Skills shortages in shipbuilding: strategies adopted by shipyards

The German shipbuilding industry is constantly in need of new, experienced skilled workers – yet, like many technical sectors, the industry is facing a significant skills shortage. If you are a shipyard or a supplier looking to find out which methods have proven effective in practice for filling vacancies, this article provides an overview: from temporary work and recruitment agencies to contract work and direct recruitment. You will learn which model is appropriate in which situation and how you Employee leasing use specifically to address short-term staff shortages.

Why is the German shipbuilding industry facing a shortage of skilled workers?

The German shipbuilding industry is a highly specialised sector. However, this also means that there is a constant need for new and, above all, experienced skilled workers. These come from a wide variety of fields, such as welders, electronics technicians, design engineers, engineers and project managers.

However, the fact is that the technical sectors as a whole are facing a shortage of skilled workers. The reasons for this are varied and are linked to demographic trends, increasing international competition and technological change.

What strategies do shipyards use to attract new skilled workers?

For shipyards and suppliers, this means they must find new ways to attract new staff and retain them for as long as possible. To this end, they are employing various strategies. These include not only temporary staffing agencies and recruitment agencies, but also contractors and direct recruitment in collaboration with schools and universities.

How does temporary agency work help to tackle staff shortages in shipbuilding?

Temporary agency work in shipbuilding – also known as temporary employment at shipyards – is an important tool for managing short-term staff shortages. To this end, companies turn to service providers that supply qualified specialists. These workers are then deployed on a project-by-project basis, but are ultimately lost to the shipyards in the long term.

The advantages of this solution for shipyards are:

• A high degree of flexibility that enables them to respond to peaks in order volumes without permanently increasing staff costs.
• Rapid availability, as new teams can be put together and deployed in a matter of days.
• Risk minimisation, as the recruitment agency handles the contracts and the administrative work.

How do shipyards use temporary work as a stepping stone to permanent employment?

Further benefits arise from the proven track record of the workforce. When shipyards wish to take on new staff on a permanent basis, the pool of agency workers is an ideal source for finding them. The company itself can see how well and how motivated an agency worker is in carrying out their duties, and can then specifically offer them a permanent position within the company. This saves them the trouble of searching for new staff and conducting job interviews, whilst at the same time giving them an impression of the potential employee.

In which areas are agency workers typically employed in shipbuilding?

Typically, agency workers in shipbuilding are employed in the fields of welding, pipework, painting and electrical installations. In other words, we are not talking here about unskilled labourers on minimal wages, but about experienced staff.

Temporary workers are in particular demand during the final stages of shipbuilding. That is when the time pressure is at its greatest. Highly skilled agency workers from eastern EU countries are particularly well received here, especially those from nations with a maritime tradition of their own. These include Poland, Romania and Croatia. In addition to their training, they usually bring with them a wealth of practical experience.

What are the disadvantages of temporary agency work in shipbuilding?

However, the advantages of this form of employment are offset by a number of disadvantages: for instance, there is no guarantee that temporary employment agencies will always be able to provide the required number of workers with the necessary qualifications. Furthermore, once the temporary assignment ends, the workers are lost to the company.

These drawbacks can be significantly mitigated if you work with an experienced recruitment agency that has a robust network of qualified specialists and recommends candidates with verified qualifications – rather than simply placing available staff.

How do recruitment agencies and headhunters support the shipbuilding industry?

Another way of attracting new skilled workers is through recruitment agencies specialising in shipbuilding and specialist headhunters. These agencies offer two key advantages: firstly, they have an extensive network for recruiting skilled personnel; secondly, they have in-depth knowledge of the maritime industry.

As part of their work, the agencies shortlist candidates, conduct specialist interviews and verify qualifications and references. This significantly reduces the workload for the shipyards’ HR departments.

The benefits of this support in tackling staff shortages are:

• The targeted recruitment of skilled workers with specialist knowledge by headhunters in the shipbuilding industry
• The international reach of the agencies, which often also place candidates from abroad
• Experience in integrating workers from other countries – including from a legal perspective
• The discretion and professionalism that also make it possible to fill senior positions

Management roles, positions in planning departments and specialist technical roles, in particular, are often difficult to fill. This is where specialists in skilled labour recruitment are a real help, as they know where to find the right people and how to recruit them.

How do subcontractors operate in the shipbuilding industry?

Contractors in the shipbuilding industry, or subcontractors at shipyards, are a great help in tackling the problems arising from the shortage of skilled workers. The problem with this shortage is that there are no staff available to carry out certain tasks. If, however, a company engages a contractor to take on this task, the company itself does not need to deploy its own staff in this area.

When commissioning a subcontractor, the main contractor draws up precisely defined work packages. These are then assigned to the other company by contract. This typically involves pipework, the use of welding and joining techniques, electrical installation and the painting of the ship’s hull.

The difference compared with a temporary employment agency is that the client does not incorporate the agency’s staff into its own workforce and does not have the authority to issue instructions to them for a specific period. Instead, the staff of the subcontractor remain under the authority of that subcontractor, and the company itself carries out the tasks under its own management. To this end, it forms project-based teams which then carry out the work on behalf of the subcontractor.

