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Volume 13, Issue 1 January/February 2007 2007 Goals - Higher Shipbuilding Budgets, Stronger Industrial Base As the 110th Congress begins a new legislative year, and the Administration prepares to submit its fiscal year 2008 Navy and Coast Guard budget requests to Congress, the American Shipbuilding Association (ASA) reaffirms its commitment to ensure the Nation maintains a robust Navy and Coast Guard, and vibrant shipbuilding industrial base. To this end, two resolutions were adopted by the shipbuilding industry during the ASA annual convention on November 28th. The resolutions are aimed at rebuilding the Nation’s naval fleet and the importance of building ships in the United States for the security of the country. The first resolution focuses on supporting the Chief of Naval Operations’ proposed 5-year shipbuilding budget, beginning with $14.1 billion for new ship construction in fiscal year 2008. The U.S. naval fleet currently numbers 276 ships. In order to begin rebuilding to the force structure Navy leadership says it needs shipbuilding budgets must be increased. A fiscal year 2008, $14.1 billion budget would represent a $5 billion increase over the fiscal year 2007 appropriation for naval ships. SHIPBUILDING BUDGET RESOLUTION Whereas the leadership of the Navy has committed to a fiscal year 2008 budget of $14.1 billion for new ship procurement to begin rebuilding the naval fleet; Whereas the shipbuilding industry supports the Chief of Naval Operations’ budget of $14.1 billion for new ship procurement in fiscal year 2008 and which increases to $19.1 billion in fiscal year 2012 to rebuild the fleet to 313 ships; Be it resolved that the shipbuilding industry will collectively urge the Congress of the United States to authorize and appropriate a minimum of $14.1 billion in fiscal year 2008, and to support fencing the budgets outlined in the Chief of Naval Operations’ plan for new ship procurement over the next five years. The second resolution seeks to ensure that America continues to possess the capability and resources to design and build naval ships for our national defense. To underscore the importance of maintaining a shipbuilding industrial base, one only need look to Great Britain. For decades, Great Britain allowed its naval fleet and shipbuilding industry to atrophy. As a result, that country lost the knowledge, skills, and manufacturing capacity to design and build naval ships. Great Britain has had to turn to the United States for assistance in designing and building a nuclear submarine. Unless America makes rebuilding its naval fleet a priority, the threats to this country will grow dramatically as the U.S. becomes dependent on other nations for naval ships. RESOLUTION TO STRENGTHEN SHIPBUILDING INDUSTRIAL BASE Whereas continued, low rates of ship production have resulted in the loss of vital companies that make up the defense shipbuilding manufacturing base, have forced the layoff of thousands of highly skilled workers, and have weakened the financial health of the industry; Whereas the present state of the industry hampers facility investments, the ability to attract and retain new employees, and puts at risk the Nation’s sovereign ability to design and build ships for the U.S. Navy and Coast Guard; Be it resolved that industry will urge the 110th Congress to maintain and enforce laws requiring public vessels and their major components to be manufactured in the United States, and to expand the use of contract incentive clauses by the Government to facilitate greater facility investments. New ASA Officers Announced The American Shipbuilding Association announced the election of Mike Petters, President of Northrop Grumman Newport News as Chairman and John F. “Dugan” Shipway, President of General Dynamics Bath Iron Works as Vice-Chairman. Gerry Lamb, Director of Government relations at General Dynamics Marine Operations was elected as Secretary/Treasurer. Elected officers of the Association serve for a two-year term. Mike Petters has been serving as President of Newport News since November 2004, and has been with Newport News since 1987. During his tenure with the company he served as Production Supervisor for Submarines, Marketing Manager for Submarines and Aircraft Carriers, Vice President for Aircraft Carrier Programs, and Vice President for Contracts and Pricing. Mr. Petters is a graduate of the U.S. Naval Academy and earned his MBA at the College of William and Mary. Dugan Shipway has served as President of Bath Iron Works since April 2003. A retired U.S. Navy Rear Admiral with 35 years of service, Mr. Shipway served in a succession of high-level posts, including Director of Strategic Systems Programs, Commander of the Naval Undersea Warfare Center, Deputy Commander for Submarines at Naval Sea Systems Command, and Program