Industry Analysis & Industry Trends
The Shipbuilding industry has grown over the past five years. Industry revenue is expected to rise at a compound annual rate of 5% over the five years through 2016-17 to £4.5 billion. Revenue is forecast to expand by 4% in 2016-17 as a result of a rise in government defence spending boosting demand from the industry’s biggest market, military vessel production. An anticipated rise in exports and slowdown in import competition due to the depreciation of the pound are also expected to slightly boost revenue.
Import competition in the passenger ship segment has remained intense in recent years, although imports have remained volatile while exports risen strongly over the past five years. A... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity, with an estimated £1.00 spent on capital for every £5.82 spent on labour. Wages account for approximately 24.4% of revenue in 2016-17. This marks a decline in the percentage of revenue attributed to wages over the past five years. However, the industry's average wage is still high compared with most of the manufacturing sector, indicating the specialised skills required. Depreciation costs account for approximately 4.2% of revenue. The industry requires facilities and equipment to build ships, such as specialised lifting cranes and building facilities.
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