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International Competition Increases As developing and newly indus- trialized countries first started building ships, these same coun- tries systematically built up their marine equipment industries. Hence, local content, license con- tracts and different kinds of coop- eration have become more impor- tant. As equipment is mainly pro- duced individually or in small lots, the question arises as to whether production at several sites is the most economical arrangement. The industry reportedly does not receive any direct order supports from government, and therefore has to vigorously and continually explore new avenues of cost reduc- tion. This includes the partial transfer of production into foreign countries and the reduction of costs for external institutions, like classification societies. Inspection and approval accounts for an increasing part of the total costs. Mutual acceptance of certificants has to be practiced more often as well as pragmatic and short-term changes of proceedings of the clas- sification societies. The maritime industry world- wide is undoubtedly an extremely transparent market. From the point of the equipment industry, every measure has to be undertak- en to keep the markets open. Mid- dle-sized entrepreneurs need gov- ernment support in order to dis- mantle non-tariff trade barriers. VDMAis watching the U.S.'s hes- itation to accept the OECD agree- ment. The reduction of subsidies will remain a decisive milestone for equal supplier competition. Marine equipment suppliers in particular will plaj"anSricreasingly important j»l
