Page 12: of Marine News Magazine (April 2016)

11 13

INSIGHTS

Frank Foti

This month, the charismatic and enthusiastic Foti weighs

President and CEO, in on the domestic shipbuilding scene during a time of challenges for the entire maritime cluster. Listen in as Foti

Vigor Industrial LLC tells it as only he can do:

Give the readers your broad stroke view of the ship- building markets today.

or nearly two decades, Frank Foti has led Vigor’s

In two words: absolutely challenging. A large portion transformation from a single, struggling shipyard to of US shipbuilding is driven by oil exploration. Few new a thriving, increasingly diversi? ed industrial compa-

F vessel orders are being placed, vessels options have largely ny with 2,500 employees, 12 locations and approximately been canceled, and we have a glut of ships tied up waiting $700 million in annual revenue. According to Vigor, Frank for work. That said; there are still some bright spots in often describes his motivation in three words: “Industrial certain niche markets. Ferry construction is strong. Vigor

Jobs Matter.” Committed to improving long-term, fami- itself is currently building six ferries; two Alaska Class fer- ly-wage job opportunities workers and their families and ries, two 144-car ferries, and two all-aluminum 400-pas- communities, Foti and his management team have, over senger only ferries. Patrol boats are another bright spot and time, has worked to strategically expand and diversify the Kvichak, our newest member of the Vigor family, is doing company, investing in training facilities and infrastructure well in that sector. The ? shing vessel market is waking up along the way. Also according to Vigor, the ? rm has en- and while we are seeing signs of slowing in the tug and deavored to partner with organized labor to develop the barge market there is still business to be had.

? rm into a company driven by four core values: truth, re- sponsibility, evolution and love. Under Frank’s leadership,

Where are we headed tomorrow?

Vigor’s annual revenues have grown from $80 million in

Before the price of oil rises and exploration is resumed, the late 1990s to about $700 million today. At the same it’s likely the industry will see more consolidation. time the company has diversi? ed to offer shipbuilding, blasting and coating, machining and advanced fabrica-

How much has the energy crunch hurt backlogs?

tion services at locations including Ketchikan and Seward, There is no doubt the energy crunch has signi? cantly

Alaska, Portland and Clackamas, Oregon, and Port Ange- eroded backlogs for shipbuilding in the U.S. and abroad. les, Everett, Tacoma, Vancouver and Seattle, Washington. On a recent trip to Oman, Keith Whittemore, our EVP of

April 2016 12

MN

MN April16 Layout 1-17.indd 12 3/18/2016 11:42:06 AM