Industry Analysis & Industry Trends
A boom in demand helped the Ship Building industry rapidly expand over the past five years. Industry players build, modify, convert and repair ships including warships, icebreakers, ferries and offshore platforms. In order to rebuild its navy and coast guard, the federal government launched the National Shipbuilding Procurement Strategy (NSPS) in 2010. As a result, over the past five years, industry operators began to invest into existing and new facilities in order to cope with incoming orders. In the five years to 2021, as NSPS-related ship construction ramps up, the industry will experience a surge in production. As a result, operators will expand facilities and hire more workers, with industry employment anticipated to climb.
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Industry Report - Industry SWOT Analysis Chapter
The Ship Building industry is in the mature phase of its industry life cycle. In the 10 years to 2021, industry value added (IVA), which measures the industry's contribution to the overall economy, is forecast to increase 13.4% annually on average. By comparison, GDP is projected to grow at an annualized rate of 1.9% over the same period. While IVA growth so far above GDP typically indicates a growing industry, ship builders' performance has more to do with a lower starting base. Before the five year period, the industry was suffering from lacklustre and inconsistent demand. This led to boom in bust cycles in production, which led to underinvestment and uncertainty. However, over the past five years a surge in defence contracts has started to revive the industry... purchase to read more