Shipping forecast

Optimism is returning to shipbuilding. The sector took an enormaous worldwide hit during the recession, during which time the building of ships effectively stopped. But Civil shipbuilding has picked up again since then, and sea transport remains the most cost-effective way of moving goods.

But although ships of all kinds are designed in the UK, civil ships are in fact mainly built in Korea and south-east Asia. In the UK, shipbuilding activity is dominated by defence, where concern has been not so much the direct effect of the recession, but the government’s strategic defence and security review.

When it was published last year, the defence review reaffirmed the need for a strong navy, and the need for major projects the industry is working on notably the two Queen Elizabeth-class aircraft carriers, both of which are now under construction at shipyards around the country, employing about 10,000 people.

Last month, defence secretary Liam Fox gave the green light for the £3bn initial design phase for the successor to the current Trident submarines. As many as 15,000 jobs could be secured if the programme gets the final go-ahead in 2016.