Automation in the German shipbuilding industry: competitive advantages, costs and demand for skilled workers

The German shipbuilding industry is under pressure: high wages, fierce international competition and complex specialist orders. The response from many shipyards is Automation and digitalisation. It reduces costs, maintains high quality and gives German shipyards new competitive advantages over Asia – but it is also changing the type of skilled workers required in modern manufacturing environments.

Estimated reading time: 10 minutes

What competitive advantages does automation offer the German shipbuilding industry?

In addition to labour costs, there is also considerable potential for savings in many other areas. These range from material consumption to post-processing and beyond.

Automation is therefore much more than just a tool for reducing labour costs. It has an impact on the entire manufacturing process – from material utilisation and construction time right through to documentation. The following sections explain the individual ways of making savings in detail.

How does automation reduce costs at the shipyard?

In addition to the direct savings, there are further benefits: projects can be completed more quickly. This enables shipyards to handle more orders within the same timeframe.

Reducing the time spent on post-processing can also minimise the risk of delivery delays. This improves planning reliability and reduces the costs that may arise from late deliveries.

Why does quality remain high despite cost-cutting?

Automation can also help to ensure consistently high quality. This reduces the amount of rework required and helps to minimise the risk of quality-related complaints. Consistent quality also strengthens the company’s reputation.

Reliable, repeatable precision is particularly important when carrying out safety-critical tasks such as welding. You can find out what to bear in mind in our article „Welding - dangers and risks“.

What role do energy, sustainability and economies of scale play?

Savings can also be made in terms of energy consumption. Even if the financial impact is relatively small compared with other cost areas, these savings remain significant. Lower energy consumption can improve sustainability indicators. Furthermore, as energy prices rise, the financial benefits of the energy saved also increase.

In series production in particular, the savings add up over the course of the entire production run. If the cost per unit is reduced as the quantity increases, economies of scale are realised. Even individual projects can benefit from standardised processes: modules are prefabricated in batches, and many work steps are repeated within a single project. Automation offers particular advantages here when consistently precise execution is required.

The savings generated open up further opportunities: companies can reinvest them to modernise their operations, improve working conditions or fund additional training places. In this way, automation can also bring social benefits.

Another advantage is the digital documentation of the work stages. It enables specialists to trace manufacturing processes and provide the necessary process documentation in highly regulated markets. This traceability is particularly valuable when shipyards bid for government contracts, such as for the construction of naval vessels.

How do shipyards calculate specific savings?

In order to calculate potential savings based on actual company data, the baseline figures must first be recorded: What are the average costs per working hour? What are the material and energy costs? This data forms the basis for comparison with the expected costs following automation.

To carry out a comprehensive cost-benefit analysis, the capital costs as well as the ongoing operating and maintenance costs must also be taken into account. The payback period can then be calculated from the annual net savings. This indicates the length of time it takes for the savings to recoup the investment.

How are German shipyards holding their own against competition from Asia?

German shipyards face international competition, particularly from companies in China, South Korea and Japan. Depending on the location and type of vessel, lower labour costs, high capacity utilisation and the production of larger batches can provide cost advantages.

German shipyards, on the other hand, must take into account high labour costs and the specific requirements of niche and specialised orders. Their strengths lie, amongst other things, in their expertise and in the development of innovative solutions. Automation and digitalisation can help to reduce production costs and improve price competitiveness.

Lower production costs do not have to come at the expense of quality. Automated processes can reduce labour costs whilst helping to maintain a consistently high standard of manufacturing quality.

Even in the case of complex, custom-built vessels, many work steps are repeated within a single project or across several projects. If these processes are standardised, programmed and documented, the individual benefits of mass production can also be utilised in bespoke projects.

Our article explains how digitalisation is transforming the yacht and shipbuilding industries Digitalisation in yacht and shipbuilding: smart ships and digital twins.

How is digitalisation changing the entire value chain?

Digitalisation affects the entire value chain. Networked manufacturing systems enable more precise control of just-in-time production. Sensors and digital systems monitor production progress, material consumption and stock levels in real time. On this basis, material deliveries and the assembly of components can be better coordinated in terms of timing.

