The United States Of America: History And Main Shipyards

2229 words - 9 pages

c) USA

INTRODUCTION

The United States of America is the most powerful country regarding the economy ranking, the political weight internationally, and its military power. Since 1772, and its independence date, America has fostering the democracy and the development of its economical model, which is the free market economy. Considering, the economic freedom index it ranks on top, but not at the first position. Moreover, in the risk analysis country, it ranks at the state of a safe country to invest in, regarding its political stability, and easy way to invest and transfer capital in and out from this country. Consequently, as its economical lead, it has led the shipbuilding industry during ...view middle of the document...

The main societies in the shipbuilding industry are Northrop Grumman and General Dynamics. Without any doubt, their successes rely on the fact that they are the main subcontractor of the US army. Nonetheless, there are other competitors in this particular industry, with Trinity Industries, Bollinger Shipyards, VT Halter Marine and BAE Systems Ship. As a matter of fact, this industry is highly concentrated. Indeed, the top 50 firms represents more than 90% of the total revenue of the industry (Wilkerson, 2011).

Here are the main shipyards in the US with their location and the company they belong to: Bath Iron Works (Maine), Electric Boat (Connecticut and Rhode Island), and NASSCO (San Diego) are part of General Dynamics’ Marine Systems; Avondale (New Orleans), Ingalls Shipbuilding (Mississippi) and Newport News Shipbuilding are entities of the Northrop Grumman Ship Systems. (The Economic Importance of the U.S. Shipbuilding and Repairing Industry Maritime Administration (MARAD), 2013)

Nowadays, there are 117 shipyards in the United States of America, in 26 states. Moreover, there are more than 200 shipyards engaged in ship repairs or having the ability to build ships but are not especially involved in the shipbuilding industry. As we can see on the map, it is logical to see the main shipyards on the West and East coast of the country, even if there are important ones in the Great lake region and along the Mississippi River. As a matter of fact, the Employment followed the shipbuilding and repairing is concentrated in those same states. (The Economic Importance of the U.S. Shipbuilding and Repairing Industry Maritime Administration (MARAD), 2013)

The Federal government, through its military unit including the US Navy and US Army represents a crucial potential demand for the US shipbuilding industry. However, only one per cent of the vessels delivered in 2011 (15 of 1,459) were delivered to US government agencies, eight out of eleven large deep-draft vessels delivered were delivered to the US Army. (The Economic Importance of the U.S. Shipbuilding and Repairing Industry Maritime Administration (MARAD), 2013)

As we could see, the shipbuilding sites are mainly located in the states of Virginia, Louisiana and Mississippi that concentrate the main part of the private employment in this industry. Indeed “the top five states accounting for 62% of all private employment in the shipbuilding and repairing industry” (Wilkerson, 2011).

The shipbuilding industry in the US offers 107,240 directs jobs for the year 2011. It represents $9.8 billion in Gross Domestic Product, to the domestic economy. The figures are even more impressive when it comes to combining direct within both indirect and induced jobs. In this case, it induces 402,010 jobs, accounting $36.0 billion in GDP for the year 2011. (The Economic Importance of the U.S. Shipbuilding and Repairing Industry Maritime Administration (MARAD), 2013)

STRENGTHS AND WEAKNESSES

The shipbuilding...

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