Growth in Boat Building and Marine Manufacturing Sector

ECONOMIC DEVELOPMENT--Growth in Boat Building and Marine Manufacturing Sector

NOTE TO EDITORS: Following is a feature release outlining findings in The Economic Value of the Nova Scotia Ocean Sector, a study prepared by Gardner Pinfold Consulting Economists, as they relate to the boat building and marine manufacturing industry.

The boat-building and shipbuilding industry should continue to experience modest growth, according to a new study assessing the economic value of businesses in Nova Scotia's ocean-industries sector.

New activities such as oil and gas exploration have changed Nova Scotia's ocean-sector economy and have bumped up business activity in other sectors, such as shipbuilding, boat building and marine construction and manufacturing.

The study, which was sponsored by the provincial and federal governments and the Nova Scotia Fisheries Sector Council and released Monday, April 11, is entitled The Economic Value of the Nova Scotia Ocean Sector, and covers data from the period 1996 to 2001.

Both shipbuilding and boat building emerged from a downturn in the late 1980s and early 1990s, say the study's authors, Gardner Pinfold Consulting Economists Ltd.

An in-depth analysis of these areas reveals that despite some challenging market conditions, shipbuilding and boat building grew from about $73 million of the province's gross domestic product (GDP) in 1998 to $168 million in 2002.

"Overall there is much to celebrate, when you measure the value of the shipbuilding and boat building sectors," said Nova Scotia Economic Development Minister Ernest Fage. "They've weathered some tough seas, but we expect to see a further upswing and we remain optimistic about new growth."

Export sales also continued to grow. In 2001, the boat building sector alone rang in sales of $80 million, with $35 million in sales beyond Nova Scotia's borders. This work employs about 900 Nova Scotians in some of the province's smaller communities.

Demand for boat building is influenced by two major factors: the fishing industry and the pleasure-craft industry where there is exciting potential for boat builders who look beyond the shores of Nova Scotia to promising markets in the United States.

The province's shipbuilding industry has focused mostly on ship refits and repairs on vessels from the navy and the offshore. That focus led to a $156-million contribution to the province's GDP in 2002 and the study authors predict that the refit market will remain steady.

The study is available on the website at www.gov.ns.ca/econ/publications/oceanresources .