This year’s cluster analysis by Menon Economics shows a clear decline in the activity level and profitability of the cluster. This is a consequence of the significant fall in demand for goods and services related to oil and gas activities in Norway and internationally.

This means that there has been a very swift change from a period of strong growth with a high activity level to a situation with large overcapacity and falling prices. This development does not only affect the shipping companies, but also shipyard activity and suppliers of specialized goods and services. All segments of the cluster are experiencing a decline in activity level, and total value creation for the cluster has fallen by 15 percent in the period from 2014 to 2015. In 2015, the cluster’s operating margin is zero percent, a clear decline from 2014. Activity is expected to fall further in 2016, forcing the cluster into a phase of change and transition. The companies are reducing capacity, but at the same time, the cluster is showing an impressive capability to adapt and adjust. Within a very short period of time, the shipyards’ order books have gone from being completely offshore-dominated to becoming much more diversified. Today, fisheries, aquaculture and tourism (cruise ships and passenger ferries) stand for a bigger share of the shipyards’ order books than ships intended for oil and gas activities.

This year’s cluster analysis was presented at GCE Blue Maritime’s annual conference in Ålesund on September 30. The presentation from the cluster conference is available here, while the full report can be downloaded here.

In case of questions, please contact partner Erik W. Jakobsen or senior consultant Christian S. Mellbye.