London, United Kingdom (PRWEB) October 18, 2012
The Boat Repair & Maintenance industry has struggled over the course of the recession. According to IBISWorld industry analyst Lewis Sutton, “industry revenue is expected to fall at an annualised 5.0% over the five years through 2012-13, to total £450.1 million”. The recession has lowered the number of freight, passenger and pleasure vessels on the water. The level of fishing has also declined due to strict policies aimed at reducing overfishing, which have lowered the number of fishing boats on the water. The smaller the number of boats on the water, the less demand there is for repair or maintenance work to be carried out. Industry revenue is expected to decline by just 0.1% in 2012-13, reflecting the slowly recovering economy.
Revenue is expected to completely turn around from the dismal past five years. Over the next five years to 2017-18, industry revenue is forecast to return to growth. Sutton adds, “the economic recovery is expected to drive industry growth as more boats hit the water”. Freight shipping is forecast to rebound and many inactive vessels will return to action. Demand for passenger vessels will increase with consumer confidence, as will demand for private vessels. There are expected to be public spending cuts affecting demand from the military for repair and maintenance work, but this will not greatly affect the positive outlook for the industry.
Market share concentration is considered to be low in the Boat Repair & Maintenance industry, with the four largest operators controlling less than 40% of the market. This shows an industry that is highly fragmented. Two of the top four companies account for approximately 33% of industry revenue. Both of these companies predominantly serve the military and both have secured large long-term contracts. Companies that serve private pleasure boats and commercial operators tend to be smaller and operate in few locations. Major companies include BAE Systems and Devonport Royal Dockyard.
For more information on the Boat Repair & Maintenance industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry provides boat repair and maintenance services including dry-dock services or in-water repair, spare part supplying, cleaning and storage. The industry excludes the overhaul or complete refitting of boats.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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