Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
Governor Kay Ivey announced today that Alabama has been recognized by Business Facilities magazine with its prestigious “Deal of the Year” Impact Award in the Defense Manufacturing category for Austal USA’s transformative growth projects at its shipyard in Mobile.
The recognition from the national publication highlights Alabama’s critical role in bolstering U.S. national security and advancing economic growth along the Gulf Coast.
The award celebrates Austal USA’s dual expansion projects in Mobile, representing a combined investment of $750 million and the creation of 2,000 jobs. These projects include a cutting-edge Submarine Module Fabrication Facility and a state-of-the-art Assembly Facility for Large Steel Ships.
“This honor reaffirms Alabama’s position as a leader in advanced defense manufacturing and innovation,” Governor Kay Ivey said. “Austal USA’s investments in Mobile not only strengthen our nation’s security but also provide a tremendous economic boost to our state.
“We are proud of Austal’s success and the impact these projects will have on our workforce, our communities, and the entire Gulf Coast region.”
Growth plans
The Submarine Module Fabrication Facility, announced in October 2024, will support the U.S. Navy’s ambitious goal of delivering one Columbia-class and two Virginia-class submarines annually. Featuring advanced technologies such as digital twins and automation, the 369,600-square-foot facility is set to create 1,000 jobs by its completion in late 2026.
The Assembly Facility for Large Steel Ships, announced in July 2024, will enable the production of vital vessels for the U.S. Navy and Coast Guard, including Offshore Patrol Cutters and surveillance ships. This project includes a new 192,000-square-foot assembly bay and a shiplift system for vessel launches, creating an additional 1,000 jobs.
Ellen McNair, Secretary of the Alabama Department of Commerce, praised Austal’s visionary leadership and the far-reaching impact of the company’s growth plans in Mobile.
“Austal USA’s expansion represents a game-changing moment for Alabama’s economy and the future of U.S. defense manufacturing,” Secretary McNair said. “These projects not only highlight the incredible talent of our workforce but also demonstrate Alabama’s ability to support the most sophisticated technological advancements in shipbuilding and submarine production.
“This recognition is well-earned and reflects the unparalleled partnership between the state and Austal USA,” she added.
Local impact
Austal’s operations have a massive economic impact in Alabama, particularly within the Mobile region.
In 2023 alone, 259 Alabama-based suppliers, including over 185 small businesses, contributed more than $115 million to Austal’s projects, according to the company. Approximately 72% of Austal’s production workforce resides in Mobile County, underscoring the local economic impact of these expansions.
“This recognition underscores the significant role Austal USA plays in bolstering our national defense and in driving economic growth and innovation on the Gulf Coast,” said Bradley Byrne, President and CEO of the Mobile Chamber.
“The dual expansions at Austal’s Mobile shipyard are a testament to our region’s industrial strength and skilled workforce, and we are proud to see their efforts honored with this prestigious award.”
Austal’s transformation from an aluminum-focused shipbuilder to a diversified defense manufacturing powerhouse solidifies Alabama’s reputation as a hub for innovation and excellence in advanced manufacturing.
“Alabama is building the future of defense manufacturing, and Austal USA’s investment underscores our state’s critical role in advancing U.S. national security while delivering tangible economic benefits for our communities,” Governor Ivey added.
This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.
According to the Mobile Chamber and the company, Austal USA has been awarded a $450 million contract by General Dynamics Electric Boat to expand production capacity at its shipyard in Mobile shipyard in support of the U.S. Navy Submarine Industrial Base (SIB).
The contract will enable Austal to expand and enhance its existing infrastructure by designing, constructing and outfitting a new module fabrication and outfitting facility at its Mobile shipyard to support the U.S. Navy goal of delivering one Columbia-class and two Virginia-class submarines annually.
Construction will move fast, beginning this autumn, with an expected completion date in 2026. When fully operational, the building will support approximately 1,000 jobs and provide capability to fabricate, outfit, and transport submarine components.
“Austal USA’s $450 million contract to expand submarine module production is a game-changer for the Mobile region,” Mobile Chamber President and CEO Bradley Byrne said.
“This significant investment not only strengthens our local economy but also highlights the critical role Mobile plays in supporting U.S. naval defense. The expansion will create nearly 1,000 jobs, further cementing Mobile as a hub for innovation and industry. We are excited to see this project take shape and remain committed to supporting Austal USA’s continued growth and success.”
