Page 28: of Marine News Magazine (April 2017)

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OP/ED

U.S. Shipyards: Building for America, Jobs for Americans By Owen Doherty

The shipbuilding and ship repair- ping market. Contrasted with many foreign competitors now ing industry has always been a core able to build today’s mega-container cargo ships far more ec- strength of our nation. It has enabled onomically, America’s international shipbuilding presence is the United States to protect and proj- shrinking to unprecedented levels. To regain its position as an ect its prosperity, power and in? uence international maritime power, the U.S. shipbuilding industry internationally. A book in my of? ce must undergo a paradigm shift in how it does business.

signed by shipbuilder William Webb At MARAD, our historic role has been to support this in- illustrates the point. Mr. Webb inher- dustry through a variety of ? nancial programs. The owner ited his father’s shipyard in 1840 and of the NASSCO-built vessels mentioned above, TOTE, for

Doherty built over 130 of the fastest clipper sail- instance, bene? ted from the MARAD-administered Fed- ing vessels; he later built the largest and eral Ship Financing Program (FSFP) that guarantees loans most celebrated steamships of his era. to help U.S. shipyards produce a modern commercial ? eet.

Those were glory years for the U.S. maritime industry, an Another is Eastern Shipbuilding Group (ESG) of Pana- era when the shipping industry was synonymous with Ameri- ma City, Florida, a long-time supporter of the oil industry. can sovereignty. While it is no longer the nation’s most pro? t- Following the 2010 Deep Water Horizon disaster, Eastern able export manufacturing industry, U.S. shipbuilding and took a hard hit, yet the very next year MARAD jumped in ship repair continues to be a major economic engine, as criti- with an FSFP loan guarantee for ? ve platform supply ves- cal to our national security and commerce as it was in colonial sels to be exported to Brazil. times. Our founding fathers recognized that our maritime as- Those guarantees helped Eastern retain its workforce, sets enabled us to conduct international trade, protect our as did prior MARAD Small Shipyard Grants in 2008 and shores, and grow the U.S. economy toward independence, 2016, which funded equipment to improve ef? ciency and and they enacted strong policy to protect it. Today, these vi- productivity. That support positioned ESG this past Octo- tal industries fortify America’s ongoing status as a “maritime ber 2016 to receive the largest United States Coast Guard nation,” with capacity to build and maintain a modern, safe contract in history, the Offshore Patrol Cutter contract. ? eet to defend U.S. interests at home and abroad. Dependent on ongoing funding availability from Con-

To underscore this point, the Maritime Administration gress, the FSPS presently administers a $1.5 billion portfo- (MARAD) published The Economic Importance of the U.S. lio consisting of 29 loan guarantees that supported 19 bor-

Shipbuilding and Repairing Industry in November 2015, rowers to build 37 vessels. Most recently, MARAD added recognizing the hundreds of U.S. shipyards spread across to its portfolio with approved loan guarantees of $362.7 the country engaged in shipbuilding and repair. In 2013, million to Crowley ConRo, LLC, for two combination the U.S. private shipbuilding and repairing industry directly container, roll-on roll-off vessels. provided 110,390 jobs – including naval architects, project For shipyards employing fewer than 1,200 employees, managers, riggers, welders, painters and a host of suppliers MARAD’s Small Shipyard Grant (SSG) program fosters – $9.2 billion in labor income, and $10.7 billion in gross ef? ciency, competitiveness, and quality ship construction domestic product, or GDP, to the national economy. These and repair, while underwriting projects to improve em- are well paying jobs with opportunity for advancement. ployee skills in communities linked directly to the mari-

Many of these shipyards build not only commercial vessels time industry. Congress is also working to protect the U.S. but also ships used by the U.S. Department of Defense. Case shipyard industry through its Assistance to Small Ship- in point: General Dynamics, NASSCO Shipyard in San Di- yards, providing 160 grants totaling approximately $177 ego recently built the world’s ? rst containerships that run on million between FY 2008 and FY 2016. Collectively, these natural gas, and is now building a series of vessels for the Navy’s grant and loan programs have helped domestic shipbuild-

Expeditionary Sea Base program. It is a compelling example of ers modernize, expand, and continue to prosper. a strong domestic U.S. shipbuilding industry producing ves- Yet in international trade -- where the U.S. has histori- sels for important military and economic objectives. cally projected and protected its power and in? uence –

Unfortunately, a strong domestic shipbuilding and repair American shipbuilding is vanishing. To begin to regain industry doesn’t translate to success in the international ship- that footprint, a major revolution not only in how it does

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