Despite the ongoing weakness in the oil price, it is not all doom and gloom for the industries that rely on exploration and processing of the resource. In fact, for some associated downstream industries the cheaper price offers significant advantages: petrochemical and power remain strong, for example.
We are also seeing resilience in the midstream industry (e.g. shipbuilding) - since oil and other goods and resources still need to be transported around the world, no matter what pressures the industry is experiencing upstream.
What is changing for the shipbuilding industry is where the design, build, and fabricate work is being executed. While Europe was traditionally the stronghold for the shipbuilding industry, in recent years much shipbuilding activity has moved to East Asia (particularly Korea, Japan, and China). The primary motivation for this shift has been to lower costs.
As such, it has not been surprising to us that demand for Intergraph Smart 3D - our breakthrough 3D design solution - remains steady amongst East Asian shipbuilders. Earlier this week at our Intergraph PP&M Japan 2015 Conference we announced that yet another Japanese shipbuilder is using our products exclusively for hull design and outfitting on all new projects - Kitanihon Shipbuilding. The full press release is available here.