RELATED: Forbes: Alabama’s Port of Mobile is second fastest-growing in U.S.
Austal Limited Chief Executive Officer Paddy Gregg noted this contract award is a testament to the growing partnership with General Dynamic Electric Boat and demonstrates its confidence in Austal USA as a valuable industry partner for these two important U.S. Navy submarine programs.
“General Dynamics Electric Boat has recognised that Austal USA is a solid partner to deliver high-quality components for Virginia- and Columbia-class submarines. This growing partnership demonstrates confidence in Austal USA’s commitment to meet the needs of the U.S. maritime industrial base and support the most critical needs of the U.S. Navy,” Mr. Gregg said.
Just in recent months, Austal also announced plans to expand its Mobile shipyard with the construction of an additional waterfront assembly facility to support the growth of shipbuilding in Alabama’s Port City. The expansion project, fueled by a capital investment of more than $288 million, is set to create 1,032 new jobs over the next four years.
Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on X @Grayson270
Forbes released its annual “Best-In-State Employers” for each state, in partnership with market research firm Statista for the year 2024.
According to Forbes, more than 160,000 employees working for companies with at least 500 people within the United States were surveyed. Participants were asked how likely they were to recommend their employer on a scale of zero to ten. Responses were incorporated into a scoring system, along with survey data from the past three years.
Companies that received the highest scores in each state made their list. The list, which includes public and private institutions, showcases Alabama’s top 45 places to work:
1. Northrop Grumman
2. Home Instead Senior Care
3. Alabama Department of Public Health
4. NASA
5. Publix Super Markets
6. The Home Depot
7. Southern Company
8. AIRBUS
9. Infirmary Health
10. RTX
11. Polaris Inc.
12. Honda Motor
13. University of Alabama at Birmingham
14. Nucor
15. Baptist Health (Alabama)
16. WestRock
17. United States Department of Defense
18. Hoover City School District
19. Blue Cross Blue Shield of Alabama
20. Hyundai
21. University of Alabama
22. USA Health
23. Regions Financial
24. Huntsville Hospital Health System
25. PNC Financial Services
26. FedEx
27. TJX Companies
28. Verizon Communications
29. JBS USA
30. U.S. Social Security Administration
31. Austal USA
32. Auburn University
33. State of Alabama
34. U.S. Department of Veterans Affairs
35. Amazon
36. Southeast Health
37. Chick-fil-A
38. Tractor Supply
39. Inspire Brands
40. Hibbett Sports
41. Wells Fargo
42. University of South Alabama
43. Shelby County School District
44. Southeastern Grocers
45. AT&T
Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on X @Grayson270
As part of a $91.3 million contract, Mobile’s Austal USA has commenced work on three landing craft for the U.S. Navy.
The contract also includes options for nine additional craft and associated support efforts.
Ongoing production of the boats, known officially as U.S. Navy Landing Craft Utility (LCU) vessels, is being conducted at the company’s steel shipbuilding line in the Port City.
“The LCU provides strategic value and versatility to the Navy-Marine Corps team,” said U.S. Marine Corps Lieutenant General Karsten S. Heckl at an event marking the occasion. “These landing craft will significantly enhance our sea-based Marine Air-Ground Task Forces and Marine Expeditionary Units, providing them with unparalleled flexibility, and the capability to maneuver Marines, sailors and equipment in environments unreachable by other means.”
LCU are carried aboard amphibious assault ships to the objective area and used across a range of military operations to deliver vehicles, personnel, and cargo from sea-to-shore and back.
Dave Growden, Austal’s Vice President of new construction programs, also believes that the craft will have a significant impact on supporting the military.
“Austal USA is honored to be able to build this important connector for the U.S. Navy,” said Growden. “We recognize the critical role this platform plays in supporting expeditionary operations for the Navy and Marine Corps and are looking forward to continuing to deliver ships and boats to our customers on time and on budget.”
“We are excited to roll these vessels down the assembly line and into the fleet.”
Austal USA is also currently producing two Navy Towing, Salvage and Rescue Ships (T-ATS) and a 90,800 square-foot Auxiliary Floating Dry Dock Medium.
The company also holds multi-ship contracts for the Navy’s TAGOS-25 ocean surveillance ship and the U.S. Coast Guard’s Heritage-class Offshore Patrol Cutter program.
Austen Shipley is a staff writer for Yellowhammer News.
