1. MARINE MANUFACTURING
Ship building, ship repair, boat building, yacht building, marine equipment manufacture

2. BENCHMARKING
REVIEW OF SOUTH AFRICAN POSITION IN THESE SECTORS, AND BENCHMARKING AGAINST INTERNATIONAL COMPETITION
WORK IN PROGRESS FOR A SAMSA STUDY

3. SHIP BUILDING TWO COMPETENT SHIP YARDS
ONE HAS DIRECT WATER ACCESS, THE OTHER NOT
SIZE LIMITATION
LEADS TO NICHE PRODUCTION
LACK OF CONTINUITY OF WORK
LOSS OF SKILLS FROM INDUSTRY
INTERNAL TRAINING NECESSARY
FUTURE WORK: NAVIES, NPA, SPECIALISED VESSELS

4. BENCHMARK OVER SUPPLY OF SHIP BUILDING IN THE WORLD
SA COSTS APPEAR ON A PAR WITH MOST OVERSEAS YARDS (EXAMPLE OF ONE YARD)
AFFECTED BY COST OF IMPORTING COMPONENTS
QUALITY OF A HIGH STANDARD
PRODUCTIVITY IS LOW
CAPITAL INVESTMENT IS LOW
MANY OVERSEAS YARDS GET GOVERNMENT SUBSIDIES
ASSOCIATION WITH BANKS

5. SHIP REPAIR SA INDUSTRY DOMINATED BY THREE MAJOR PLAYERS
COMMERCIALISATION BY NPA HAS NOT MOVED AHEAD
LACK OF ACCESS TO WATER INHIBITS GROWTH
SHORT LEASES AFFECT CAPITAL INVESTMENT
TECHNICAL CAPACITY AND WORK FORCE SIZE IS GOOD
LACK OF TRAINED PERSONNEL (CODED WELDERS etc)
GOOD POTENTIAL FOR MUCH FUTURE WORK, EMPLOYMENT AND UPSKILLING

6. BENCHMARK INTERNATIONAL COMPETITION IS HIGH
OFTEN WITH GOVERNMENT SUPPORT
SA IS MAJOR PLAYER ALONG SOUTHERN AFRICAN COAST
INTERNAL COMPETITION IS STRONG
SA COSTS
18% HIGHER THAN DUBAI DRY DOCKS
6% HIGHER THAN NAMPORT
NAMPORT IS BECOMING A THREAT
UNDUE ELEMENT OF COSTS COMES FROM LACK OF FACILITIES
PERCEIVED LACK OF PROJECT MANAGEMENT AND ENGINEERING COMPETENCE

7. BOAT BUILDING COMMERCIAL CRAFT EMPHASIS
5 COMPANIES - POTENTIAL FOR MORE
LACK OF CONTINUITY
NEED TO DEVELOP NICHES
LACK OF WORKING FUNDS PARTICULARLY FOR MARKETING
INTERNAL TRAINING NECESSARY
LACK OF DESIGN SKILLS TO MEET VARIETY OF REQUIREMENTS
FUTURE WORK: AFRICAN COUNTRIES, NAVIES, FISHING

8. BENCHMARK LARGE COMPETITIVE INTERNATIONAL INDUSTRY TARGETING AFRICA
THEY COME WITH FINANCIAL INCENTIVES
SA COSTS LOWER THAN COMPETITION
SA DOES NOT HAVE INTERAFRICA MARKETING
SA HAS SHORTER SUPPLY ROUTE TO AFRICA
SA LOW DESIGN AND TECHNICAL SKILLS

9. YACHT BUILDING THREE YEARS AGO WORLD NUMBER 2 IN MULTIHULLS
OUTPUT REDUCED BY 34% IN LAST TWO YEARS
12 ACTIVE COMPANIES, 5 SMALLER
4 CLOSED IN LAST TWO YEARS
MANAGEMENT SKILLS NEED TO BE IMPROVED
LACK OF ACCESS TO WATER A MAJOR PROBLEM
SHORT ON FUNDS
FOR MODERNISING DESIGNS AND PRODUCTION
FOR CHANGING MODEL SIZE
FOR R and D AND GREEN TECHNOLOGY
FOR ENTERING NEW MARKETS
SUPER YACHT REPAIR
COMMERCIAL CRAFT

10. BENCHMARK SMALL LOCAL MARKET BASE (MARINA SPACE, COST etc)
SOUTH AFRICAN ‘BESPOKE’ BOATS MORE EXPENSIVE THAN PRODUCTION BOATS (+16% - THREE EXAMPLES)
SA LESS EXPENSIVE FOR LARGER YACHTS (-22% - ONE EXAMPLE)
COSTS OF DISTANCE FROM MARKETS HIGH FOR DELIVERY AND MARKETING
TRADITIONAL MARKET HAS CHANGED
NUMBER OF ‘HNW’ INDIVIDUALS BUYING IN ‘OLD’ MARKET
GROWING MARKETS
GULF
ASIA
TYPE OF BOATS
PRODUCTION BOATS
MOTOR BOATS

11. EQUIPMENT MANUFACTURE
IMPORT ACTIVITIES INTO SA HIGH
POTENTIAL FOR SA MANUFACTURING IS HIGH
NEED TO DEVELOP NICHES
LIMITED FUNDING FOR R and D
COST OF ENTERING THE INTERNATIONAL MARKET IS HIGH
GOVERNMENT SUPPORT IS CRITICAL
SMALL NUMBER OF SA COMPANIES AT PRESENT
WINCHES, CRANES, PROPULSION SYSTEMS, MASTS, SAILS

12. BENCHMARK LARGE NUMBER OF INTERNATIONAL COMPETITORS
SA COMPANIES NOT KNOWN INTERNATIONALLY FOR MARITIME PRODUCTS
WORLD QUANTITIES HIGH, LEADS TO PRODUCTIVITY AND LOWER COSTS
SA COMPANIES LOWER VOLUMES LEADS TO HIGHER COSTS
SHORTAGE OF DESIGN AND PRODUCTION SKILLS

13. ROUND TABLE OUTCOMES POLICY
NO CLEARLY ARTICULATED POLICY ACROSS THE INDUSTRY
VARIOUS INTERFACES WITH GOVERNMENT DEPARTMENTS
NEED FOR AN OVERALL BODY ON BEHALF OF SA MARINE MANUFACTURING INDUSTRY SECTOR

14. CHALLENGES
NEED TO DEVELOP HIGH PERFORMANCE CULTURE ACROSS GOVERNMENT AND INDUSTRY
NEED FOR FUNDING FOR INDUSTRY RECAPITALISATION
NEED TO ALIGN NPA AND INDUSTRY FACILITIES PLANNING TO LEAD TO INTERNATIONAL LEVEL PRODUCTIVITY
NEED TO ALIGN SKILLS DEVELOPMENT TO MEET SHORTAGES

15. IMPLICATIONS PROFESSIONAL INDUSTRY BODY TO DEAL WITH GOVERNMENT
GOVERNMENT DEPARTMENTS TO ASSIST IN MARKETING AND ACCESS TO FUNDING
REVIEW NPA AND INDUSTRY POLICY CO-ORDINATION AND CO-OPERATION
REVIEW POSITION OF DESIGNATED FISHING HARBOURS TO INCREASE WATER ACCESS
REVIEW SUB-OPTIMUM SKILLS DEVELOPMENT
UNIVERSITY AND TECHNICAL EDUCATION
SPECIALIST SKILLS
TRADE SKILLS