What's Happening?
The Ferguson shipyard in Port Glasgow, known for its historical contributions to shipbuilding, is currently facing significant challenges. Despite its legacy of constructing a third of the current CalMac fleet, the shipyard is now best known for delays and budget overruns related to two new ferries. The shipyard, state-owned since 2019, has no new ship orders following the completion of its latest ferry, MV Glen Rosa, next year. Recent losses include a contract for seven small electric ferries to a Polish shipyard and another for two vessels to a Merseyside firm. The shipyard's chief executive, Graeme Thomson, is advocating for a direct award of the next CalMac ferry order to sustain operations and retain skilled workers.
Why It's Important?
The situation at Ferguson shipyard highlights broader issues in the UK shipbuilding industry, including competition with overseas yards that benefit from state support and lower labor costs. The shipyard's struggles underscore the challenges faced by domestic industries in maintaining competitiveness. The potential loss of Ferguson's could impact local economies and employment in Inverclyde, an area already experiencing industrial decline. The shipyard's fate is tied to decisions by the Scottish government regarding direct awards and the inclusion of social value in contract assessments, which could influence future procurement policies and support for local industries.
What's Next?
The Scottish government is considering a direct award for the next CalMac ferry order, which could provide Ferguson's with much-needed work. A decision is expected within weeks. The shipyard is also seeking to modernize its facilities with new equipment, contingent on securing new orders. The outcome of these decisions will determine the shipyard's ability to compete and survive in the current market. Additionally, the broader implications for UK shipbuilding and government procurement strategies are under scrutiny, with potential shifts towards valuing social and economic benefits in contract awards.
Beyond the Headlines
The challenges faced by Ferguson shipyard reflect deeper issues in balancing public investment with competitive procurement practices. The debate over direct awards and social value scoring raises questions about the role of government in supporting domestic industries and preserving strategic assets. The shipyard's situation also highlights the human impact of industrial decline, with local communities facing job losses and economic uncertainty. The decisions made in the coming weeks could set precedents for future government support and investment in local industries.
