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| Hoping to be well for domestic shipbuilding, marine plant equipment industry. |
In the 21st century, the competitive paradigm is put finished parts into materials in components and materials and they have become a key component of industrial competitiveness.
Because parts and materials industry based on the core technology it is essential to make composition of fundamental technology clusters for functional knowledge acquisition through each division through districts. In Busan, responding to this new paradigm, in order to activate the local economy indulging in long-term downturn, as a means of the endogenous development of the local economy, making mechanical parts and materials industry as the growth engine industries, through building regional innovation systems and wide-area cluster development, it tries to have a number of ways. According to this trend, the domestic shipbuilding and marine equipment industry, for marine plant equipment parts and materials to deliver next-generation growth engine industries, through a comprehensive and effective development of core technologies and capabilities of technology resources by fostering world-class industry clusters it has been focused on how to seek local industry-led innovation. Shipbuilding and marine plant equipment has a variety of types of equipments mounted on a ship, but on the other hand, is small in requirements. In particular, because depending on the type of vessel, requirements of equipment also, are various, a small quantity batch production is available and therefore, it has difficulty for the standards and specifications. In addition, because shipyards order equipments after the contract, the equipment manufacturers have difficulties to plan to produce timely. Korea's shipbuilding industry has a leading role in the world, accordingly, with the co-operation with associated industries such as the equipment industry, the steel and maritime industry it can be achieved a long-term competitive strength. In other words, cooperation with shipbuilding industry and the equipment industry should keep in mind that without the high-quality equipment, competitive vessels can not be achieved. Competitiveness of small and medium-sized companies that produce equipment is directly linked to the competitiveness of the shipyard, and shipyards and equipment suppliers are bound to the relationship of partnership to share the profits and losses. From this perspective, monthly Ⅰ. The status of Shipbuilding and marine plant equipment industry Shipbuilding and marine plant and equipment industry is connected to the shipbuilding industry closely. Due to financial crisis started in 2008 the domestic shipbuilding industry enters into a recession and also, equipment industry in recession, even though a little of the time interval, despite a lot of domestic shipyards full of demand, starting with the first half of 2009 it is declined because delivery delays from 2009 to 2010 and cancellations. 
But since the second half of 2009, part of the financial markets stabilization and the restructuring of small and medium-sized shipyards stopped and again signs of recovery were shown.
The delivery decrease since mid-2009 estimates to have affected to equipment vendors from the previous, because production of marine construction (Work Commence, or steel cutting begins 6-8 months months shortly and the preceding year and a half longer. Immediately after the financial crisis, delivery delay or cancellation of major shipyards are used to occur and a significant portion of the ship company is estimated that it has been affected since the financial crisis. The domestic delivery amount in 2009 based on CGT is decreased 0.1% year-on-year (1,545 ten thousand CGT) whereas total sales of 22 shipyards in 2009 increased 13.0% over the previous year's, and that sales bonds grew by 32.4 percent year-over-year also are affected by the financial crisis evidence. As the production of high-volume sales growth, sales volume is increased, because the volume of production is completed or delayed is there significant portion, revenue bonds could be viewed to be increased larger than revenue. The equipment manufacturers seem to have been differentiated by main delivery vendors and the types of ships. 1. The status of Shipbuilding and marine plant equipment companies The respective member companies joined into Korea Equipment Industry Cooperative and Pusan Cooperative for Pusan is 155 companies and 287 companies. (See Table 1)  Approximately 65% of marine equipment manufacturers (based on professional supplier of 80%) are concentrated in the Busan area, and this figure is based on production companies 560 companies in 2010, employment of 35,000 people, production value of 10 trillion won. Major equipment manufacturers, while entering the shipbuilding industry into the good status since the mid-2000, go to the fastest sales growth, and by 2005-2008 revenue growth of 20-30% was recorded. The financial crisis significantly affected in 2009 and 2009 sales had decreased 1.4% from a year earlier. Engine parts and equipments parts, respectively, compared to the previous year's sales increased 0.7% and 4.2% growth respectively, having low impact of the financial crisis, while sales of the hull decreased by 8.5 percent over the previous year. Considering that sales growth of a large shipyard by 2005-2008 are 15%, 19%, 32% and 40%, the shipyard and equipment supplier's sales growth showed a similar pattern with ship yards. However, compared with a large shipyard in 2009 was 10.5 percent, sales growth is somewhat different from equipment manufacturers. That sales of equipment manufacturers, particularly part of the hull, declines 8.5 percent, because the main forging is included in the hull, other than shipbuilding companies have been reduced to the possibility of sales high, but most vulnerable to downward pressure on unit cost of the shipyard can be determined. Total assets of equipment suppliers show a similar pattern with sales amount to growing rapidly til 2008 and are affected by the financial crisis in 2009. In order to increase production capacity to be greater investment in the facility's total assets growth rate engine parts and hull parts 40 to 60 percent in 2007-2008 to a level higher, but the