Industry Analysis & Industry Trends
The Shipbuilding and Repair Services industry has grown significantly over the past five years. Revenue is expected to rise at an annualised 4.0% over the five years through 2014-15. This growth would be even stronger were it not being measured off an extremely high base year, with a massive 42.0% increase in industry revenue in 2009-10. Industry revenue growth is strongly influenced by defence expenditure and Royal Australian Navy (RAN) shipbuilding initiatives.
A major drop in capital expenditure on defence in 2012-13 did not severely affect industry operations, as existing RAN projects, primarily the Hobart-class Air Warfare Destroyers and Canberra-class Landing Helicopter Dock ships, continued to drive revenue growth... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has high barriers to entry and this level has remained steady over the past five years. Very high start-up costs, including land acquisitions, make it difficult for new industry entrants. Competition and market share in the industry are moderate, which makes it difficult for new participants to gain foothold in the industry and establish strong control over the market. Defence contracts are usually awarded to companies with proven track records. Incumbent firms are often multinational shipbuilding entities, from which ship designs and intellectual properties are purchased, with stipulations that require the company's participation in the construction process. These trends make it even harder for potential companies to enter the industry and gain any success... purchase to read more