Industry Analysis & Industry Trends
The Shipbuilding and Repair Services industry has undergone moderate growth over the past five years, with revenue estimated to rise at an annualised 1.5% over the five years through 2015-16. Defence expenditure and Royal Australian Navy (RAN) shipbuilding contracts strongly influence revenue growth. Key RAN projects during the past five years include the construction of the Canberra-class landing helicopter docks (LHDs), which were completed in December 2015, and the ongoing Hobart-class air warfare destroyers (AWDs) project, with both projects continuing to drive revenue growth. Revenue is set to grow by 1.9% in 2015-16, to reach $3.0 billion.
Exposure to overseas markets has shifted the industry's operations over the past five years... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry displays a high market share concentration. The concentration indicates the extent that major players dominate the industry. In 2015-16, the industry's four largest players are estimated to account for more than 70% of total revenue. This concentration primarily stems from the limited number of shipbuilders that can produce technologically advanced ships. In addition, many industry ships are extremely large, which means it can be expensive to build, repair and maintain these vessels, and logistically complex to set up operations.
Significant entry barriers also contribute to the industry's high market share concentration. The initial cost of building or leasing a shipyard is extremely high... purchase to read more