Australian shipbuilder, Austal, has rejected a substantial takeover offer from a
Leadership at Austal said that the transaction wouldn’t likely gain regulatory approval.
“The Austal board, together with its advisers, has considered the Indicative proposal in detail and engaged with Hanwha in relation to whether the transaction described in the indicative proposal would obtain the relevant regulatory approvals in Australia and the USA to enable it to proceed,” Austal revealed in a statement. “At present, Austal is not satisfied that these mandatory approvals would be secured, however, the company is open to further engagement if Hanwha is able to provide certainty on whether a transaction would be approved.”
David Kim, executive vice president at Hanwha, said in a statement that the idea that the Foreign Investment Review Board would reject Hanwha’s acquisition is completely incorrect.
“Hanwha has already obtained FIRB approval for prior investments in Australia and has a proven track record of investment in Australia’s defence industrial base, being the contracted supplier of infantry fighting vehicles, self-propelled howitzers and ammunition resupply vehicles with significant investment in a Geelong manufacturing facility that employs local workers.”
Danny O’Brien, President of Corporate Affairs for Hanwha, believes that his company still has much to offer Austal.
“Hanwha is growing its footprint in the defense and energy sectors in the U.S.,” said O’Brien. “The company is poised to bring decades of experience and innovation to the U.S. shipbuilding industry that will grow Austal’s operations while meeting the needs of the U.S. Navy and Coast Guard.”
According to the annual Defense News rankings ,the proposal would see the world’s 26th largest defense contractor add the 74th largest defense contractor to its portfolio.
Austen Shipley is a staff writer for Yellowhammer News.
Across Alabama, businesses of all sizes are facing a crucial challenge: Finding skilled workers.
More than 5,000 businesses who collaborate with the Alabama Community College System to train workers know this fact: Every in-demand position within the state of Alabama can be started with training from one of Alabama’s community and technical colleges.
Amy Price, Chief Nursing and Chief Operating Officer of Coosa Valley Medical Center, said a nursing apprenticeship collaboration the medical center has with Central Alabama Community College is an example of how integral community colleges are to workforce development in the state.
“You can imagine, being a freestanding, rural hospital, partnerships are very important to not only our existence but to our sustainability, and so when we look over our partnerships, I can’t think of one that’s more important to us today than the good work community colleges are doing in their programs,” she said.
“It’s really paying off in terms of putting people to work with credentials to meet the demands of healthcare today.”
Austal USA recently partnered with the Alabama Community College System to create a pre-apprenticeship training program. Rodney Patrick, Austal USA Director of Human Resources, said, “You have so many people in your backyard just waiting for a change. Austal has so many jobs and so many opportunities. We don’t want to go out to find work when we have workers right here in Alabama. That’s why it’s so important to partner with Bishop State.”
By partnering with businesses, schools, and individuals, the ACCS is making a tangible difference, as evidenced by the nearly 155,000 students who study through the colleges’ academic and workforce development programs. More than 440,000 residents have started their education journey with core, transferable classes at local community colleges in the last decade, significantly impacting the state’s healthcare and transportation industries.
Shannon Jackson, Director of Corporate Services at Southeast Gas, said the ACCS Innovation Center’s customized Skills for Success programs are both critical and timely to the work energy companies are doing across the state.
“Having every member of our construction crew CDL-certified is invaluable. What would have been three to four weeks, and at a cost, Skills for Success and LBW Community College gave us the opportunity to train students faster and at no cost,” she said.
Building Alabama’s future workforce requires a collaborative effort. Among the reasons thousands of companies choose the ACCS for workforce training is the community college system’s model of bringing business and industry “to the table” when developing workforce programs. Whether apprenticeships, such as those offered in manufacturing through the Alabama Federation for Advanced Manufacturing Education (F.A.M.E.) program, or the rapid Skills for Success programs through every community and technical college in the state, the feedback of business and industry is embedded into the training curricula so that students are literally training for their future careers.
“Investing in the Alabama Community College System is an investment in Alabama’s future, as local community colleges are the most stable element for workforce development across the state to consistently have an open door for everyone,” said System Chancellor Jimmy H. Baker. “The system’s commitment to building a skilled workforce strengthens not just individual lives, but also the overall economic well-being of the state. As Alabama continues to evolve, our system is poised to remain a crucial partner in its success.”
Beyond customized training, ACCS boasts a robust dual enrollment program, allowing high school students to earn college credit while still in high school. This head start on their education prepares them for a smooth transition to the workforce or further studies.
