Shipbuilding in the UK Industry Market Research Report now updated by IBISWorld

The Shipbuilding industry specialises in building warships. IBISWorld estimates that this broad segment accounts for 68.2% of industry revenue. New contracts from the Royal Navy have provided a boost to industry revenue over the past five years. IBISWorld estimates that industry revenue will grow by 5.7% per annum over the five years through 2012-13. The industry is expected to continue growing, with revenue rising by 3.7% in 2012-13 to reach £3.15 billion. Industry revenue is forecast to grow over the next five years to 2017-18, despite defence spending cuts resulting from the 2010 Strategic Defence Review. Major projects that commenced during the past five years are expected to continue over the next five years. For these reasons, industry research firm IBISWorld has updated its report on the Shipbuilding industry.

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IBISWorld Market Research

IBISWorld Market Research

Rising imports and reduced defence spending are affecting industry growth

London, United Kingdom (PRWEB) June 17, 2012

The Shipbuilding industry specialises in building warships. IBISWorld estimates that this broad segment accounts for 68.2% of industry revenue. According to IBISWorld industry analyst David Stephen, “new contracts from the Royal Navy have provided a boost to industry revenue over the past five years”. IBISWorld estimates that industry revenue will grow by 5.7% per annum over the five years through 2012-13. The industry is expected to continue growing, with revenue rising by 3.7% in 2012-13 to reach £3.15 billion. Import competition is a key feature of this industry. Although imports account for a relatively low 8.8% of domestic demand, the value of imports has remained strong over the past five years. The strong import competition comes from countries with low wage and production costs, such as China, which gained market share in the local industry. South Korea and Japan are also major shipbuilding regions. Cruise ships account for a large share of industry imports.
Industry revenue is forecast to grow over the next five years to 2017-18, despite defence spending cuts resulting from the 2010 Strategic Defence Review. Major projects that commenced during the past five years are expected to continue over the next five years. These projects include building new Type 45 destroyers and two aircraft carriers for the Royal Navy. Stephen adds, “long-term trends in tourism and international trade will also influence demand, as will competition from imports”.
The Shipbuilding industry has high market share concentration. The top four players in the industry account for a large share of revenue. The two major companies in this industry are BAE Systems and Babcock International Group (through its marine segment).
For more information on the Shipbuilding 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

Companies in this industry build ships and construct floating structures. Products include commercial ships such as passenger vessels, ferry vessels, cargo ships, tankers, tugs, warships and fishing boats. Industry players also build drill platforms and floating structures. The industry does not include repair activities, but does include ship rebuilding and overhauls. The industry does not build ships used for sport or recreation.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.


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