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“Those affected most by the slow running oil patch may soon see the idle period end.

One place where relief may be waiting is in America’s new offshore wind farms. The ? rst offshore wind farm is nearly complete and the very ? rst turbine has been installed.” yards tend to remain segmented in their areas of market expertise and the shipbuilding industry will need to ? nd a focus. The segmentation extends not only to applications way to meet the likely demand. Likewise, the new federal but can also restrict shipyards to focus more regionally. ? scal year will begin in October and regardless if spending

And when many yards vie in for fewer projects, there also bills are approved or if a continuing resolution exists, there looms the possible downside of builders taking on projects will be new vessel needs. True, some uncertainty exists that are fairly specialized and potentially beyond their ca- for the signi? cance and fallout of the newly released U.S. pabilities or areas of expertise. Coast Guard Subchapter M regulations for inspected tow

There are there are deals to be had; both good and bad. vessels. Those who are quick to chart a successful imple-

Recent reviews of several competitive federal awards have mentation plan are sure to ? nd a steady stream of work.

shown a signi? cant disparity and inconsistency in com- Unfavorable tides will undoubtedly continue to shift petitive pricing, with awards arguably trending lower than sands and whirlpool our industry through unstable mar- typical market value. Nationwide prices for materials re- ket conditions, restrictive regulations, and stringent envi- main highly competitive and transparant, hence any pric- ronmental factors. Shipyards that triumph through rough ing disparity amongst shipyards should come only from weather eventually prove to be stronger and more sustain- variances in labor rates and assessed labor hours—most able in the long run. Thankfully, the industry as a whole is likely rendering an anticipated variance of 10 to 20%. not in dire straits, but current conditions should prove so-

While the federal government is, in theory, on guard for bering regarding the importance of keeping the Jones Act those looking to buy their way into contracts, there is a securely in place. Here’s hoping that all yards will soon be lot of gray area and contract of? cers have been willing to underway with fair winds and following seas.

award contracts to shipyards at or below cost. The pur- chase process tends to be circular and while lower prices

Joe Hudspeth is Vice President of Business may be offered on the front end, the builder and eventually

Development at All American Marine, the purchaser will arrive at a point of reconciliation where-

Inc., a manufacturer of high speed passen- as more money will need to be invested in the project in ger ferries, excursion vessels, and work boats, order for the full scope to be supplied.

in Bellingham, WA. Hudspeth has been involved with maritime sales, marketing and product development since

ROUND THE END

A B 2000. He currently serves as a regional co-chairman for

More new construction opportunities are on the hori- the Passenger Vessel Association and participates on several zon, with the promise to bring good fortune to those who committees concerned with marine industry issues. endeavor set sail on such a course. New segments in hybrid

Reach him at [email protected] vessels and unmanned technology will require specialized www.marinelink.com

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