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 - Industry Analysis Chapter
Over the past five years, the industry has enjoyed robust growth. Rising capital expenditure on defence projects in most years has driven revenue growth over the period. Major defence budget cuts in 2012-13 did not greatly affect industry revenue. Royal Australian Navy (RAN) shipbuilding projects that have occurred over this period include the Hobart-class Air Warfare Destroyers (AWDs) and the Canberra-class Landing Helicopter Docks (LHDs) amphibious assault ships. The commercial sector has faced strong competition from import markets. Competition has been particularly strong from countries such as China that operate with far lower wage costs, and countries such as Spain that specialise in technologically advanced engineering and manufacturing... purchase to read more