Modernization of shipbuilding helps supply less expensive and better ships, stabilize ocean freight and achieve smoother distribution of goods all over the world. Therefore modernization of the industry contributes to the steady growth of world economy. Among various aspects of modernization, the enhancement of employees' morale and preparation of favourable environment for them are particularly stressed. Steps for modernization so far taken by the Japanese shipbuilding industry are described, followed by a forecast of the development of various aspects of technology to be achieved by Japanese shipbuilders in the first half of the seventies. As shipyard layout and hull construction methods are closely related with automation and mechanization, the prevailing concepts of large shipyards in Japan are examined, and on that basis a suggestion is made with regard to a concept of shipyards in the 1980s.