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Shipping industry: the shipbuilding equipment manufacturing industry is facing a "price reduction crisis"

Release time:2022-06-07   Browse:273

Recently, some domestic media reported that since receiving low profit shipbuilding orders this summer, China's shipbuilding enterprises have increasingly strong demand for ship equipment manufacturers to reduce prices. Among them, private shipyards have greater demand for price reduction than state-owned shipyards. However, some shipyards are willing to give up their long-standing cooperation with domestic shipbuilding enterprises and seek cooperation with Korean enterprises with lower prices due to price factors, which is a big impact on the new order volume of China's shipbuilding industry, which just surpassed Korea for the first time in the world last year.

So, what caused the Chinese shipbuilding enterprises to launch a "forced price reduction" struggle against the ship equipment enterprises that were once dead? Liangzhiyong, an industry analyst at the economic center of China's shipbuilding industry, believes that this price war began to take shape as early as 2009. In 2009, the international shipping and shipbuilding market began a long recovery period after experiencing the serious impact caused by the financial crisis. Just in 2009, the trend of price war in the shipbuilding equipment industry was not obvious. On the one hand, at that time, domestic shipbuilding equipment manufacturers generally continued to hold orders until 2010 and the first half of 2011, that is, there was food to eat; On the other hand, the substantial demand of global shipyards for ship equipment in that year has not yet reached the peak season. Therefore, a price war is neither necessary nor effective. Just last year, Korean shipbuilding equipment enterprises adopted the strategy of reducing prices and soliciting orders, and stole a number of large orders from similar enterprises in China; At the same time, Korean shipbuilding enterprises are better than China in shipbuilding speed, efficiency and ship supporting facilities, and the overall cost is well controlled. The profit margin of Korean shipbuilding enterprises is much larger than that of Chinese enterprises. Under such fierce market competition, Chinese shipbuilding enterprises have to ask for price reduction from their upstream enterprises - ship equipment manufacturing enterprises.

In the first three quarters of this year, China's shipbuilding industry ushered in a favorable situation of rapid growth. However, insiders of the industry believe that the international environment of the shipbuilding industry has not changed at present. The current good situation of China's shipbuilding industry is based on the extremely low orders received in the same period last year. However, the effective demand for ships is still small. Therefore, the overall development prospect of domestic shipbuilding enterprises in the future is not optimistic. As the upstream industry of shipbuilding enterprises, the shipbuilding equipment manufacturing industry may have to face this irresistible price reduction trend. In this regard, China Shipbuilding Equipment Network pointed out that in response to this "price reduction crisis", Chinese shipbuilding equipment industry enterprises should do the following:

1. vigorously promote the construction of cost engineering, make achievements from the aspects of procurement cost, construction cost, management cost, etc., control the cost within a low bearing space, and improve labor productivity to make up for the losses caused by price reduction with efficiency.

2. introduce, digest and absorb foreign advanced shipbuilding equipment manufacturing technology as soon as possible, adhere to independent innovation, seize the market with technical advantages, and transform "price war" into "digital war".

3. carefully learn from the experience of Korean counterparts, continuously improve the overall cost control ability, enhance their own quality to resist risks, and be ready to deal with crises at any time. (China ship equipment network)


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