Page 4th Cover: of Maritime Reporter Magazine (April 1995)

SHIPBUILDING INDUSTRY OUTLOOK a detailed assessment of 20 market niches that will drive construction demand and ship system orders over the next five years

Report No. 7125 — April 1995 $875per copy

The construction tempo in world shipbuilding will more than double over the next five years — from 500 large ships per year in the first half of the 1990's to 1,050 ships annually in the second half. Coinciding with this growth will be major competitive realignments — resulting from traditional builders being impacted by labor cost increases, exchange rate changes, new players entering the market and major changes in ship design and ship system technology. There are excellent opportunities in this sector for players willing to invest the capital, management and marketing resources needed to penetrate and secure position.

From a U.S. perspective, we describe this market in a totally new study that • succinctly describes the current business and competitive situation in world shipbuilding • identifies 20 specific market niches that offer greatest opportunity for shipbuilders and ship system suppliers • shows decision makers and traces the sources of buying power in each market niche • forecasts construction demand and provides an estimate of available revenues over the next five years. 20 PROMISING MARKET NICHES • Product tankers — the biggest opportunity, given increased U.S. refined imports • Crude carriers and shuttle tankers — 50 % of current world inventory over 20 years old • Chemical parcel tankers — expensive, complex ships entering replacement cycle • Midsize LPG tankers — a market we expect to blossom over the next five years • LNG carriers — expensive ships, but business dependent on large projects occurring • Handysize and handymax bulk carriers — big market, but relatively simple ships • Cruise ships — expensive ships, but current players have strong position • Feeder and mega containerships — ship designs pushing the capacity envelope • Reefer ships — scrapping and trade growth will likely pump up orders • Vehicle carriers — distribution changes will impact ship requirements • Municipal and fast ferries — many interesting near and midterm opportunities • Dinner/excursion/casino vessels — gaming approaching saturation, but still interesting • Offshore support equipment — abandonment market equipment particularly significant • Escort tugs — pending Coast Guard and state regulations generating requirements • Seagoing barges and ITB's — changes in coastal trade flows driving future demand • River barges and towboats — market may begin to stir over next five years • Megayachts — lots of life in a sector that was wiped out in the early 1990's • Sealift ships — new designs being developed for commercially viable ship • Combatant ships — drastically reduced from the past, but still big dollars • Floating power plants — market potential seems to get bigger every year

We assess how U.S. shipbuilders are positioning for contract opportunities in each of these market niches — utilizing financing guarantees of the federal government, cost sharing projects to develop new designs and collaboration with foreign builders and suppliers to reengineer from military to commercial work. *************

To order this study please contact IMA Associates, Inc. — 600 New Hampshire Ave., NW— Suite 140

Washington, DC 20037 USA — Telephone: 202-333-8501 — Fax: 202-333-8504

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