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U.S. SHIP MAINTENANCE & REPAIR— A $50 BILLION TO $60 BILLION 10-YEAR MARKET ~ *SESHig Ma » saw1 10-YEAR FORECAST OF BUSINESS OPPORTUNITIES IN U.S. NAVY SHIP MAINTENANCE AND REPAIR By James R. McCaul, President International Maritime Associates, Inc. International Maritime Asso- ciates, Inc., (IMA), Washington, D.C., has just published a 280-page report which forecasts business op- portunities in Navy ship mainte- nance from 1989 through 1998. It addresses the combatant fleet, Mili- tary Sealift Command (MSC) ships, Ready Reserve Force (RRF) ships and Navy service craft. The report also contains a database of contract awards for ship maintenance over the past four years. It is the most comprehensive business analysis yet made of Navy ship maintenance and repair. The report will be a valuable long range Photo: Baltic Sea - A stern view of the bat- tleship Iowa (BB-61) conducting a gunnery demonstration. planning tool for any firm involved in the marine and naval business sectors. Long Term Business Outlook IMA's report separates future business opportunities into work (1) open to coastwide competition, (2) limited to homeport area shipyards, and (3) reserved for commercial nu- clear-qualified or naval shipyards. The report forecasts job starts and expenditures in each of these cate- gories over the next 10 years—the 10-year market could total between $50 billion and $60 billion. East/ Gulf Coast yards could be awarded about 55 percent of this total—$27.5 billion to $33 billion, while West Coast yards could receive about 45 percent—$22.5 billion to $27.5 bil- lion. Coastwide overhauls—IMA projects approximately 200 over- hauls will be open to competition by commercial shipyards over the next 10 years. About 55 percent will be on the East/Gulf Coasts, 45 percent on the Pacific Coast. Captive area work—The re- port forecasts more than 1,700 short-term starts (less than six months duration) will be contracted to ship-repair firms over the next 10 years. This work will be reserved for firms in the homeport areas. About 55 percent of the captive work will be on the East/Gulf Coasts, 45 per- cent on the West Coast. Norfolk, Va., San Diego, Calif., Charleston, S.C., Mayport, Fla., and Long Beach, Calif., will account for 1,200 of the 1,700 short-term availabili- ties. Reserved work—About 600 job starts are projected to be ear- marked for the eight naval ship- yards, three Navy-owned overseas ship-repair facilities, or the nuclear qualified submarine yards (Newport News and GD-Electric Boat). 28 Maritime Reporter/Engineering News
