By Kevin Hobbs, chief executive at Caledonian Maritime Assets Limited and a director at the Scottish Maritime Cluster
SCOTLAND boasts a rich maritime history and today, it is home to the UK’s second largest maritime cluster.
Recently published economic data estimates the sector in Scotland in 2015 supported 39,300 jobs, just under £9.3 billion in domestic output (through business turnover) and made a £3.6bn contribution to the economy. Scottish maritime companies account for more than 20 per cent of the UK’s total maritime sector on these measures.
We have strong and globally-recognised expertise, based on outstanding engineering capability, highly-skilled people and a drive for innovation.
Ship owners have access to a wide range of services, including shipbuilding, repair services and ship management.
Ministry of Defence contracts are being delivered on the Clyde, with current orders for frigates and offshore patrol vessels (OPV) securing jobs until 2035.
Scotland’s maritime sector is a significant and sustainable industry. However, there is untapped potential.
Almost 80 per cety of world trade is moved by sea and, despite the current political and economic climate with the uncertainty of Brexit looming over all industries, maritime businesses have a huge opportunity to secure more global business.
Minister for Transport and the Islands Humza Yousaf joined a group of maritime businesses at this year’s London International Shipping Week to launch the Scottish Maritime Cluster. The Cluster is aiming to promote economic growth by working collaboratively to boost Scotland’s reputation and maximise international business development opportunities.
A key target is securing a larger share of the multi-billion-dollar global maritime market for businesses in Scotland. The focus is on five key areas - commercial shipping, military contracts, maritime business support services, maritime legislation and education and training.
With over 40 member organisations already, its existence is a demonstration of the industry’s willingness to work together to improve business for everyone.
While it’s too early to predict the exact nature of the impact of Brexit, we do know that it will present challenges, as well as opportunities. The unknown details paint an uncertain picture, but one thing is certain: trade will continue. New trade agreements will be sought and it’s vital that the maritime sector uses its collective weight to ensure new agreements address maritime requirements.
Another key issue that needs industry-wide attention is skills development and succession planning. A career at sea is varied, stimulating and rewarding. However, lack of investment and attention to attracting new recruits means we are facing a potential skills shortage in the decades ahead - a picture that is reflected across the sector globally. The industry is currently reliant on people who are approaching their final decade of employment, meaning that in around 15 years we could have a shortage of skills and experience.
As an industry, we need to improve our approach to promoting maritime jobs to attract future generations. Scotland boasts world-class maritime education institutions and training facilities - people around the world come to our shores to learn. We need to implement wider and more consistent promotion of STEM subjects at school to foster an early interest, attract and retain people to maritime education and set them on course for a successful maritime career.
Recent changes in government policy indicate there will be increased competitive tension around future MoD contracts. Scotland’s shipyards must remain focussed to ensure military shipbuilding work and the associated skills are retained on the Clyde. Naval shipbuilding is a core part of Scotland’s maritime industry and this is a key strategic focus for the Cluster to maintain investment and jobs in this area.
Scotland has a vibrant and active maritime sector, but we must take control of our own destiny to address common challenges and barriers, as well as opportunities. The message needs to be reinforced that Scotland has the ability to deliver complex military and commercial projects. We need to take an international approach to future-proofing the industry.
It is early days for the new Cluster, but we have clear and common ambitions and there is a commitment to leveraging our collective expertise to boost the industry.
We are more powerful if we work together to place Scotland firmly on the global maritime stage.
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