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MARINE MANUFACTURING

MARINE MANUFACTURING. Ship building, ship repair, boat building, yacht building, marine equipment manufacture. BENCHMARKING. REVIEW OF SOUTH AFRICAN POSITION IN THESE SECTORS, AND BENCHMARKING AGAINST INTERNATIONAL COMPETITION WORK IN PROGRESS FOR A SAMSA STUDY. SHIP BUILDING.

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MARINE MANUFACTURING

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  1. MARINE MANUFACTURING Ship building, ship repair, boat building, yacht building, marine equipment manufacture

  2. BENCHMARKING • REVIEW OF SOUTH AFRICAN POSITION IN THESE SECTORS, AND BENCHMARKING AGAINST INTERNATIONAL COMPETITION • WORK IN PROGRESS FOR A SAMSA STUDY

  3. SHIP BUILDING • TWO COMPETENT SHIP YARDS • ONE HAS DIRECT WATER ACCESS, THE OTHER NOT • SIZE LIMITATION • LEADS TO NICHE PRODUCTION • LACK OF CONTINUITY OF WORK • LOSS OF SKILLS FROM INDUSTRY • INTERNAL TRAINING NECESSARY • FUTURE WORK: NAVIES, NPA, SPECIALISED VESSELS

  4. BENCHMARK • OVER SUPPLY OF SHIP BUILDING IN THE WORLD • SA COSTS APPEAR ON A PAR WITH MOST OVERSEAS YARDS (EXAMPLE OF ONE YARD) • AFFECTED BY COST OF IMPORTING COMPONENTS • QUALITY OF A HIGH STANDARD • PRODUCTIVITY IS LOW • CAPITAL INVESTMENT IS LOW • MANY OVERSEAS YARDS GET GOVERNMENT SUBSIDIES • ASSOCIATION WITH BANKS

  5. SHIP REPAIR • SA INDUSTRY DOMINATED BY THREE MAJOR PLAYERS • COMMERCIALISATION BY NPA HAS NOT MOVED AHEAD • LACK OF ACCESS TO WATER INHIBITS GROWTH • SHORT LEASES AFFECT CAPITAL INVESTMENT • TECHNICAL CAPACITY AND WORK FORCE SIZE IS GOOD • LACK OF TRAINED PERSONNEL (CODED WELDERS etc) • GOOD POTENTIAL FOR MUCH FUTURE WORK, EMPLOYMENT AND UPSKILLING

  6. BENCHMARK • INTERNATIONAL COMPETITION IS HIGH • OFTEN WITH GOVERNMENT SUPPORT • SA IS MAJOR PLAYER ALONG SOUTHERN AFRICAN COAST • INTERNAL COMPETITION IS STRONG • SA COSTS • 18% HIGHER THAN DUBAI DRY DOCKS • 6% HIGHER THAN NAMPORT • NAMPORT IS BECOMING A THREAT • UNDUE ELEMENT OF COSTS COMES FROM LACK OF FACILITIES • PERCEIVED LACK OF PROJECT MANAGEMENT AND ENGINEERING COMPETENCE

  7. BOAT BUILDING • COMMERCIAL CRAFT EMPHASIS • 5 COMPANIES - POTENTIAL FOR MORE • LACK OF CONTINUITY • NEED TO DEVELOP NICHES • LACK OF WORKING FUNDS PARTICULARLY FOR MARKETING • INTERNAL TRAINING NECESSARY • LACK OF DESIGN SKILLS TO MEET VARIETY OF REQUIREMENTS • FUTURE WORK: AFRICAN COUNTRIES, NAVIES, FISHING

  8. BENCHMARK • LARGE COMPETITIVE INTERNATIONAL INDUSTRY TARGETING AFRICA • THEY COME WITH FINANCIAL INCENTIVES • SA COSTS LOWER THAN COMPETITION • SA DOES NOT HAVE INTERAFRICA MARKETING • SA HAS SHORTER SUPPLY ROUTE TO AFRICA • SA LOW DESIGN AND TECHNICAL SKILLS

