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 especially from steady work from government and military clients. The Canadian government's National Shipbuilding Procurement Strategy, a plan to rebuild aging Navy and Coast Guard fleets, has fuelled demand for new ships. Additionally, demand grew due to greater demand from ocean and coastal transportation companies, which require ships for operations. As a result, the industry is expected to experience slow but sustained growth over the next five years... purchase to read more
Industry Report - Industry Investment Chapter
The Ship Building industry has a moderate level of capital intensity and is labour intensive. In general, skilled staff is required to operate a shipbuilding yard and operators pay for the wages, salaries and benefits for researchers, builders, repairers and administrative staff. In 2015, IBISWorld estimates that wages will account for 32.8% of revenue while 5.5% of revenue will go towards depreciation expenses. IBISWorld estimates that industry operators invest $0.17 in capital per $1.00 in wages.
The number of employees an operator needs is largely determined by a company's output and use technology. However, skilled tradesmen are needed for a variety of positions regardless of size; these include welders, pipe workers, steelworkers and electricians... purchase to read more