financial crisis and outside influence was reduced by 8% in 2009. Shipbuilding capacity in the industry continues to grow through this year's forecast and the necessary equipment vendors to supply equipment and production capacity before the financial crisis by expanding the asset is estimated to be rapidly increased. Equipment manufacturer's profitability has been improving until 2008. In particular, engine-part’s requiring the profitability of technology appeared very rapidly until 2007, and equipment’s showed an above-average performance profitable since 2005. Whereas the electrical and electronics equipment manufacturers and the hull portion is lower than average profitability, seems relatively severe competition, or that can be mass-produced items (cables, etc.) would be included. By industry, it affected differently after the financial crisis, that you believe the hull part of the profitability to be the highly competitive in 2009 showed up most significant deterioration, and the profit decline of the equipments part of was slightly stopped that is likely to be limited in technology costs or price reduction pressures. For Electrical and Electronic Department, sales of high-key manufacturers to improve profitability and a slight increase in operating margin was 0.6% p. Large shipyard in 2009 over the previous year's total operating profit margin declined 2.0% p 7.8% were recorded, due to delivery delay introduced in high-cost because raw material put into production. Given decline of shipyard's profitability, that the operating margin of engine and equipment part become down 0.8 ~ 1.3% p, is reasonable and but, is believed to be, 4.7% p drop of the hull department revenue decrease, seems to be the greatest impact as in shipyards pricing pressure. On the other hand, operating cash flow or debt ratio, current ratio in 2008 was the worse. Overall, cash flow to total assets in 2008 is not good, and the hull portion and engine parts was worse with rapid capacity expansion from 2007 to 2008 operating cash flow to total assets. Institutions operating cash flow blowing high proportion of poor cash flow from the engine manufacturer that marches in the direction of worse performance in 2009. If the future of the shipbuilding industry production decreased equipments parts affected by downward pressure on companies to price expected to be the most difficult and equipments and engine parts and companies can lead to oversupply concerns. Additional influence electronic parts receives seems to have been relatively small, and it’s because additional general-purpose and mass-produced electric and electronic items are included a lot. It should be noted production items may vary depending on the effect in terms of individual companies. 
In Figure 1 equipment vendors to corporate management is difficult due to price dumping from domestic competition, he said. When judging these points, competitors, and if you do not have a differentiated technology constantly compete with competitors entering the market is expected to be more large.
Recently in the shipbuilding industry, China has the fastest growing. China is actively promoting the construction of a large shipyard and shipbuilding companies emerging as new to the market. It was identified as a very positive that domestic shipbuilding companies stay competitive, new markets into China, and because it is a new market, to keep in mind there are several obstacles to need to do business. 2. In the first half of 2010 and 2011 mid-year, the status comparison for domestic shipbuilding and marine plant equipment industry (surveys, marine and shipbuilding) 
Domestic shipbuilding industry in 2010 were very difficult. When comparing the status seen in monthly "Marine and Shipbuilding” in March 2010 and the status of the latest equipment industry, let you know if there were any changes.
Figures2 and 3 show responding for the foundation of the equipment manufacturers. In March 2010, companies established in the fiscal year 1986-1990 was 41 percent, most common, but the survey has shown a generally even distribution. Figures4 and 5 show responses regarding the size of the capital for the equipment supplier. Looking at Figure 4, from below 500 million to more than 100 billion in general show an even distribution, but at Figure 5, more than 10 billion represents 42% having the highest rate. It’s estimated that a solid company with solid financial resources could survive against long recession. Figures6 and 7 refers to the number of workers in companies engaged in the equipment industry. In Figure 6, fewer than 100 showed 33 % as highest rate, while in Figure 7 between 100 and 200 showed a higher rate of 37%. Compared to the 2010 data the number of workers rose in 2011 and it shows that as mentioned earlier, to some extent, the size of the sound equipment vendors have some roles to endure the recession.  Figures8 and 9 is the response over the workers engaged in equipment manufacturers, where Figure 8 accounted for 69% less than 1 year to 10 years, whereas in Figure 9 it occupies less than 1 year to 5 years occupies 65% of the total. From these data, turnover of personnel engaged in the equipment industry may be related. Figures10 and 11, the responses of the distribution for a work, specifically, on-site production personnel occupies the highest rate and to be interested, in 2011 than in 2010 there were an increase about R & D personnel around 11 percent. As mentioned earlier, domestic equipment makers are aware that proprietary technologies can sustain long-term competitiveness. Figures12 and 13 show the answer for the equipment manufacturer's research, technological development investment. In Figure 12, with 33% less than 5 billion won were highest, but in Figure 13, accounting for 43% less than 1 billion won. This means that domestic equipment makers aware of the need for technology development and expanding workforce development, but due to a substantial reduction in sales, it indicates the investment costs of research and technology development are rather steady.  