1 Table of Contents 2
1.1 List of Tables 4
1.2 List of Figures 7
2 Introduction 10
2.1 What is This Report About? 10
2.2 Methodology 10
2.3 Profile of Survey Respondents 11
3 Executive Summary 15
3.1 The Ship and Cruise Industry is Generally Optimistic About the Recovery of the Global Economy 15
3.2 Buyers in the Industry Are More Optimistic About Revenue Growth Than Suppliers 15
3.3 Ship and Cruise Companies Will Be Increasing Procurement Spend Over the Next 12 Months 15
3.4 Industry Players Face a Number of Key Challenges Due to the Recession 16
3.5 Suppliers Must Update Their Knowledge of Buyer Needs During the Periods of Recession and Recovery 17
4 Economic Outlook and Confidence 18
4.1 Global Economy Recovery Expectations 18
4.2 Revenue Growth Expectations 22
5 Ship and Cruise Industry Investment Outlook 27
5.1 Fastest and Slowest Growing Markets 27
5.2 M&A Activity Predictions 39
5.3 Supplier’s Industry Outlook 43
6 Recession: Threats and Opportunities for the Ship and Cruise Industry 47
6.1 Leading Business Concerns Due to Recession 47
6.2 Key Actions to Overcome Business Threats 53
6.3 Key Actions to Maintain and Win Buyer Business 58
6.4 Leading Recession-Related Business Opportunities 67
7 Ship and Cruise Industry Buyer Spend Activity 72
7.1 Annual Procurement Budgets 72
7.2 Expected Change in Procurement Spend 77
7.3 Expected Change in Spend by Product and Service Category 82
8 Procurement Behaviors and Strategies and the Impact of Recession 96
8.1 Critical Success Factors for Supplier Selection 96
8.2 Current Effects of Recession on Procurement Objectives 103
8.3 Expected Future Effects of Recession on Procurement Objectives 107
8.4 The Effects of Recession on Procurement Strategy 113
9 Appendix 124
9.1 Full Survey Results-Closed Questions 124
9.2 Methodology 129
9.3 Contact Us 130
9.4 About Global Markets Direct 130
9.5 Disclaimer 130
1.1 List of Tables
Table 1: Count of Global Ship and Cruise Industry Survey Respondents by Company Type (Number of Respondents), 2009 Industry Survey 11
Table 2: Buyer Respondents by Job Role (% Buyer Respondents), Global Ship and Cruise Industry, 2009 12
Table 3: Buyer Respondents by Organization’s Global Turnover (% Buyer Respondents), Global Ship and Cruise Industry, 2009 12
Table 4: Buyer Respondents by Organization’s Total Employee Size (% Buyer Respondents), Global Ship and Cruise Industry, 2009 13
Table 5: Supplier Respondents by Job Role (% Supplier Respondents), Global Ship and Cruise Industry, 2009 13
Table 6: Supplier Respondents by Organization’s Global Turnover (% Supplier Respondents), Global Ship and Cruise Industry, 2009 14
Table 7: Supplier Respondents by Organization's Total Employee Size (% Supplier Respondents), Global Ship and Cruise Industry, 2009 14
Table 8: Global Ship and Cruise Industry Expectations of Global Economy Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest Of World (% All Respondents), 2009 20
Table 9: Global Ship and Cruise Industry Expectations of Global Economy Recovery Timings by Company Type: Cruise / Passenger Ship Owner / Operator, Industrial / Government Ship Owner / Operator, Shipyard Owner / Operator, Ship Industry Suppliers (% All Respondents), 2009 22
Table 10: Company Revenue Growth Optimism by Global Ship and Cruise Industry Company Type: Cruise / Passenger Ship Owner / Operator, Industrial Ship Owner / Operator, Shipyard Owner / Operator, Ship Industry Suppliers (% All Respondents), 2009 24
Table 11: Company Revenue Growth Optimism in the Global Ship and Cruise Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 26
Table 12: Cruise / Passenger Ship Owner / Operator Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Cruise / Passenger Ship Owner / Operator Respondents), 2009 30
Table 13: Industrial Ship Owner / Operator Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Industrial Ship Owner / Operator Respondents), 2009 33
Table 14: Shipyard Owner / Operator Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Shipyard Owner / Operator Respondents), 2009 36
Table 15: Ship Industry Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Ship Industry Supplier Respondents), 2009 38
Table 16: Key Growth Areas in the Global Ship and Cruise Industry (Analysis of Supplier Respondents), 2009 44
Table 17: Key Growth Areas in the Global Ship and Cruise Industry (Analysis of CEO/MD/Board Level Supplier Respondents), 2009 45
Table 18: Key Declining Areas in the Global Ship and Cruise Industry (Analysis of Supplier Respondents), 2009 46
Table 19: Key Declining Areas in the Global Ship and Cruise Industry (Analysis of CEO/MD/Board Level Supplier Respondents), 2009 46
