Technologies for marine and offshore equipment industries made in Germany increase slightly in sales at a significant upsurge in incoming orders, engineering federation VDMA says
According to VDMA there is reason for optimism in 2013. »We have successfully continued to attract new groups [ds_preview]of customers and develop new market segments,« Alexander Nürnberg, Chairman of VDMA German Marine and Offshore Equipment Industries says. While the business in the merchant ship segment was stable, German marine equipment industries could book more orders in the offshore market, as well as in the retrofit area and in service.
According to Nürnberg, production capacity utilisation in most companies had been again adequate in 2012, as had been evident in the increased production.
Sector sales of 11.6 bill. € in 2012
German marine and offshore equipment suppliers generated sales of 11.6 bill. € with approximately 68,000 employees (-3 %) in 2012. Sales increased slightly on average by 1 % compared with the previous year (sales growth in 2011: 4 %). The export rate rose to 74 % (previous year: 71 %).
Offshore equipment business in the oil and gas market was not affected by the sales fluctuations and continued to achieve further growth as in recent years.
Opportunities in new export markets
Emerging shipbuilding countries are coming to the fore in the wake of the top three China, Korea, and Japan. The newcomers include Brazil, which owes its growth to demand from the oil and gas segment.
In 2012, a total of 1,977 oceangoing ships were ordered worldwide (previous year: 1,940): thereof 651 (554) in China, 231 (351) in South Korea, 361 (327) in Japan, 66 in Brazil (42), 11 in Russia (44) and 148 (173) in the EU-27, including 10 (12) in Germany.
Global orders on hand for vessels slumped accordingly from 6,859 to 5,550 units last year.
China and Korea still main export markets
The principal export markets for German suppliers in 2012 were thus in Asia with 39 % of business (+1 %) and other European countries with 33 % (+1 %). China remained the largest foreign market accounting for 17 % (-5 %) of exports, trailed by Korea with 10 % (0 % change). New markets in Asia registered significant increases (other Asian countries: +5 %), thanks to work resulting from the offshore boom in Singapore and India, as well as projects of the young shipyards in the Philippines.
The sector is continuing to monitor very closely the efforts taken by countries in Asia and South America to expand their own suppliers. German firms therefore aim to maintain their edge in the technical and logistics area and improve it with innovation and services. Know-how protection is becoming more significant, also within joint ventures with local partners – not only in Asia. Direct product piracy is thus being combated with both technical and legal means.
High demand for top-quality reliable offshore equipment
German suppliers will continue to step up their involvement in the offshore oil and gas industry that has been increasing for several years. There is considerable demand for first-rate, reliable equipment. High availability, rapid response times as well as high environmental and safety standards are crucial competitive advantages of German companies in this sector. The visit by the National Maritime Coordinator Hans-Joachim Otto at the Offshore Technology Conference OTC 2013 in Houston represented a first important signal on the part of German political leadership.
Forecasting the future – marine equipment in 2024
The companies in the sector require long-term decision-making aids that are as reliable as possible for strategic investments and new product developments.
A systematic scenario for the sector for the coming decade has been recently developed in the German Engineering Federation (VDMA). With the results of the forecast, the individual firms are now carrying out their own long-term planning. The results of this study »Marine and Offshore Equipment Industries in 2024« are available.
»We have thus created for the sector a planning aid and at the same time gained experience ourselves, which is possible only on such a joint basis,« explained Chairman Alexander Nürnberg.
