Order Backlog
The newbuilding order backlog at the end of March 1999 comprised 349 vessels of 14,922,000 GT, down 11.0% from the end of March 1998. The total included 12 domestic vessels of 277,000 GT and 337 export vessels of 14,645,000 GT.
Repairs and Conversions
Repair and conversion work for fiscal 1999 recorded a total of 115 billion yen, down 6% over the previous year.
The amount of repair and conversion work for fiscal 1999 was the lowest since fiscal 1981. This is due to the fact that the number of domestic and export ships has gradually declined.
Labor Situation
Number of workers engaged in shipbuilding (including those at subcontractors) and in ship machinery manufacturing was 116,000 in April 2000. There has been a trend towards reduction in this number over the past few years. The average age of workers at present is over 40. Improved working environments 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 ship-building facilities are now proceeding based on computer-aided engineering methods such as CAD / CAM at engineering departments, to cope with the decrease in number and aging of the skilled workforce, while aiming to increase productivity.
The final goal of such modernization is to integrate CIM using the most advanced information processing techniques including CALS into shipbuilding. Individual ship-yards have been conducting R&D on shipbuilding CIM since 1992.
Business Situation
Combined sales of the 18 member companies of the Shipbuilders' Association of Japan were \6,837 billion in fiscal 1999, a 3% decrease over the preceding year.
Classified by total sales in business sectors, the shipbuilding business (comprising newbuilding, shiprepair, and conversion) amounted to \1,302 billion (down 10% over the preceding year), and all other sectors (heavy machinery, industrial plants, etc.) to \5,535 billion (down 1%).
Share of the shipbuilding sector in total sales was 19% in fiscal 1999. Contribution of shipbuilding business to over-all sales at each company averaged 12% for the seven major companies and 91% for the 11 medium-size shipbuilders.
