Staying afloat: Despite a decline in orders, military shipbuilding and modernization will bolster revenue

Over the past five years, the Ship Building industry has slowly sailed rough seas as demand from the military and commercial markets fluctuated. As a result of pressured military funding and recession-induced commercial backlog decline, demand for shipbuilding declined in the early part of the five-year period. However, the boom in US oil and natural gas production has recently led to a surge in demand for energy-related vessels. Over the next five years, the industry is anticipated to catch more wind from renewed funding for military ships and continued demand for energy industry-related vessels. As the US Navy attempts to meets its objective of creating a fleet to meet the challenges of the coming years, demand for new naval vessels will rise...purchase to read more.

Industry Statistics & Market Size
Revenue
$27bn
Annual Growth 12-17
0.3%
Forecast Growth 17-22
Profit
Employment
112,714
Businesses
710
Market Share of Companies

Industry Threats & Opportunities

  • The Pentagon’s increased emphasis on maritime operations is anticipated to lead to steady demand for new naval vessels
  • Due to the industry’s lack of competitiveness, exports are insignificant
  • Demand from the US Navy will remain essential for industry growth
  • Industry Report - Industry Key Buyers Chapter

    The Ship Building industry is highly concentrated, with the four largest players accounting for 58.2% of industry revenue. The two largest companies, General Dynamics Corp. and Huntington Ingalls Industries Inc., alone make up 50.5% of industry revenue. The huge capital costs associated with ship construction hinder new operators seeking to enter the industry. Moreover, because each class of ship tends to be unique, shipyards must constantly retool to take on new contracts, adding to costs.Since the US Navy is the largest in the world, the military segment of the industry accounts for most revenue. The size and sophistication of US naval projects requires even more capital investment, technology and scale on the part of the shipbuilder, encouraging consolidation. Com...purchase to read more.

    Additional Insights for the Ship Building Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Ship Building Industry are

  • Financial structure of the company
  • Undertaking technical research and development
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Federal funding for defense and Private investment in industrial equipment and machinery in the Ship Building industry impact industry performance..

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    What's in this report

    What is the Ship Building Industry?

    Shipbuilders operate shipyards, which are fixed facilities with dry docks and fabrication equipment capable of building a ship. A ship is defined as watercraft typically suitable or intended for use other than for personal or recreational purposes. Shipyard activities include ship construction, repair, conversion and alteration; the production of prefabricated ship and barge sections; and specialized services, such as ship scaling.

    Industry Products
  • Military shipbuilding
  • Nonmilitary shipbuilding and repair
  • Military ship repair
  • Industry Activities
  • Building barges
  • Building cargo ships
  • Building passenger ships
  • Building submarines
  • Building drilling and production platforms
  • Repairing ships
  • Converting or altering ships
  • Producing prefabrication ship and barge sections
  • Building military ships
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for defense
  • Private investment in industrial equipment and machinery
  • US oil and gas production index
  • Consumer spending

  • Current Performance
  • Military dominance
  • Commercial market and trade
  • Competitiveness and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Government demand remains crucial
  • Commercial market sails slowly
  • Other trends
  • Table: Ship Building Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Ship Building Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Oil Drilling & Gas Extraction
  • Iron Ore Mining
  • Ocean & Coastal Transportation
  • Port & Harbor Operations
  • Stevedoring & Marine Cargo Handling
  • National Security and International Affairs
  • Sightseeing Transportation

  • Key Selling Industries
  • Aluminum Manufacturing
  • Engine & Turbine Manufacturing
  • Hardware Manufacturing
  • Metal Pipe & Tube Manufacturing
  • Navigational Instrument Manufacturing
  • Paint Manufacturing
  • Screw, Nut & Bolt Manufacturing
  • Steel Rolling & Drawing

  • Products & Services
  • Military shipbuilding
  • Nonmilitary shipbuilding and repair
  • Military ship repair
  • Chart: Ship Building Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • US government
  • US commercial shipping clients
  • Exports
  • Chart: Major Market Segmentation for the Ship Building Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities, depreciation and marketing
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Ship Building

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Ship Building Industry

  • Industry Globalization
    Huntington Ingalls Industries Inc., General Dynamics Corp.,
  • Table: Huntington Ingalls Industries Inc. - financial performance
  • Table: General Dynamics Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Ship Building Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Ship Building Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Federal Funding for Defense (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Barge
  • A flat-bottomed boat that is built mainly for river and canal transport of heavy goods.
  • Dry Dock
  • A narrow basin that allows a vessel to be floated in and is then drained to allow the vessel to come to rest on a dry supported platform.
  • Shipyard
  • A fixed facility with dry docks and fabrication equipment capable of building a ship.
  • What Our Customers Say

    Why buy this report?

    The Ship Building industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    This report on Ship Building:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Ship Building market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Ship Building, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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