Government of Nova Scotia gov.ns.ca
gov.ns.ca Government of Nova Scotia Nova Scotia, Canada
 
Economic and Rural Development

News Releases

Growth in Boat Building and Marine Manufacturing Sector

April 13, 2005


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 .

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For more information, please contact:

Meddy Stanton
Economic Development
902-424-5836
E-mail: stantonm@gov.ns.ca

DFO Communications
Maritimes Region
902-426-3550
E-mail: mar.dfo-mpo.gc.ca