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 - Starting a New Business Chapter
The industry has high barriers to entry and this trend has remained steady over the past five years. Substantial start-up costs, including land acquisitions, make it difficult for prospective companies to enter the industry. Competition is moderate and the industry is highly concentrated, which makes it difficult for new participants to gain a foothold in the industry and compete with well-established major players. Defence contracts are usually awarded to companies with proven track records. Incumbent firms are often multinational shipbuilding entities that have expertise in ship design and construction. These factors make it even harder for potential companies to enter the industry... purchase to read more