The Profitability of the U.S. Shipbuilding Industry, 1947-1976.
Abstract
Profit 76 alleged that the profitability of the U.S. shipbuilding industry was less than satisfactory. This study confirms that finding, but sets far different parameters around the problem. The examination of 30 years of industry performance reveals a two-tiered industry. One group of firms is profitable. The other consistently sustains losses. It also appears that 'oldline' shipbuilding firms faired better than newer aerospace oriented entrants into the industry. Firms who maintained a conservative posture towards sales growth and capital investment also performed well. Furthermore, no evidence could be found that Navy construction was any more or less profitable than commercial construction. This suggests that there is a critical need to distinguish between the economics of industry performance and the performance of individual companies. For a firm's profitability may be more a function of the quality of its management than it is of the general economic environment in which it operates. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 20, 1978
- Accession Number
- ADA056980
Entities
People
- Edward M. Kaitz