Korean Media: Japan's Shipbuilding Industry Is Falling Behind China and South Korea!
On November 1, the Korean media outlet "Hanjung Economy" published an article stating that Japan once held more than 60% of the global shipbuilding market share, known as the "Kingdom of Shipbuilding." However, Japan's glory has now been overshadowed by the dominant positions of South Korea and China, making it difficult to reclaim its former status.
Industry analysts say that after losing the top position in the 1990s, continuous reliance on domestic demand, a focus on specific types of ships, and failed overseas investments are structural reasons for Japan's long-term stagnation in the shipbuilding industry.
The characteristics of Japan's shipbuilding industry are its reliance on domestic demand. In addition to simply relying on the output of domestic shipping companies, Japan's conservative corporate culture insists on standardized design and proprietary specifications, which hinder its timely response to the needs of global shipowners. In contrast, South Korea and China have expanded their global order markets by flexibly responding to design changes and delivery time adjustments.
Despite this, Japan still maintains competitiveness in certain ship types such as bulk carriers, thanks to stable order volumes centered around Japan's three major shipping companies. Japan has the third-largest merchant fleet in the world, after China and Greece, which allows it to maintain a steady supply of shipbuilding orders solely based on domestic demand.
However, many point out that this structure fails to address the increasingly segmented and customer-customized overseas market.
Chang-hyun Song, head of Hyundai Heavy Industries Tokyo branch, said, "Japan is very confident in its standard designs, so it is not flexible when accepting the requirements of shipowners. Due to the orders from large domestic shipping companies, Japan's shipbuilding industry has not completely collapsed."
Another problem facing Japan's shipbuilding industry is declining profitability. Experts say, "It is generally believed that the shipbuilding industry is sensitive to economic and cost fluctuations, making it difficult to achieve stable profits. Listed companies have been reducing the scale of their shipbuilding departments under short-term performance pressures. For example, Mitsubishi Heavy Industries has spun off its shipbuilding department into a subsidiary, and its share in total sales is steadily decreasing."
Labor shortages are also a structural constraint for Japan's shipbuilding industry. Although reusing existing port facilities is feasible, the shortage of skilled workers is becoming increasingly severe.
Nevertheless, Japan is seeking change. It is accelerating the development of next-generation fuels such as ammonia and hydrogen, and there are signs that companies are forming joint ventures to develop liquefied carbon dioxide transport ships.
However, global shipowners' trust still leans towards South Korea. Song emphasized, "South Korean shipyards have impressive track records and technical capabilities in dual-fuel propulsion ships, as well as liquefied natural gas, liquefied petroleum gas, and ammonia transport ships."
Ultimately, the general view is that unless Japan moves away from its domestically oriented structure, actively diversifies its product lines, and formulates an overseas market strategy, it will not be easy to narrow the gap with South Korea and China.
A South Korean industry insider said, "Japan will remain the third-largest shipbuilding country in the world, but regaining the top position is still a long way off. Retaining market share is actually their top priority. For South Korea, maintaining fast response in environmental protection and high-value-added products is key to maintaining market leadership."
Original: www.toutiao.com/article/1847571181824008/
Statement: This article represents the views of the author."