This approach is particularly well suited to highly specialised tasks that do not need to be carried out on a continuous basis, but only arise from time to time. Rather than having to maintain a permanent workforce or repeatedly train new teams of agency staff, the contractors arrive fully prepared.

What are the advantages of a contract for work and services compared with temporary agency work?

The advantages of this strategy are as follows:

• Specialist expertise is always on hand when it is needed – for example, a team of plant engineers or corrosion protection technicians.
• Thanks to the fixed-price contracts, costs are easy to budget for.
• The in-house staff are relieved of some of their workload and can concentrate on the areas they normally deal with, or spend most of their time on.

Shipyards and main contractors are particularly keen to make use of this type of collaboration when working on large-scale projects. For example, cruise ships and offshore platforms are usually completed in collaboration with contractors working under works contracts. This involves hundreds of workers carrying out their tasks simultaneously.

Feature	Temporary agency work	Contract for Work and Materials (Subcontractor)
Right to issue instructions	Held by the borrower (shipyard)	Lies with the contractor
Type of deployment	Individual specialists, on a project-by-project basis	Entire teams, defined work packages
Typical uses	Short-term staff shortages, final phase of development	Separate trades, major projects
Cost planning	By duration of deployment	Fixed prices under a contract for work and materials

How do shipyards go about direct recruitment and staff retention?

Despite all these options for temporary work, hiring through recruitment agencies or subcontractors, many German shipyards still rely on direct employment in shipbuilding. The aim is for the shipyard to recruit staff directly, thereby retaining control over the entire process. To this end, the companies use the following methods:

• Online career portals and social media
• Trade events and careers fairs
• Partnerships with various schools and universities
• An apprenticeship in shipbuilding within the company itself, following the dual system in conjunction with a vocational school
• In-house training and professional development programmes

Through these strategies, the companies establish direct contact with applicants and can thus inspire them to pursue a career in shipbuilding within their organisation. This helps them to easily identify potential new recruits and speeds up the selection process.

Long-term staff retention is also a key focus. Shipyards invest a great deal of effort, time and money in providing their staff with career progression opportunities, so that they remain loyal to the company. This enables them to progress through various roles and even become technicians or project managers.

Please note: The use of temporary workers in shipbuilding is subject to the German Temporary Employment Act (AÜG), including provisions on the maximum duration of temporary employment and the principle of equal pay. You can read more about this in our article on Temporary Employment Act (AÜG).. You can find an overview of specific occupations and areas of work in the German shipbuilding industry in our articles on Yacht building and to the military shipbuilding.

Conclusion

There is no single solution to the shortage of skilled workers in shipbuilding. In practice, shipyards combine several approaches: Temporary staffing for short-term peaks in orders and the final phase of construction, Recruitment agencies for specialist and management roles that are difficult to fill, contracts for work for specific specialist trades within large-scale projects and Direct recruitment to retain its own skilled workforce in the long term. By combining these tools in a targeted manner, a company can reliably secure the skilled workers that the shipbuilding industry needs, both now and in the future.

FAQ

Why is the German shipbuilding industry suffering from a shortage of skilled workers?

The causes are demographic trends, increasing international competition and technological change, which constantly requires new skills.

What advantages does temporary work offer shipyards compared with permanent positions?

Temporary work offers a high degree of flexibility during peak periods, rapid deployment of new teams and reduced administrative risk, as the recruitment agency handles contracts and administration.

At which stages of shipbuilding are agency workers particularly needed?

Particularly during the final phase of construction, when time pressure is at its highest and welders, pipeworkers, painters and electricians are needed at short notice.

Can agency workers in the shipbuilding industry be taken on permanently?

Yes, many shipyards make targeted use of agency workers in order to assess their suitability and subsequently offer them a permanent position within the company.

What is the difference between temporary agency work and a contract for services?

In the case of temporary agency work, the shipyard has the authority to issue instructions to the agency worker; in the case of a contract for services, the staff remain under the authority of the subcontractor, who undertakes the task on their own responsibility for a fixed price.

What are contract-based shipbuilding companies particularly suited to?

For highly specialised trades that are only required from time to time, such as pipework, welding and joining, or paintwork, often in connection with large-scale projects such as cruise ships or offshore platforms.

What role do recruitment agencies and headhunters play in shipbuilding?

They shortlist candidates, conduct technical interviews, check qualifications and references, and are particularly helpful when it comes to hard-to-fill management and specialist roles.

Which countries do many temporary workers in the German shipbuilding industry come from?

Often from Eastern European countries with their own maritime traditions, such as Poland, Romania and Croatia, who bring with them practical experience and sound training.

How quickly does Zeitarbeit International place skilled workers on a shipyard project?

The time taken to source staff depends on the profile you are looking for and availability. Please contact us at an early stage so that we can arrange for suitable, vetted specialists to be assigned to your project in good time.