Market Improving for German Equipment Suppliers

By Eric Haun
Wednesday, July 02, 2014

The German Engineering Federation (VDMA) reported a good order situation for German marine and offshore oil and gas equipment suppliers, but the upsurge in incoming orders is not making the sector euphoric.

“The boom in world ship newbuilding orders in 2013 gave us strong order growth, particularly from China and Korea. Here our ongoing export commitment in the global market is paying off: Germany remains the leading country for marine equipment suppliers worldwide. At the same time, we registered above average growth in incoming orders in the offshore oil and gas area,” stated Dr. Alexander Nürnberg, Chairman of VDMA Marine and Offshore Equipment Industries, at the association’s press conference held in Hamburg on Wednesday. But despite this overall picture, we mustn’t lose sight of the fact that although 40% of companies have achieved growth a quarter of firms have reported a decline,” Nürnberg added.

The improved order situation has meant that overall the workforce could be kept at the previous year’s level and productivity in the companies could be increased. “This is also absolutely necessary so that companies can finance their technical edge with their own R&D and at the same time withstand the enormous pressure on prices,” Nürnberg explained. “We also do not expect to see a continuation of the shipbuilding boom in 2014, but rather a further consolidation and fresh challenges.” Customers are requiring suppliers to provide ever more system expertise and solution proposals already during the development phase. “That continues to represent our chance as makers in Germany vis-à-vis the international competition,” Nürnberg emphasized.

Sector sales €11.7 billion in 2013
German marine and offshore equipment suppliers achieved sales of €11.7 billion (+1%) with 68,000 employees in 2013. The export rate was 72%. But actual exports are much higher, as many German maritime product and system suppliers cooperate to integrate components into overall systems for delivery to shipbuilders worldwide.

Incoming orders well up
Following 3.9% in 2012, growth in incoming orders reached a gratifying 11.2% in 2013. This considerable increase is attributable to the surge in orders in global merchant shipbuilding in 2013 with 70% growth in the number of vessels. However, the sector expects to see a definite consolidation and is bracing itself to meet a drop in demand in 2014. There was already consolidation in the offshore oil and gas industry in 2013. The sector anticipates pent-up demand in this area in 2014-15.

Opportunities in new export markets
The top three countries for shipbuilding are China, Korea and Japan. Brazil and Russia, which have become important shipbuilding countries in recent years, also expanding thanks to demand from the oil and gas segment, are currently showing no growth. A total of 3,375 oceangoing ships were ordered worldwide in 2013 (previous year: 1,977). Orders for 1,343 (651) vessels were placed in China, 557 (231) in Korea, 566 (361) in Japan, 30 in Brazil (66), 10 in Russia (11) and 207 (155) in the EU-28, including 10 (10) in Germany. Global orders on hand for ships accordingly surged from 5,550 to 5,994 units last year.

China and Korea much more important as markets
The main foreign customers of German suppliers in 2013 were in Asia, attracting 46% of orders (+ 6), and other European countries, with 31% of orders (- 5). China is the largest foreign market accounting for 25% of orders, well up on the previous year (+ 8). It is trailed by Korea with 14% (+ 4). Declines were reported for the rest of Asia and Latin America. The sector receives its incoming orders currently from merchant shipbuilding and special-purpose shipbuilding. The latter remains, particularly for work boats, stable worldwide at a high level.

Global competition is intensifying. German suppliers that offer in particular custom-fit solutions for retrofitting – e.g., for making ships more energy-efficient or adapting them to meet new emissions legislation – have advantages. Companies can also sharpen their competitive edge by providing smart service solutions that directly help operators reduce operating costs.

Offshore oil and gas – growth despite global market stagnation

German suppliers are very successful with ongoing export activities in the offshore oil and gas industry and are securing further market shares in a tight and highly competitive sector. “Perseverance and in particular reliability, availability and quality are called for here in a rather conservative market,” Nürnberg stressed. The ideas of German companies for environmental and safety standards also give them a considerable competitive advantage precisely in this market.

Liquid Natural Gas – propulsion on the oceans
Over 90% of transport services worldwide are by sea. Environmental protection represents a key factor in maritime transport, and the current marine propulsion systems are much more energy-efficient than any land or air transport. Pollutant emissions can be further reduced with the use of LNG.

The engine is at the heart of propulsion technology. Innovations in this area have the greatest influence on energy efficiency. The energy- and cost-saving and at the same time environment-friendly operation of ships and offshore plants is this the sales argument today. But here the conditions for the operators must apply everywhere. “Our industry depends on a reliable, international legal framework. Only with this can we successfully market ‘high tech made in Germany’ globally,” noted Klaus Deleroi, Senior Vice President at MAN Diesel and Turbo SE, Augsburg. “Makers show a massive commitment in their R&D activities with no certain prospect of success. We can thus offer operators today a wide range of highly efficient engines running on conventional fuels including exhaust gas cleaning as well as dual fuel engines, which can also be operated with gas. Overall LNG is the most environment-friendly and probably also the most commercially promising solution.”

