In mathematics there is such a concept – similar figures: figures that have the same shape, but differ in scale. Thus, the market of pleasure yachts and boats can in a sense be called similar to the market of large shipbuilding. This similarity was also evident at the Neve-2019, an exhibition on commercial shipping and shipbuilding, which was held in St. Petersburg in September, and once again showed that the shipbuilding industry is alive and, despite everything, is developing.
The similarity can be traced in several planes. Firstly, shipbuilding is not only tankers and bulk carriers, but also a diverse small fleet: service, pilot, passenger and other boats, and many suppliers of equipment (engines, propulsion systems, ship materials, electronics) operate on “two fronts” … Secondly, the construction of large yachts has long come under the control of classification societies, and the same requirements apply to such yachts as to commercial vessels. For example, the new IMO Tier III emission requirements are of concern to manufacturers of all vessels over 24 m in length …
Thus, there are much more areas of intersection between two seemingly different industries than it might seem at first glance. I drew attention to one more point. In the yachting industry, universal trading houses have long been entrenched, offering equipment “from keel to keel” according to catalogs. It is convenient to work with them not only for individuals, but also for small shipyards. You buy everything in one place (the principle of “one window”) and with a good partner discount, you do not need a large purchasing department, you do not need to maintain dozens of supply contracts, track the payment of a bunch of invoices, etc. And in case of warranty claims, the appeal also goes to one company. Trading houses themselves update the line of products in accordance with market demands, and the determining factor in choosing a trading house as a supplier may be the convenience of delivery, quality or variety of the nomenclature, working conditions.
Large shipyards are able to maintain numerous purchasing departments and have dozens of contracts. Although they also showed a downward trend in the number of suppliers, until recently this was not so noticeable. At the Neva exhibition, along with the stands of corporations, we saw solid stands of trading houses that collect different brands under their roofs and strive to become the only suppliers for shipyards. Moreover, such companies are starting to master new functions. So, one has its own design bureau and can carry out the technical design of the vessel (the main elements of which will be from the line of brands of the trading house). Another of the purchased components begins to assemble its own control systems, develops software for them and offers a ready-made solution for ship control. Naturally, this system is best integrated with the machinery and equipment supplied by this trading house.
What is the advantage of large shipyards here? First of all, in the optimization of the procurement process. Buying everything in one place, you can get flexible terms. In addition, trading houses, combining orders from different shipyards, seek the best prices from manufacturers themselves, and everyone benefits from this. Secondly, it is traditionally difficult for large shipyards to deal with technical support and warranty claims, and during commercial operation, ships work longer and equipment breaks down more often. It is more convenient for shipyards to contact one place for all questions, knowing that they are unlikely to be refused there, because a large volume of supplies is at stake.
The same is for small shipyards, where government agencies are often the customers. For example, someone needs several batteries per ship (such purchases are usually irregular). A trading house can combine applications for batteries from a group of companies, get good conditions for a batch, sign a dealer agreement from the manufacturer, store and replenish the required quantity in a warehouse, etc. This is convenient for shipyards, a trading house, and a customer.
So, we see that in large shipbuilding there is the same tendency to work through trading houses, that both markets are becoming structurally similar. Similarity laws work!
Chief Editor
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