The Dutch shipbuilding industry regains its form, but slowly

Last year, Dutch shipyards and companies cooperating with the industry began to get on track. This is a manifestation of a global trend – according to the Netherlands Maritime Technology trade association report.

Bas Ort, president of the association explains that the recovery on the global shipbuilding market began to be visible primarily in the last months of 2017. He adds that this situation also translates into the Dutch market.

However, this does not mean that there was a boom in the Dutch shipbuilding industry. Data from Netherlands Maritime Technology show that despite many orders received by Dutch shipyards in 2017 and visible signs of market recovery, the turnover generated by the shipbuilding industry decreased by about 5% – from 7.3 to 6.9 billion euros. These amounts relate to the turnover of shipyards and their suppliers together.

Moreover, the number of workers employed in the shipbuilding sector decreased by 3%. In 2016, shipyards and companies from the industry provided 29 000 jobs, and at the end of 2017, 28 000 workers worked in the sector. But according to the president of the Netherlands Maritime Technology, after the first six months of 2018 these inheritances were equalized.

– Over the last year, we have received from one few large orders from the global offshore market and orders for the production of the world's most powerful dredge, several smaller dredges, and the first seagoing cruise ship to be commissioned in the coming years. In addition, in 2017, we launched several record superyachts, several smaller export dredging machines and started building a fleet of fishing boats. The number of orders for inland waterway vessels has also increased, says Bas Ort.

At the end of 2017, the order portfolio located in the Dutch shipbuilding industry totalled 93 units with a total displacement of 437,000 tonnes. The industry could achieve this result thanks to the revival that took place at the end of last year. Entrepreneurs welcomed them with enthusiasm after the difficult year 2016. However, despite the fact that in 2017, contracted vessels with more than twice the total of the previous year have not been able to avoid a 3% drop in employment. In addition, some Dutch shipyards found themselves in financial difficulties.

– The only way to survive in the global shipbuilding market is by working on innovative technologies and focusing on fair international competition, says Bas Ort. As he adds, green shipping solutions are another direction in which the industry should follow. In his opinion, the Dutch shipbuilding industry can become one of the world leaders in this area. "Our shipyards and maritime suppliers have innovative solutions used in modern green drives as well as technologies that meet the most stringent requirements," he emphasises.

According to the Netherlands Maritime Technology report, all orders of companies cooperating with shipyards (suppliers) in 2017 were worth EUR 3.4 billion, a decrease of EUR 400 million compared to the previous year. A total of 16 413 permanent workers worked in this maritime sector in 2017 at 16,838 in 2016. Additionally, companies cooperating with shipyards employed 1,460 temporary workers in 2017.

In 2017, the Dutch shipyards delivered a total of 58 seagoing vessels, an increase of 16 units compared to the previous year. The number of ships ordered in 2017 was 56. Their total value is over €1.1 billion For comparison: in 2016, the order book closed with 42 newly ordered units worth EUR 642 million.

In 2017, the share of export orders decreased in the total production of the Dutch shipbuilding industry and amounted to 57% (in 2016 – 79%)

In turn, the Dutch shipyards themselves generated a turnover of EUR 381 million in 2017. This represents a decrease from EUR 442 million in the previous year. Total employment in companies directly building and repairing ships and ships amounted to 1,710 permanent posts with 20,020 posts in 2016. Last year, the Dutch shipbuilding industry supplied 155 smaller inland vessels, fishing boats and small seagoing vessels. This point saw an increase – from 116 deliveries in 2016. The order portfolio located in Dutch shipyards for such units at the end of 2017 was 198 ships compared to 126 years earlier.

The Dutch shipbuilding industry is doing great in the superyacht production segment. In 2017, Dutch shipyards delivered 25, six more units than in the previous year. Overall, producers made EUR 1.2 billion on this. In addition, 18 orders of this type were sent to the Netherlands last year, worth almost EUR 1.2 billion. The total order portfolio for super yachts at the end of 2017 was 57 pieces. Their total value is €4.5 billion. Thus, there was a decline, as in 2016, Dutch shipyards acquired 17 orders worth EUR 1.3 billion, and the portfolio of orders for super yachts at the end of this year amounted to EUR 4.6 billion.

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