The strength of the European shipbuilding and marine equipment industry lies in innovation

SMM 2010 – 24th shipbuilding, machinery and marine technology international trade fair at Hamburg Fair site from 7 to 10 September 2010

In the current global economic and financial crisis, the European shipbuilding and marine equipment industry has to concentrate on its own strengths and competitive advantages. That was the message from Kommer Damen, Chairman of the Community of European Shipyards’ Associations (CESA), and Jaakko Eskola, President of the European Marine Equipment Council (EMEC), in exclusive interviews given to Hamburg Messe. Preparations are already in full progress for the next SMM, the 24th shipbuilding, machinery & marine technology, international trade fair hamburg, to be held at the Hamburg Fair site from 7 to 10 September 2010.
“We believe that focusing on our competitive advantages is the right way forward,” said CESA Chairman Kommer Damen. He highlighted as advantages of European shipbuilders the ability to offer innovative solutions and give customers exactly what they need for success, with a high degree of flexibility and dependable customer relations. These are key factors, especially at times when strict cost management is so important. Damen, who is the shareholder of the international shipyard group of the same name in the Netherlands, noted that the financial crisis has hit the whole of the shipbuilding industry – there is a sharp drop in orders, with major impact throughout Europe. But, he added, there is no doubt that the market will recover again.

“European marine equipment suppliers are well placed in their markets, thanks to diversification,” said EMEC President Jaakko Eskola, summarising the current market situation. EMEC’s membership comprises about 1,300 European marine equipment suppliers. One of their strengths pinpointed by Eskola is that they export a large proportion of the products made in Europe to Asia, so that they are not totally dependent on the market here. In addition, they supply their equipment and services to a range of different niche markets, which have been very profitable in the past and continue to promise success for the foreseeable future.
The main question for marine suppliers at present is how they can get through the present period of uncertainty. “Right now, research & development and innovation with new products are more important than ever before, so that Europe can maintain its claim to leadership in technological progress” – that is the response of the EMEC President, who is also Vice President of Wärtsilä, a leading manufacturer of marine diesels and complete propulsion systems. He pointed out that the main problem was the reluctance of banks to give credit to shipbuilders, and this in turn was impacting the marine equipment industry.
“Innovation is one of the main driving forces of the marine equipment industry,” said Eskola, referring to the need to develop new environment friendly technologies and products. He added that there were many technologies which were already available, but currently hard to put into practice due to lack of investment capital; and there was still plenty of scope for improvement in engine technology to reduce emissions.
Both the CESA Chairman and the EMEC President underlined that, in times of economic downturn, it is up to governments to take an active role. “The global economic crisis is a challenge to politicians in all areas and in all countries,” declared Kommer Damen, referring to the LeaderSHIP programme set up by European shipbuilders, an excellent platform for constructive and effective cooperation with European governments. Jaakko Eskola was also optimistic about closer cooperation with the European Commission, as this programme also provides for substantial involvement of marine equipment suppliers.

The complete interviews are published at the SMM website www.smm.hamburg.com.

(last Update: 30.04.09)