Ship Building & Repairing related manufacturing companies have consistently been among the highest selling within the manufacturing sectors in recent history. This is the defense sector that smart investors are seeking in 2024.
According to The Business Research Company, the global shipbuilding market was valued at USD 243.35 billion in 2023. It is projected to reach USD 334.14 billion by 2028, growing at a CAGR of 6.8% during the forecast period (2023-2028).
Additionally, the Department of Defense submitted the Navy’s shipbuilding plan for 2024 during Q1 of 2023. The 2024 plan reflects the Navy’s desire to build a larger, more distributed fleet. To achieve that goal, the Navy would buy 290 to 340 ships over the 2024–2053 period: 237 to 267 combat ships and 53 to 73 combat logistics and support ships.
The plan included three different alternative budgets that outline a growth trajectory to 2053. Here’s what it looks like:
With all that’s happening around the world with the worldwide threat to shipping, naval ships are increasingly needed to protect the shipping industry. The Office of Naval Intelligence regularly publishes the Worldwide Threat to Shipping Report, (WTS).
For those in the industry who have been considering retirement, there may never be a better time. The projected industry growth rates mean that top-quality buyers are seeking acquisition now to capitalize on future industry growth.
This is one sector where the visibility into future growth isn’t guesswork. Manufacturers in this sector have a beautiful opportunity to exit during an upcycle.
For more manufacturing sector insights, visit us at: www.AcceleratedMfgBrokers.com