Assessment of the Conditions of Medium-size Shipbuilding Company to Build Offshore Structures

Abstract

In recent decades, the competition in worldwide shipbuilding sector has become extremely tough and intense due to two main reasons: The first reason can be seen is the financial and economic crisis going along with reduction of oil price affect effectively the world‟s shipbuilding industry. This causes the most painful impact on many shipbuilding countries over the world by the biggest overcapacity of shipyards ever seen and far greater supply of fleet than required by the global market. The following reason is the overall EU shipbuilding situation has changed significantly. Global competition has been increasing, especially from Asia, where low labour cost countries have taken over building of more and more standard type of ships and manufacturing of many different and more complex components for offshore structure. As result, many shipyards have been disappeared or forced to make a series of structural changes which have resulted in lower employment for its survivability. Another solution is the EU shipbuilding has managed to maintain a strong position in highly specialized and qualitatively outstanding products. The EU shipbuilding industry is well- known for its ability to develop and deliver new cutting - edge solutions and innovative production processes to existing and new markets. By analyzing the practical condition in specific existing medium-sized shipyard, we can assess the productivity and survivability of this type of company. The report has been conducted by going through various factors that can help us to clear define the advantages and disadvantages of company after that finds the solutions to enhance their strength and also minimize these drawbacks. The evaluation of these factors determining competitiveness of shipyard is taken by the productivity, production range, and attractiveness of product, subsidy rate, exchange rate and cost position. The report specifies the possibility for construction not only for shipyard but also the feasibility of some designs which are not always satisfied and impossible for practical work. This is noticed that production work can modify the design drawing based on their long term experience so as to have benefit to both shipyard and their clients.