Bollinger: Obama understands capital markets build economy

The strong oil and gas industry in the Tri-parishes keeps the area “somewhat insulated” from the nation’s economic woes, according to Boysie Bollinger, the CEO of Bollinger Shipyards in Lockport.

Bollinger spoke at the South Central Industrial Association meeting in Houma last week on the same day Barack Obama was inaugurated, so some of the talk concerned national issues.

Pointing to the expansion by Bollinger Shipyards and construction of Edison Chouest’s LaShip at the Port of Terrebonne, Bollinger said, “We aren’t as concerned about America’s future, our company’s future. Who would’ve thought it could be so contradictory?”

“Others worry about where the next order is coming from, and how to keep employees…We’re truly blessed. We’re the envy of the country when they look at what we produce.”

Last year, Bollinger Shipyards signed a $1.5 billion contract to build cutters for the U.S. Coast Guard, but the awarding of the contract was the subject of a protest to the federal government.

Bollinger said the issue was resolved within the last two weeks.

“It’s an exciting contract,” he said. “It will keep us busy for the next six to eight years.”

Gaining government shipbuilding contracts “is an extremely slow process,” he said. Bollinger Shipyards has pursued the construction of a couple of Navy vessels, including a fast catamaran, capitalizing on the push for a 313-ship U.S. Navy.

“We’ve invested a lot of time chasing these,” he said. “You have to answer questions, wait, answer questions.”

The Navy’s cancellation of a contract to build small and quick Littoral Combat Ships, which were commissioned beginning in 2002, was hard on the company because “the shipyard was waiting,” he said. However, the contract will probably be renewed by June 2010, Bollinger said. The ships would be constructed at the company’s Amelia shipyard.

Bollinger talked about another setback when the shipyard lost a contract after being underbid by half.

He said the superior materials his company uses and its service usually offset cheaper bids by competitors.

The company is securing contracts on two major projects worth a total of $10 billion for work to be done in the Tri-parishes, according to Bollinger, who won SCIA’s President’s Award in 2003.

“I don’t think Bollinger has done $10 billion since it started 65 years ago,” he said.

On Obama, he was mostly hopeful.

“Obama understands that capital markets are still the best way to build an economy,” Bollinger said. However, “there will be a different landscape with labor relations,” he added.

The problems faced by the Big Three automakers in the U.S. with competition abroad can be a lesson.

“In south Louisiana, we have to continue to be productive,” Bollinger said. “I’m proud to be an American. I hope the president and Congress can bring us back to a strong position.”

“We aren’t as concerned about America’s future, our company’s future. Who could’ve thought it would be so contradictory?” – Boysie Bollinger, CEO of Bollinger Shipyard