DOST-MIRDC’s Study Team Showcases Potential Resolutions to the Issues Faced by the SBSR Industry, as the 2023 Industry Study Nears its Completion
By James Bernard S. Herrera
After months of consultative meetings and immersion activities with the shipbuilding and ship repair (SBSR) industry players across the country, the Metals Industry Research and Development Center (MIRDC) study team has finally pinpointed issues faced by the local SBSR industry: workforce management, technology, regulatory compliance and certification, environmental sustainability, and potential collaborations and partnerships.
The DOST-MIRDC embarked on an industry study entitled Exploring Growth Opportunities for the SBSR Industry in the Philippines in 2023. The study’s scope includes the assessment of the business landscape and the determination of the most appropriate interventions based on these assessments. In a focus group discussion (FGD) held on 05 December 2023, the industry study team led by Dr. Anthony Greg F. Alonzo, LPT, discussed the study’s findings and recommendations with representatives from shipyards and the Maritime Industry Authority (MARINA).
Regarding workforce management, shipyards are facing challenges on brain drain, a problem that is also present in other industries. Educational institutions rarely offer naval architecture courses, which is one factor why the number of graduates is quite limited to fill in the needs of shipyards.
Apart from that, while there are graduates from various sectors that specialize in skilled work that can be utilized in SBSR (technical schools and K–12 programs), most of them still lack the actual training needed in the shipyards, a statement that was agreed upon by the shipyard representatives that are present.
For these matters, recommendations mainly related to bridging the gaps between the SBSR industry and academia were presented, such as holding consultations between shipyards and education institutions to determine the most effective courses and programs. These consultations, when done regularly, will be an avenue for shipyards to direct their concerns to the academe, which is in the best position to design curriculums that will equip students with skills and competencies that better suit the needs of the industry.
Engr. Bryan V. Pulmano, Shipyard Manager of F. F. Cruz & Co. Inc., expressed his appreciation of the group’s recommendation and stated, “It’s good. For improvement, marami tayong graduates from different sectors but lacks proper training, so it’s much better na magkaroon tayo training programs specializing in SBSR.”
Engr. Noel G. Lucero, General Manager of Jagnee Fishing Corp., raised his concern as he responded, “Maraming graduates in other regions like Cebu because they have universities offering courses for SBSR, but here in Iloilo, wala." He then said that if the government will consider providing scholarship programs for the locals, especially for those who wish to study and work in their region rather than go to other places for education, then it will be very helpful for the industry. The industry study team acknowledged this input, which will be included as part of the study’s recommendations.
Presented next are the technology-related issues, one of which is the lack of hardware and software for ship design. While most of the industry players focus on ship repair, several shipyards still want to acquire more advanced technology for ship design, but simple acquisition will not provide a complete solution because the shipyards admit that they still lack sufficient training on these technologies.
Aside from software, one more issue regarding technology is the use of traditional machinery, where representatives expressed their desire to upgrade to use modern technology to add to the proficiency of their services. As stated by SAFI Shipyard Inc.’s Operations Manager, Victor A. Vargas, possessing new technology is bound to boost their efficiency and Engr. Lucero added that computer-aided fabrication will truly be of help in shipbuilding.
For this issue, the study team recommends the procurement of advanced software and modern machinery to boost the shipyard’s production and repair rates. Engr. Lucero interjected that SBSR industry players would greatly appreciate it if the importation of tech equipment would be tax-free, which was also noted by the presenter.
Next is the regulatory compliance and certification concern. With MARINA’s initiative to promote quality management within the SBSR industry, they now require shipyards to have International Organization for Standardization (ISO) certification. Through the course of the team’s series of consultative meetings and from the statistical report provided by MARINA, it was clear that many of the shipyards nationwide still have not acquired their certification due to their concerns of uncertainty, which were once again raised by the FGD participants.
Engr. Ben P. Beltran, General Manager of R< Shipyard and Realty Development Corp., stated that while they do appreciate that an ISO certification boosts client confidence towards local shipyards, they find that the process of obtaining certification still needs to be improved, an area that should be taken care of by the government.
Engr. Lucero added that the industry needs government assistance, especially in ISO certification training. According to him, being uncertified hinders shipbuilding opportunities. Due to a lack of certification, his shipyard was downgraded from being a shipbuilder to just performing ship repairs.
Dr. Alonzo further discussed that shipyards encountered a common situation about acquiring an ISO certification - hiring consultants for ISO training is costly yet does not guarantee a successful certification, which holds back shipyards from doing so. This is where Engr. Lucero raised a suggestion, saying, “Why not pool us together and the government can provide us with the training needed?”
With clear concerns on this matter, Dr. Alonzo informed the shipyards that the MIRDC assists companies regarding ISO certification through consultancy and seminars. This presented a possible partnership between the shipyards and the MIRDC, one that the industry may strongly consider pursuing.
Discussed next was environmental sustainability. Dr. Alonzo presented the study’s recommendation of shipyards practicing eco-friendly maritime day-to-day practices, such as regulating waste disposal to prevent the pollution of marine ecosystems. Shipyard representatives found this agreeable. Dr. Alonzo added that integrating modern and eco-friendly technology into their processes will contribute to this global cause.
Last to be discussed was the potential of collaborations and partnerships of shipyards with other institutions, such as with educational institutions for workforce management concerns, and with government agencies for various support for the continuously growing SBSR industry.
With the participants’ generous sharing of insights, the industry study team is set to finalize the write-up, which will be the final output of this initiative. Recommendations will be shared with the relevant stakeholders for appropriate and immediate action.
Watch out for the final publication of this industry study, Exploring Growth Opportunities for the SBSR Industry in the Philippines, which will be released very soon!
