SHIP REPAIR & CONVERSIONA Rebirth in s the energy pro? le of Repair & Conversion Coexist tions in the same facility is traditionally Timing, they say, is the United States chang- “We have two business approaches a dif? cult act, too. “There is a reason es, so too do the pros- here: one is repair and conversion and why companies don’t do both … and everything. Cliché, pects for it commercial the other is new construction,” said that’s because it is very dif? cult to do,” shipbuilding and repair Rhoades. “Both co-exist equally in the Rhoades succinctly summarized. “I am Asector, which virtually overnight has yard. Our repair business is 70% com- not sure we have a secret. It’s two dif-for sure, but BAE enjoyed an in? ux of new construction mercial; 30% other government, specif- ferent mind-sets (on both accounts). On orders and general maritime business. ically MSC, MarAd and Coast Guard,” the repair side, it’s about ? xing what is System’s strategic The ATB and tank barge markets were as well as others. Predictably, the re- pre-existing (similar to taking your car long-thought dead, but with vast new pair business is dominated by domestic to a mechanic), and it doesn’t neces-decision a few years sums of oil and gas in both the offshore Jones Act carriers, with about 15% of sarily have to be brand new when it is and land-based being produced, so too the shipyard’s repair business coming done,” Rhoades said. “The work can be comes the need to transport the goods to from international carriers. spec’d to that level but the owners nor-ago to buy, invest re? nery and market, as well as the need But as anyone in the ship repair and mally decline due to cost. Owners want to feed the inland energy production conversion business can attest, it is al- quality and timely repairs. On the new-and reinvigorate frenzy born from hydraulic fracturing, ways a delicate balancing act to plan build side, everything is ? t and ? nish, or Fracking. workload on the repair side of the house: prim and proper … it is a higher level of newbuild and repair Shipbuilding and repair in Mobile, Al- when times are bad, owners tend to re- completion. It’s like buying a brand new abama is certainly not novel, as Mobile quire bare bones work to keep ships in car. It is dif? cult to make the transition holds a long and proud tradition. While good regulatory order. When business is from one side to the other. It’s a differ-operations in Mo-rich in history, this is not a story of look- booming, owners want to keep assets in ent mindset of how you go about your ing back, rather forward, starting three the market earning money, not sitting in day’s work.”bile, Alabama, seems years ago when BAE Systems took over drydock for maintenance and repair. While Rhoades maintains there is no the yard in Mobile and enacted a revi- In assessing the impact of the global secret to success, he does admit that the poised to pay off talization of a storied shipbuilding and economic meltdown of 2008 and lin- cornerstone to the company’s future lies repair facility that continues in earnest gering tough economy through 2012, not necessarily in machinery or space, today. Rhoades offered this: “As an industry, rather people.handsomely as the “The main batteries of our business it made us stronger. Smaller players and “The primary strength of our shipyard are the capital investment in piers, dry those without the ? nancial wherewithal is without question our highly skilled U.S. maritime mar-docks and cranes,” said Vic Rhoades, disappeared, and those that remained workforce. Our employees commitment Director, BAE Systems’ Mobile, Ala- came back stronger. This business is not and professionalism are what makes ket faces a historic bama shipyard. Since the acquisition for the weak at heart: it’s cyclical, it’s us successful. The labor market on the in July 2010 we have invested nearly feast or famine, dif? cult to level load; Gulf Coast is very challenging. We rebound.$30m in capital improvements, and an- today we don’t have enough people, compete daily with Tier 1, 2 and 3 yards ticipate spending $10m over the next 24 tomorrow I don’t have enough work for skilled labor. There isn’t enough months. due to the operators charter and repair quali? ed personnel to go around. We’re Upgrading the new construction facil- schedules.” currently bringing in people from out of ities with robotics and automation, and If running an ef? cient and effective town. Long-term we’re working with By Greg Trauthweininvesting in people has been one of our repair yard were not dif? cult enough, the state to establish educational grants, big successes.” running newbuild and repair opera- develop an apprenticeship program and 22 Maritime Reporter & Engineering News • JANUARY 2014MR #1 (18-25).indd 22 1/7/2014 10:25:28 AM