Table 20: Leading Business Concerns for the Period 2009-2010 Among Global Ship and Cruise Industry Buyers and Suppliers : Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator Vs. Ship Industry Supplier (% All Respondents), 2009 51
Table 21: Leading Business Concerns for the Period 2009-2010 Among Global Ship and Cruise Industry Buyers and Suppliers by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 52
Table 22: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Ship and Cruise Industry (Analysis of All Respondents), 2009 54
Table 23: Most Important Actions Being Implemented to Overcome Leading Business Concerns in 2009-2010 in the Global Ship and Cruise Industry – Senior Level Responses Only (Analysis of CEO/MD/Board Level Respondents), 2009 55
Table 24: Most Important Actions Being Implemented by Ship Industry Suppliers to Overcome Leading Business Concerns in the Global Ship and Cruise Industry 2009-2010 (Analysis of Ship Industry Supplier Respondents), 2009 56
Table 25: Most Important Actions Being Implemented by Cruise / Passenger Ship Owner / Operator, Industrial / Government Ship Owner/ Operator and Shipyard Owner/ Operator to Overcome Leading Business Concerns in 2009-2010 in the Global Ship and Cruise Industry (Analysis Of Cruise / Passenger Ship Owner / Operator, Industrial / Government Ship Owner/ Operator and Shipyard Owner/ Operator Respondents), 2009 57
Table 26: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 60
Table 27: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% Buyer Respondents), 2009 62
Table 28: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Analysis of Buyer Respondents by Company Turnover (% Buyer Respondents), 2009 63
Table 29: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Analysis of All Buyer Respondents by Procurement Budget (% Buyer Respondents), 2009 64
Table 30: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Analysis of All Buyer Respondents by Region (% Buyer Respondents), 2009 65
Table 31: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Analysis of All Buyer Respondents by Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 66
Table 32: Leading Business Opportunities During the Recession in The Global and Ship Cruise Industry (Analysis of All Respondents), 2009 68
Table 33: Leading Business Opportunities During the Recession in the Global Ship and Cruise Industry – Senior Level Responses Only (Analysis of CEO/MD/Board Level Respondents),2009 69
Table 34: Leading Business Opportunities for Ship Industry Suppliers During the Recession in the Global Ship and Cruise Industry (Analysis of Supplier Respondents), 2009 70
Table 35: Leading Business Opportunities for Cruise/Passenger Ship Owner/Operator, Industrial/Government Ship Owner/Operator, Shipyard Owner/Operator During the Recession in the Global Ship and Cruise Industry (Analysis of Buyer Respondents), 2009 71
Table 36: Annual Procurement Budgets in US$ in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 74
Table 37: Annual Procurement Budgets in US Dollars in the Global Ship and Cruise Industry by Region (% All Buyer Respondents), 2009 77
Table 38: Expected Change in Spend on Products and Services in the Global Ship and Cruise Industry Over the Next 12 Months: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 79
Table 39: Expected Change in Spend on Products and Services in the Global Ship and Cruise Industry Over the Next 12 Months by Region (% All Buyer Respondents), 2009 81
Table 40: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Cruise / Passenger Ship Owner / Operator - Expected Increase or Decrease Over the Next 12 Months (% Cruise / Passenger Ship Owner / Operator Respondents), 2009 84
Table 41: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Industrial / Government Ship Owner / Operator - Expected Increase or Decrease Over the Next 12 Months (% Industrial / Government Ship Owner / Operator Respondents), 2009 87
Table 42: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Shipyard Owner / Operator - Expected Increase or Decrease Over the Next 12 Months (% Shipyard Owner / Operator Respondents), 2009 90
Table 43: Critical Success Factors for Selecting a Ship and Cruise Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 100
Table 44: Critical Success Factors for Selecting a Ship and Cruise Industry Supplier: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator Comparison (% All Buyer Respondents), Global, 2009 102
