Virginia a Prime Example of Shipbuilding’s Positive Economic Effects in U.S.

 

May 2014

 

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A bipartisan effort highlighting shipbuilding in Virginia also serves as proof of how the industry can (and does) benefit other states as well as the nation as a whole.

 

In late March, the American Maritime Partnership (AMP) and the Shipbuilders Council of America (SCA) joined with Sen. Tim Kaine (D-Va.), Rep. Rob Wittman (R-Va.) and Rep. Robert C. “Bobby” Scott (D-Va.) to underscore new data showing Virginia ranks first among all U.S. states in shipbuilding with 63,650 jobs, far above any other state. These jobs pump more than $5.5 billion into Virginia’s economy every year.

 

In a joint news release, AMP (to which the SIU is affiliated) and the SCA noted, “The U.S. shipyard industrial base in Virginia and across the nation is vital to America’s national and economic security. Private U.S. shipyards build, repair, maintain and modernize the largest and most sophisticated Navy and Coast Guard vessels in the world and do the same for the nation’s 40,000 commercial vessels. Across the country, the domestic maritime industry, supported by the Jones Act, sustains more than 478,000 jobs and has an annual economic impact of $92.5 billion according to a study conducted by PricewaterhouseCoopers (PwC) for the Transportation Institute. The industry also accounts for approximately $29 billion in annual wages and $10 billion in tax revenue each year.”

 

“Ensuring national security and a strong economy means providing budget certainty and stability for the shipbuilding and ship repair industry,” said Kaine. “From Newport News Shipbuilding, to Norfolk Naval Shipyard, and private shipyards across Virginia, the shipbuilding industry helps develop a highly skilled workforce, provides thousands of jobs, and benefits the Commonwealth’s economy.”

 

“Virginia has always been proud of its shipbuilding heritage. Our vibrant and robust shipbuilding industry builds and repairs the greatest Navy, Coast Guard, and commercial fleet in the world,” Wittman said. “Virginians skilled and trained in shipbuilding and repair are an important part of our Commonwealth’s history and they will continue to be a vital part of our nation’s future. The impact these men and women have on Virginia and on this nation cannot be understated. I am proud to represent so many shipbuilders and I am honored that they are my fellow Virginians.”

 

“I am proud that the Commonwealth leads the nation in U.S. shipbuilding jobs. Hampton Roads is home to generations of highly skilled shipbuilders, who build and maintain the most advanced ships in the world,” said Scott. “They are an important part of the shipbuilding industrial base and they make critical contributions to our economic security and national defense.”

 

“It is no surprise that Virginia leads the nation in U.S. Shipbuilding, because one in every 90 jobs in the state is directly related to the industry,” said Shipbuilders Council of America president Matt Paxton. “Each of those jobs in turn supports nearly three other jobs. This robust shipyard workforce and industrial base, as well as the national security and economic benefits that this industry provides, are just a few of the reasons why the president, the Navy and every Congress and Administration in modern history has supported the Jones Act.”

 

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