Timeline of GC Shipbuilding
Credit for this page and information greatly appreciated and deserved to http://www.mscoastshipbuilding.com
Thank You David
….It’s been such a long-time part of the Mississippi Coast, shipbuilding is
sometimes taken for granted. The French first started building them in the
1700s, and it’s continued until this day. But the old industry is undergoing
some major changes with the introduction of new shipbuilding materials
and high-tech methods of production. It’s both a heavy industry and one of
the most technical.
…South Mississippi is at the center of the largest shipbuilding region in
the nation, and it’s home to the biggest shipbuilder of them all. It’s where
most of the nation’s surface warships are built, as well as crucial
equipment for deep-water exploration.
…While it’s generally known that South Mississippi is a major player in
the shipbuilding industry, what may be less well known is that the Gulf
Coast over the past 25 years has slowly grabbed a larger piece of the
nation’s shipbuilding pie. While the number of major shipyards on the
East Coast and the West Coast have decreased, the number on the Gulf
Coast has remained relatively high. What’s more, there’s a growing
synergy in this region, with both the aerospace and advanced materials
sectors growing.
…Along the Mississippi Gulf Coast there are technology parks, business
incubators and technology transfer offices and work force training
programs, and perhaps just as important, there is plenty of room to grow
just outside the urban corridor.
…With a high quality of life and low cost of doing business, the
Mississippi Gulf Coast has been a contender for some high-profile
projects in recent years as companies discover the convergence of
opportunities. And that interest promises to increase, thanks to the
availability of major new incentives designed to help companies that
want to invest in the future of Mississippi and the Gulf Coast region.
…South Mississippi offers a glimpse into the world of tomorrow.
In this section:
Mississippi Gulf Coast: Where we are
The I-10 and I-59 corridors
..The Mississippi Gulf Coast is on the northern shore of the Gulf of Mexico, between the states of Alabama to the east and Louisiana to the west. The nearest foreign neighbors are Mexico, Cuba and the nations of Central America.
…The cities closest to the Mississippi Gulf Coast are Mobile, Ala., to the east and New Orleans, La., to

Coast’s largest cities are Pascagoula,
Biloxi, Gulfport and Bay St. Louis,
but there are other large population
centers as well.
…The Mississippi Gulf Coast is
composed of six counties – George,
Hancock, Harrison, Jackson, Pearl
River and Stone. Three of those
counties – Hancock, Harrison and
Jackson – are on the coast and have
while the Pascagoula MSA includes Jackson and George counties. Pearl River
County is its own micropolitan statististical area. The greater South Mississippi
region also includes Hattiesburg and the three-county Hattiesburg MSA (Forrest,
Lamar and Perry counties).
| The I-10 and I-59 corridors |
.The Mississippi Gulf Coast is part of the I-10
Corridor, an urbanized
region that spans portions of
four states. It has six
contiguous metropolitan
areas – seven under the
2003 federal definitions -
composed of 20 counties.
The region’s infrastructure
includes 150 federal and
university research units,
hundreds of innovation
…The region also has a large and growing defense corridor with more than two
dozen bases. The largest defense contractors have operations, some of them
multiple operations, along the 300-mile area between the Fort Walton Beach
MSA and Baton Rouge MSA.
…A portion of the Mississippi Gulf Coast is also part of the I-59 Technology
Corridor. It begins at Stennis Space Center in Hancock County and crosses
through Pearl River County on its way to Hattiesburg and beyond.
Biloxi-Gulfport-Pascagoula metropolitan statistical area. One of the most notable
features is they share the Interstate 10 transportation corridor. The three
counties to the north – George, Stone and Pearl River – became part of the
metro complex as a result of the new metro definitions issued in 2003.

while the Pascagoula MSA includes Jackson and George counties. Pearl River
County is its own micropolitan statististical area. The greater South Mississippi
region also includes Hattiesburg and the three-county Hattiesburg MSA (Forrest,
Lamar and Perry counties).

.The Mississippi Gulf Coast is part of the I-10 Corridor, an urbanized region that spans portions of four states. It has six contiguous metropolitan areas – seven under the 2003 federal definitions - composed of 20 counties. The region’s infrastructure includes 150 federal and university research units, hundreds of innovation companies, research parks, incubators and more.
…The region also has a large and growing defense corridor with more than two dozen bases. The largest defense contractors have operations, some of them multiple operations, along the 300-mile area betweenthe Fort Walton Beach MSA and Baton Rouge MSA.