Table 45: Current Effects of Recession on Procurement Objectives and Priorities in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 105
Table 46: Current Effects of Recession on Procurement Objectives and Priorities in the Global Ship and Cruise Industry by Company Turnover (% All Buyer Respondents), 2009 106
Table 47: Expected Changes in Procurement Strategy in the Global Ship and Cruise Industry to Drive Value Across the Business Due to Recession: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 116
Table 48: Expected Changes in Procurement Strategy in the Global Ship and Cruise Industry to Drive Value Across the Business Due to Recession: All Buyers by Company Turnover (% All Buyer Respondents), 2009 117
Table 49: Expected Changes in Procurement Strategy in the Global Ship and Cruise Industry to Drive Value Across the Business Due to Recession: All Buyers by Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 118
Table 50: Expected Changes in Procurement Strategy in the Global Ship and Cruise Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009 120
Table 51: Cruise / Passenger Ship Owner / Operator Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Cruise / Passenger Ship Owner / Operator Respondents), 2009 121
Table 52: Industrial / Government Ship Owner / Operator Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Industrial / Government Ship Owner / Operator Respondents), 2009 122
Table 53: Shipyard Owner / Operator Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Shipyard Owner / Operator Respondents), 2009 123
Table 54: Full Survey Results-Closed Questions 124
1.2 List of Figures
Figure : Leading Business Concerns for the Period 2009-2010 Among Global Ship and Cruise Industry Buyers and Suppliers (% All Respondents), 2009 16
Figure 1: Global Ship and Cruise Industry Expectations of Global Economy Recovery Timings (% All Respondents), 2009 19
Figure 2: Global Ship and Cruise Industry Expectations of Global Economy Recovery Timings by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 20
Figure 3: Global Ship and Cruise Industry Expectations of Global Economy Recovery Timings by Company Type: Cruise / Passenger Ship Owner / Operator, Industrial / Government Ship Owner / Operator, Shipyard Owner / Operator, Ship Industry Suppliers (% All Respondents), 2009 21
Figure 4: Company Revenue Growth Optimism in the Global Ship and Cruise Industry (% All Respondents), 2009 23
Figure 5: Company Revenue Growth Optimism by Global Ship and Cruise Industry Company Type: Cruise / Passenger Ship Owner / Operator, Industrial Ship Owner / Operator, Shipyard Owner / Operator, Ship Industry Suppliers (% All Respondents), 2009 24
Figure 6: Company Revenue Growth Optimism in the Global Ship and Cruise Industry by Region: North America, Europe, Asia-Pacific, Rest of World (% All Respondents), 2009 25
Figure 7: Cruise / Passenger Ship Owner / Operator Industry: Market Predictions of the Fastest And Slowest Growing Regions (% Cruise / Passenger Ship Owner / Operator Respondents), 2009 28
Figure 8: Industrial Ship Owner / Operator Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Industrial Ship Owner / Operator Respondents), 2009 32
Figure 9: Shipyard Owner / Operator Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Shipyard Owner / Operator Respondents), 2009 35
Figure 10: Ship Industry Supplier Industry: Market Predictions of the Fastest and Slowest Growing Regions (% Ship Industry Supplier Respondents), 2009 37
Figure 11: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Cruise / Passenger Ship Owner / Operator Industry (% Cruise / Passenger Ship Owner / Operator Industry Respondents), 2009 40
Figure 12: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Industrial Ship Owner / Operator Industry (% Industrial Ship Owner / Operator Industry Respondents), 2009 41
Figure 13: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Shipyard Owner / Operator Industry (% Shipyard Owner / Operator Industry Respondents), 2009 42
Figure 14: Merger and Acquisition Activity Expectations Over the Next 12 Months in the Global Ship Industry Supplier Industry (% Ship Industry Supplier Industry Respondents), 2009 43
Figure 15: Leading Business Concerns for the Period 2009-2010 Among Global Ship and Cruise Industry Buyers and Suppliers (% All Respondents), 2009 48
Figure 16: Leading Business Concerns for the Period 2009-2010 Among Global Ship and Cruise Industry Buyers and Suppliers : Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator Vs. Ship Industry Supplier (% All Respondents), 2009 50
Figure 17: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 59
