NOS: The Answer for Struggling Shipbuilders: "The Solution"

The number of shipyards in the Netherlands is declining, but Floorganise has a solution for the sector’s decline. This has led to enthusiasm from local shipyards to the United States Navy. Discover how a small IT company of 25 people is trying to sustain an entire industry in the Netherlands – and even Europe.

Resounding hammers striking metal and the buzzing sound of a welding machine echo in the vast construction hall of Thecla Bodewes Shipyards in Kampen. Here, they build ships, big ones. This time, one hundred meters long and about thirty-five meters high. They’ve been doing this kind of work here for years, and they intend to keep doing it for years to come. But still, everything is changing.

And here comes the – still small – Zwolle-based company Floorganise. Anonymously located in the Marslanden industrial estate and unknown to the general public. Yet it’s one of the ten ‘growth pearls’ of the Zwolle Region and could play a crucial role in preserving shipyards in the Netherlands. Because that’s not a given.

Work on a ship measuring 100 meters long (photo: RTV OOST/Arnoud de Vries)

Shipbuilding in dire straits

Shipyards in the Netherlands have been in dire straits for years. Competition from Asia has greatly increased: whereas Europe held 45 percent of the market share in the 1980s, it now holds only 4 percent. Some more figures: ships from Western Europe are 20 to 40 percent more expensive than ships from Asia.

“This will have disastrous consequences if we don’t manage to turn the tide,” said Marja van Bijsterveldt last year. She was specially appointed from The Hague as the special envoy for the maritime industry. The government and the sector are investing tens of millions of euros in the coming years to keep shipbuilding in the Netherlands afloat.

In short, the problems are significant.

“This will have disastrous consequences if we fail to turn the tide.”

— Cabinet envoy for the maritime industry

Shifting Course

And then there’s the small Zwolle company, telling shipyards that they can work 15 to 20 percent more efficiently. How? “By automating as much as possible and making a shipyard paperless,” says owner Ronald de Vries. His company developed special software for this purpose. So that ships can be build faster. “In the same amount of time, you can build 15 to 20 percent more ships than today. That’s what it’s all about. In order to maintain this industry in Europe.”

They also expect to experience the benefits in Kampen. “You have to imagine that for one ship, the stack of papers is a meter high,” explains Enrico Goosen from Thecla Bodewes. “Thanks to the new system, everything is digital. If you need something, it’s immediately available. If a drawing needs to be adjusted, it’s arranged quickly, immediately for everyone. It saves a lot of searching and hassle.”

“In the same timespan, you can build more ships, that’s what it’s all about.”

— Ronald de Vries, Floorganise

In addition to digitalization, it’s also about automation and gaining insight into the workflow. “We map out everything,” explains De Vries. “This allows us to provide a lot of information to the shop floor: what are the risks, what risks may arise, how exactly does the workflow function, where can it be more efficient?”

‘Growth Pearl’ from the Zwolle Region

Together with nine other ‘scale-ups’ – (start-up) companies with the potential for rapid and substantial growth – Floorganise is part of a project from the Zwolle Region: Rapidly Successful Scaling. In this project, they receive coaching and guidance in making their growth plans, through advisor Martin Landkroon. “Shipyards in the Netherlands produce high-quality products, but at high costs. This company ensures that those costs go down, improving the competitive position. They’re already beyond the national borders and truly have the potential to become market leaders at the European level.

But they need to think big, that’s actually the main tip I gave them. Investors also look at that: not just taking small steps, but growing significantly.” Growth has already begun: an office has been opened in Spain, and the company now has a turnover of over one million euros. De Vries: “We’ve reached that magical threshold. Since 2017, we’ve been doubling every two years, and we want to maintain that pace. Not just for higher turnover, but also because it allows us to attract talent. Because our software needs to become increasingly advanced and specialized. So that we can be a global leader in knowledge.”

United States Navy

Who’s using the technology? Currently, about 15 shipyards in the Netherlands, several more in Europe, and it’s also catching on in America. “Aluminum builders making coast guard ships, inland shipping, ocean-going freighters, superyachts,” lists De Vries the customers. “And in America, we provide tools for a yard that performs repairs for the US Navy. We’re also in contact with the navy itself, where they provide maintenance and repairs for their nuclear fleet.”

Yet it almost feels too simple. Digitalization, it’s about time. “Well, shipyards sometimes lag behind the times,” laughs Goosen. “That’s also due to regulations, we want to, but we’re a bit late to the game since we originated from different yards.”

The professions filled with manual labor is increasingly digitizing and automating (photo: RTV OOST/Arnoud de Vries)

The Solution

He sees a lot in the new system, originating from that other Hanseatic city. “Yes, this could be the solution. The logistical process will improve, allowing us to finish a ship faster than the competition from the Far East. It’s a way to sustain this manufacturing industry.”

At Floorganise, they remain modest. “It could be part of the solution. European regulations on unfair competition from abroad should also help. The Netherlands is focusing on the industry. In that regard, the momentum is shifting for shipbuilding. If we can play a role in that, it’s wonderful.”