Pier pressure: Government contracts are expected to drive industry revenue growth

The Ship Building industry in Canada has rapidly expanded over the five years to 2019. Industry operators build, modify, convert and repair ships, including warships, icebreakers, ferries and offshore platforms. Prior to the current period, this industry was troubled, competing with foreign builders while dealing with inconsistent domestic demand. In an effort to rebuild its navy and coast guard, the federal government launched the National Shipbuilding Procurement Strategy (NSPS) in 2010, which effectively solved this problem. The industry was able to begin its expansion since most of these projects will take more than a decade. Over the five years to 2024, industry revenue is forecast to rise. As NSPS-related ship construction ramps up, the industry will increase production...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
7.3%
Forecast Growth 19-24
Profit
Employment
7,538
Businesses
116

Industry Threats & Opportunities

  • As NSPS-related ship construction ramps up, the industry will increase production
  • Exports exhibited high levels of volatility over the past five years
  • Operators have been focused on designing orders provided under NSPS
  • Industry Report - Industry Key Buyers Chapter

    The Ship Building industry in Canada has a moderate level of market share concentration. In 2019, the five largest industry operators are expected to account for more than 70.0% of industry revenue. According to Statistics Canada, an estimated 31.3% of establishments have between one and four employees and 92.2% of all establishments employ fewer than 100 workers.Nonetheless, concentration has increased over the five years to 2019 due to consolidation and numerous mergers and acquisitions. Moreover, the government’s selection of a handful of contractors for its National Shipbuilding Procurement Strategy means that the boom in ship building in the coming years will primarily be capitalized by the industry’s largest companies. The...purchase to read more.

    Additional Insights for the Ship Building Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Ship Building Industry are

  • Financial structure of the company
  • Experienced workforce
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Government funding for defense and Total value of world trade in the Ship Building industry impact industry performance..

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    What's in this report

    What is the Ship Building Industry?

    Companies in the industry build, repair, convert and alter ships in shipyards. Shipyards are fixed facilities with dry docks and fabrication equipment capable of building ships, defined as watercraft suitable or intended for purposes other than personal or recreational use. This does not include boat building activities.

    Industry Products
  • Civil ship building
  • Offshore oil and gas structures and components
  • Civil repair and maintenance services
  • Naval ship building
  • Naval repair and maintenance services
  • Industry Activities
  • Building barges
  • Building commercial fishing boats
  • Repairing ships in a shipyard
  • Manufacturing ships
  • Building cargo ships
  • Building container ships
  • Building dredges
  • Building ferryboats
  • Building fireboats
  • Building naval ships
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government funding for defense
  • Total value of world trade
  • Government expenditure and investment
  • World price of steel
  • Canadian effective exchange rate index
  • Demand from transportation and warehousing

  • Current Performance
  • Saving an industry
  • Mixed growth
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • National Shipbuilding Procurement Strategy remains vital
  • Headwinds and trade
  • Industry expansion and profit
  • Table: Ship Building Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Ship Building Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction in Canada
  • Transportation and Warehousing In Canada
  • Ocean & Coastal Transportation in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Engine & Turbine Manufacturing in Canada
  • Hardware Manufacturing in Canada
  • Metal Pipe & Tube Manufacturing in Canada
  • Navigational Instrument Manufacturing in Canada
  • Paint Manufacturing in Canada
  • Screw, Nut & Bolt Manufacturing in Canada
  • Steel Rolling & Drawing in Canada

  • Products & Services
  • Naval repair and maintenance services
  • Civil repair and maintenance services
  • Naval ship building
  • Offshore oil and gas structures and components
  • Civil ship building
  • Chart: Ship Building Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Defence
  • Federal and provincial governments
  • Commercial
  • Exports
  • Chart: Major Market Segmentation for the Ship Building Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Ship Building

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Ship Building Industry

  • Industry Globalization
    Seaspan ULC, Irving Shipbuilding, Chantier Davie Canada Inc.,
  • Table: Seaspan ULC - financial performance
  • Table: Irving Shipbuilding - financial performance
  • Table: Chantier Davie Canada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Ship Building Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Ship Building Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Defence spending (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Barge
  • A flat-bottomed boat that is built mainly for river and canal transportation of heavy goods.
  • Panamax-Size
  • A ship between 55,000 dwt and 80,000 dwt, the largest ship capable of navigating in the Panama Canal.
  • Shipyard
  • A fixed facility with dry docks and fabrication equipment capable of building a ship.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Ship Building market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Ship Building:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Ship Building market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Ship Building, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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