Greenbrier Companies Competition
Now Viewing Greenbrier Companies's competition in: Shipbuilding and Repair
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Who are the company's commercial customers? - Customers for commercial ships include fishing fleets, cruise lines, cargo shipping companies, barge operators, and ferry operating entities of state governments.
What are typical prices for the company's products? - Prices for military and commercial ships vary greatly depending on size, complexity, and intended use.
How does the company ensure that bids for government contracts are competitively priced? - The field of companies capable of delivering large military marine vessels to the US government is small, but competition for a small number of large projects can be intense.
How does the company sell its products? - Military vessel makers' sales and marketing are carried out primarily by company executives, as are sales of commercial vessels.
Competitive Landscape
Demand for military shipbuilding is largely determined by the US military budget, and to a much lesser extent, the military spending of foreign governments allied with the US. Commercial shipbuilding demand is determined by international and domestic trade, the health of the global economy, and rate of fleet replacement due to age or obsolescence. Small companies usually specialize in building and repair of small commercial vessels. Large companies tend to offer a wide range of building and repair services for both commercial and military vessels, and enjoy economies of scale in purchasing, design, and manufacturing. The average annual revenue per employee is about $175,000.
Business Challenges
CRITICAL ISSUES
Dependence on Government Contracts - The US Department of Defense (DoD) is the largest buyer of military vessels. Purchases are determined by the defense needs and strategies of the US government, the congressional budgeting and appropriations process, and the timing of awarded contracts. Changes in US policy or military strategy could affect numerous defense contracts and programs.
Fluctuations in Raw Materials Prices - Builders of military and commercial vessels can be affected when prices of raw materials increase. Fixed-price contracts expose shipbuilders to potential cost overruns if prices for basic materials rise. Prices for materials like steel, aluminum, and plastics can vary as much as 60 percent in a single year.
Industries Where Greenbrier Companies Competes
- Automotive & Transport
- Rail & Trucking Equipment Manufacturing(primary)
- Commercial Shipbuilding & Related Services
