Industry Analysis & Industry Trends
Although most manufacturing industries faced severe declines during the recession, the Ship Building industry was able to weather the storm with only slight dips in revenue. Over the past five years, the industry has benefited from a steady amount of work stemming from government and military clients and the time lag between ordering a ship and its completion. Additionally, demand grew due to greater demand from ocean and coastal transportation companies, which require ships for operations. In the five years to 2013, IBISWorld estimates that the Ship Building industry's revenue will grow at an average annual rate of 2.8% to $759.6 million, including an increase of 6.3% in 2013... purchase to read more
Industry Report - Starting a New Business Chapter
This industry has high barriers to entry, largely due to enormous capital costs needed to operate a shipyard and construct a boat. Additionally, companies wishing to enter the industry must compete with incumbent operators that may already have established contracts and benefit from production efficiencies that give them a competitive edge. The competitive nature of this industry requires significant investment in R&D and leveraging the expertise of employees. Businesses wishing to enter the industry must keep up with existing R&D.
Companies differentiate themselves based on products, shipyard size, dry dock capacity, geography and service, all of which are factors that require significant capital costs... purchase to read more