News Analysis: Once the ‘Non-Recurring Costs’ [NRC] of establishing a shipyard have been paid for, the ‘Recurring Costs’ [RC] of labor and material, energy, etc. on an individual build should be significantly less than merely purchasing a ‘New Build’ from another Shipyard. Amortized NRC and unit RC amounts should be less than the competition’s price. Since new vessels can be built for others, ‘Learning Curve” efficiencies and bulk material buying can further reduce ship construction costs even further over extended time. If financially able, this is a good methodology for a country.
Reference: http://tinyurl.com/krds4v9