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 Investment Chapter
The Ship Building industry has a low level of capital intensity and is labour intensive. In general, skilled staff is required to operate a ship building yard and operators pay for the wages, salaries and benefits for researchers, builders, repairers and administrative staff. In 2016, IBISWorld estimates that wages will account for 26.4% of revenue while 3.0% of revenue will go towards depreciation expenses. Therefore, IBISWorld estimates that industry operators invest $0.11 in capital per $1.00 in wages. However, capital intensity has increased over the past five years as operators reinvested into their facilities in order to take on new government contracts... purchase to read more