Particularly in the case of complex projects, the digital integration of suppliers can help to reduce stock levels and shorten construction times. Logistical bottlenecks can be identified at an early stage, enabling those responsible to take timely action to address them.

This is particularly important in the case of specialised types of vessel, such as naval and research vessels. In such projects, the project management team must coordinate numerous suppliers. Connecting and integrating them digitally makes coordination easier.

This can increase planning certainty for the companies involved. Better-coordinated supply chains and more efficient processes also offer the potential to reduce costs and enable more competitive prices.

What funding is available for automation in shipbuilding?

Federal and EU funding schemes may be available for investments in digitalisation and automation. They can also help small and medium-sized shipyards to implement technological innovations within their own operations. Whether a project is eligible for funding depends on the conditions of the relevant scheme.

Potential areas for funding include, for example, pilot projects involving robotic systems, AI-based production planning or measures to improve energy efficiency in production halls. Which expenses are eligible for funding and the amount of the grant must be assessed on the basis of the specific programme.

Collaborative projects also offer opportunities for joint development work. These involve shipyards, research institutions and suppliers working together. For example, they develop test environments for digital ship designs and automated quality assurance systems, or optimise energy use in dry docks.

What does automation mean for shipyards and skilled workers?

Even as processes become increasingly automated, skilled workers remain indispensable. At the same time, the requirements are changing: manual skills are being complemented by digital skills. Welders operate automated systems, electricians integrate sensor systems, and testing technicians document test results as part of the digital manufacturing process.

Skilled workers from Eastern Europe can bring this combination of craftsmanship and experience with modern production facilities. Their individual qualifications are crucial to their role, such as knowledge of operating CNC machines, welding robots and networked manufacturing systems.

What skilled workers are in demand in the automated shipbuilding sector?

Welder & CNC operator
Operating automated welding and laser cutting systems, as well as the precise machining of components in networked manufacturing.

Electricians & system integrators
Integration of sensors, networking of on-board technology and the implementation of electronic systems for quality assurance.

Shipbuilder & Steelworker
Hull construction, section assembly and work on the ship’s load-bearing structures – tasks that remain indispensable even as automation increases.

Quality Assurer & Test Technician
Inspection and documentation in the digital production process, non-destructive testing (NDT) and weld inspection.

Mechatronics & IT technician
Integration and networking of automation systems, machines and digital control platforms.

Enquire about skilled shipbuilding workers from Eastern Europe

Are you looking for qualified specialists in the fields of welding, steel construction, electrical engineering or systems integration for your shipyard? We recruit experienced staff from Poland, the Czech Republic, Romania and other EU countries with the right qualifications to meet your needs.

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Frequently asked questions

Do Eastern European specialists have experience with automated production systems in shipbuilding?

Skilled workers from Poland, the Czech Republic and Romania can bring with them experience of CNC machines, welding robots and networked production systems. Individual qualifications will be assessed to determine which skills are relevant for work at your shipyard.

Does automation really reduce staff costs without compromising quality?

Automation can reduce labour costs whilst ensuring consistently high quality. This requires processes that are reliably set up, monitored and documented. The extent of the savings depends on the specific project and the level of automation.

What savings can realistically be achieved through connected supply chains?

By involving suppliers and implementing just-in-time management, stock levels can be reduced by up to 25 % – particularly in complex projects – and construction time can be cut by weeks.

Are there any grants available for automation projects in shipyards?

Funding schemes offered by the federal government and the EU may be available for automation projects in shipyards. Depending on the scheme, robotics systems, AI-supported production planning or measures to improve energy efficiency, for example, may be eligible for funding. The level of funding and the eligibility criteria must be assessed for each individual project.

What is the legal procedure for seconded EU staff?

We assist you with the legal and administrative aspects of staff deployment. To this end, we clarify which certificates, notifications and other requirements are necessary for the specific assignment, and which tasks we can undertake on your behalf. The exact scope of services will be agreed with you in advance.

How quickly is staff available?

Staff are usually available within one to three weeks. If you have specific requirements – such as certifications, system knowledge or language skills – we recommend that you make your enquiry well in advance.

Do you need shipbuilding subcontractors on a contract basis instead of temporary labour? Our sister platform takes care of that zeitarbeit-international.de.