Industry Analysis & Industry Trends
Over the past five years, the Global Military Shipbuilding and Submarines industry was greatly impacted by declining defense spending in the United States and Europe. The global economic slowdown stunted industry growth as Western governments attempted to deal with widening budget deficits by cutting defense spending, which led to less funding for industry programs. In the coming years, continued economic growth and geopolitical tensions in Asia are anticipated to encourage more countries in the region to spend on industry products. At the same time, despite overall defense cuts, the United States is also expected to increase spending on new ships, as it pivots its navy towards more maritime focused Asia, while also modernizing its fleet... read more
Starting a New Business
The industry's barriers to entry are formidable. High start-up costs, from land acquisitions to investment in technology, make it difficult for new entrants. Entry is more possible in the auxiliary and parts manufacturing segments, though participants are subject to the requirements of the major players that outsource these activities and hence may be susceptible to lower margins and profit.
The industry demands skilled labor and is on the leading edge of technology, constantly striving to create new products and improve existing ones. The industry invests a great deal of time and money in research and development of naval products, and much of the work is performed by professional and related workers... read more