Industry Analysis & Industry Trends
Despite the massive effect of the global downturn on builders of commercial aircraft and ships, companies primarily involved in the building of their military equivalents fared considerably better. The national security considerations of governments have, along with the long-term planning undertaken for military expenditure, ensured that revenue for the Global Military Ship and Boat Building industry was relatively stable.
IBISWorld estimates industry revenue will increase at an annualized rate of 3.7% in the five years through 2011, to reach $37.7 billion. The projected growth during the five-year period is primarily attributed to the demand for military ships and boats to protect coastal waters and to expand and renew navy fleet sizes... read more
Industry SWOT Analysis
The Military Ship and Boat Building industry is in the mature phase of its economic life cycle. Growth is set to slow in 2009 and 2010 as governments look for ways to balance their budgets. Capacity for further sales is also dependent on the threat of war and/or new products released to the market. The industry is characterized by well-established products, which are divided into clearly segmented groups. New products undergo a series of tests before they can be placed on the market. Once they are launched, however, they readily achieve worldwide market acceptance.
Technological innovation is a characteristic of this industry. As a result, products undergo frequent changes, with product design and development being key success factors... read more