  9. YACHT BUILDING • THREE YEARS AGO WORLD NUMBER 2 IN MULTIHULLS • OUTPUT REDUCED BY 34% IN LAST TWO YEARS • 12 ACTIVE COMPANIES, 5 SMALLER • 4 CLOSED IN LAST TWO YEARS • MANAGEMENT SKILLS NEED TO BE IMPROVED • LACK OF ACCESS TO WATER A MAJOR PROBLEM • SHORT ON FUNDS • FOR MODERNISING DESIGNS AND PRODUCTION • FOR CHANGING MODEL SIZE • FOR R and D AND GREEN TECHNOLOGY • FOR ENTERING NEW MARKETS • SUPER YACHT REPAIR • COMMERCIAL CRAFT

  10. BENCHMARK • SMALL LOCAL MARKET BASE (MARINA SPACE, COST etc) • SOUTH AFRICAN ‘BESPOKE’ BOATS MORE EXPENSIVE THAN PRODUCTION BOATS (+16% - THREE EXAMPLES) • SA LESS EXPENSIVE FOR LARGER YACHTS (-22% - ONE EXAMPLE) • COSTS OF DISTANCE FROM MARKETS HIGH FOR DELIVERY AND MARKETING • TRADITIONAL MARKET HAS CHANGED • NUMBER OF ‘HNW’ INDIVIDUALS BUYING IN ‘OLD’ MARKET • GROWING MARKETS • GULF • ASIA • TYPE OF BOATS • PRODUCTION BOATS • MOTOR BOATS

  11. EQUIPMENT MANUFACTURE • IMPORT ACTIVITIES INTO SA HIGH • POTENTIAL FOR SA MANUFACTURING IS HIGH • NEED TO DEVELOP NICHES • LIMITED FUNDING FOR R and D • COST OF ENTERING THE INTERNATIONAL MARKET IS HIGH • GOVERNMENT SUPPORT IS CRITICAL • SMALL NUMBER OF SA COMPANIES AT PRESENT • WINCHES, CRANES, PROPULSION SYSTEMS, MASTS, SAILS

  12. BENCHMARK • LARGE NUMBER OF INTERNATIONAL COMPETITORS • SA COMPANIES NOT KNOWN INTERNATIONALLY FOR MARITIME PRODUCTS • WORLD QUANTITIES HIGH, LEADS TO PRODUCTIVITY AND LOWER COSTS • SA COMPANIES LOWER VOLUMES LEADS TO HIGHER COSTS • SHORTAGE OF DESIGN AND PRODUCTION SKILLS

  13. ROUND TABLE OUTCOMES POLICY • NO CLEARLY ARTICULATED POLICY ACROSS THE INDUSTRY • VARIOUS INTERFACES WITH GOVERNMENT DEPARTMENTS • NEED FOR AN OVERALL BODY ON BEHALF OF SA MARINE MANUFACTURING INDUSTRY SECTOR

  14. CHALLENGES • NEED TO DEVELOP HIGH PERFORMANCE CULTURE ACROSS GOVERNMENT AND INDUSTRY • NEED FOR FUNDING FOR INDUSTRY RECAPITALISATION • NEED TO ALIGN NPA AND INDUSTRY FACILITIES PLANNING TO LEAD TO INTERNATIONAL LEVEL PRODUCTIVITY • NEED TO ALIGN SKILLS DEVELOPMENT TO MEET SHORTAGES

  15. IMPLICATIONS • PROFESSIONAL INDUSTRY BODY TO DEAL WITH GOVERNMENT • GOVERNMENT DEPARTMENTS TO ASSIST IN MARKETING AND ACCESS TO FUNDING • REVIEW NPA AND INDUSTRY POLICY CO-ORDINATION AND CO-OPERATION • REVIEW POSITION OF DESIGNATED FISHING HARBOURS TO INCREASE WATER ACCESS • REVIEW SUB-OPTIMUM SKILLS DEVELOPMENT • UNIVERSITY AND TECHNICAL EDUCATION • SPECIALIST SKILLS • TRADE SKILLS

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