Demand buoyed by emerging shipbuilders, says VDMA

The body has reported sales of Euro11.5bn ($15.2bn) for German marine and offshore equipment suppliers in 2012, despite workforce decreases of 3% throughout that year. Offshore business ‘continues to achieve growth’, with VDMA citing Brazil’s growing shipbuilding industry, and oil and gas demand alongside Singapore, India, and the Philippines.

 “While the major shipbuilding countries China and Korea are currently reporting few new orders for merchant ships, we could book more orders in the offshore market, as well as in the retrofit area and in service,” stated Dr. Alexander Nürnberg, VDMA chairman.

However, quality is no longer a unique selling point for German manufacturers the VDMA warned. "There are again initial new reports of successful business also from China, though at very bad prices. Quality is good, but that is no longer a unique selling point. Customers require suppliers with solution and system expertise as well as short response times. While the sales markets in the offshore segment still offer great potential for German suppliers, the enormous price pressure with ever shorter delivery times for marine equipment represents a formidable challenge.”