Nov. 17
November 17, 2009
Mr. Heath Adam Perkins
November 19, 2009
After a strong showing in 2009, bayou powerhouse Bollinger Shipyards is looking to have a slower year in its new construction division.
As a result of the time it takes to build a ship, the industry tends to run behind economic swings. Therefore, the economic recession is only now starting to affect the company.
Executive Vice President Chris Bollinger said, “2009, so far, has been a pretty good year, pretty much due to backlogs from previous years.”
The company is currently starting to see a slowdown because it hasn’t been able to sign as many contracts during the current recession. “The financing available to our customers is just less than what it was in the past,” he said.
The company is just starting to complete contracts it signed before the current recession hit, and new contracts haven’t been coming online to take their place. “2010 looks to be slower for new construction,” he said.
The company’s biggest current project is the recently signed Fast Response Cutter contract with the U.S. Coast Guard. The initial value of the contract is $88 million for the design and production of one ship. The contract can be extended to build a total of 34 ships, bringing the contract value to roughly $1.5 billion.
“This contract is the largest in the history of our company and will have a tremendous impact on our community by keeping hundreds of employees working for many years,” said Bollinger. If the company is awarded all 34 ships, Bollinger estimated the contract would keep workers busy for six to eight years.
“Nothing is certain, but with the tremendous needs of the U.S. Coast Guard for these patrol boats, we are hopeful that they will award all 34 of these vessels,” he said.
In the near future, the company is scheduled to construct two sludge ships for the New York City government beginning in the middle of next year. Bollinger also hopes to sign a contract in partnership with Lockheed Martin to build Littoral Combat ships for the federal government, but the proposals for that aren’t due until the beginning of 2010.
The company is also being impacted due to the slowdown in the region’s oil industry. According to Bollinger, repair and retrofitting is the second major branch of the company, which mainly serves the oil and gas industry.
“We’re a bit disappointed for now, but we’re encouraged for the future,” Bollinger said.
With 12 shipyards in Southern Louisiana and 8 shipyards in the Tri-parish area, Bollinger is a major player in the area’s economy and a vital source of employment.
Bollinger said that the company is doing well overall right now and looks secure for the future. “From a financial standpoint, we’re doing great. From a workload standpoint, we’re holding our own,” he said.
Bollinger said that employment at some area shipyards is down, while others are still doing well, but thought that his employees wouldn’t face as much hardship as people in other industries. “We want to retain as much workforce as we can for when things turn around,” he said.
Bollinger also noted that the company has recently made significant investments in new dry docks and other upgrades for their shipyards. “We’re poised with state-of-the-art technology for when things turn around,” he said.
Construction at Bollinger Shipyards has been “pretty good” in 2009, due in large part to backlogs from previous years, according to Executive Vice President Chris Bollinger. * Photo courtesy of BOLLINGER SHIPYARD
