Market Research Report on Military Shipbuilding Published

Press Release
Sunday, July 08, 2012

Global turndown in construction of commercial ships, makes for businees opportunties in military equivalents, suggests market research by IBISWorld

The national security considerations of governments and long-term planning undertaken for military expenditure have ensured that revenue for the Global Military Shipbuilding and Submarines industry has been relatively stable.

IBISWorld expects that industry revenue will increase at an annualized 1.2% to $38.9 billion in the five years through 2012. “This growth is primarily attributed to the demand for military ships and boats to protect coastal waters and to expand and renew navy fleet sizes,” says IBISWorld industry analyst David Stephen. “The contributions to industry revenue are particularly strong from North America, Europe and North Asia.” Government military budget cuts are forecast to lead to slower revenue growth of 0.3% over 2012.

Global Military Shipbuilding and Submarines industry profit margins have been relatively stable over the past five years, stemming from the contractual and long-term nature of shipbuilding. Nonetheless, profit margins declined slightly in the aftermath of the global downturn.

“Customer countries burdened with high levels of government debt started cutting defense spending, which put pressure on industry margins,” says Stephen, “and the industry was able to reclaim previous profitability levels through capacity cuts.” Profit margins are expected to remain stable over the next five years due to the stability of military demand and naval spending.

Click here to access the report.


 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Otto Marine's Financial Health on the Mend

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.

Ultra-deepwater Drillship 'Maersk Valiant' Delivered

Maersk Drilling advises that its second new drillship, 'Maersk Valiant', has been delivered from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South-Korea.

Latest Shipbuilding Contracts Include VLCC Order for Philippine Yard

In the latest Clarkson Hellas S&P Weekly Bulletin newbuilding orders are reported in Far East shipyards for a range of vessels as follows: Bulk carriers Clarkson

 
 
Maritime Security Naval Architecture Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1049 sec (10 req/sec)