1. European Economic and Social Committee
New trends in Globalisation in Shipbuilding and Marine Supplies - conclusions and recommendations -
European Economic and Social Committee
Brussels, 24 October 2017
DG GROW I4
Agnieszka Montoya-Iwanczuk

2. Problems identified => recommendations
Framework conditions
Markets
Cooperation in the supply chain
Innovation and RTD

3. Heterogenuos industry structure: few big, very many small companies
Framework conditions
Strengthen cluster structures and activities & involve industry associations
Heterogenuos industry structure: few big, very many small companies

4. Use more European Structural Funds
Framework conditions
Use more European Structural Funds
Improve alignment of RTD measures with the continuous development of regulations at IMO
Access to finance

5. Framework conditions Reluctant political support
Establish a strong maritime association as a partner and lobbyist
Re-establish European Maritime Industries Forum, incl. European Maritime Co-ordinator
Reluctant political support
Accelerated strategic expansion of the Asian industry
Increasing activities of strategic investors from North America and Asia
Subsidies in competing countries

6. Harmonise framework conditions on all levels
Comparably high requirements (e.g. environmental)

7. Markets
Create and integrate maritime sectoral agreements in trade agreements with third countries
Ensure transparency of regulations and government measures in third countries
Concentration on some high-end market products creates weaknesses in flexibility and ability to serve other market segments

8. Trend towards standard vessels – less sophisticated equipment
Markets
Support activities in segments which could help EU players to become competitive again
European repair/conversion shipyards and suppliers should team up for the development of tailored conversion solutions
Concentration on some high-end market products creates weaknesses in flexibility and ability to serve other market segments
Trend towards standard vessels – less sophisticated equipment

9. Form technically oriented joint industry groups on European level
Markets
Form technically oriented joint industry groups on European level
Support system-building by strengthening supplier cooperation and management
Concentration on some high-end market products creates weaknesses in flexibility and ability to serve other market segments
Although good general market position, maritime products often have a minor importance in bigger industrial companies’ product portfolios
Declining European shipbuilding industry will lead to further knowledge drain, development partners will disappear

10. Ensure market access and keep close contacts with the final customers
Markets
Support activities in segments which could help EU players to become competitive again
Ensure market access and keep close contacts with the final customers
European supplier market is very fragmented, especially in Southern Europe with many micro-firms
Asian competitors (especially China) establish strategies to conquer also high-end shipbuilding markets
European home markets continue to shrink for commodity ships, i.e. reference markets for marine supplies from Europe for those ships disappear

11. Markets
Create and integrate maritime sectoral agreements in trade agreements with third countries
Strongly oppose the possibilities for governments to introduce so-called local content requirements
Ensure transparency of regulations and government measures in third countries
Support activities in segments which could help EU players to become competitive again
“One-of-a-kind” shipbuilding compared to series in Asia also provide negative scale effects for suppliers (1/2)

12. Form technically oriented joint industry groups on European level
Markets
Form technically oriented joint industry groups on European level
Support system-building by strengthening of supplier cooperation and management
European repair/conversion shipyards and suppliers should team up for the development of tailored conversion solutions
Consolidate position in blue growth markets & establish strategic partnerships with their representatives
“One-of-a-kind” shipbuilding compared to series in Asia also provide negative scale effects for suppliers (2/2)

13. Markets
Create and integrate maritime sectoral agreements in trade agreements with third countries
Strongly oppose the possibilities for governments to introduce so-called local content requirements
Ensure transparency of regulations and government measures in third countries
New protectionism in national policies may increase local content requirements as seen in Asian strategies or also in Brazil in the offshore sector

14. Cooperation in the supply chain
Strengthen regional Industry 4.0 related capabilities
Support and encourage active maritime clusters to be more active
Use European Regional and Structural Development Fund
No consequent supply–chain management

15. Cooperation in the supply chain
Discuss programmes to improve the role of SMEs in the supply chain, for example by generating exit strategies and helping them participate in RTD by using SME funding regimes
Use European Regional and Structural Development Fund
Supply chain is fragmented and does not benefit from a coherent benchmarking regime

16. Innovation and RTD De-centralised RDI and comparable level of funding
Open programmes to develop/improve smart skills and aspects of enabling technologies to maritime needs per se
Elaborate better the potential of blue growth markets
De-centralised RDI and comparable level of funding

17. Innovation and RTD De-centralised RDI and comparable level of funding
Think about a European maritime research area, where also regional/structural funds could be employed
Include maritime related strategic subjects in the 9th FP
Rethink and redevelop the concept of a large PPP
Improve integration between Horizon 2020 KET and the initiatives within the Transport programme
De-centralised RDI and comparable level of funding
Limited investment capital available for innovation and research
Competing (Asian) countries begin to invest more heavily in RDI –
technological leadership is challenged

18. Innovation and RTD
Avoid re-focusing on low TRLs
Support and enhance the role of first-movers and SMEs
Create possibilities for cross-fertilisation between civil and military technologies
Closer cooperation between academic work and industrial stakeholders
Extend instruments like fast Track to Innovation
Competing (Asian) countries begin to invest more heavily in RDI – technological leadership is challenged (3/4)

19. Innovation and RTD
Focus on particular ship systems (e.g. propulsion systems based networks, HVAC systems, virtual and augmented realuty etc.)
Strengthen particular research topics (e.g. deep sea mining, underwater technologies etc.)
Product related research difficult, because one-off products (prototypes) and RDI must be synchronised with the very fast pace of delivery-time to the market

20. Engineering work not regarded as research as in other industries
Innovation and RTD
Dismiss the old image of shipbuilders by regarding them as system integrators
Engineering work not regarded as research as in other industries

21. Risk averse behaviour of customers
Innovation and RTD
Consider building of digital maritime infrastructures, e.g. broadband communication coverage of major sea routes
Risk averse behaviour of customers

22. Source: Wikimedia

23. Source: Lloyd's Register, Qinetiq and University of Strathclyde, 2013

24. Thank you for your attention!
DG for Internal Market, Industry, Entrepreneurship and SMEs
Unit I4 – Defence, Aeronautic and Maritime Industries