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.
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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