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?

Whilst labour costs offer significant potential for savings, there are also many other areas that are affected. This starts with materials and certainly does not stop at post-processing.

Automation is therefore much more than just a tool for reducing labour costs. It has an impact throughout the entire manufacturing process – from material utilisation and construction time right through to documentation. The following sections set out the individual levers in detail.

How does automation reduce costs at the shipyard?

In addition to the direct savings, there are significant knock-on effects; for example, projects can be completed in a shorter time. This means that the shipyard’s various departments can now complete more projects within the same timeframe.

With less effort and time spent on post-processing, the risk of delivery delays is also reduced. This makes planning more predictable and reduces the costs associated with late deliveries.

Why does quality remain high despite cost-cutting?

At the same time, automation ensures consistent quality. Not only does this reduce the time and effort required for post-processing, it also eliminates the risk of warranty claims. Furthermore, it helps to enhance the company’s reputation.

Reproducible precision really pays off, particularly when it comes to safety-critical tasks such as welding. Read our article to find out more about what matters in this context Welding - dangers and risks.

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

Then there are the savings in the area of energy. These may not seem like much, and they are hardly significant by comparison. However, that does not mean that these savings are insignificant. They are particularly relevant when it comes to sustainability indicators. Furthermore, energy prices usually go in only one direction: up. This means that savings in this area have an increasingly significant impact in the long term.

Economies of scale are particularly easy to recognise in series or mass production. This is where we see how savings add up across an entire production run. However, this does not mean that individual projects do not exhibit these effects. Here, too, modules are prefabricated in series, and processes are continuously repeated within the scope of the individual project. Automation has a positive impact on all these repetitive tasks. This is all the more true the more the execution of the work depends on consistent precision.

In addition to all the advantages already mentioned, this innovation offers further benefits. For example, companies can reinvest the savings directly, thereby modernising their operations, creating better working conditions or funding more training programmes. This has positive social effects.

In addition, documenting every stage of the work also has an impact. Not only does this enable specialists to track exactly what is happening, but it also allows them to provide evidence of all processes in highly regulated markets. This traceability is a major advantage when shipyards are bidding for government contracts, such as those for the construction of naval vessels.

How do shipyards calculate specific savings?

The first and simplest way to calculate savings using real company data is to identify and use the baseline figures. How much does your own company pay on average per hour worked, for materials and for energy? Managers can use these figures to carry out their calculations.

Further specific figures can be incorporated into the calculations. This makes it possible to factor in investment costs or calculate the payback period. This then reveals, for example, the annual savings and the extent to which the investments pay off.

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

German shipyards are not alone in the world. There is fierce competition on the global market, particularly from China, South Korea and Japan. These locations have two main advantages. Firstly, the shipyards there are able to keep their labour costs low thanks to lower wages. Furthermore, thanks to their high order books, they operate on a mass-production basis, which also leads to cost savings.

German shipyards, on the other hand, are struggling with high wages and niche and specialised orders. Whilst they can capitalise on their significant strengths in terms of expertise and innovation, they lack a competitive edge when it comes to costs. Thanks to automation and digitalisation, German shipyards are now in a position to reduce costs and thus compete on price with their Asian rivals.

These reductions in production costs do not result in a decline in quality. Quite the contrary. Whilst staff costs fall by 20 % to 30 %, quality remains high.

Thanks to the repetition of many work stages – even when they take place within different individual projects – there is now an opportunity to achieve the benefits of mass production here too. This means that even in the case of complex, specialised vessels, which shipyards build as one-off vessels, much of the work remains the same. Thanks to the ability to programme, document and repeat these tasks, they enable cost savings similar to those achieved in mass production.

Our article also illustrates just how much digitalisation is shaping the entire yacht and shipbuilding industry Digitalisation in yacht and shipbuilding: smart ships and digital twins.

How is digitalisation changing the entire value chain?

Digitalisation is affecting not only the shipyards themselves, but the entire value chain. Networked manufacturing systems enable precise control of just-in-time production, which is reaching unprecedented new heights. Sensors provide real-time feedback, documenting production progress, material consumption and stock levels. This enables suppliers to deliver new materials at exactly the right moment and ensures that component assembly can also begin at the right time.

By involving their suppliers, companies can reduce their stock levels by up to 25 %, particularly on complex projects. They also shorten construction times by weeks. They can identify logistical bottlenecks and take action to counter them before they have a negative impact.

This is particularly important in the case of highly specialised types of vessel. These include, for example, naval and research vessels. In such cases, the project management team has to coordinate hundreds of suppliers, which is now much easier thanks to networking and integration.

For all businesses, this means greater planning certainty. The supply chain becomes more stable and efficiency across the entire value chain increases, which in turn reduces costs and prices.

What funding is available for automation in shipbuilding?

The German Government and the EU have long recognised the enormous potential of digitalisation and the automation that goes hand in hand with it. Accordingly, they are helping businesses to invest in this area. Small and medium-sized shipyards, in particular, are thus receiving the support they need to implement technological innovations within their own operations.

Particularly in the area of pilot projects, the funding programmes cover up to 50 % of the necessary investment costs. This applies, for example, to the purchase of robotics systems, the implementation of AI-based production planning, or the conversion of production halls to improve energy efficiency.

Other areas for investment include collaborative projects, in which shipyards, research institutions and suppliers work together. They create test environments for digital ship designs, develop automated quality assurance systems and optimise dry docks for energy efficiency.

What does automation mean for shipyards and skilled workers?

However much automation standardises processes, no modern shipyard can function without skilled workers. On the contrary: the requirements are changing. Traditional craft trades remain indispensable, but are being complemented by digital skills. Welders operate automated systems, electricians integrate sensor systems, and inspection technicians document the digitised manufacturing process.

It is precisely this combination of solid craftsmanship and experience with modern production environments that many skilled workers from Eastern Europe bring with them. Polish, Czech and Romanian shipyards and industrial plants have been relying on CNC machinery, welding robots and networked manufacturing for years.

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

Welder & CNC operator
Working with automated welding and laser cutting systems; precision in networked manufacturing

Electricians & system integrators
Sensor integration, connected on-board technology, quality assurance electronics

Shipbuilder & Steelworker
Hull construction, section assembly, structural work - still indispensable despite increasing automation

Quality Assurer & Test Technician
Monitoring and documentation in the digitalised production process, non-destructive testing and weld inspection

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

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Enquire about skilled shipbuilding workers from Eastern Europe

Are you looking for qualified specialists in 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 – quickly, in full compliance with the law and with the right qualifications.

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Frequently asked questions

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

Polish, Czech and Romanian shipyards and industrial companies are increasingly focussing on automated production processes. Many skilled workers have experience with CNC systems, welding robots and networked production systems.

Does automation really reduce staff costs without compromising quality?

Yes. In practice, the workload for staff is reduced by 20 % to 30 %, whilst quality remains consistently high thanks to reproducible, documented processes, and warranty risks are reduced.

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?

The German government and the EU are supporting investment in digitalisation and automation. For pilot projects, up to 50 % of the investment costs are covered – for example, for robotics systems, AI-supported production planning or energy-efficient production halls.

What is the legal procedure for seconded EU staff?

Full freedom of movement for workers applies to EU citizens. We apply for A1 certificates, ensure AÜG compliance and take care of minimum wage reporting to customs - completely and without any effort on your part.

How quickly is staff available?

Usually within 1–3 weeks. For complex job profiles – such as those requiring specific 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.