the last four years Remark I: Bulgaria, Estonia, Latvia, Lithuania, Montenegro, Sweden: Number of employees investigated by phone calls to the single yards Remark II: Norway, United Kingdom: Numbers of Employees checked by phone calls to the single yards 13
Orderbooks of the European shipyards Demand in world-shipbuilding is still strong and secures a high capacity utilisation of European shipyards for the coming years European shipyards are fully booked up to... 70,0 60,0 65,1 But not all European countries participate in the same way... per cent 50,0 40,0 30,0 37,1 Netherlands 2010: 90% 2011: 80% 2012: 50% UK 2010: 95% 2011: 95% 2012: 80% Italy 2010: 100% 2011: 90% 20,0 10,0 21,5 Germany 2010: 50% 2011: 25% 2012: 10% Greece 2010: 30% 2011: 30% Portugal 2010: 0% 0,0 2010 2011 2012 Source: Responses by the national associations; 14
New Orders 2002-2007 (by Region; based on GT; Source: ISL, Lloyds Register Fairplay) 180.000.000 160.000.000 Others 140.000.000 120.000.000 South Korea 100.000.000 Others GT 80.000.000 Others Others South Korea Japan 60.000.000 South Korea South Korea Others 40.000.000 20.000.000 0 Others South Korea Japan Japan South Korea Japan Japan China Japan China China China China China CESA CESA CESA CESA CESA CESA 2002 2003 2004 2005 2006 2007 15
Market Shares: New Orders 2002 2007 (in %, based on GT ; Source: ISL, Lloyds Register Fairplay) 100% Others 6,2 Others 3,4 Others 5,7 Others 5,7 Others 6,2 Others 7,1 90% 80% 70% South Korea 28,7 South Korea 44,0 South Korea 35,0 South Korea 38,4 South Korea 40,5 South Korea 40,9 60% 50% 40% 30% 20% 10% 0% Japan 46,6 Japan 32,0 China 12,9 CESA 5,6 China 14,5 CESA 6,1 Japan 36,3 China 12,5 CESA 10,5 Japan 24,7 China 18,2 China 26,9 CESA 13,0 Japan 21,7 Japan 12,5 China 36,4 CESA 4,6 CESA 3,2 2002 2003 2004 2005 2006 2007 16
New Orders 2002 2007 (by Region; based on GT; Source: ISL, Lloyds Register Fairplay) 2002 2003 2004 2005 2006 2007 CESA 2.197.552 4.679.398 7.853.229 8.042.807 4.635.104 5.408.178 China 5.038.996 11.216.389 9.345.873 11.227.094 26.887.626 61.608.667 Japan 18.207.070 24.777.295 27.251.494 15.214.575 21.669.853 21.154.021 South Korea 11.187.245 34.032.862 26.298.680 23.666.785 40.524.165 69.297.685 Others 2.412.771 2.634.611 4.283.682 3.502.276 6.231.261 11.958.020 World total 39.043.634 77.340.555 75.032.958 61.653.537 99.948.009 169.426.571 17
CESA New Orders by member countries 2002 2007 (based on GT; Source: ISL, Lloyds Register Fairplay) 9.000.000 GT 8.000.000 7.000.000 6.000.000 5.000.000 4.000.000 3.000.000 2.000.000 1.000.000 0 2002 2003 2004 2005 2006 2007 Spain Romania Portugal Poland Netherlands Norway Italy Germany UK France Finland Denmark Croatia 18
CESA New Orders by share of member countries 2002-2007 (in %, based on GT; Source: ISL, Lloyds Register Fairplay) 100% 80% 60% 40% 20% 0% Spain 8,0 Romania 4,7 Poland 16,2 Netherlands 7,5 Italy 16,1 Germany 22,4 France 2,3 Finland 6,7 Croatia 14,1 Spain 2,1 Spain 3,1 Spain 3,8 Romania 7,3 Romania 5,0 Romania 8,4 Poland 16,5 Netherlands 2,4 Italy 7,9 Germany 36,5 France 2,8 Finland 2,9 Denmark 10,3 Croatia 11,0 Poland 11,7 Netherlands 3,9 Italy 12,3 Germany 20,1 France 3,4 Finland 5,9 Denmark 13,9 Croatia 20,7 Poland 6,8 Netherlands 3,9 Netherlands 3,1 Italy 15,6 Italy 7,4 Germany 36,9 France 3,3 Finland 7,6 Denmark 7,4 Spain 6,4 Romania 8,6 Poland 11,2 Germany 32,4 France 13,4 Finland 10,2 Romania 33,3 Poland 1,0 Netherlands 2,0 Italy 17,7 Germany 22,1 France 1,8 Denmark 13,2 Croatia 5,0 Croatia 5,8 Croatia 6,5 2002 2003 2004 2005 2006 2007 19
