Rocky waters: Gaps between projects and overseas competition lead to revenue volatility

The Shipbuilding and Repair Services industry has contracted over the past five years. The industry is mostly driven by government investment through the issue of valuable contracts for delivery of Royal Australian Navy (RAN) warships and submarines. Over the past five years, most existing RAN contracts were delivered, making it a period without significant industry investment. Revenue fell from $3.1 billion in 2013-14 to $3.0 billion in 2018-19, declining by an annualised 0.4% over the five years. Revenue has been volatile over the past five years, constraining overall growth. However, revenue is expected to rise by 19.1% in the current more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • An increasing number of contracts are being awarded to overseas firms, constraining revenue growth
  • Imports have declined as a share of domestic demand over the past five years
  • Increased government capital expenditure on defence should stabilise industry revenue streams
  • Industry Report - Industry Analysis Chapter

    Revenue in the Shipbuilding and Repair Services industry is driven mainly by valuable contracts awarded by the Australian government to construct ships or submarines for the Royal Australian Navy (RAN). Defence-related industries are the largest market for the industry as a share of revenue, with commercial shipbuilding making up the remainder. In recent times, commercial shipbuilders have been successful in producing niche products mainly for overseas export. A smaller share of revenue is produced by maintenance activities. Commercial customers account for a greater share of maintenance services revenue than naval customers, with demand for maintenance on commercial vessels driven by tourism and freight-related activities...purchase to read more.

    Additional Insights for the Shipbuilding and Repair Services Industry

    IBISWorld has determined the most important Key Success Factors for the Shipbuilding and Repair Services are:

  • Effective quality control
  • Undertaking technical research and development
  • Provision of superior after sales service
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on defence and Demand from water freight transport in the Shipbuilding and Repair Services industry impact industry performance..

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    What's in this report

    What is the Shipbuilding and Repair Services Industry?

    Industry firms primarily manufacture or repair ships with a displacement of 50 tonnes or more. Firms that manufacture submarines and major components for ships and submarines are also included in the industry.

    Industry Products
  • Military shipbuilding
  • Submarine construction
  • Commercial shipbuilding
  • Ship repair and maintenance
  • Industry Activities
  • Dry dock operation
  • Hull cleaning
  • Ship repairing
  • Shipbuilding
  • Submarine construction
  • Submarine component
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on defence
  • Demand from water freight transport
  • Trade-weighted index
  • Demand from tourism
  • Domestic price of iron and steel

  • Current Performance
  • Government expenditure and revenue volatility
  • Major international acquisitions
  • Effects of international trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Government roadmap
  • Future naval projects
  • Industry involvement
  • Projections of international trade
  • Table: Shipbuilding and Repair Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Shipbuilding and Repair Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Defence
  • Fishing
  • Water Freight Transport
  • Water Passenger Transport

  • Key Selling Industries
  • Aluminium Rolling, Drawing and Extruding
  • Iron and Steel Casting and Forging
  • Plastic Pipe and Plastic Packaging Material Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Military shipbuilding
  • Ship repair and maintenance
  • Commercial shipbuilding
  • Submarine construction
  • Chart: Shipbuilding and Repair Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Defence-related industries
  • Commercial industries
  • Chart: Major Market Segmentation for the Shipbuilding and Repair Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Shipbuilding and Repair Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Shipbuilding and Repair Services Industry

  • Industry Globalization
    ASC Pty Limited, BAE Systems Australia Holdings Limited, Thales Australia Holdings Pty Limited, Civmec Construction & Engineering Pty Ltd,
  • Table: ASC Pty Limited - financial performance
  • Table: BAE Systems Australia Holdings Limited - financial performance
  • Table: Thales Australia Holdings Pty Limited - financial performance
  • Table: Civmec Construction & Engineering Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Shipbuilding and Repair Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Shipbuilding and Repair Services Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Air Warfare Destroyer (Awd)
  • A class of warship primarily responsible for naval defence against aircraft and missile attacks.
  • Catamaran
  • A type of multi-hull boat or ship that consists of two hulls joined by a frame, which can be powered by a sail or an engine.
  • Frigate
  • A general-purpose warship of approximately 2,700 tonnes, often used as an escort vessel.
  • Landing Helicopter Dock (Lhd)
  • A class of warship primarily designed for amphibious assaults, capable of transporting soldiers and equipment and placing them ashore using helicopters and landing craft.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Shipbuilding and Repair Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    This report on Shipbuilding and Repair Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Shipbuilding and Repair Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Shipbuilding and Repair Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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