…A portion of the Mississippi Gulf Coast is also part of the I-59 Technology Corridor. It begins at Stennis Space Center in Hancock County and crosses through Pearl River County on its way to Hattiesburg and beyond.
| Gulf Coast I-10 corridor demographics |
| Counties/parishes |
| Metropolitan areas* |
| 20 |
| Land area |
| Population |
| Economic area |
| Gross metropolitan product 2003 |
| Labor force |
| Commercial airports |
| Major ports |
| Major military installations |
| 12,216 square miles |
| 5 |
| 3.42 million |
| 6 |
| $114.6 million |
| 1.62 million |
| 6 |
| 9 |
| 22 |
| * in 2003 the federal government established new definitions for metro areas, though data is still being compiled under the old definitions. The Gulf Coast I-10 corridor under the new definitions will include seven metropolitan areas and two micropolitan area for a total of 27 counties/parishes. |
| In this section: South Mississippi shipbuilding The regions The Gulf Coast region Convergence Incentives Workforce |
| South Mississippi shipbuilding |
…In the early 1980s there were more than 200 major shipyards for build and
repair in the United States and more than 112,000 workers. Some two decades
later the numbers dropped to just over 80 yards, and the work force just over
46,000, according to the Department of Transportation’s Maritime
Administration.
…The American Shipbuilding Association**, a trade group for the nation’s largest
yards, has said the industry is in peril. Congressmen in shipbuilding states warn
that any further dismantling will threaten the security of the United States
because a domestic capability to produce and repair warships, support vessels,
and commercial vessels is fundamental.
…The military shipbuilding segment, a strength for United States shipbuilders, is
facing a particularly rough time in part because of the costs of fighting the wars
in Afghanistan and Iraq, in part because the Department of Defense wants fewer
ship. Add to that the growing bad publicity about newer warships that are flawed
and it’s clear the industry is in deep trouble.
…The industry itself is one of the oldest in the nation, and involves the
manufacture of ships, barges and other large vessels, both self-propelled and
towed by other craft, as well as the ship repair segment. Most shipyards
specialize in either building or repair work.
…The industry is divided into two segments: Those that produce for the civilian
market and those that produce for the military. The commercial segment
includes an assortment of associated businesses that produce shipboard
equipment, and is closely tied to the oil and gas industry through the building of
oil and gas platforms. The military segment, larger in terms of revenue, also
includes companies involved in weapons systems, such as missiles, and
communications-related equipment.
…While shipbuilding is not nearly as large in terms of revenue as the nation’s
aerospace industry, it is nonetheless substantial. U.S. shipbuilding and repair
industry account for some $8 billion to $10 billion in annual sales, according to
the American Shipbuilding Association. About 10 percent of the companies
accounted for 85 percent of the revenues. Military orders account for the vast
majority of U.S. shipbuilding revenues.
Coast to a large extent has managed to hold its own. And because is has, its
proportion of the major shipbuilding pie has increased.
…It’s now the location for nearly 40 percent of shipbuilders and the work force.
…The Department of Transportation’s Maritime Administration tracks the
shipbuilding sector in five regions: The East Coast, West Coast, Gulf Coast,
Great Lakes and non-CONUS areas. Over the years the numbers have shown
the nation’s major shipbuilding sector is shrinking. Nearly every region has lost
companies and employees.
…Figures show that between 1982 and 2005, the number of major shipyards
and repair facilities nationwide declined 25.4 percent – from 110 to 82 – while
the number of workers tumbled by 58.8 percent – from 112,500 to 46,300.
…The regions that suffered the biggest losses were the East and West coasts.
…The East Coast in 1982 had 41 shipyards, but by 2005 that figure had
dropped to 27 yards, a loss of 34.1 percent. The number of shipbuilding and
repair jobs also declined, from 63,100 in 1982 to 19,000 in 2005, a staggering
loss of 96.9 percent.
…The West Coast also took a huge hit, going from 27 shipyards in 1982 to 15
yards in 2005, a loss of 44.4 percent. The work force slid as well, going from
23,700 workers in 1982 to 7,700 in 2005, a 67.5 percent drop.
…By contrast, the losses on the Gulf Coast among major shipbuilding and repair
yards were much smaller. In 1982 the Gulf Coast had 33 yards and in 2005 it
had 31 yards, a loss of just over 6 percent. The work force slipped as well, from
22,900 in 1982 to 18,200 in 2005, a drop of 20.5 percent – small compared to
the other two big regions.
…The result was that the Gulf Coast became a bigger player in a smaller field.
…In 1982, the East Coast had 37.3 percent of the big shipbuilding yards, the
Gulf Coast 30 percent and the West Coast 24.5 percent. By 2005, the Gulf
Coast had increased its proportion to 37.8 percent, while the East Coast slipped
to 32.9 percent and the West Coast fell to 18.3 percent.
…The same type of shift occurred with the workforce.
…In 1982 the East Coast had well over half the work force with more than 56
percent, followed by the West Coast’s 21 percent and the Gulf Coast’s 20.3
percent. By 2005 the East Coast still had the most workers with 41 percent,
followed by the Gulf Coast with 39.3 percent and the West Coast with 16.6
percent.
Texas and the tip of Florida. But within that large crescent most of the major
shipbuilding operations are concentrated in a 200-mile area between New
Orleans and Mobile. It has four of the nation’s nine active yards: Signal
International of Mobile, Ala., Ingalls Shipyard and VT Halter Marine, both in
Pascagoula, Miss., and Ingalls’ Avondale Operations in New Orleans.
