The Economics of Owning a Shipyard

Full series:    • The Economics of Owning Everything Military   A shipyard is one of the only businesses where the customer pays you while you build. That single mechanism is what makes shipbuilding possible, and it is also what destroys yards. This is the full economics: what a yard actually consists of, why the drydock sets a ceiling nothing can move, and the fixed-price trap that has ended companies older than most navies. Inside: why deep water frontage is the one asset nobody can manufacture, the 5 revenue layers and why repair work is the real backbone, how progress payments finance objects worth more than the company building them, and why the hardest thing to buy in this industry is a certified workforce. Repair yard or new-build yard, which would you rather own? Below. Chapters: 0:00 The customer pays while you build 1:30 The buy-in: four assets, not one 5:00 What you inherit: ground, water and people 8:30 Five revenue layers 11:30 Progress payments explained 13:00 The ledger 14:30 The trap: fixed price on first of class 17:00 How the survivors do it 19:30 The verdict own a shipyard, shipyard economics, drydock business, ship repair industry, progress payments shipbuilding, fixed price contract risk, naval shipbuilding, shipyard workforce, military economics, mr arsenal