Executive Officer for Submarines. Following his retirement from active duty, Mr. Shipway joined Electric Boat as Special Assistant to the President in July 2000, a position he retained until his appointment as President of Bath Iron Works. He earned his bachelor’s degree in chemical engineering and a master’s degree in engineering from the University of Louisville. Sea Power and Expeditionary Forces Subcommittee After the 110th Congress convened, the House Armed Services Committee reorganized the jurisdiction of, and renamed key subcommittees. The Sea Power and Expeditionary Forces Subcommittee, formerly Projection Forces, will now oversee nearly all Navy and Marine Corps platforms and activities. Rep. Gene Taylor (D-MS) will serve as Chairman and Rep. Roscoe Bartlett (R-MD) as Ranking Member. The other Subcommittee Members include Representatives Neil Abercrombie (D-HI), Madeleine Bordallo (D-GU), Ken Calvert (R-CA), Joe Courtney (D-CT), Terry Everett (R-AL), Jo Ann Davis (R-VA), Brad Ellsworth (D-IN), Randy Forbes (R-VA), Kirsten Gillibrand (D-NY), Rick Larsen (D-WA), Joe Sestak (D-PA), and Joe Wilson (R-SC). Senate Seapower Subcommittee Members Named The Senate Armed Services Committee has also announced the Membership of its Seapower Subcommittee. Senator Ted Kennedy (D-MA) takes over as Chairman, and Senator John Thune (R-SD) will serve as Ranking Member. Senators Daniel Akaka (D-HI), Susan Collins (R-ME), John Ensign (R-NV), Joseph Lieberman (ID-CT), Mel Martinez (R-FL), Bill Nelson (D-FL), Jack Reed (D-RI), John Warner (R-VA), and Jim Webb (D-VA) will also serve on the Subcommittee. Welcome New Partners The American Shipbuilding Association welcomes six new Partners: American Tank & Fabricating Co., Aqua-Chem, Fincantieri Marine Systems North America, Inc., TECO-Westinghouse Motor Co., Tyco Electronics, and W&O Supply, Inc. American Tank & Fabricating Co. Headquartered in Cleveland, Ohio, American Tank has been providing fabricated steel products to the manufacturing industry since 1940. In addition to providing steel products for various defense platforms, the company’s naval business includes the fabrication of steel plates for surface ships and submarines. Aqua-Chem Since World War II, Aqua-Chem has been designing and manufacturing water purification systems for the U.S. military, and has been a provider of mil spec pumps to the Navy for over forty years. Located in Knoxville, Tennessee, Aqua-Chem remains an industry leader in development of mobile water systems, heat exchangers, reverse-osmosis water purifiers, and pumps. Fincantieri Marine Systems North America, Inc. With locations in Chesapeake, Virginia and Ingleside, Texas, Fincantieri Marine Systems North America specializes in integrating propulsion and machinery systems to a ship’s hull for naval and commercial ships. TECO-Westinghouse Motor Co. Headquartered in Round Rock, Texas, TECO-Westinghouse Motor Co. manufactures propulsion motors and generators used on ice breakers, submarines, tugboats, mine sweepers, seagoing dredges, and oceanographic vessels. The company also engineers a heavy-duty, super-quiet motor produced for U.S. naval ships. Tyco Electronics Tyco Electronics, headquartered in Harrisburg, Pennsylvania, is the world’s largest manufacturer of passive electronic components. The company produces mil spec wire, cables, connectors, and relays for the Navy. With operations in Harrisburg and Menlo Park, California, Tyco Electronics products are included in everything from radar systems to ship galleys. W&O Supply, Inc. W&O Supply is the nation’s largest distributor of pipe, valves, and fittings for U.S. Navy, Coast Guard, and commercial ships. Headquartered in Jacksonville, Florida, and with thirteen branch offices in the U.S., W&O Supply carries more products at more locations than any other marine products distributor. The New Congress Needs to Hear From You As the 110th Congress convenes and begins work on budgets and polices that will impact the U.S. naval and Coast Guard fleets, make sure that your Senators and Representative know how important sea power is to America’s national security. If you are not already a Sea Power Ambassador, join today! Registration is easy, and participation, is even easier. As a Sea Power Ambassador, you will receive periodic news articles about the state of America’s sea services. From time to time, you will be asked to take action and contact your elected officials about issues of importance to America’s national security and ability to build ships for the Navy and Coast Guard. Register today! www.seapowerambassador.org Well Said! “Shipbuilding, shipbuilding. Getting the numbers of the fleet up…Numbers do matter.” Rep. Gene Taylor (D-MS) On his priorities as Chairman of the Seapower & Expeditionary Forces Subcommittee November 13, 2006
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