Pestle Analysis For Shipbuilding Industry

PESTLE-analysis for shipbuilding industry at the Russian Far East Group of factors Representation Conclusion (O/T) Political factors Governmental policy Tax policy Russian – Chinese and Russian-South Korean relationships Level governmental subsidies World Oil & Gas market Concentration of governmental efforts for construction and development of infrastructure of Russian fleet. Maintenance of good technical condition of Russian fleet for successful completing of its goals and tasks. (direct and indirect investments) Export diversification strategy expressed in growth of offshore gas & oil fields development.
Creating of free-trade zones near new shipyards for cost cutting in ships construction (order of foreign material and equipment) Infrastructure development funded with tax liabilities in regional budgets + multiplicative effect funded with small and medium business development, which provides the growth needs of shipbuilding production. Capability of training programs at the best South-Korean shipyards. PESTLE Analysis By Peeling-Lam Cooperation wit n Korean and Chinese shipbuilding companies in shipbuilding and offshore construction Sovereign credit extension Growing need to tankers and Longs fleet renovation Opportunity
Economical factors Credit availability Logistic Labor intensity level Economic stability Exchange and inflation rate Price fluctuation Credit terms Credit extension from the biggest Russian banks, such as Alfa Bank, Subprograms, Phenomenon bank. Availability of railway and sea transport routes Construction of new shipyards allows to reduce the labor intensity and increase the productivity level Existing of corruption in industry sector Potential risk of high inflation rate and non-stability exchange rate High volatility of commodity and financial markets Dependence of shipbuilding contracts from steel price fluctuationHigh debt costs and loan payments Threat Social factors Social programs Upgrade of the Far Eastern Shipbuilding College in Abolish Kane Specialized department of FIJI branch in Abolish Kane Camp for 1 ,OHO workers Construction of residential quarter for shipbuilders (2,500 apartments) Reconstruction of food service areas – upgrade of cafeterias for 6,000 people Upgrade of first-aid stations Comprehensive program on safety strengthening Improvement of working conditions and implementation of social programs Insufficient quantity of well-qualified shipbuilding specialist in design and production area at the current moment.
Approximate price: $22
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