15 janvier 2019 | International, Naval

An ocean apart: Few naval vendors manage to pierce US and European protectionism

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ROME, LONDON and COLOGNE, Germany — The U.S. and European shipbuilding industries lead largely separate lives against the backdrop of a massive Asian naval buildup, but some trans-Atlantic projects still manage to thrive.

The building of warships has always been a prime example of nations nurturing a highly specialized industry deemed so crucial that outside economic forces cannot be allowed to intervene. And while some European nations have begun to think about pooling shipbuilding forces on the continent, analysts and industry executives in Europe say the wall separating the U.S. and European naval markets remains high.

Barring missile launchers and the Aegis combat management system, U.S. firms have not grabbed a large slice of naval work in Europe, and no change is on the horizon, according to Peter Roberts, director of military sciences at the Royal United Services Institute in London.

“Warships are historically linked to national power, and if you stop building them you are no longer seen as a great power — you are at the bidding of others,” Roberts said.

“The Spanish, the British, the French — they haven't given up shipbuilding, even if they were better off buying off the shelf, and we are unlikely to see a reduction of yards in Europe,” he added.

At the same time, the U.S. market has been relatively closed off to European shipbuilders, though there is a chance that could change somewhat with the Navy's Future Frigate program.

“It's a bit like two different planets,” said Sebastian Bruns, head of the Institute for Security Policy at Kiel University in northern Germany. The reflex to buy only American-made warships is especially strong in the current political climate, he added.

The sheer number of ships needed on each side of the Atlantic creates a natural differentiator, according to Bruns, who spent time working U.S. naval policy as a House staffer on Capitol Hill. He said the Navy tends to prefer no-frills designs made for maximum war-fighting power in a great powers competition, while Europeans have taken to building vessels with a kind of peace-maintenance role in mind, affording a greater level of automation and comfort for the crew, for example.

One British naval executive, who spoke on condition of anonymity, said the lack of trans-Atlantic industrial touch points wasn't limited to market access, arguing that cost-effectiveness was also an issue.

“Despite the problems we have and the programs that don't go exactly according to plan ton for ton and capability for capability, the U.K. manages to build and deliver surface ships at a much lower cost than the United States,” he said.

“The U.S. shipyards know they would have difficulty competing in the region, particularly if you are talking about yards that have built a good track record. Naval Group, Fincantieri, Damen Shipyards, ThyssenKrupp Marine Systems — these are yards that have been competitive and build with export experience behind them. They are already ahead of the game and I do think it comes back to the cost base, I think it is difficult for the United States to build as cost-effectively as the Europeans,” the executive argued.

Full article: https://www.defensenews.com/global/europe/2019/01/14/an-ocean-apart-few-naval-vendors-manage-to-pierce-us-and-european-protectionism

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