Ferguson Marine is in negotiations for a significant subcontract, tipped to be more work on sections of new frigates, as part of its strategy to sustain and grow its workforce over the next two to three years.
Interim CEO John Petticrew shared details of the shipyard’s plans during a session with the Net Zero, Energy and Transport Committee, highlighting efforts to maintain workforce stability while pursuing new opportunities.
“We are negotiating for a major subcontract—I cannot mention the people to whom we are talking,” Petticrew revealed. He added that the company is also exploring potential new customers, which could further bolster its operations beyond the construction of the Glen Rosa vessel.
Petticrew emphasised the importance of retaining the shipyard’s 290 permanent staff, stating that any reductions would primarily affect subcontractors rather than core employees. “We are going to achieve that extra 10 per cent [confidence] by keeping a lot of those members of our workforce around and putting them on second shifts and by putting more people to the task,” he explained.
This approach reflects a broader industry model, where shipyards rely on a stable core workforce supplemented by subcontractors to manage fluctuations in workload. Drawing on his prior experience with J.D. Irving Ltd. in Canada, Petticrew noted that companies often adjust staffing levels based on sustained demand before transitioning subcontractors into permanent roles.
“If they have to let people go, the subcontractors get let go. For example, say that we have a core group of 300, that we go up to 400 or 430 and that we stay there consistently. It is incumbent on us to try to bring in permanent people to bring the workforce up to that level,” Petticrew explained.
Ferguson Marine’s negotiations for a new subcontract, combined with its strategic workforce planning, reflect its commitment to long-term growth and operational resilience, reinforcing its role as a key player in the shipbuilding industry.
What could this work be?
I reported last year that Ferguson Marine was setting its sights on expanding its participation in the UK’s Type 26 frigate programme, aiming to bid for more work in addition the work it already had building sections for one of the new frigates.
At a previous Scottish Parliament’s Net Zero, Energy and Transport Committee meeting held on October 24, 2023, David Tydeman, then-CEO of Ferguson Marine, outlined the shipyard’s strategic goals and addressed concerns regarding current projects and future work prospects.
We previously reported that shipyards, including Ferguson Marine, had been contracted for steelwork fabrication to support the delivery of the Type 26 programme.
This engagement has been part of a broader initiative to create work opportunities across British shipyards. Reflecting on this, Mark Ruskell of the committee inquired about the business impact of past difficulties with specific ferries and whether Ferguson Marine anticipated an influx of work consistent with its current frigate projects.
Tydeman clarified the company’s strategic positioning, “We chose deliberately to position for the work for the frigates… However, frankly, until very recently, all the workforce was fully occupied on the ferries.”
Tydeman also responded to Ruskell’s query on potential reputational harm due to past project difficulties, noting the importance of securing confidence from industry leaders like BAE, “The constant media coverage has been difficult. Certainly, getting BAE to place work with us is a morale boost and an indication that it trusts us. We need more of that.”
In a related exchange, Jim Fairlie inquired about the BAE contract’s duration and employment impact. Tydeman responded by advising that the firm will be continuing to tender for BAE work.
Track record
Ferguson Marine recently completed hull sections for the UK’s Type 26 frigate programme. These crucial sections were expertly transported from Ferguson Marine’s yard in Port Glasgow to BAE Systems’ facility in Govan.
This task was carried out by Coastworks using their newly introduced CW-9 barge, shown above in front of HMS Cardiff, marking its first operational deployment. The CW-9, a 50m x 18.8m flattop barge, boasts a significant cargo capacity of 1,880 tonnes, which is instrumental for heavy and large-scale maritime logistics. Here’s an image of the steel being loaded on at Ferguson Marine.
The transfer of these steel sections was managed on behalf of Osprey Group, known for their specialisation in the delivery and installation of some of the world’s heaviest assets and largest abnormal loads. Here’s the hull section arriving at Govan.
BAE Systems told me
“We have outsourced steelwork fabrication for a limited number of units to support delivery of the Type 26 programme. This is typical for a programme of this scale and offers an opportunity for UK companies to play their part on this national endeavour.”
The Type 26 programme, aimed at replacing the older Type 23 frigates, involves constructing eight state-of-the-art anti-submarine warfare frigates to enhance the operational capabilities of the Royal Navy. The steel units produced by Ferguson Marine are key components of HMS Belfast, the third ship in the Type 26 series.
This outsourcing of steelwork fabrication to various UK shipyards like Ferguson Marine is part of a deliberate effort to distribute workload effectively and maintain project timelines.
Why not? If it speeds up rebuilding the frigate fleet go for it!
IF it speeds it up. Given the inexperience it could slow it down?
Unlikely BAE, is not daft for a start and what they are building are fairly straight forward steel fabricated sections. Workers from Ferguson have been going back and forth to Govan already as well. This is one of the major benefits of concentrating ship building in one part of the country, we have a limited work force but over the last decade workers have been able to transfer between Govan, Clydeside and Rosyth for various projects without having to relocate.
Chance for Ferguson to do themselves a good turn. Up to BAE to manage and audit the quality of the Ferguson work.
It’s a shame that Upper Clyde, Swan Hunter, Greenock etc all closed. Could really do with a couple of them now.
This is fake news. The real talks are for a fleet of SNP campervans….
Thanks for these reports George. Best wishes to all concerned. The U.K. needs both ships and skills and this is encouraging news.
I wouldn’t trust that yard to build an Airfix kit.
Having worked on commercial and naval contracts there is no difference the problem now is we have limited workforce most in fife have never built ships of this spec and don’t say the carries we only put them together was on both start to finish I have now retired but babcock were going to build the 31s with graduates this will never work you need skills on the shopfloor which we are losing and have lost with limited apprenticeship being carried on when building the first ship you were working blind as it took 2years to agree every part with Lloyds and the navy then let graduates change it and were working with drawingthat had parts that were to be confirmed then Lloyds coming to sign it of using original drawings and getting told to put on all parts that were originally agreed I was a plater/shipwright to trade and found this very disturbing as the first 1 is behind according to the build plan I was the supervisor on it when I was taught 50years ago qualty was conforming to customers specification and you can’t I also found graduates would not take on board what you were trying to convey your points they would take no heed unfortunately this seems to be happening lots of places Rosyth has taken 500 unskilled worker on instead of apprenticeships being carried out to try and alleviate this skills shortage the Rosyth workforce were brilliant in ship repair this is not the same
Mark frank took the words out of my mouth with airfix.