The ACCS’s commitment to workforce development extends to adult learners. Adult education programs provide individuals with the opportunity to upskill or reskill, making them more competitive in the job market.
The Alabama Community College System is composed of 24 community colleges in more than 130 locations, benefitting nearly 155,000 Alabamians through various certification, credential, dual enrollment and degree programs.
Mobile-based Austal USA has been awarded yet another multimillion-dollar contract from the Navy.
The $91,535,551 award will combine with an earlier contract to design and produce three Landing Craft Utility (LCU) 1700 class craft.
“Austal USA is honored to be able to build this important connector for the U.S. Navy,” commented Dave Growden, vice president of new construction projects. “We recognize the critical role this platform plays in supporting expeditionary operations for the Navy and Marine Corps and are looking forward to continuing to deliver ships and boats to our customers on time and on budget.”
Austal USA was awarded a contract for the detail design and construction of three Landing Craft Utility (LCU) 1700 class craft.https://t.co/iH6eGrkuzb
— Austal USA (@Austal_USA) September 7, 2023
LCU vessels are carried aboard amphibious assault ships to deliver vehicles, personnel and cargo from sea-to-shore and back. They provide a heavy-lift capability and can carry about the same payload capacity as seven C-17 aircraft, according to a news release.
Austal USA is also building two Navy towing, salvage and rescue ships, and a 90,800 square-foot auxiliary floating dry dock.
Austen Shipley is a staff writer for Yellowhammer News.
A major change in leadership for corporate giant Austal USA took place Wednesday.
Company President Rusty Murdaugh resigned and was quickly replaced by Michelle Kruger, vice president of global services and support, who is now acting president until the position is filled.
Austal USA released a statement that noted Murdaugh’s contributions to the company following the change of leadership
“Under his leadership, Austal USA completed the addition of steel shipbuilding capability to the Mobile shipyard, opening the most modern steel shipbuilding facility in the industry,” the statement read. “Austal USA also opened a waterfront ship repair facility in San Diego, greatly expanding the company’s repair business, and acquired property in Mobile that will facilitate the continued expansion of the Mobile shipyard.”
Paddy Gregg, CEO of Australia-based parent company Austal Limited, also spoke highly of the former president.
“Rusty made a lasting impact on the company,” he said in a statement. “The transformation and growth of Austal USA under his leadership has postured the company for the future with a diversified and balanced portfolio. Rusty is leaving Austal USA with unlimited growth potential and we thank him for all his hard work and dedication over the last two years.”
There is speculation as to what may have caused the resignation. However, Austal USA share prices recently dropped rapidly and the company stopped trading for a short time after announcing the possibility for a significant loss on towing, salvage and rescue ships (T-ATS) for the U.S. Navy, the first project on Mobile’s steel shipbuilding line.
Austen Shipley is a staff writer for Yellowhammer News.
A recent keel laying for Austal USA had “added significance” for the Independence line of Littoral Combat Ships.
The ceremony for the USS Pierre marked the final time an Independence-variant LCS will be built in Mobile.
“Keel laying represents a major milestone in the construction of a ship,” said Dave Growden, vice president of new construction. “While every keel laying we celebrate is special, this one has added significance as it starts to close the line of a highly successful program.”
South Dakota Sen. John Thune said the ship’s name is an honor for the city for which it is named.
“This is a special honor for the city of Pierre and all of South Dakota,” he said. “It’s also a good day for the Navy and the men and women of our joint forces. I’m particularly humbled, of course, to have had the privilege of introducing my daughter Larissa as the ship’s sponsor – a proud dad moment.”
With the assistance of Hon Tran, a 13-year Austal USA veteran A-class welder, Hargens welded her initials to a plate that will become a part of the keel – a role she called a “privilege.”
“I am so honored and grateful for this incredible opportunity to sponsor the future USS Pierre,” said Hargens. “It is a privilege to be a part of this time-honored tradition and to have my initials welded to a plate that will become a part of the ship’s keel.
“I look forward to participating in the important milestones throughout the life of the USS Pierre, and to building a lifelong relationship with the ship and the sailors that will make up her crew. May God bless the USS Pierre.”
This is the second Navy ship to bear the name Pierre. The original USS Pierre was a World War II submarine chaser.
Austen Shipley is a staff writer for Yellowhammer News.