CESA New Orders by member countries 2002 2007 (based on GT; Source: ISL, Lloyds Register Fairplay) 2002 2003 2004 2005 2006 2007 Croatia 310.268 515.840 1.621.722 399.700 268.264 349.558 Denmark 350 483.300 1.089.000 594.495 0 713.220 Finland 146.500 135.000 461.500 613.327 472.500 43.800 France 49.700 129.454 267.700 263.000 620.000 95.920 UK 1.916 3.529 0 750 300 0 Germany 492.561 1.707.757 1.577.559 2.964.633 1.499.891 1.195.416 Italy 352.730 370.471 967.500 1.255.950 342.850 958.000 Norway 6.045 0 3.750 56.700 27.775 3.130 Netherlands 164.550 110.873 307.892 309.828 144.265 109.171 Poland 356.614 771.956 914.981 550.653 521.388 51.422 Portugal 38.420 11.000 2.400 49.808 40.000 0 Romania 102.386 341.290 394.737 678.724 399.571 1.799.285 Spain 175.512 98.928 244.488 305.239 298.300 89.256 CESA total 2.197.552 4.679.398 7.853.229 8.042.807 4.635.104 5.408.178 Data for Croatia differ slightly from the data of the national association because of corrections and delayed notices, but variations from 2002 to 2007 are marginal: ISL/Lloyds List: 3,465,352; Croatian Shipbuidling Corporation: 3,211,656 cgt 20
Image of shipbuilding industry 21
Image of shipbuilding industry 2008 Comparing to 2003, shipbuilding industry has been... improved remained the same worsened Nine countries feel that the image of shipbuilding industry has been improved Four countries belief that the image has been remained the same Only the shipbuilders association of Croatia think that the image has been worsened Source: Responses by the national associations; 22
Recruiting and qualification 23
Difficulties in recruiting workforce 2008 per cent 70,0 60,0 50,0 40,0 30,0 20,0 10,0 63,8 61,7 59,6 27,2 Most shipbuilders eperienced difficulties in recruiting skilled shipbuilders It is complicated to employ blue collar workers, engineers and naval architects There is not such a lack of IT-specialists 0,0 Blue collar Engineers Naval architects IT specialists Source: all questionnaires; 24
Reasons for the difficulties in recruiting skilled workforce 2008 per cent 60,0 50,0 40,0 30,0 20,0 10,0 0,0 55,3 Low number qual. graduates 51,1 Low number qual. school leavers 46,8 46,8 Less attractiveness of manufacturing industry Less attractiveness of shipyards 23,4 23,4 Others 17,0 Ageing society Migration from Eastern to Western Europe Generally there is a low number of qualified universities graduates as well as qualified school leavers, who might be suitable for shipbuilding industry Less attractiveness of both, manufacturing in general and shipbuilding in particular, causes problems of recruiting Source: all questionnaires; 25
Do you consider improved transparency and better recognition of national qualifications are essential in the future? yes no yes 90,9% no 9,1% Source: all questionnaires; Source: Responses by the national associations; 26
Cooperation 27
Cooperation between yards in or outside Europe in 2008 N.A. 12,5% No 4,2% Yes 83,3% 83.3% European shipyards cooperate with other yards in or outside Europe Just 4.2% declared not to cooperate with any yards The majority of these cooperation partners is located in Europe (83.9%), just few of the partner shipyards are situated outside Europe (16.1%) Source: all questionnaires; Location of yards within Europe, with which other yards cooperate: mainly Germany, Finland, France, Netherlands, Italy, Poland and Ukraine Location of yards outside Europe, with which other yards cooperate: mainly Korea, Australia, Russia and USA 28
Activities being involved in cooperation 2008 60,0 50,0 54,2 Cooperation between shipyards is dominated by the field of steel work (building hulls and sections) per cent 40,0 30,0 20,0 37,5 37,5 33,3 29,2 25,0 Significant less cooperation in the fields of construction and design 10,0 12,5 0,0 Hull/steel Construction Design Equipment R&D Joint purchase Marketing Source: all questionnaires; 29
Main problems regarded to cooperation in 2008 per cent 80,0 70,0 60,0 50,0 40,0 30,0 20,0 72,2 44,4 33,3 27,8 27,7 22,2 Time of delivery seems to be a serious problem (72.2%) Fairly the half of the answers (44.4%) mentioned the quality of products as a main problem 10,0 0,0 Time of Delivery Quality Mentality/Culture Incorrect implementation Transparency of Qualifications Language Source: all questionnaires; 30
