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Shipbuilders Council of America

SCA is the largest and most broadly-based national trade association representing the U.S. shipyard industry. SCA members build, repair and service America's fleet of commercial vessels.

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Shipbuilders Council of America

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    1. Shipbuilders Council of America

    2. SCA is the largest and most broadly-based national trade association representing the U.S. shipyard industry. SCA members build, repair and service America's fleet of commercial vessels.  SCA members constitute the shipyard industrial base that maintains and repairs Navy combatant ships and other government craft, as well as builds small and midsized vessels for the U.S. Coast Guard, U.S. Navy and other government agencies. 

    4. Affiliate Membership ABS Alcoa, Inc. Ameri-Force, Inc. AMI International Aon Risk Consulting Arthur J. Gallagher Risk Management Services Blank Rome LLP Bruce S. Rosenblatt & Associates, LLC, CavCom, Inc. Dupont Sustainable Solutions eWorthy Technology ESAB Welding & Cutting Products Hiller Investments Incorporated Hoffman, Silver, Gilman & Blasco, P.C. Integro Insurance Brokers James A. Kelley & Associates Jamestown Metal Marine Sales, Inc. The Lincoln Electric Company Lockton Insurance Brokers, LLC

    5. Shipyard Industry Profile Commercial Fleet Contracts Trends Government Contracts and Procurement Trends Maintenance, Modernization and Repair Impact of Continuing Resolutions on Defense Readiness Looking Forward Jones Act, Short Sea Shipping, Offshore Renewable Energy Overview

    6. Shipyard Industry Profile

    7. Commercial Industry Profile U.S. accounts for less than 1% of the world’s shipbuilding output. In the global marketplace, U.S. shipbuilders do not represent a significant market for suppliers. Employment levels on a steady decline: The shipbuilding industry in the United States employs more than 400,000 people. Direct shipbuilding employment of approximately 85,000 people (was 180,000 in 1981). Subcontractors and manufacturers of shipboard equipment account for the remaining approximately 315,000. U.S. Commercial Ships 110 Jones Act ships for U.S. coastwise trade, 54% of the Jones Act fleet is greater than 25 years old. 89 Foreign built US Flag ships.

    8. Commercial Shipyard Deliveries

    9. Commercial Trends and Challenges Oil Pollution Act of 1990 Some of the recent backlog of shipbuilding orders has been the result of OPA 90 replacements. Double-hull requirement must be met by 2012, after which the backlog drops off significantly. In the end, nearly $5 billion in double-hull tankers and tank barge construction and conversion work will take place by 2015 to meet the double-hull requirement under OPA 90. Outer Continental Shelf Oil and Gas Production/Exploration Before the Deepwater Horizon Disaster, the Offshore Marine Services Association estimated it’s members would spend $3 billion on vessels for the offshore oil patch in the Gulf of Mexico.** Defacto moratorium for offshore oil and gas development has hurt the shipyard industry in both new construction and repair. Expanded oil and gas development in the Gulf, East coast, and Alaska uncertain.

    11. “… Marinette Marine is expected to add 1,000 employees by the middle of 2013 to service the contract…” “Economic studies showed that the LCS program, running at the rate of two ships per year, could generate a total of 5,000 new jobs in Wisconsin, including direct employment and indirect employment by suppliers, and 2,500 in Michigan…” With Navy deal, Marinette Marine sees jobs doubling by mid-2013 | The Business Journal “Austal USA is expected to more than double its US workforce to around 3,800 employees” Marinelog, January 2011 Commercial Shipyards Train and Employ the Skilled Labor Necessary to Construct Navy and Government Vessels.

    13. Looking Ahead Defense of the Jones Act

    14. Deepwater Horizon Disaster A misconception of the Gulf Oil Spill response was – Jones Act inhibited the clean up effort The White House turned away useful response vessels because of the Jones Act President Obama refused to waive the Jones Act as a favor to labor unions

    15. Defense of the Jones Act Jones Act means a skilled American workforce and strategic merchant marine to provide sealift capabilities. Jones Acts means U.S. jobs. Jones Acts means National Security.

    16. PricewaterhouseCoopers Economic Study for the Transportation Institute Jones Act-related employment 499,676 jobs Economic output $100.3 billion Value-added $ 45.9 billion Labor compensation $ 29.1 billion Jones Act-related taxes $ 11.4 billion

    18. The Jones Act is Vital to National Security

    19. The Jones Act is Vital to National Security

    20. The Jones Act is Vital to National Security “We simply cannot, as a nation, fight the fight without the partnership of the commercial maritime industry…Our nation’s organic sealift capability…would literally be useless without the support of the commercial maritime industry.” --USTRANSCOM Commander General John W. Handy, USAF.

    21. Looking Ahead New Markets

    22. America’s Marine Highway A wide range of vessel designs have been proposed for Marine Highways markets including: traditional tug-barge articulated tug-barge both in container on barge and Ro-Ro varieties Rail-on/rail off high speed trimaran trailerships high speed Ro-Ro monohulls both larger and smaller traditional Ro-Ro’s

    23. America’s Marine Highway “Green Transportation”

    24. America’s Marine Highway Roadblocks The Harbor Maintenance Tax (HMT) was implemented in 1986 as a federal tax on freight cargo and cruise ship passenger tickets.  Exempting “coastwise” shipping from the HMT is projected to cost the federal government only a small fraction of this revenue, but would provide substantial encouragement to expand the use of coastal waterways for cargo shipping. Lack of tax and investment incentives, landside infrastructure costs are currently prohibitive. Lack of cross sector support Moving ahead… Last Congress bills were introduced in both the House & Senate amending the Internal Revenue Code to exempt certain shipping from the harbor maintenance tax.

    25. Offshore Renewable Energy Emerging market in the United States as green energy becomes more of a focus. Cape Wind, Blue North, as well as proposals off of New Jersey, Texas, Rhode Island and the Great Lakes The Obama Administration has made renewable energy, specifically offshore renewable energy part of its “green jobs” initiatives. Maryland and other States are passing laws to require a percentage of future energy sources come from renewable energy production. Offshore renewable energy is the first new Jones Act market in a generation.

    26. Thank You To learn more about SCA please visit our Web site at www.shipbuilders.org

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