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(Transportation-News.com, May 04, 2015 ) The shipbuilding industry is involved in the construction and modification of ships, and these operations are carried out in specialized facilities called shipyards. Shipbuilding process starts with inquiries from customers, followed by completion of various processes until the vessel is completed. Modern shipbuilding involves multiple participants to design, construct, and maintain a ship. The shipbuilding value chain is comprised of three major phases: pre-production, production, and postproduction.
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In 2013, new ship building orders rose up to an incredible level from last year. Five years have passed since the commencement of the economic crisis, which saw the downfall of many shipping companies and shipyards and a dramatic diminution in the number and the cost of new building orders. However, 2013 marked a significant change with a strong revival in ship orders, which tripled compared to last year, and with an increased demand and the volume of the shipyards orderbooks.
Shipbuilding industry is mostly dominated by Asian players, such as South Korea, China, and Japan. In 2013, China led the market with the largest orderbook, while South Korea was leading in terms of contracting. The European shipbuilding industry recorded a remarkable growth in 2013, with new orders and increased orderbooks. The emerging nations such as India, Vietnam, Brazil, the Philippines, and Turkey recorded significant growth in shipbuilding industry.
Rising global GDP is one of the key growth driver for the shipbuilding industry. Major challenges associated with shipbuilding are environmental regulations and rising fuel costs. Shipbuilding industry is undergoing various industrial developments like virtualization, robotics in shipyards, and green shipbuilding.
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The shipbuilding companies function in an extremely competitive environment with productivity; development capabilities; and the skills and competence being the key aspects. The shipbuilding industry is chiefly dominated by players such as Hyundai Heavy Industries, Daewoo Shipbuilding, Mitsubishi Heavy Industries, and Samsung Heavy Industries.
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