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Shipbuilding & Repairing
First Research, March 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US shipbuilding and repair industry includes about 600 companies with combined annual revenue of about $17 billion. Major companies include the shipbuilding division of General Dynamics, Huntington Ingalls (formerly a unit of Northrop Grumman), BAE Systems Ship Repair, Bollinger Shipyards, the inland barge division of Trinity Industries, and VT Halter Marine (a subsidiary of Singapore Technologies Engineering). The industry is highly concentrated: the largest 50 companies account for about 90 percent of revenue.
COMPETITIVE LANDSCAPE
Demand for military shipbuilding is largely determined by the US military budget, and to a much lesser extent, the military spending of foreign governments allied with the US. Commercial shipbuilding demand is determined by international and domestic trade, the health of the global economy, and rate of fleet replacement due to age or obsolescence. Small companies usually specialize in building and repair of small commercial vessels. Large companies tend to offer a wide range of building and repair services for both commercial and military vessels, and enjoy economies of scale in purchasing, design, and manufacturing.
PRODUCTS, OPERATIONS & TECHNOLOGY
Revenue is generated by the design and construction of new commercial and military vessels, and the renovation and repair of existing ships. Commercial products include tankers, passenger vessels and cruise ships, barges and bulk carrier barges, and cargo and container vessels. Military products include aircraft carriers, attack submarines, transport and ammunition ships, cruisers, destroyers, amphibious assault ships, and mine hunters.
Shipbuilding takes place at large,...
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