Mobile’s Austal USA, a state-of-the-art ship manufacturing facility, has won a contract from the Navy potentially worth $3.195 billion.
The contract commissions Austal USA to design and construct up to seven TAGOS-25 class ocean surveillance ships. The company is partnering with L3Harris, Noise Control Engineering, TAI Engineering, and Thoma-Sea Marine Constructors.
TAGOS ships are used to conduct surveillance by gathering underwater acoustical data. In doing so they help to support the Integrated Undersea Surveillance System.
“The Austal USA team is excited to support the U.S. Navy with this critical program,” said Rusty Murdaugh, Austal USA president. “We have enjoyed our long partnership with the Navy in delivering aluminum ships and we are honored to continue that relationship in delivering high-quality steel ships on schedule and on budget. This contract award was enabled by our continual focus on our people and our facilities.
“The Austal USA workforce is proud of our role in providing for the nation’s defense by delivering these ships to the Navy.”
Anthony Nigara, president of the Maritime Sector of L3Harris, said his company is ready to join the Austal USA on the project.
“As the electronic and propulsion systems integrator, we’re excited to be a partner on the Austal USA team to develop the next class of TAGOS ocean surveillance ships,” he said. “Our strong partnership with Austal reinforces our commitment to delivering advanced, surveillance-capable platforms to meet the U.S. Navy’s mission requirements.”
Austal USA is building the Navy’s Independence-variant Littoral Combat Ship and expeditionary fast transport. The award of the TAGOS program follows the recent awards to Austal USA such as the towing and salvage ship and the auxiliary floating drydock medium for the Navy and the Coast Guard offshore patrol cutter.
Austen Shipley is a staff writer for Yellowhammer News.
A cutting-edge marine vessel that can sail the high seas without a crew will be manufactured exclusively in Mobile through a partnership between Austal USA and California-based Saildrone Inc.
The two companies announced their strategic partnership in connection with the Saildrone Surveyor autonomous “uncrewed” surface vehicle.
The partnership “combines Saildrone’s … technology with Austal USA’s advanced manufacturing capabilities,” according to a news release issued by the companies. The companies said the partnership will provide the U.S. Navy and other government agency customers “a cutting-edge solution for maritime domain awareness, hydrographic survey and other missions requiring persistent wide area coverage.”
According to the news release, the partnership will help meet rapidly growing demand for Saildrone Surveyors. The 65-foot Surveyor is designed specifically for deep-ocean mapping and “Intelligence, Surveillance and Reconnaissance (ISR) applications,” both above and below the surface. All Saildrone vehicles are autonomous and uncrewed, providing “extreme endurance, reliability and cost-effective operations,” the companies said.
Austal USA, with its expertise in aluminum shipbuilding, will fabricate the Surveyor’s aluminum hulls.
“We are extremely pleased to enter into this agreement with Saildrone. It is a great fit as both of us are leaders in our respective markets, and we both strive to provide leading-edge solutions to the U.S. Navy,” Austal USA President Rusty Murdaugh said in the release. “With our lean manufacturing techniques and serial production capabilities, Austal USA will provide large scale fabrication of these vehicles, and with our partner Saildrone, rapidly get the capability to the fleet.”
Austal expects to begin manufacturing the Surveyor vehicles for the Navy in October.
Surveyor Sea Trials (60 sec) 1080p from Saildrone Inc. on Vimeo.
“Saildrone is the clear world leader in small uncrewed systems, with a track record of almost one million ocean miles under our belt on our 100-strong fleet,” said Richard Jenkins, Saildrone founder and CEO.
“Austal is leading the way in the large uncrewed sector, pioneering autonomy and reliability of much larger systems capable of carrying much heavier payloads. We see these two technologies as extremely complementary. Building these two extremes of size in the same facility, and leveraging Austal’s advanced manufacturing capabilities, will dramatically accelerate our ability to get Saildrones into the hands of our customers,” Jenkins said.
According to the news release, autonomous vessel capability has been identified as an area of strategic importance by the Navy, with Alabama quickly becoming the “epicenter of autonomous naval architecture.”
The news release said the partnership between Austal USA and Saildrone will “contribute to new jobs in Alabama and the continued growth in south Alabama’s development as a center for uncrewed surface platform technology.”
