the naval industry facing the challenge of competitiveness and the green transition
OCT. 2022
download our position paper
The sustainability and support of the French shipbuilding industry are major stakes for national and European strategic autonomy. The Russo-Ukrainian crisis has severely impacted the industrial sector, creating over 700 million euros in risks for outgoing contracts among equipment manufacturers and civil shipyards. For some members, this affects nearly 25% of their order books. Indeed, the French naval industry is heavily export-oriented , with over 95% of civil production sold annually to foreign clients.
To combat distortions of competition, particularly from China and Turkey, the shipbuilding industry must receive State support to guarantee the sector’s productivity. The implementation of an appropriate economic framework, a revival of public procurement, and retaliatory measures would restore a level playing field, ensuring the long-term viability of industrials activities.
Attractiveness is a major challenge for a sector suffering from a poor public image. With over 30 professions currently under pressure, the development of training and new pedagogical tools is essential to bolster the appeal of our activities and ensure the immediate employability of students. In this regard, posted workers are an absolute necessity to maintain our production capacity in France, as their expertise helps mitigate the labor shortages faced by our members.
The industry is also deeply concerned by issues relating to Taxonomy. Excluding our sector would have significant impacts on our ability to pursue decarbonization, as well as on our competitiveness and appeal. The defense industry must be included in sustainable finance programs to avoid any competitive disadvantage.
The shipbuilding industry is resolutely committed to the energy transition. From products to processes, the sector is fully engaged in reducing its carbon footprint. The Green Ship roadmap provides direction for Research and Development (R&D) efforts to generate the technological breakthroughs required for the sector’s decarbonization. Our commitment must be backed by public sector financial aid to secure our leadership in the energy transition. We are already working on:
–The construction and acquisition of decarbonized vessels compliant with new regulations. This involve an additional cost of 10% to 20% compared to conventional ships.
–The recycling of materials from decommissioning of civil and military vessels.
–The identification of production stages that are sources of greenhouse gas emissions, in order to produce a decarbonization roadmap for 2030.
our proposals
–Financial support for our sector through the development of regional funds and State investment programs.
–Assistance for the shipbuilding industry in its energy transition by offsetting the resulting additional costs.
–Strengthening the sector’s appeal through training development and the protection/promotion of ‘posted worker’s status.
gican : who are we ?
The French Marine Industry Association (GICAN) is a professional federation representing 247 companies in the civil and military naval sectors. It brings together shipyards, systems integrators, equipment manufacturers, subcontractors, engineering firms, and naval architects. The industry is a strategic sector providing high-tech jobs and is deeply rooted in coastal regions. Key figures include:
- 48,700 direct jobs: the leading private employer in 4 port hubs.
- €11.5 billion annual turnover ‘Made in France’, 45% of which is from exports.
- The naval defense industry accounts for half of this turnover.
The dual nature of the French industry—both civil and military—enables it to cover a wide array of activities that significantly vitalize the regions where they are based. GICAN member companies span the entire value chain:
- Civil shipyards building all types of vessels (pilot boats, fishing boats, cruise ships, etc.);
- The military domain, where France masters the full spectrum, from surface combatants to nuclear-powered submarines.
- Naval companies provide innovative and high-performance solutions that contribute to the industry’s European and international influence.
With these many assets, the naval sector stands as a flagship of French industry. Every billion euros invested in the sector generates an additional 2 billion euros of activity within 10 years. France can rely on this cutting-edge industry to meet the challenges of maritime transport decarbonization, the sustainable exploration of the deep seabed, the development of Marine Renewable Energies (MRE), and the securing of maritime zones