nder the title "No guts, no Hollands glorie", a sector agenda for the maritime manufacturing industry was received by ministers Adriaanse (EZK), Harbers (I&W) and state secretary Van der Maat (Def) from envoy Marja van Bijsterveldt on 26 October 2023. This agenda will align government policy for the maritime industry. The KIVI departments Defence and Safety, Maritime Engineering and Offshore Engineering contributed to this sector agenda last summer with an extensive position paper.

The maritime manufacturing industry is important for the Netherlands. We live with water and the industry is essential for our safety, energy transition and the earning capacity of the Netherlands. However, the maritime manufacturing industry is under pressure. In 1980, 45% of global shipbuilding came from Europe, now only 4%. Lower costs and government subsidies in Asia are key reasons for this.
The government now plans to strengthen the sector in the Netherlands with additional financial support for innovation and a targeted government procurement policy.

Among others, five frontrunner projects will be launched: (1) a maritime master plan, (2) the shipyard of the future, (3) Smart maritime, (3) Robotisation of Wind at Sea and (6) Nuclear propulsion of ships. The full sector agenda can be found here.

The contribution of the KIVI Departments of Defence and Security, Maritime Engineering and Offshore Engineering consisted of an analysis of the developments in and for the sector, which have led to the current situation, and included the recommendations below. The full KIVI position paper can be found here.

  1. There is a strong connection between the civil and military subsectors in the Maritime Make Industry. With the exception of weapon systems, design and supply of advanced and specialised systems to ships for defence, civil shipbuilding, the dredging sector and the offshore sector is often done by the same companies
  2. If the Netherlands wants to independently maintain capabilities and resources for coastal protection, construction, maintenance and protection of critical infrastructure at sea and maritime security, specific policies are needed. This also applies to naval construction, as political support for TWEU Art 346 exemptions in procurement is waning. We therefore welcome the adoption of the MMI sector agenda
  3. For the survival of the sector and thus its strategic independence, maintaining primary competences and capabilities in the Netherlands is important. These are particularly systems integration, research, development, innovation, design, engineering and supply chain management.
    Partial systems can be sourced from abroad. Provided there is a broad market, choosing an economically attractive supplier is appropriate
  4. A "valley approach" in which the entire chain from development to production and maintenance is carried out within a region proves most effective economically and technologically. The Netherlands can be such a region. Policy should therefore aim to maintain and master the full chain for the maritime manufacturing industry. From R&D and innovation to production and conservation.
    Only this will make it possible for our country to enter into and win fair competition with other European countries. This also fits well with the objectives of the Maritime Masterplan.
    In doing so, it is good that there is knowledge exchange between different European valleys. Top companies in the sector can then take on international competition from a solid base
  5. Innovation in naval construction has suffered greatly from the Ministry's general cutbacks and the awarding of innovative contracts to foreign parties. With the widening of the Defence budget, effective knowledge building, development and innovation can be restored in this sub-sector. Thereby, it is important that Defence, Knowledge Institutions and Industry are involved in the entire innovation chain, each from its own role, in order to innovate as effectively as possible. The policy of keeping industry at a distance in this regard due to procurement procedures is counterproductive
  6. Defence indicates in policy documents to strive for a role for the Dutch (maritime) industry as a supplier to foreign shipyards. As a result, Dutch companies have to compete at a distance against trusted companies in the 'valleys' around foreign shipyards. Only the absolute top succeed in doing so. This threatens to erode our national position in the global maritime market
  7. For naval shipbuilding, considerations of national and European security make the retention of specialised and flexibly expandable construction and repair sites in our region desirable. The current war in Ukraine makes this all the more obvious. This too requires relevant knowledge, expertise and infrastructure now and in the future. This allows the Netherlands to make a relevant and proportional contribution to the European defence industry
  8. Targeted product development based on orders or in-house by the industry has declined sharply in recent years. For naval construction, investments in this part of the innovation chain are still lagging behind for the time being, making the Valley-of-Death wider and deeper. This is a risk to the survival of the maritime manufacturing industry
  9. An approach similar to the Sustainable Shipbuilding Subsidy (SDS) could contribute to the effectiveness of innovation in naval construction. Such a scheme would also improve the transfer of technological knowledge to the rest of the HMI sector
  10. Development of microreactors for maritime applications seems an attractive option in the European context. Initially for naval vessels, with a sustainable spin-off to the civilian sector.

The Hague, 26 October 2023

Photo: Jan Wind