Peer Review of the United Kingdom Shipbuilding Industry

Executive summary

Over the past year, the OECD Shipbuilding Unit has been co-ordinating with the United Kingdom’s National Shipbuilding Office on a project to strengthen the evidence base and informing policy to support the country’s shipbuilding and ship repair industry. This collaboration has resulted in three reports.

Informational capabilities in shipbuilding, abroad and in the UK (Reports I and II)

Data is a key issue which impacts knowledge, decision-making, and co-ordination at international, national, and nations’ levels. Challenges and solutions exist along three domains: industry classification, data production and availability, and knowledge exchange. Addressing data issues will have far-reaching benefits for industry and government action (DSTI/SBC(2025)9).

A key challenge for the sector is the lack of harmonised and comprehensive information on skills and skills needs, which affects planning, workforce development, and the ability to match the right skills to the right place at the right time. Issues and potential solutions emerge across three areas: the definition of skills concepts, the availability and quality of data sources, and the methodologies used to assess skills needs. Addressing these gaps would provide significant benefits for industry and policymakers in the United Kingdom.

Opportunities and barriers to growth and resilience in UK shipbuilding (Report III)

In the non-defence space, the United Kingdom has faced a decline in its global market share and production capabilities. Globally, shipbuilding has grown in the twenty-first century; the key players have changed.

Resilience among peer shipbuilding economies (Norway, the Netherlands, and Italy) has tended to exist alongside specialisation into high-value segments, export orientation, and a positive reputation. The comparative analysis suggests the following market segments as potential opportunities for the UK.

Government rationales for intervention to realise these opportunities exist in regard to contextual market distortions, related industries, ‘public needs’ and public procurement, skilled labour, digital transformation, innovation and emerging technologies, and Net Zero.

For competitive specialisation to be successful, policy support for revitalisation of key points which influence production capabilities is needed: advanced facilities (digital transformation), skilled labour, a predictable and accommodating regulatory environment, enhanced innovation and commercialisation support, infrastructure development, supply chain security and a comprehensive approach towards cross-sectoral issues.