Source · Select Committees · Scottish Affairs Committee
Recommendation 42
42
Acknowledged
Stakeholders also emphasised that a steady ‘drumbeat’ could underpin future investment that would make the...
Conclusion
Stakeholders also emphasised that a steady ‘drumbeat’ could underpin future investment that would make the industry more productive in the future. Mr Waddell told us: It is a very simple equation. If businesses are faced with uncertainty, they do not invest. If they are faced with certainty and can guarantee a reasonable level of return on their investment, they will put the investment in.67 Richard Powell of the Society of Maritime Industries described how this could lead to a more efficient shipbuilding sector: Achieving true efficiency is not about competition in the procurement process. It is about having the long-term surety that the industry can make the investments necessary to drive down the costs of production. If you are only getting short-term orders and you do not know where the next order will come from, it is very hard to make the business case to get the productivity increase.68 We heard that a consistent drumbeat also made it easier to recruit and retain skilled staff (See Chapter 5).69 The current pipeline
Government response summary AI-generated
The MOD recognises the importance of a regular drumbeat of orders and states the NSbS and 30-year pipeline aim to provide a sustainable demand signal. They also highlight workforce and programme details.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
The MOD fully recognises the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry. The NSbS is clear that we do not want a return to the “boom and bust” cycles of historic Naval demand, but to provide a more sustainable demand signal from Government as a whole, providing the certainty required by industry.
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