Potential Development Strategy for the Shipbuilding and Ship Repair in Baltics

Abstract

This research is focused on the shipbuilding and ship repair industries in Latvia. The main purpose of this manuscript is to investigate all possible options to further develop the shipbuilding and ship repair industries in Latvia Initially, a brief overview of Baltics and of Latvia, with its biggest shipbuilding companies and its possibilities, are depicted in detail. The analysis is developed with the help of SWOT analysis and a Risk assessment matrix to find Latvia’s strengths, weaknesses, opportunities, and threats, then to identify all possible risks in order to identify potential issues that could negatively impact key business initiatives or critical projects, and to develop a marketing strategy. It is concluded that Latvian shipbuilding can be benefited by i) its strategic location in Baltics, ii) the highly qualified workforce employed in Latvian shipyards, iii) the certified naval expertise of the shipbuilding facilities. At the same time, the external environment and the regional competition is harsh and some points are suggested for Latvian shipbuilding to survive and possibly flourish over the next years, such as: i) repair the technologically obsolete equipment and facilities to be able to satisfy the present market trends, ii) incorporate and utilize new materials and technologies, iii) give incentives to qualified natives that went abroad for employment to similar facilities to return to Latvia and utilize their accumulated experience, thus solving the issue of the declining workforce on the sector and iv) specialize in some aspects of shipbuilding, such as luxury ships and ice class, to secure a more specialised and dedicated market.