…In addition, four of the seven Gulf Coast shipyards with build positions are in
two adjacent counties: BAE Systems (former Atlantic Marine) and Austal USA,
both in Mobile County, Ala., and Signal International LLC – East Yard and VT-
Halter Moss Point, both in Jackson County, Miss.
…This focus on shipbuilding has been a way of life for a long time in this region
of the country, beginning with the first European settlers. In World War II,
Alabama Drydock and Shipbuilding Co., Gulf Shipbuilding, Ingalls Shipbuilding
Corp., Delta Shipbuilding and Avondale Marine Ways were among the U.S.
shipyards that produced 4,600 ships for the war effort. Ingalls by June 1945 had
built more than 70 ships.
…Today the Gulf Coast continues to have a strong base of major shipbuilders
and a large slate of smaller shipbuilders, as well as an array of vendors. But the
region’s shipbuilding industry is far different than it was in the ’80s or ’90s.
Companies that once existed are no more, new players have come into the
region and shipyards that once competed for contracts are now under the same
corporate umbrella.
…Northrop Grumman through a series of acquisitions beginning in the mid-
1990s went from an also-ran in the defense industry to No. 3 behind Lockheed
Martin and Boeing. It became a major player in the shipbuilding industry with
the purchase of Litton, which owned a yard in Pascagoula and New Orleans,
and Newport News Shipbuilding in Newport News, Va. Northrop Grumman in
2011 spun off the shipbuilding operation as Huntington-Ingalls
…Foreign interest in the U.S. defense industry also brought additional players to
the Gulf Coast. Rolls-Royce Naval Marine in Pascagoula makes $650,000
propellers for Navy ships at a foundry in Pascagoula, and has designed the
facility a center of excellence. Defense conglomerate Singapore Technologies
Engineering, which owns aerospace company ST Mobile Aerospace
Engineering, entered the shipbuilding sector when Friede Halter Goldman got
into a deep financial jam, was forced into bankruptcy and began selling off
pieces of the company. STE’s Vision Technologies purchased the FHG yards in
Mississippi and renamed them VT-Halter Marine.
…Just across the state line Australia’s Austal Limited entered a joint venture
with Bender Shipbuilding to set up Austal USA on the banks of the Mobile
River. Bender has since sold off its interest to Austal.
shipbuilding industry are the
sum of its parts, the
materials, sensors, the power
systems, the computers,
communication systems and
more. And it’s also how
these products “mesh” with
the broader world. It boils
down to convergence:
putting the parts together in
a seamless whole and having
…The importance of convergence is best illustrated by the defense industry. The
emerging theory of warfare is Network Centric Warfare, which uses advanced
information systems to tie the various elements of battle together in a coherent
package. The biggest names in the industry have mirrored this development by
acquiring interests in many of the elements that go into the broader whole, from
satellites to propulsion systems and from ships to land vehicles. Like the defense
industry, the Mississippi Gulf Coast has over time pulled together many of the
elements that go into the shipbuilding industry.
expands, it’s certainly a crucial part of the equation. Mississippi has proven to be
a competitive state when it comes in incentives.
…The state received a dramatic new tool with passage of the Gulf Opportunity
Act of 2005, called GO Zone, designed to help the recovery of areas hit by
hurricanes Katrina, Rita and Wilma. In Mississippi, 47 counties qualify for the
incentives, which encourages investment by companies large and small, pre-
existing and new.
…Mississippi can issue $4.8 billion in tax exempt, private-activity bonds to
finance development of a wide array of commercial projects in the GO Zone.
The money can be used to fund the construction and renovation of non-
residential real property. In lieu of bond money, a company can take accelerated
depreciation.
…Qualified GO Zone property is placed in service equal to 50 percent of the
cost. This is in addition to the normal depreciation. Bonus depreciation is
available to businesses of all sizes for their investments in equipment, non-
residential real property or residential rental property, substantially all of which is
used both in the active conduct of the business’ trade or business and in the GO
Zone. Eligible personal property must be placed in service on or before Dec. 31,
2007. List of incentives-granting organizations.
| Workforce |
hourly earnings are roughly 75 percent of the United States average – directly
corresponding to the state’s lower-than-average living and business costs. The
state has work force training programs designed to guarantee a new or
expanding company has the workers needed to get the job done.
…Mississippi offers training at little or no cost through the state’s community
college system and other training locations.
…The program includes customer-designed pre-employment training, post-
employment training and upgrade/retraining services for new, expanding or
existing industries through the Workforce Education Program in conjunction
with the community college system. Pre-employment training can be done at the
plant site, at the community or junior college campus, in a mobile unit or at
another designated facility. The cost of each program is negotiated based on
required training needs of each industry.
…A program that can be leveraged with the Workforce Education Program is
the federal government’s Workforce Investment Act. Through WIA’s on-the-
job training program, the employer may be reimbursed up to 50 percent of the
wages for new workers for up to six months. When participants complete the
training, the employer may realize additional savings through a tax credit under
the Targeted Job Tax Credit Program.