In July Austal USA was awarded a $156 million Navy contract option for the construction of two Navajo-class Towing, Salvage and Rescue Ships (T-ATS). With the award, the company is now under contract for four T-ATS. In April the company marked the beginning of a new era at its Mobile shipyard with the opening of a state-of-the-art facility for production of steel ships for the Navy and other customers. The addition of steel-shipbuilding capability complements the company’s aluminum-shipbuilding expertise at the Alabama site.
(Courtesy of Alabama NewsCenter)
Included in the fiscal year 2023 National Defense Authorization Act (NDAA) are numerous provisions supporting Alabama’s robust defense industry.
U.S. Rep. Jerry Carl (R-Mobile), a member of the House Armed Services Committee, took to the floor of the U.S. House of Representatives on Wednesday to encourage his colleagues to support the bill in a bipartisan manner.
“Mr. Speaker, I rise today in support of the NDAA for FY23. We’ve worked across the aisle on this bill, and I take great pride in it,” said Carl in addressing the chamber. “We have successfully fought back against the president’s cut in our defense budget, obviously due to inflation.”
Relating to South Alabama, the annual military appropriations package includes funding authorization for two Expeditionary Medical Ships that would be built by Austal USA in Mobile.
According to Carl, expanding the U.S. Navy’s fleet would provide the maritime branch with additional muscle to “counter threats” posed by the communist regime in China.
“For example, it gets the Navy back on track to building a large enough fleet to counter threats like China with 355 ships. This includes much-needed ships that will be built at Austal USA in Mobile, Alabama, and we are very proud of that,” he added. “It also takes care of our servicemembers and their families by giving a 4.6% pay raise to counter the Biden inflation.”
“I encourage my colleagues from both sides of the aisle to support the bill because it’s critical for the defense of this country,” concluded the congressman.
The NDAA, which earned committee approval last month in a 57-1 vote, is expected to be considered by the full body for passage Thursday night.
Mobile-based shipbuilder Austal USA has been awarded a U.S. Coast Guard contract, which has the potential to reach $3.3 billion in value, to construct 11 medium-endurance Offshore Patrol Cutters.
The shipbuilding award, which includes $209 million in immediate obligated funding, is in support of the maritime branch’s Offshore Patrol Cutter program. The program will commission up to 25 Heritage class cutters over the next two decades.
In a statement celebrating Austal USA’s contract award, U.S. Sen. Richard Shelby (R-Tuscaloosa), the vice chairman of the Senate Appropriations Committee and its Subcommittee on Defense, touted the Mobile-based shipbuilder’s operations in support of national security.
“The Coast Guard’s decision to select Austal USA to build its second round of Offshore Patrol Cutters highlights the world-class workforce and proven track record of the Mobile shipyard,” stated Shelby in a release. “This contract speaks to the reliability and strength of Austal employees along the Gulf Coast, as well as their ability to deliver. This is excellent news for the future of our Coast Guard and for shipbuilding in Alabama. I look forward to the positive impact that Austal and Mobile have on the security of our nation.”
RELATED: Austal USA: $100M steel shipbuilding facility in Mobile a ‘game changer’
Also touting the shipbuilder securing the U.S. Coast Guard contract was U.S. Rep. Jerry Carl (R-Mobile), a member of the House Armed Service Committee, who heaped praise upon Austal USA’s workforce.
“Congratulations to Austal USA on being awarded a contract to build up to 11 Offshore Patrol Cutters for the United States Coast Guard. This announcement is great news for Austal USA, south Alabama, and the defense interests of the United States,” advised Carl. “Thanks to our top-notch workforce and strong track record of shipbuilding along the Gulf Coast, Austal USA has a new opportunity to continue providing world-class ships for the Coast Guard.”
Carl touched on the South Alabama congressional district’s private sector prestige and his efforts to support local industry on Capitol Hill.
“Alabama’s First Congressional District is committed to producing, training, and equipping the world’s best Coast Guard, and I’m proud to be a fighter for them in Congress,” he noted. “I look forward to seeing these ships be built and put to use keeping our nation safe and secure for many years to come.”
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
Wednesday, the fiscal year 2023 National Defense Authorization Act (NDAA) passed the House Armed Services Committee by a vote of 57-1.
Included in the annual military appropriations package is the authorization of two Expeditionary Medical Ships, which was secured by U.S. Rep. Jerry Carl (R-Mobile), that will be constructed by Austal USA in Mobile.
In a statement detailing the funding authorization, Carl asserted that the investments in South Alabama’s shipbuilding industry would serve to have a significant impact for the local economy.
