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Tue, 18 Aug 2026

Tue, 18 Aug 2026 Ferguson shipyard to cut a quarter of its workforce

The state-owned yard on the Clyde will lose 70 of its 283 staff through a voluntary redundancy process.
Challenges facing Ferguson: 1. Reputation damage: The construction of the MV Glen Sannox and MV Glen Rosa ferries was plagued by design challenges and disputes over claims for extra costs, which may have harmed the shipyard's reputation. 2. Competition from foreign yards: UK-based shipbuilders like Ferguson face stiff competition from overseas firms in eastern Europe and the Far East, which can undercut them on cost due to cheaper labor and better state support. 3. Missed opportunities: The shipyard missed out on orders for several CalMac ships, including a contract for seven small vessels that was awarded to a Polish firm because it could build the ships more cheaply. Efforts to turn things around: 1. Modernization plans: The shipyard is working on modernizing its equipment and software, which may unlock £14.2m of funding promised by ministers over two years ago. 2. Apprentice program: Ferguson's apprentice program remains unaffected by the redundancies, with 34 young workers in training and a new intake of 10 trainees starting college soon. Other challenges: 1. Procurement rules: The shipyard has criticized procurement rules that prioritize price over social value, which could allow foreign firms to undercut UK-based builders. 2. Bid for CalMac contract: Ferguson's bid for the replacement of the MV Lord of the Isles was rejected by ministers, who instead put the contract out to tender. Overall, the article suggests that the Ferguson shipyard is facing significant challenges in terms of its reputation, competition from foreign yards, and missed opportunities. However, the company remains committed to turning things around through modernization efforts and its apprentice program.