Industry Analysis & Industry Trends
The national security considerations of governments and long-term planning undertaken for military expenditure ensured relative stability for industry revenue over the past five years. Growth is primarily attributed to the demand for military ships and boats to protect coastal waters and to expand and renew navy fleet sizes. Revenue is projected to continue growing in the next five years through stable growth in defense budgets and a focus on advanced electronics and information systems capabilities... read more
The Global Military Shipbuilding and Submarines industry has a low level of capital intensity. For every dollar spent on wages, the average industry firm will invest about 12 cents in capital equipment. The industry is labor intensive with wages accounting for a high proportion of revenue.
Over the longer term, capital investment within the industry is likely to increase as competition becomes more intense and there is greater demand for high quality, safe and environmentally sound ships. Furthermore, as the industry continues to advance technologically, capital costs will increase as more specialized machinery and equipment will be required... read more