Norway’s shipbuilding industry
M/V “Olympic Intervention IV” in Ålesund, Norway.
Shipbuilding is a long-established industry in Norway, and an important branch of Norwegian maritime activity. In the 1980s and 1990s the Norwegian shipbuilding industry managed to survive increasing international competition and loss of market share by readjusting production towards the national offshore industry.
Today approximately 80 per cent of the output from Norwegian yards is for the offshore segment. The production of offshore- and oil-related ships and equipment has thus been vital for the industry’s survival, and as such it still relies heavily on a relatively large domestic market.
On the other hand, since the early 1980s almost three-quarters of all domestic production of ships (rather than offshore-related ships and equipment) have been commissioned by foreign parties. At the same time, and in the broad view, the industry’s international market share has steadily dropped the last half century.
From left Mrs. Stephanie Gorman (Sponsor), Mr. Stig Remøy (Shipowner), Mr. Karsten Sævik (MD Ulstein Verft) and Mr Lidvar Lillerovde (Project Man.).
PSVs and AHTS’
The shipbuilding industry in Norway consists of a few medium and many small companies, and between them there is a large degree of domestic competition. For the large majority of shipyards, specialization has been the most important factor in survival. Few yards – if any – are building hulls anymore. Hulls are imported from cheaper low cost countries, i. e. Poland, Romania and China, and outfitted at Norwegian yards. The majority of ships are Platform Supply Vessels (PSV), Anchorhandling Tug Supply (AHTS) vessels and other offshore subsea construction vessels, but the production of chemical tankers is also one area in which specialization has brought success to some Norwegian shipyards.
Specialization has taken place in other areas as well, such as in the production of research ships and for a period of time high-speed aluminum ferries (catamarans). In addition, the production of fishing vessels has also been important to Norwegian shipbuilding.
The Norwegian shipbuilding industry is marked by relatively high wage rates and costly production, which many commentators have regarded as an impediment to growth and to the industry’s international competitiveness. On the other hand, there is a close relationship between Norwegian maritime research and development institutions, ship-owners and shipbuilding companies, in a deliberate attempt to be at the forefront with regard to new developments and innovation. As such, technological innovation and professionalism have been seen as the Norwegian shipbuilding industry’s main competitive advantage, and the main reason why it has been so adaptable and willing to readjust production in the face of increasing international competition.