On the other hand, the product yields of domestic equipment manufacturers show that at both 2010 and 2011, companies that produce more than 1,000 units are respectively 30 percent and 37 percent, the highest (See Figure 14 and 15). In addition, exports of products of equipment manufacturers in 2010 represented roughly even distribution, while in 2011, it showed less than 1,000 units of the companies to 43%, a high specific gravity. This is due to the recession of the domestic ship building industry, and also, it is seen that equipment vendors were active in international markets.  Ⅱ. The prospect of shipbuilding and marine plant equipment industry 1. The prospect of shipbuilding and marine plant equipment industry Looking at Figure 19, for the outlook of the domestic shipbuilding and marine plant equipment industry it is seen optimistic about a 50 percent response. It is quite different with the last survey published in March 2010. Looking at Figure 18, the response that it will be difficult in 2010 is overwhelming to 67%. As shown in Figure 20, with the increase of orders for the shipbuilding and marine plant equipment industry, it is believed to be slightly in the positive outlook. The operating profit of the first half of 2011, is estimated to be in a good state, awarded a high increase of the vessel in good proportion to revenue recognition in the industry in 2008. In addition, compared to other types of vessel, high expectations for marine plants are high, and shipyards specialized in marine plant is in the happy screams. It also should be considered that depending on the orders momentum, the view for shipbuilding equipments needs differentiated approach. In 2010 new orders of equipment manufacturers it showed low results due to sluggish performance and raw material prices but, in 2011, it will have to be competitive through producing discriminatory items in materials niche market and will have to be competitive especially in marine plant-related equipment.  
Looking at Figure 21, with a global economic recovery and rising oil prices the development demand of new oil is expected to continue to grow and these are considered to lead to orders of marine plants.
2011 delivery quantity of marine plant would be the highest and with the order of drill ship more in 2011 than expected, estimates of marine plant orders continue to be raised. Therefore, orders momentum for these marine plants will have a huge impact not only in the shipyard but also marine plant-related equipments companies. But we must always keep in mind for the adverse effect. For the reason for this negative view the companies companies thought dumping due to excessive price competition as a priority (see Figure 22). From the end of 2008 to the recent, according to the downturn in shipbuilding it has become very competitive. In addition, the opinion that shipbuilding stage is not noticeably activated was accounted in the 25 percent. Because the order of ship followed by the order of equipment manufacturers takes some time, the companies are estimated not to get a feeling for a good stage of shipbuilding industry. 
Ⅲ. Summary
For the world's shipbuilding industry in the 1960s Expander (1960-1974), the structure regulator (1975 ~ 1990) and the enlargement of an alternative demand since 1991, the new market demand is increasing. The increase in demand for alternative vessel is due to the larger trend on the ship for cost savings and stricter regulations of international organizations for shipping and marine pollution prevention and safety. For larger vessels, since the 1960s, the main container ships of maritime transport has been made rapidly to achieve economies of scale enlargement. In addition, strengthening of the global marine environment pollution control, along with the dual structure of the hull, replacing aging ships and marine pollution prevention facilities, it has increased the installation of energy savings and personnel available to expand the development of high performance vessels. The value-added research and development of advanced type of ship, as well as development of marine technology, high value-added sectors such as environment-friendly technology to expand the research and diversify the business to prepare for future demand is raised. Europe, the luxury liner, and high-tech vessels around the type of ship-specific accelerating, and in Japan the superconducting high-speed, unattended Tues boats, fuel-efficient engines, and next-generation technology, industry collaboration to promote shipbuilding specialization. Established a subsidiary in China, including technical cooperation, and promote the internationalization of production bases and introduction of technology from Japan and joint ventures in the field of shipbuilding, due to increase of equipment construction in the world shipbuilding market and our competition is rapidly emerging as a partner. Shipbuilding industry, the country capital, technology, labor-intensive industries of the General Assembly as the main industrial countries has led the development of national economy and the domestic shipbuilding industry, improving the productivity, cost reduction, quality improvement and technology development in the world shipbuilding market. It has been most in the world's shipbuilding orders. Looking at the flow of the current world market the advanced company goes to the value-added technology for advanced type of ship, and other countries having poor technology including China, based on their low wages to compete on price competition to secure an active participant in the various orders, so the shipbuilding industry in Korea by focusing on high-value items, in particular cruise, including large container ships and specific ships being considered to be made for accumulated technology and leading strategic investment. This domestic shipbuilding and offshore plants, world-class clusters furnace equipment vendors by vendor-specific technologies by fostering the accumulation, with a third-party product differentiation and specialization, such as securing high-value product development capabilities to strive to ensure that protective measures are determined. ■ References . Busan Marine Equipment Association . Industry and Energy, Vision and Strategy for Industrial Development '2015 ' . Busan National University Northeast Regional Innovation Researcher . Daishin Securities Research Center . ODS-Prtrodata, Regzone . Busan Development Institute Economic Research Center for the Future . The Korea Shipbuilders' Association . |
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