China will Account 50% of Global Shipbuilding Order Book by 2012

On the back of strong government support and low cost of production, China has emerged as a leading country in shipbuilding, says RNCOS. RNCOS in its recent research report “China Shipbuilding Industry Forecast” said that China has become a leading nation in shipbuilding industry after overtaking the previous leaders South Korea and Japan. It is expected that China’s total order book for shipbuilding will account nearly 50% of global order book by 2012.
As per the research report, China’s increasing domestic demand due to increasing foreign trade and strong government support amid recession has been the major driver for the Chinese shipbuilding industry. Low labor cost is another key factor boosting the Chinese shipbuilding industry as it accounts for more than 10% of the total cost. Even after incorporating productivity differences, Chinese labor cost is much lower than that of Korean and Japanese labor.
Further, as per research report, cheap availability of raw material is also making China a pioneer in shipbuilding. Steel is the most important raw material for making vessels and China is a leading country in producing cheap steel.
In addition to this, the report also covers detailed industry overview and future outlook of the shipbuilding industry of China. It discusses the position of China’s shipbuilding industry in the world. The research also studies the major sub-segments of the Chinese shipbuilding industry, including production, new orders and order book, after adjusting the impact of the global financial crisis on the growth. The future outlook is based on past growth trends, current industry and regulatory developments, including base drivers, opportunities and challenges faced by the shipbuilding industry in the China.
The report “China Shipbuilding Industry Forecast” is a comprehensive research report that comprises quality research and in-depth analysis of China’s shipbuilding industry. It gives deep insight into the shipbuilding industry and its major sub-segments. It studies the emerging market trends, recent developments and their impact on the sector. The report will help clients to analyze the leading-edge opportunities, key players and all the other factors, which are critical to the success of a new entrant in the Chinese shipbuilding industry.