European Initiative Leadership 2015 31
Important topics of the European Initiative Leadership 2015 in 2008, chart 1 Maritime safety legislation and integrated EU Transport Policy 2008 10,6 57,4 25,5 6,4 European approach to naval shipbuilding needs 23,4 40,4 31,9 4,3 Protection of intellectual property rights 36,2 44,7 10,6 8,5 Building a sustainable industry structure 38,3 48,9 4,3 8,5 Promoting safer and more environmentalfriendly ships 42,6 48,9 4,3 4,3 Developing advanced financing and guarantees schemes 52,2 32,6 10,9 4,3 Improving R&D and innovation 59,6 31,9 4,3 4,3 Establishing a level playing field 66,0 23,4 4,3 6,4 Securing the access to qualified workforce 78,7 14,9 2,1 4,3 0% 20% 40% 60% 80% 100% per cent Very important Important Less important n.a. Source: all questionnaires; 32
The most important topic in 2008, chart 2 Securing the access to qualified workforce (Responses by the national associations) Securing the access to qualified workforce is the most important topic in Very important 2008 (78.7% of all Important answers) Less important No answer 12 of the 14 European shipyards associations have the same opinion (Map: Responses by the national associations) Source: Responses by the national associations; 33
Important topics, chart 3 Level playing field 2008 (Responses by the national associations) Ten CESA-Members answered that establishing a level playing field is a very important topic of the European Initiative Leadership 2015 Very important Important Less important No answer Source: Responses by the national associations; Level playing field in 2004 and 2008 (all answers) 2008 2004 c 66,0 23,4 4,3 6,4 65,0 16,0 6,0 13,0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% per cent Establishing a level playing field seems to keep one of the most important topics in 2008 Source: all questionnaires; Very important Important Less important N.A. 34
Important topics, chart 4 Research & Development and Innovation 2008 (Responses by the national associations) Eleven CESA-Members mentioned that building a sustainable industry structure is a very important topic Very important Important Less important No answer Source: Responses by the national associations; Research & Development and Innovation in 2004 and 2008 (all answers) 2008 2004 40,6 59,6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: all questionnaires; c per cent 33,2 31,9 10,4 Very important Important Less important N.A. 4,3 15,8 4,3 Improving research & development and innovation is more decisive in 2008 than it was in 2004 35
Important topics, chart 5 Advanced financing 2008 (Responses by the national associations) Nine CESA-Members think that developing advanced financing and guarantee schemes are very important Very important Important Less important No answer Source: Responses by the national associations; Advanced financing in 2004 and 2008 (all answers) 2008 52,2 32,6 10,9 4,3 c 2004 49,5 25,7 7,9 16,8 0% 20% 40% 60% 80% 100% per cent Very important Important Less important N.A. The topic Development of advanced financing and guarantee schemes keeps relatively important Source: all questionnaires; 36
Important topics, chart 6a Sustainable industry structure 2008 (Responses by the national associations) Si CESA-Members mentioned that a sustainable industry structure is very important Very important Important Less important No answer Source: Responses by the national associations; Sustainable industry structure in 2004 and 2008 (all answers) 2008 38,3 2004 21,0 c 48,9 4,3 8,5 36,0 22,0 21,0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% per cent Very important Important Less important N.A. Source: all questionnaires; Compared to 2004 building a sustainable industry structure seems to become in 2008 a topic of particular importance 37
