Monday, January 20, 2014

Industrial Organization in Private Venetian Ship Yards

Industrial Organization in Private Venetian Ship Yards

In the 11th century in Venice water craft were small vessels which could be almost mass produced in a way which made way for Squerarioli who were unique craftsman who introduced “new”  concepts in paying for the ships being produced. Previously any ship built was commissioned just as a work of art or any other item which may be paid for by the amount of labor required rather than the value of the end product itself.  Because of the small shipyards, low capital, and low labor requirements of these small ships the Squerarioli  were able to essentially open “boat shops” where these ships were purchase much as you would a car today, paying not for the man hours used to produce the car but for the value of the end product.
Because of this unique position legislation was passed in Venice which greatly changed the environment for ship builders
-1407 a law is passed which forbids a ship being launched before it is paid for, this has the effect of eliminating Squerarioli’s ability to maintain prebuilt ships.
-1477 Squerarioli are granted the ability to have two apprentice, they are the only craftsman allowed more than one apprentice during this time period in Venice. This allows not only a special position within their guild but allows them to produce larger ships because of increase in organic labor.
-1584 Squerarioli are allowed to harvest 12 trees twice a year from protected forests. This gives the Squerarioli the ability to produce larger ships more cheaply
Because of the way Squerarioli are selling ships, by the job not by the hour, an incentive for quantity over quality develops.
As we enter the 15th century larger and larger ships are being undertaken and carpenters typically are functioning in a more administrative role by contracting out for skilled labor and supervising production.
As merchant ships become larger so to the requirements for venetian military vessels however the limited production facilities within Venice and limited resources available to produce ships with increasing resource requirements means that the government is having to compete with private enterprise to have its ships built. As a result of this competition the Venetian government passes legislation intervenes by limiting the ship size which can be produced by private ship yards on the basis that any ship over 47 tons was of poor quality and giving Venetian carpenters a bad name.  In 1425 this tonnage limit is raised to 94 tons.
As the ships produced in Venice the question is raised of how ships are paid for. With much larger capital requirements of larger ships it is no longer practical for individuals to pay the entire price of a ship upfront. Initially financing a large ship was left to the individual owner who would have to pay overs several years and receive no return as the ships were not built prior to an order because the demand was rather low.
Normally those who wanted larger ships built would take the lead in having them built, they could do this one of two ways.
-Find a wealth craftsman and purchase a vessel at a fixed price
With this option the ship is purchased very much as a car is today. All capital including the shipyard, building supplies and labor is controlled by the manufacture (in this case a wealthy carpenter).
-Party/parties purchasing the larger ship take full control of its production
This would include hiring a foreman, renting a shipyard, procuring supplies, and managing payroll as well as all other aspects of ship production.
In Venice from 1425-1570 ships were generally produced under the latter option.
Large ships were typically not owned by a single individual but rather a group of shareholders. This method of ownership has been recognized as a form of wealth since the 11th century.
The Arsenal prior to 1660 was only set up for galley production, because of this both government and private ships were produced by hiring a foreman shipwright, an accountant, and a superintendent.
The accountant and superintendent were “company men” who were paid directly by the shareholders for privately contracted ships or by lord of the Arsenal for military ships.
Foremen were technical experts responsible for declaring defects in wood or calking, decreasing pay for master craftsmen who did not meet the guild standards of craftsmanship, ensuring workers were sent home on time, and docking pay for workers who were not working during work hours.
-1559 a law is passed which forbids cutting Venetian oak for use in Venetian ship yards in order to prevent shipyards from being the owners of the ships they are building.
At the end of the 16th century there is a shift in policy towards providing subsidy for parties wishing to build ships which stimulates building of ships as well as fostering a new class of craftsman, the Boss Carpenter
Bernard Sebastian Russo is one of the most notable Boss Carpenters. Russo helped set a standard for subsidy by requesting loans for ship buyers, living allowances for himself, a significant amount of labor from within the Arsenal, and constant employment for his workers. He also asked to be allowed to keep 2-3 ships from his production and be allowed to source timber from wherever he pleased.
The request for constant employment for his workers is quite notable as prior to this request workers were only employed if a ship was actively in production. Production could be stopped by many things which includes weather. Under this request when production was stopped for any reason his workers would be able to continue their employment within the arsenal. It was because of this constant promise of employment that he was able to offer his workers a lower wage then other ship builders.
Ship building in Venice comes to a rather anticlimactic end as ship global competition reaches the area local ship yards become unable to compete and ship construction fizzles out.
As we toured the Arsenal, its importance in Venetian history was evident. We could see many portions of the facility have been renovated for use throughout history for use in the various conflicts Italy has been involved in. We could see bunkers from World War I and World War II, ships cradles from the 16th century and galley production facilities dating back to the 11th century. Today the arsenal is not a strategic military asset but a monument to Venice’s relevance throughout history



No comments:

Post a Comment