Following the news that the National Shipbuilding Office has recently established the Shipbuilding Enterprise for Growth (SEG);James Marques, Aerospace, Defense and Security Analyst at GlobalData, a leading data and analytics company, offers his view:
“The SEG will help to maintain jobs, growth and expertise in Scottish shipbuilding. Establishing this industry-led forum fulfils the aims of the government’s defense-industrial strategy to strengthen domestic firms, and this is important to both the Scottish economy and national security – the Royal Navy’s entire surface fleet is constructed in Scotland.
“The upkeep of the jobs and skillsets required in this specialist sector are deemed so crucial that the River-class patrol vessels were ordered before the Navy required them. The head of the Confederation of Shipbuilding and Engineering Unions testified to the Scottish government that shipbuilding is a backbone of the local economy, with the 6,000 direct jobs in the sector indirectly supporting a further 9,055 – over 15,000 in total.
“Industry leaders BAE and Babcock have facilities on the river Clyde and at Rosyth respectively, with the former also planning construction of an extra indoor shipbuilding facility that will make Scottish shipyards more attractive for future orders. GlobalData analysis reveals that BAE alone has the second-largest market share in Europe for shipbuilding.
“The defense sector was also praised by the union for its higher proportion of sustained orders and repeat business when compared to other sectors, highlighting plans for future Type 32 frigates and Fleet Solid Support ships as lucrative contracts. Delivering at pace with sustained expertise will make UK shipyards attractive for foreign customers in a market GlobalData assesses to be worth $53.2 billion by 2032.”