Important topics: Sustainable Industry structure, chart 6b In question: Will the topic Sustainable Industry Structure create a demand for a European Industrial Policy, organized by the EU Commission or a more efficient self-organisation of the shipbuilding industry itself, including improved cooperation between the yards? 38
Income and costs 39
Average gross income and costs for a blue collar worker per year in 2007 Romania Poland Croatia Portugal Italy Greece Ne the rlands France Finland Germany Spain UK Norw ay 6.400 4.800 11.636 9.626 13.163 10.630 15.748 20.753 24.500 25.000 31.104 28.600 30.000 25.800 27.000 35.300 35.700 39.135 41.000 46.633 46.650 36.000 43.000 52.300 60.000 64.000 0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 Eur o Average income 2007 Average costs 2007 UK: including all overheads Spain: incl. general epenses Germany: gross income: East: 32,700 ; West: 39,300 ; costs: East: 42,400 ; West: 50,900 Source: Responses by the national associations; 40
Comparison of gross income and costs of a blue collar worker in 2007 The systems of financing the health system, unemployment insurance etc. are very diverse in the different countries (from ta-financed systems to non-wage-labour-costs systems). The comparison of income and costs stays incomplete, because there are no information on productivity of the single yards. 41
Average gross income of a blue collar worker per year in 2003 and 2007 Romania Poland Croatia Portugal Italy Greece Spain UK France Finland Netherlands Germ any Norw ay 4.800 2.500 9.626 7.449 10.630 8.730 15.748 17.089 24.500 22.106 25.000 22.734 25.800 21.435 27.000 29.250 28.600 26.307 30.000 27.056 31.104 28.927 36.000 34.559 32.167 43.000 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000 Euro Average income 2003 Average income 2007 Germany: gross income: East: 32,700 ; West: 39,300 Source: Responses by the national associations; 42
Average costs for a blue collar worker per year in 2003 and 2007 Romania Poland Croatia Portugal Italy Greece Netherlands France Finland Germ any Spain UK Norw ay 6.400 3.984 11.636 9.717 13.163 14.591 15.609 20.753 35.300 34.007 35.700 29.524 39.135 40.611 41.000 39.700 37.094 29.244 32.438 39.681 46.633 46.650 46.810 52.300 60.000 64.000 0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 Euro Average costs 2003 Average costs 2007 UK: including all overheads Spain: incl. general epenses Germany: costs: East: 42,400 ; West: 50,900 Source: Responses by the national associations; 43
Working times 44
Contractual and real working times in 2007 Croatia France Finland Denmark Italy Netherlands Poland Norway Romania Portugal Germany Greece Spain UK 1.491 1.766 1.550 1.605 1.630 1.720 1.650 1.650 1.667 1.744 1.669 1.720 1.671 1.816 1.680 1.950 1.750 1.652 1.785 1.751 1.800 1.785 1.870 1.834 1.950 1.765 1.900 2.400 0 500 1.000 1.500 2.000 2.500 hours contractual working times real working times Source: Responses by the national associations; 45
Contractual working times in 2003 and 2007 France Denmark Romania Finland Ne the rlands Italy Portugal Spain Croatia Germany Poland Greece UK Norw ay 1.605 1.567 1.650 1.657 1.652 1.776 1.720 1.505 1.720 1.585 1.744 1.728 1.751 1.816 1.765 1.723 1.766 1.922 1.785 1.786 1.816 2.012 1.834 1.788 1.900 1.838 1.950 1.754 0 500 1.000 1.500 2.000 2.500 hours contractual working times 2003 contractual working times 2007 Source: Responses by the national associations; 46
Real working times in 2003 and 2007 Croatia France Finland Denmark Italy Netherlands Poland Norw ay Romania Portugal Germany Greece Spain UK 1.491 1.879 1.550 1.606 1.630 1.568 1.650 1.558 1.667 1.736 1.669 1.460 1.671 1.649 1.680 1.853 1.750 1.662 1.785 1.585 1.800 1.744 1.870 1.886 1.950 1.752 2.018 2.400 0 500 1.000 1.500 2.000 2.500 3.000 hours real working times 2003 real working times 2007 Source: Responses by the national associations; 47
Thank you for your attention! 48