Sailing away: Industry revenue has increased despite strong competition from foreign companies

The Shipbuilding and Repair Services industry has undergone substantial growth over the past five year. Industry revenue is expected to rise at an annualised 6.1% over the five years through 2016-17. Defence expenditure and Royal Australian Navy (RAN) shipbuilding contracts are key revenue growth drivers. 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 destroyer (AWD) project. Revenue is projected to grow by 10.8% in 2016-17, to reach $3.7 billion.Despite an increase in defence expenditure, several RAN contracts have been outsourced to foreign firms over the past five more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Despite higher defence spending, several RAN contracts have been outsourced to foreign firms
  • Imports have declined as a share of domestic demand over the past five years
  • Increased capital expenditure on defence should stabilise revenue streams
  • Industry Report - Industry Key Buyers Chapter

    The industry displays a moderate level of market share concentration. The concentration indicates the extent that major players dominate the industry. In 2016-17, the industry's four largest players are estimated to account for more than 50% 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.The industry's high barriers to entry also contribute to the industry's market share concentration. The initial cost of building or leasing a shipyard is extremely high. Fur...purchase to read more.

    Additional Insights for the Shipbuilding and Repair Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Shipbuilding and Repair Services Industry 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 Trade-weighted index 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?

    Companies in the industry primarily manufacture or repair ships with 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
  • Shipwrecking
  • 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
  • Trade-weighted index
  • Demand from water transport terminals
  • Domestic price of iron and steel

  • Current Performance
  • Revenue and profitability
  • Defence spending
  • Outsourcing
  • Commercial interests
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Steadying the ship
  • Collins-class submarine replacement project
  • 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, Austal Limited,
  • 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
  • Table: Austal Limited - 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Air Warfare Destroyer (Awd)
  • Constructed as part of the Hobart-class fleet and 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
  • Any type of warship, of various sizes and roles.
  • Icebreaker
  • A strong ship used to break large channels of ice.
  • Landing Helicopter Dock (Lhd)
  • Constructed as part of the Canberra-class fleet. LHDs are amphibious assault ships capable of operating helicopters docking boats, amphibious vessels 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:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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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