The Shipbuilding industry in Australia does not compete in the world market for tankers, container ships or bulk ships. Instead, they concentrate on niche products such as high-speed catamarans, which can successfully find overseas buyers.
Stronger revenue growth is expected due to the recovery of export market demand and the gradual worldwide reduction in excess shipping capacity. For these reasons, industry research firm IBISWorld has updated its report on the Shipbuilding industry in Australia.
The Australian Shipbuilding industry experienced mixed fortunes over the past five years. Commercial shipbuilding is in worldwide distress due to the severe oversupply of cargo ships. Leisure ship producers suffered under the strong Australian dollar, which hurt their export volumes.
However, military spending in Australia is strong in line with long-term naval fleet requirements. The combined effect is relatively subdued industry revenue, with a forecast growth of 0.6% over 2012-13, to reach $2.61 billion.
Source: ibisworld,October 15, 2012; Image: austal