Shipbuilding and repair

The sector covers shipbuilding and repair of civilian and military vessels, marine equipment and boat building. These segments differ in technology specialization, concentration, the size and nature of markets. But companies may diversify on several of these segments.

Civilian and military shipbuilding

1. 2001-2007: merger of sectors 35.1A (military shipbuilding) and 35.1B (civilian shipbuilding) and of data from DCNS. 2008-2010: Insee/Esane database, sector 30.11Z, NAF 2008.
2. 2008 estimate based on the 2007 value added rate, 2010 estimate based on the 2009 value added rate.
3. 2001-2007: mean annual manpower in sector 35.1B and estimated number of jobs of 35.1A (DCNS estimate). 2009: job number on 31/12. 2008 and 2010 estimates based on 2009 data.
4. 2001-2007: number of fractions of companies with 20 salaried employees or more. 2009: number of enterprises with one salaried employee or more.
Source: Insee, Enterprises

Observations

  • Over the recent years 2009-2010 the development was characterized by a rapid growth in Asian shipyards, with China the lead shipbuilding country before Korea.
  • The European shipyards' market share has decreased, especially in the standard ship category. The segment of cruise ships, where they remain world leaders, was tackled by Korean shipyards.
  • The French shipyards are active on the markets of cruise ships, military vessels and offshore service vessels.

Marine Equipment

    The 'Marine equipment' industry supplies shipbuilding and repair yards and shipowners; it includes two categories of business:
  • technical equipment manufacturing, notably propulsion machinery, electric and electronic equipment, shipboard handling, navigation and bridge equipment, pumps, ventilation and air conditioning;
  • the manufacturing of assembled and tested equipment either as modules in their technical setting or prefab, and complete systems such as ventilation and air conditioning or fitting out public areas and cabin areas in passenger ships.

Key figures

  • Turnover 2009/2010: around EUR 3 bn
  • Employment: 18,000
  • Value added 2009/2010 : around EuR 800 million.
Source: Key figures from GICAN French Shipbuilding and Repair Association, Insee, Ifremer estimates

Ship repair

    Ship repair includes:
  • maintenance and repair of civilian ships (excluding pleasure boats);
  • conversion of ship structure;
  • scrapping of decommissioned ships.

Ship maintenance and repair is mainly a service operation, incorporating supply of (replacement) equipment intégrant de la fourniture d'équipements (de remplacement), tandis que la conversion est plus proche de la construction navale, donc majoritairement manufacturière. La démolition est un service pour le propriétaire de navire et une fourniture de matériaux pour les utilisateurs en aval tels que la sidérurgie. Les services de réparation se différencient de la construction-conversion par des temps d'intervention courts.
Jusqu'en 2007, les statistiques prenaient en compte la réparation-maintenance des navires de commerce ; depuis 2008, elles prennent aussi en compte la réparation des navires de défense et des bateaux de plaisance.

1. 2001-2007: data from branch 35.1C (NAF 2003). 2008-2010: data from sector 33.15Z (NAF 2008). Branch differs from sector by including enterprises and shares of enterprises dedicated to ship repair only. Sectors include businesses 50% or more than 50% dedicated to ship repair.
2. Fragile data. Important number of non respondents to the business inquiry.
3. 2001-2007: sales excl. tax. 2008-2010: based on turnover indices from INSEE/Esane database and on 2009 turnover.
4. 2001-2004: VA rate of sector, source: SESSI; 2005-2007: INSEE/SUSE database; 2009: INSEE/Esane database; 2008 and 2010 estimates.
5. 2001-2007: mean annual manpower. 2009: number of jobs on 31/12. 2008 and 2010 estimates based on 2009 data.
6. 2008-2010: export rates from customs database.
7. 2001-2007: number of fractions of companies with 20 salaried employees or more. 2009: number of enterprises with one salaried employee or more.
Sources: 2001-2007 SESSI annual business inquiries, INSEE/SUSE (enterprises with turnover of 0.1 million euros and more), 2008-2010 Insee/Esane, Insee/DADS, customs database

The statistical disruption of 2008 has changed the sector's population of enterprises; companies with one employee or more are now included; in addition, pleasure boat repair, which was part of the boat building sector until 2007, is now part of ship repair. Despite the disruption, the impacts of the economic crisis are conspicuous, notably on exports.

Situation in Europe and in France

In Europe, the activity has been impacted by the economic slowdown. It remains dynamic in northern Europe and in Italy. In France, several yards are negatively affected by the economic situation but the activity remains steady in specialized market segments (e.g. defence, LNG ship repair, fishing vessels, pêche, marine aggregate dredgers, yachts).

Maintenance, repair and conversion of ships in Europe (turnover, million euros)1

1. CESA member yards only
Source: CESA Community of European Shipyards Association

Boat building

The boat building sector includes the construction of sail boats, motor boats, inflatable crafts with flexible or semi-rigid hulls and other pleasure and sport crafts such as small boats, canoes, kayaks and skiffs (not including equipment for water sports and windsurf boards). Since 2008, the sector data do not include any longer boat repair, fitting-out and maintenance: the latter components are now part of the new ship repair sector.

1. 2001-2007: data from branch 35.1E (NAF 2003), enterprises with 20 salaried employees or more. 2008-2010: data from sector 30.12Z (NAF 2008), enterprises with one salaried employee or more.
2. 2008 and 2010 estimates based on turnover index of sector 30.12Z.
3. 2001-2007: value added rate of sector 35.1E. 2008 estimate based on 2009 value added rate.
4. 2001-2007: mean annual manpower; number of remunerated staff on 31/12/2008; number of jobs on 31/12/2009.
5. 2001-2007: nb of company fractions. 2009: total number of companies with one salaried emplyee or more.
6. 2008-2010: sourced from custom data, rates based on estimated turnover.
Sources: 2001-2007 SESSI annual business inquiries, 2008-2010 Insee/Esane, customs database

Observations

  • The French boat building industry was severely impacted by the economic slowdown. Job losses were estimated at 5,000 in 2010 for yards, suppliers and subcontractors as a whole.
  • A recovery, seen as modest in the end of 2010, became more sizeable in 2011; the number of delivered licenses was decreasing in France in the end of 2010.

Breakdown of French boat building12

1. Not including production of river boats, prams, inflatable dinghies, canoes, kayaks and misc. pleasure boating equipment.
2. After 2007, the data are related to the "nautical" years, i.e. from September to August of the following year.
Source: FIN French boat building and nautical industry association / Annual business inquiries