Industry Analysis & Industry Trends
The industry expanded over the past five years, supported by strong demand conditions at the start of the period. This was mainly due to repairs and maintenance activities that were postponed during the downturn being carried out when economic conditions improved. Revenue declined from 2014-15, as weak demand for freight and passenger transport slowed demand for repair and maintenance. Demand from the military was also subdued as pressure on public spending intensified. Nevertheless, improvements in real disposable income and falling unemployment increased demand from households, because more households could afford leisure boats. In addition, demand for marine coating services grew, which supported industry revenue... purchase to read more
Industry Report - Industry Investment Chapter
Comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies, determines the level of capital intensity. Comparatively high depreciation costs are indicative of a high level of investment in depreciable assets, such as buildings and equipment, indicating a capital-intensive industry. Conversely, comparatively high wage costs are indicative of high labour intensity.
The industry has a medium level of capital intensity with an estimated capital-to-labour ratio of 1:7.09 in 2016-17. This indicates that for every £1.00 spent on capital, £7.09 will be spent on labour. The industry requires significant labour inputs to carry out maintenance and repair activities. The.. purchase to read more