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 Investment Chapter
The industry displays a low level of capital intensity and this has remained unchanged over the past five years. In 2015-16, an estimated $15.94 is spent on wages for every dollar invested in capital. Capital equipment required in the industry generally has an extended operational life and depreciates slowly over time. Additionally, depreciation expenses do not take into account lease payments that are made on properties and equipment. In an industry with highly customised products, shipbuilders often prefer to hire equipment for one-off processes rather than purchase expensive machinery. These trends contribute to low capital requirements and low depreciation costs.
The industry’s high labour expenses are due to the skilled nature of many tasks and processes... purchase to read more