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right, I see more dif? cult times to come. Some predic- quietness, low vibration, amenities, ergonomics, etc. En- tions are stating that oil prices will start to come up by vironmental rules are requiring the mechanical systems to 2020. That is a long time to wait. 2016 is predicted to be be more complex and as a naval architect, you ? nd yourself worse than 2015 and that is going to put many companies trying to accommodate 10 pounds of stuff in a 5 pound in dif? cult situations. The new construction industry in bag. Owners are now asking for more cargo on same size the last ten years or so has depended heavily on the E&P vessels to increase their revenue. Because of the environ- business and now this reduction is leaving a big hole in it. mental regulatory requirements and the cost of fuel, we

The strategy now is to ? nd the slingshot that will take you have to put more effort into hull and machinery ef? ciency, to the other side or go to church and start lighting little in addition to our classic holistic approach to ef? ciency on candles as offerings. Some yards are busy with work on the vessel. We get pulled in many directions, but we must tugs, river towboats, ferries, ATBs, etc. but they are mainly maintain our ability to see the whole problem with a clear previous contracts and we see already a reduction on new head. On the production/construction engineering side, orders, due to the cycling of these areas of the industry. the shipyards are asking for a lot more information than 25

Companies will streamline and reduce their labor capacity. years ago to construct the vessel. The level of skills at the

Diversi? cation, if there is time to implement it, will play yard has deteriorated, requiring great detail to instruct the a more important role in the industry. Unfortunately, this worker for tasks which used to require a sketch or typical slowing down in business is worldwide, thus reducing the detail. Also, more planning is done in the yards in order to opportunities to do work outside the country. Things are reduce labor cost and streamline the production. What we tough, but they’re going to get tougher. have noticed is that some yards feels that a lot of engineer- ing can solve their problems, but it is not true. There is a

What is the biggest change in what is being asked of point that engineering return on investment starts ? atten- the typical naval architecture shop in today’s envi- ing out. If you do not train your worker and maintain the ronment as opposed to what was offered perhaps 25 management/organizational skills, engineering is not go- years ago?

ing to solve the problem. Also, the number of vessels to be

On the design engineering side, we are more involved built has a big in? uence on how detailed the construction in resolving and interpreting regulations and laws. Regula- engineering has to be. All has to come to a balance. This is tions, class rules and governing laws are getting very com- not to mention the challenges presented by the increasing plex and require a lot of time to interpret, explain, apply complexity of the legal and ? nancial environment in con- and defend. We are becoming more like lawyers, but we do tract development. We have found that the schedule tends not get paid the same. In addition, vessels are more com- to always include a ? xed delivery date, while the bankers plex and more automated, requiring a lot more equipment and lawyers consume a bigger and bigger portion of the integration and coordination. Labor, competitiveness and project timeline. The squeeze this trend places on the en- legal requirements are demanding more of the design in gineering timeline presents risk to all of the stakeholders, matters relevant to the environment, accommodation, which I think is generally under-appreciated.

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