The Number Of Workers Is Low! Korean Shipbuilding Industry Is Losing Its Vitality

- Apr 09, 2018-

The South Korean shipbuilding industry is gradually recovering. However, the poor performance over the past few years has caused the three major shipbuilding companies to carry out large-scale restructuring and efforts to reduce expenditures. The R&D investment has continued to decrease, and the number of workers has also dropped to a record low. The three major shipping companies in Korea will compete in the future. Force is weakening. pipe fittings

 

According to Korean media reports, experts from South Korea's shipbuilding industry believe that with the continuous reduction in R&D investment by South Korean shipping companies and the continuous loss of skilled workers in Korea shipbuilding industry, the technological gap between South Korean shipping companies and China will shrink in the near future. In recent years, the competition for shipbuilding between China and South Korea has become increasingly fierce. However, South Korean shipping companies are still maintaining their advantages in technology. welding overlay fittings

 

Data shows that the R&D investment of Hyundai Heavy Industry, Daewoo Shipbuilding, and Samsung Heavy Industries in 2017 totaled 206.7 billion won (approximately 197.44 million U.S. dollars), which is a decrease from 356.1 billion won (approximately 33.272 million U.S. dollars) in 2016 42% fell to the lowest point since 2004, 202.6 billion won (approximately US$191.8 million). In 2013, the R&D investment of the three major shipbuilding companies amounted to 522.6 billion won (approximately 495.96 million U.S. dollars), which is more than twice that of 2017; and since 2013, the investment in research and development of the three major ship companies has declined for four consecutive years.

 

Among them, Hyundai Heavy Industries had the highest R&D investment among the three major shipping companies last year, totaling 90.7 billion won (approximately 85.74 million US dollars), but that figure was more than half lower than 2016's 203.4 billion won (approximately US$1.9289 billion). Last year, R&D investment from Samsung Heavy Industries was 69.2 billion won (approximately US$65.62 million), which was 25.1% lower than the same period last year. Last year, Daewoo Shipbuilding's R&D investment decreased by 22.6% to 46.7 billion won (approximately US$42.29 million). slip on flange

 

The South Korean shipbuilding industry is concerned that lowering R&D investment will undermine future survival potential. Some industry sources stated that although profits have decreased, South Korean shipping companies need to increase their R&D expenditures because more stringent environmental regulations have led to an increase in the demand for environmental ships, and advances in information technology (IT) have made the competition in smart ship development more intense.

 

While the R&D investment has decreased, the number of workers in the three major ship companies in Korea has also dropped to a record low. Last year, the total number of employees of the three major shipping companies in South Korea totaled 37,410, a decrease of nearly 20% compared to 46,235 in 2016. Since 2014, the total number of employees in the three major ship companies has declined for three consecutive years. Last year, the number of workers in the three largest ship enterprises dropped to about 30,000 for the first time. ASME B16.5 Flange

 

Industry sources believe that compared with sales, the three major shipping companies currently have too many employees; however, in the process of reducing the number of employees, skilled workers may leave the company. In fact, in the past, Japan’s shipbuilding industry had also undergone a large-scale reorganization and lost a large number of core skilled workers in this project, losing its leading position in the global market. Another problem is that the three largest shipping companies in Korea do not employ young talents. For financial reasons, the three major shipping companies have not recruited new employees in the past two or three years. The entire shipbuilding industry is losing its vitality.