Secret of success – staff
Innovations, productivity improvements and new services are possible only with motivated, well trained people who are team players. “We are training increasingly in house, to a much greater extent than ten years ago. Our team is our capital. However, the quality of school education is causing us concern. The young people who come to us require much more attention and further training in companies. We cope by working together, but the outlay for us is increasing all the time,” Nürnberg noted when discussing the subject of locational advantages.

vdma.org
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Kalmar 5th Generation Gloria Reachstackers Enter US

Kalmar, part of Cargotec, is launching its highly acclaimed range of reachstackers, called Gloria into the Americas. The eagerly awaited launch follows the successful

Marine Propulsion

Wärtsilä Steerable Thruster Gets Class Approval

DNV-GL approved the design of the Wärtsilä WST-14 thruster, significant as approval was granted based on a thruster design that has yet to be introduced into full series production.

John Deere Expands Tier 3 Engine Line

John Deere Power Systems (JDPS) has introduced new propulsion ratings to its EPAMarine Tier 3 engine offerings. The new PowerTech 4045TFM85 propulsion ratings expand

Caterpillar: Q3 Results Show Improvement

Caterpillar Inc. today announced its third-quarter results, in which it reported profit per share of $1.63 for the third quarter of 2014, an increase from third-quarter 2013 profit per share of $1.

Shipbuilding

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

De Beers Orders Specialized Ship from Kleven

Kleven signed a contract with diamond company De Beers Marine Namibia, part of De Beers Group, on the building of a highly specialized vessel for deep water mineral exploration.

FMT Options for another Towboat from Eastern

Eastern Shipbuilding Group, Inc. announce that Florida Marine Transporters, Inc. of Mandeville, La. exercised another additional 90’x32’x10’ “Canal Class” Inland

Finance

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

Ecoships Claims 15% Ship Efficiency Gain

Ecoships introduced a customized version of the Six Sigma DMAIC approach to process and performance evaluation in order to optimize the energy-efficiency of the vessels under its management.

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

Marine Power

John Deere Expands Tier 3 Engine Line

John Deere Power Systems (JDPS) has introduced new propulsion ratings to its EPAMarine Tier 3 engine offerings. The new PowerTech 4045TFM85 propulsion ratings expand

Caterpillar: Q3 Results Show Improvement

Caterpillar Inc. today announced its third-quarter results, in which it reported profit per share of $1.63 for the third quarter of 2014, an increase from third-quarter 2013 profit per share of $1.

ABB: Remote Monitoring Link to Fuel Efficiency

Anticipating the maintenance of equipment on board ships in order to increase fuel efficiency could be a “real game changer in the future,” said Andreas Zito, chief technical officer of the V.

LNG

Fredriksen eyes Takeover of Flex LNG

Shipping tycoon John Fredriksen is aiming to take control of Oslo-listed Flex LNG following his purchase of 12.7 million shares that brought his stake in the firm to 43.

Technip & Fluor Bag RAPID UIO Project

Technip, in a joint venture with Fluor, was awarded an engineering, procurement and construction management contract by PRPC Utilities and Facilities Sdn. Bhd.

VT Halter Begins Building LNG-powered ConRo Ships for Crowley

VT Halter Marine, Inc., a subsidiary of Vision Technologies Systems, Inc. (VT Systems), has commenced construction on the first of two liquefied natural gas (LNG)-powered,

News

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

UASC Targets Expansion to Beat Container Market Blues

UASC expects to reach volume of 2.35 mln TEU in 2014 Global carriers still struggling with weak conditions United Arab Shipping Company (UASC) is on a major expansion drive,

Marine Equipment

Kalmar 5th Generation Gloria Reachstackers Enter US

Kalmar, part of Cargotec, is launching its highly acclaimed range of reachstackers, called Gloria into the Americas. The eagerly awaited launch follows the successful

John Deere Expands Tier 3 Engine Line

John Deere Power Systems (JDPS) has introduced new propulsion ratings to its EPAMarine Tier 3 engine offerings. The new PowerTech 4045TFM85 propulsion ratings expand

Caterpillar: Q3 Results Show Improvement

Caterpillar Inc. today announced its third-quarter results, in which it reported profit per share of $1.63 for the third quarter of 2014, an increase from third-quarter 2013 profit per share of $1.

Offshore Energy

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

A History of U.S. Oil Export Controls

On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war.

Three Dead in Offshore Platform Accident

Three workers were killed and one is still missing after an accident at one of the offshore oil and gas platforms in the Caspian Sea in Azerbaijan, Azeri state energy company SOCAR said on Thursday.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2226 sec (4 req/sec)