Page 34: of Maritime Reporter Magazine (April 1984)

USS Ticonderoga

Navy Repair And Overhaul

Market

James R. McCaul, President

International Maritime Associates, Inc.

The Navy has clearly become the dominant source of ship re- pair, as well as new ship construc- tion in the United' States. Ten years ago Navy business ac- counted for 36 percent of ship re- pair employment and 58 percent of new ship construction employment in U.S. shipyards. The figures are now 78 percent and 87 percent, re- spectively (see Exhibit 1).

In June 1983, IMA published a report on the Navy new construc- tion market. A second report, on the Navy repair and overhaul market, is now being prepared.

Some information to be presented is highlighted in this article.

Exhibit 1

Significance of Navy Work

To U.S. Shipyards (data as of Oct. 83)

Total Production Production Workers Navy As %

Workers in Navy Repair of Total

Atlantic 10,361 8,642 83

Gulf 3,844 2,570 67

Pacific 2,180 1,748 80

Great Lakes 234 0 0

Total 16,619 12,960 78

Total Production Production Workers In Navy As %

Workers Navy New Construction of Total

Atlantic 44,782 41,685 93

Gulf 10,198 6,811 67

Pacific 9,531 8,090 85

Great Lakes 1,232 932 76

Total 65,743 57,518 87

Future Business Opportunities

The Navy has asked Congress for $2.8 billion in FY 1985 to fund 56 scheduled Navy ship overhauls.

This compares to $2.4 billion for 54 overhauls in FY 1984, and $2.5 billion for 59 overhauls in FY 1983.

Past policy has been to assign about 35 percent of this work to private shipyards. The remaining (continued on page 38)

Source: Maritime Administration 36 Maritime Reporter/Engineering News