Naval shipbuilding

our freedom and security depend on the sea. towards a proactive naval defense and security policy.

january 2022

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the shipbuilding industry ‘100% made in france’ across all regions

GICAN federates companies from both the civil and military sector :

48700
  • direct jobs: The leading private employer in four port hubs; accounting for 10% of industrial jobs in four coastal regions, with 40% of sites located inland.
74

percent of our members are SMEs or micro-businesses.

11

bn€ of annual turnover ‘Made in France’, with 45% from exports.

50

percent of this turnover is generated by the nal defense industry.

1

st in Europe: An essential contributor to both national and European strategic autonomy, underpinned by a robustly dual-use industry.

shipbuilding at the heart of the response to maritim contest and confrontation

The sea is a global common, vital for the transit of goods and the world economy. Teeming with natural resources, it is a strategic space for maneuver and naval confrontation and is therefore highly coveted. It is experiencing unprecedented tensions, from coastal zones to the high seas, and from the surface to the abyssal depths. The return of naval combat is becoming increasingly likely; the future of our sovereignty is being decided at sea.

The shipbuilding industry is a vital lever in preserving the superiority of our naval forces, which are currently operating with a fleet tailored to the strict minimum while facing a vast spectrum of missions: nuclear deterrence, power projection, the protection of our 11 million km² Exclusive Economic Zone (EEZ), our coastlines, our overseas territories, and our economic interests, as well as the safeguarding of shipping lanes.

Faced with exponential global rearmament, particularly in the naval domain, the challenge of technological superiority, the guarantee of operational superiority is a major stake that requires the unification of all State and industrial energies.

shipbuilding INDUSTRY : facing the challenges of long cycles and limited production runs

A warship’s lifecycle, from design to decommissioning, exceeds 50 years. Unlike other sectors, the shipbuilding industry produces in small numbers and does not benefit from economies of scale.

To meet these challenges, the industry requires a sufficient workload and long-term visibility to guarantee innovation and the retention of skills.

A high level of exports, prioritizing national suppliers, is essential. The achievement of France’s naval ambitions depends on this condition.

shipbuildinG INDUSTRY : a key contributor to new challenges

01

The return of high-intensity naval combat is a reality that necessitates strengthening combat capabilities and unit resilience and developing collaborative engagement across naval and multi-domain environments (air-land-sea).

02

Addressing new threats such as cyber-attacks and drones requires the design and development of new counter-capabilities within a context of both high-intensity combat and hybrid warfare.

 

03

A new space for conflict is emerging on the seabed, where 99% of global internet traffic transits. Protecting and accessing seabed resources requires new surveillance, control, and intervention capabilities.

04

The pace of technological innovation is accelerating. The digital revolution is disrupting the development of combat systems and equipment, notably with the emergence of uncrewed systems (drones).

05

Rising export competition is extending beyond traditional players, particularly in Asia but also within Europe.

06

Environmental challenges are multiplying. Equipment and vessels must continue to evolve to meet these challenges, specifically through the integration of new technologies.

07

Societal and regulatory changes are increasing requirements for compliance and responsibility (CSR criteria). European debates surrounding Taxonomy illustrate this risk. Our industry faces the threat of being sidelined, or at the very least, deprived of project financing, especially for exports.

SHIPBUILDING INDUSTRY : time for choices to meet the nation’s needs

The current Military Programming Law (LPM) has initiated a welcome shift in the effort to renew the naval capabilities necessary for our country’s security. By its very nature, the shipbuilding industry contributes to this and has a de facto essential role to play in strengthening these capabilities to match the new reality of threats.

However, in a constrained financial environment, this necessarily involves several key political choices:

• Ring-fence major naval programs essential to our national independence¹.

• End the under-investment in naval R&D by increasing study and innovation budgets from 4% to 10% of the required volume (excluding deterrence), amounting to approximately €100m per year.

• Commit to the development of combat capabilities required to counter new threats: this includes accelerating naval drone integration across all environments (air, surface, and subsea), and developing connectivity, collaborative combat tools, electronic warfare, and cyber intervention.

• Consolidate the renewal of surveillance and intervention assets (second-line vessels) by hardening them for combat, to ensure permanent sovereignty and freedom of action, particularly in overseas territories.

• Ensure the resilience of assets by resolutely committing to Industry 4.0 (e.g., predictive maintenance), guaranteeing operational availability and endurance during missions.

• Embed the naval defense sector within European dynamics, notably by developing major projects beyond the European Patrol Corvette (EPC).

• Defend the responsible image of the naval defense industry and help preserve access to the financing necessary for the long-term viability of the defense sector.

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