Maritime suppliers are pushing into the cruise industry, planning to invest for further growth according to a new survey

Norwegian maritime suppliers are looking to strengthen their position among shipyards in Norway and abroad. The suppliers have several cruise yards as clients, they operate internationally, and they plan to invest for future growth, according to a new report presented today by The Norwegian Export Credit Guarantee Agency (GIEK) and the Norwegian Maritime Exporters (NME) trade organisation.

Most of the Norwegian companies are relatively small on an international scale. GIEK and NME believe that a closer collaboration between companies, banks and export credit agencies could lead to additional growth and export in the sector.

Survey facts

• The cruise industry is perceived to be of strategic importance to nine out of ten companies
• Three out of four companies supply cruise ships being built at Norwegian yards
• More than half of the companies are planning significant investments to grow in the export market

Aiming to grow

Most suppliers had a revenue from the cruise industry below NOK 10 million.

– On an international scale, most Norwegian companies are small, however, the survey shows that they are capable to secure contracts with several cruise lines. They are looking at this market strategically, and are willing to invest in order to grow, says CEO Erlend Prytz at NME.

– The increasing environmental awareness is an advantage for us. Our suppliers are at the forefront when it comes to environmentally friendly technologies, meeting the needs of the cruise industry, Prytz adds.

Support from banks and Government agencies

In 2017, the Government introduced a new guarantee to expand the capacity of banks in relation to export-SME’s. The guarantee from GIEK makes it easier to secure financing when a company is looking to invest for future export, or cover higher production costs related to new contracts.

– Our maritime suppliers need a broader customer base. It is positive that they are now focusing on the cruise industry. I believe that several companies can make use of public financing to realize their export plans and grow internationally, says CEO at GIEK, Wenche Nistad.

About the survey

The survey was distributed to 105 maritime member companies of NME during September-October 2019. 40 companies responded to the survey, a total of 38 percent. The survey is representative for the industry, as considered by NME.