Shipbuilding: Another industry gets China’ed!
Industrials
The Chinese are now the mainstream and that is going to change everything in this industry very quickly, according to David Scott. Chinese yards are moving out of their success in bulk into the more “value-added” segments of the industry such as containers and LNG carriers. Ferries and then cruise ships are next. Of course, the pattern is almost the same as we see with EVs, wind turbines, solar panels, etc. 1) The Chinese turns and ratios are already of an order of magnitude better than the incumbents. 2) The gap is widening further as the China industry scales and vertically integrates into its huge domestic clusters. 3) China’s ever more competitive real effective exchange rate is accelerating this whole process. Yangzijiang Shipbuilding looks set to be a big winner.
Edition: 177
- 12 January, 2024