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The character and importance of the German shipbuilding industry

Shipbuilding has been one of Germany's most important industries for decades. This is particularly evident in the fact that special ships are built here that are in demand worldwide - from imposing cruise ships and luxurious yachts to ultra-modern naval vessels. Shipyards such as Meyer Werft, Lürssen/NVL Group and Thyssenkrupp Marine Systems (TKMS) enjoy an excellent international reputation. They stand for quality, innovation and reliability and have continuously full order books. At the same time, the state supports their most technologically demanding projects in order to strengthen the industry in the long term.

What characterises German shipbuilding?

The German shipbuilding industry is characterised by large, traditional companies with decades of expertise, extensive experience and state-of-the-art technologies. They are particularly strong in segments where quality and technical innovation are crucial: Cruise ships, luxury yachts and naval vessels.

At the same time, there is a broad-based SME sector. Many of these companies are family-run and highly specialised. They cover niches such as the construction of inland waterway vessels or other smaller specialised ships that are primarily used on rivers and lakes.

From crisis to upswing

After a difficult phase - triggered by an oversupply of shipping space and exacerbated by the pandemic-related slump in global trade - the industry is experiencing a significant upturn. Global trade is picking up again, demand for shipping capacity is increasing and the maritime industry is at an all-time high. Even discussions about tariffs do little to change this: goods have to be transported - the question is at most where the ships go, not whether they are built.

Why Germany benefits

Despite higher wages and social security contributions, Germany is holding its own in specialised shipbuilding. The reason: Quality and innovation. Another factor is government support, including through the Federal Office of Economics and Export Control (BAFA). The funding is focussed on innovative ship designs, new offshore designs, modern manufacturing processes and advanced systems on board. The aim is to secure the international competitiveness of German shipyards, preserve jobs and at the same time expand strategic capacities for the future.

Why a strong national shipbuilding industry is important in terms of security policy

The German government's own naval industry plays a decisive role in its maritime strategy. A strong navy requires an independent, national industry that develops, builds, maintains and modernises ships. If German naval vessels were built abroad, we would become dependent on spare parts deliveries, maintenance cycles, technical updates and political influence.

Manufacturers of military technology often reserve the right to have a say in the use of their products - a risk that Germany would like to avoid. A sovereign shipbuilding industry is therefore a strategic component of national security.

The German shipbuilding industry at a glance

The sector is characterised by two factors in particular:

1. global leader in specialised shipbuilding: German shipyards are often number one in their segments. Anyone planning to build a superyacht monument goes to Lürssen. For innovative cruise ships, there is no way around Meyer Werft. And if you need ultra-modern naval vessels, TKMS is the right choice.

2. high cost pressure due to international competition: Asian shipyards, particularly in China and South Korea, benefit from lower costs, more favourable infrastructure and huge production volumes. The resulting economies of scale make it almost impossible to compete in the standardised mass market. This is why Germany is focussing on areas where quality is more important than price.

Conclusion: Quality beats quantity - and makes Germany indispensable

Today, the German shipbuilding industry is highly specialised, a technological leader and in demand internationally. It has overcome the crisis because it is focussing on what it does best: build complex, high-quality and innovative ships, that are unrivalled worldwide. This means that German shipbuilding remains not only economically significant, but also a strategic pillar for safety, technological development and industrial sovereignty.

You can find an overview of the most important German shipyards in our article German shipyards at a glance. Read more about shipbuilding services and skilled labour requirements at Shipbuilding services.

Frequently asked questions about the German shipbuilding industry

Germany does not compete in the standardised mass market - where China and South Korea dominate with lower costs and large production volumes. German shipyards specialise in complex special ships such as cruise ships, luxury yachts and naval vessels, where quality, innovation and reliability are more important than price.

Meyer Werft is a leader in cruise ship construction, Lürssen/NVL Group in superyachts and naval vessels, Thyssenkrupp Marine Systems (TKMS) in ultra-modern submarines and naval vessels. In addition, there is a broad middle class of specialised family-run shipyards.

A national shipbuilding industry is crucial for the independence of the Bundeswehr navy. If naval vessels were built abroad, dependency would arise for spare parts, maintenance and technical updates. In addition, foreign manufacturers often retain a say in the use of their defence products.

After a difficult phase caused by overcapacity and a pandemic-related slump in global trade, the industry is experiencing a significant upturn. Global trade is picking up, demand for ship capacity is increasing and German shipyards are seeing full order books - particularly in the specialised shipbuilding sector.

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