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

Shipbuilding

Ingram Barge Order 20 Tank Barges for 2015

Ingram Barge Company say they will be building 20 tank barges in 2015 to meet growing demand for chemical shipments. While most of the company’s recent tank barges have come through acquisitions,

ClassNK Issues New Rules for Inland Waterway Ships

Leading classification society ClassNK has released new technical rules and guidance for the survey and construction of inland waterway ships. As a result

Steel Cut for Third RCI Quantum-class Cruise Ship

The steel cutting for 'Ovation of the Seas', scheduled to be delivered in the autumn of 2016, took place at the Meyer Werft shipyard in Papenburg, Germany, where 'Quantum of the Seas',

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Port Authority Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1038 sec (10 req/sec)