Digital shipbuilding: Cutting costs and lead times in Shipbuilding News 06/01/2026 In the budget breakdown of a new ship build, around 5% of project spending goes to engineering; 25–35% goes to direct and indirect labor. The majority of the budget—some 60–70%—owes directly to material costs. The key, then, to controlling project cost isn’t just in the efficiency of your workforce or your engineering. It’s in mastering material flow from end to end. Of course, that’s easier said than done. In traditional shipyards, material flow is fragmented by siloed departments and disconnected systems, and it’s managed with limited visibility and manual handovers. In this fractured project landscape, teams inevitably struggle to keep complex projects aligned. The result is a cascade of familiar challenges: Siloed departments, systems, and information Without integration between departments, teams must re-enter the same data into multiple systems, leading to unreliable or conflicting information, wasted time spent tracking down data, and breakdowns in cross-discipline planning. It also makes it laborious or impossible to extract accurate managerial KPIs for fast, informed decision-making. Inefficient material management Given how much budget goes to materials, poor material management—such as overspending in acquisition, double ordering, overstocking, or missing parts—can quickly snowball into major cost overruns Lack of control and visibility When teams operate in the dark, they risk working from outdated designs or incomplete bills of materials (BOMs), which can lead to mismatched kits, invalid documentation, installation errors, and costly rework and delays. Solving these challenges requires more than software upgrades or point solutions. Shipbuilders need an integrated approach that unites engineering, procurement, planning, and construction teams in a common data environment with full visibility into what’s needed, when, and why. Real-world success: Oceana streamlines the shipbuilding process Founded in 2013, Brazil-based shipyard Oceana is the relative new kid on the block. To convince customers to jump ship, Oceana couldn’t just do as well as its more seasoned competitors; it had to do even better. That’s why it united its departments and harmonized work across the project lifecycle with AVEVA™ Enterprise Resource Management. Let’s revisit those challenges we looked at back at the top of the page and see how Oceana’s integrated approach to the shipbuilding process makes all the difference. Siloed departments With AVEVA Enterprise Management, and a shared data environment, Oceana integrated supply chain functions—like procurement, warehousing, and planning—with engineering and construction workflows. This enables the shipbuilder’s teams to work together in lockstep. Regardless of their department, everybody shares the same view of the same information, which enhances collaboration between disciplines and supply chain partners. Now, information is entered into just the one system, just the one time, and as designs change, the project roadmap always remains up to date. And, with one central hub of reliable information, leadership can easily access the big-picture KPIs they need to understand performance and make faster, better-informed decisions. Inefficient material management By connecting engineering outputs directly to procurement and warehouse systems, Oceana’s new, integrated environment enables teams to forecast material needs more accurate