Figure 18: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% Buyer Respondents), 2009 61
Figure 19: Annual Procurement Budgets in US$ in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 73
Figure 20: Annual Procurement Budgets in US Dollars in the Global Ship and Cruise Industry by Company Turnover (% All Buyer Respondents), 2009 75
Figure 21: Annual Procurement Budgets in US Dollars in the Global Ship and Cruise Industry by Region (% All Buyer Respondents), 2009 76
Figure 22: Expected Change in Spend on Products and Services in the Global Ship and Cruise Industry Over the Next 12 Months: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 78
Figure 23: Expected Change in Spend on Products and Services in the Global Ship and Cruise Industry Over the Next 12 Months by Company Turnover (% All Buyer Respondents), 2009 80
Figure 24: Expected Change in Spend on Products and Services in the Global Ship and Cruise Industry Over the Next 12 Months by Region (% All Buyer Respondents), 2009 81
Figure 25: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Cruise / Passenger Ship Owner / Operator - Expected Increase or Decrease Over the Next 12 Months (% Cruise / Passenger Ship Owner / Operator Respondents), 2009 83
Figure 26: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Industrial / Government Ship Owner / Operator - Expected Increase or Decrease Over the Next 12 Months (% Industrial / Government Ship Owner / Operator Respondents), 2009 86
Figure 27: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Shipyard Owner / Operator - Expected Increase or Decrease Over the Next 12 Months (% Shipyard Owner / Operator Respondents), 2009 89
Figure 28: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Expected Increase Over the Next 12 Months Cruise/Passenger Ship Owner/Operator Vs. Industrial/Government Ship Owner/Operator Vs. Shipyard Owner/Operator (% All Buyer Respondents), 2009 92
Figure 29: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers by Company Turnover (% All Buyer Respondents), 2009 93
Figure 30: Future Change in Spend in the Global Ship and Cruise Industry by Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers by Region (% All Buyer Respondents), 2009 95
Figure 31: Critical Success Factors for Selecting a Ship and Cruise Industry Supplier: Difference in Views, Buyers Vs. Suppliers (Net Difference in Ranking), Global, 2009 98
Figure 32: Critical Success Factors for Selecting a Ship and Cruise Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), Global, 2009 99
Figure 33: Critical Success Factors for Selecting a Ship and Cruise Industry Supplier: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator Comparison (% All Buyer Respondents), Global, 2009 101
Figure 34: Current Effects of Recession on Procurement Objectives and Priorities in the Global Ship and Cruise Industry (% All Buyer Respondents), 2009 103
Figure 35: Current Effects of Recession on Procurement Objectives and Priorities in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 104
Figure 36: Likelihood of Future Change in Procurement Objectives in the Global Ship and Cruise Industry (% All Buyer Respondents), 2009 107
Figure 37: Likelihood of Future Change on Procurement Objectives in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 108
Figure 38: Likelihood of Future Change on Procurement Objectives in the Global Ship and Cruise Industry by Company Turnover (% All Buyer Respondents), 2009 109
Figure 39: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Ship and Cruise Industry (% All Buyer Respondents), 2009 110
Figure 40: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Ship and Cruise Industry: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 111
Figure 41: Expected Future Effects of Recession on Procurement Objectives and Priorities in the Global Ship and Cruise Industry by Company Turnover (% All Buyer Respondents), 2009 112
Figure 42: Expected Changes in Procurement Strategy in the Global Ship and Cruise Industry to Drive Value Across the Business Due to Recession (% All Buyer Respondents), 2009 114
Figure 43: Expected Changes in Procurement Strategy in the Global Ship and Cruise Industry to Drive Value Across the Business Due to Recession: Cruise / Passenger Ship Owner / Operator Vs. Industrial / Government Ship Owner / Operator Vs. Shipyard Owner / Operator (% All Buyer Respondents), 2009 115
Figure 44: Expected Changes in Procurement Strategy in the Global Ship and Cruise Industry to Drive Value Across the Business Due to Recession: All Buyers by Region (% All Buyer Respondents), 2009 119
