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. However, despite western military budget cuts, demand remained fairly robust, with industry revenue only expected to increase marginally over the five years to 2016. Over the next five years, continued economic growth and geopolitical tensions in Asia are anticipated to encourage more countries in the region to spend on industry products, bumping revenue higher.
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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. In .. read more