Ferguson shipyard warns of dire future without ferry contract

In the United Kingdom on July 16, 2025, Graeme Thomson, the chief executive of Ferguson shipyard, expressed concerns regarding the yard's future unless it secures a replacement contract for the MV Lord of the Isles ferry. Thomson highlighted the challenges faced by UK shipyards, which struggle to compete with international firms due to differences in pricing influenced by lower labor rates and tax breaks abroad. The Scottish government has previously indicated that it cannot legally grant Ferguson a direct award for the construction of seven electric ferries, leading to contracts being awarded to a Polish yard, Remontowa. Thomson believes that if Ferguson does not receive this contract, it would face significant difficulties ahead. He voiced optimism over the potential for further work with BAE Systems on the Type 26 program, and Ferguson is also exploring opportunities to bid for constructing smaller vessels such as pilot boats and tugs. He underscored the importance of creating a level playing field for UK shipyards to ensure they can win domestic contracts, especially as approximately 150 non-navy vessels are projected to be built over the next three decades. Recent delays and budget overruns concerning the Glen Rosa ferry have been noted, but Thomson is hopeful for its completion and delivery in the second quarter of the following year. Meanwhile, Shona Robison, the Scottish finance secretary, mentioned ongoing discussions with bus operators regarding demand levels for double-decker buses amid the threat of job losses at Alexander Dennis, another Scottish manufacturer.