West European shipyards had 9.3% of the worldwide market in 1997, which amounted to 3,375,000 GT, up 11.2% from the previous year. The ROK yards garnered 37.6% of the worldwide newbuilding in 1997, with 13,733,000 GT which represents a 103.8% increase from the previous year. As for the January to June term for 1998, total newbuilding amounted to 12,339,000 GT, with Japan having 4,886,000 GT (40% share), West Europe, 2,583,000 GT (21% share) and the ROK, 3,120,000 GT (25% share).
Shipbuilding Activities
In fiscal 1997, keels were laid for 400 vessels or 10,858,000 GT (up 116.0% over the preceding year), 384 vessels or 10,197,000 GT were launched (up 102.4%), and 372 vessels or 9,874,000 GT were completed (down 5.2%), showing an increase in keel-laying and launching.
Order Backlog
The newbuilding order backlog at the end of March 1998 comprised 481 vessels or 17,140,000 GT, up 26.4% from the end of March 1997. The total included 17 domestic vessels or 1,299,000 GT and 464 export vessels or 15,841,000 GT.
Repairs and Conversions
Repair and conversion work for fiscal 1997 recorded a total of \130 billion down 5% from the previous year.
The amount of repair and conversion work for fiscal 1997 recorded its lowest level since fiscal 1981. This is due to the fact that the amount of domestic and export ships had gradually declined.
Labor Situation
The number of workers engaged in shipbuilding (including those at subcontractors) and ship machinery manufacturing was 116,000 at the end of 1997. There has been a trend towards a reduction in this number over the past few years. The average age of workers at present is over 40.
Improved working environment and employment conditions are necessary for recruiting young employees, and the industry must also provide training systems to attract competent staff.
In Japan, further modernization and automation of shipbuilding facilities are now proceeding based on computeraided engineering such as CAD/CAM at engineering departments, to cope with the decrease in and aging of the skilled workforce, while aiming to increase productivity.
The final goal of such modernization is to integrate into shipbuilding CIM using the most advanced information processing techniques including CALS. Individual shipyards have been conducting R&D for upgrading shipbuilding CIM since 1992.
Business Situation
The combined sales of the 18 member companies of the Ship builders' Association of Japan were \7,462 billion in fiscal 1997, about 2% decrease from the preceding year.
Classified by total sales in business sectors, the shipbuilding business (comprising newbuilding, shiprepair, and conversion) amounted to \1,382 billion (up 7% over the preceding year), and all other sectors (heavy machinery, industrial plants, etc.) to \6,080 billion (down 4%). The share of the shipbuilding sector in total sales was 18% in fiscal 1997.
The contribution of shipbuilding business to overall sales at each company averaged 10% for the seven major companies and 86% for the 11 medium- size shipbuilders. This indicates the very high proportion of non-marine business in the seven major companies, whereas the 11 medium-size companies are more specialized shipbuilders, relying heavily on the marine business.