“I’m grateful the House Armed Services Committee has passed the Fiscal Year 2023 National Defense Authorization Act, which includes two Expeditionary Medical Ships to be built by Austal USA in Mobile,” Carl advised. “I’m proud to have secured authorization for these two vessels in the NDAA because they represent a massive investment in our local economy and our nation’s defense footprint. Austal USA’s continued contributions to our national defense interests help ensure our men and women in uniform have the best tools and equipment they need to protect our country from any and all threats.”
The House Armed Services Committee member hailed the fiscal year 2023 NDAA and said that it would serve to bolster the United States’ defense capabilities in confronting challenges posed by foreign adversaries.
“The Committee passed a good bill that includes a bipartisan boost to our overall defense spending, despite President Biden’s weak budget request that would have left us weak and vulnerable to our enemies,” noted Carl. “Now is not the time to fall behind Russia or China, so I’m proud to see the House Armed Services Committee pass an NDAA that fully meets our nation’s defense needs.”
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
Tuesday, Austal USA company leadership joined with military and government officials in Mobile to showcase the defense industry titan’s new $100 million steel shipbuilding facility.
According to the company, its 117,000-square-foot manufacturing addition will house state-of-the-art computerized and robotic steel processing equipment to meet current and future demands of the U.S. Navy and U.S. Coast Guard.
Celebrating Austal’s new facility was U.S. Rep. Jerry Carl (R-Mobile), a member of the House Armed Services Committee, who touched on the company’s vital contributions to the military’s maritime capabilities given the growing national security threats posed by U.S. adversaries.
“The opening of the new steel manufacturing line at Austal USA means south Alabama will be able to continue providing high-quality ships for the Navy,” stated Carl in a release. “This massive $100 million investment will also create jobs and spur economic growth throughout the region, while continuing to develop and grow our local workforce with the hiring of countless folks in the trades to meet the demands of the new line.”
The congressman added, “With increasing security threats around the world, the work being done by shipbuilders like Austal USA is even more important now than ever before. That’s why ensuring they are able to continue competing for future Navy programs is one of my top priorities in Congress. I’m proud of the incredible work being done right here in my district, and I look forward to seeing south Alabama become a major player when it comes to steel shipbuilding.”
A 60,000-square-foot stock yard will be utilized for handling the raw steel. Additionally, a 19,500-square-foot paint facility will provide the ability to paint and blast simultaneously in two separate cells, or both cells can be combined providing the ability to paint super-modules, the company advised.
Austal USA president Rusty Murdaugh stated that the company’s steel capability addition was a “game changer” for its operations in supporting the U.S. military.
“We are so excited to see our plans to add steel to our capabilities come to fruition. The addition of steel capability is a game changer as it opens up our capability to support the U.S. Navy, U.S. Coast Guard and other customers with high-quality ships,” said Murdaugh. “We appreciate the confidence the Department of Defense and the Department of the Navy have shown in us with the award of the DPA grant to get this project started and look forward to repaying that confidence with our future performance delivering high-quality steel ships.”
“Austal USA will operate our steel production line using the same lean manufacturing principles that we’ve refined over the last 15 years building LCS and EPFs for the Navy,” continued Murdaugh. “That process has resulted in Austal’s reputation for delivering quality ships on time and on budget ship after ship. We will bring that same reliable production capability to steel ship construction.”
Austal is under contract to build two Navajo-class Towing, Salvage and Rescue Ships (T-ATS), which are set to become the first steel ships constructed in the new facility.
The shipbuilder has delivered 15 Littoral Combat Ships (LCS) and 12 Expeditionary Fast Transports (EPF) to the Navy while another seven total aluminum Navy ships are under construction.
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
Mobile-based shipbuilder Austal USA on Monday announced that it had contracted with Alabama steelmaker SSAB to support the construction of new U.S. Navy Ships.
The work conducted will provide steel under Austal’s award from the Navy to build steel-hulled Towing, Salvage, and Rescue ships (T-ATS). According to the company, the partnership will directly support hundreds of jobs in the greater Mobile area.
SSAB, located in Mobile County, will provide Austal with various strength and sized steel plating, which will be capable of being designed for the construction of support ships and potential combat ships for the U.S. military.
Austal USA president Rusty Murdaugh noted the partnership’s efficiency as the two companies are based in close proximity to one another.
“SSAB not only provides us with quality steel, but also great flexibility due to its location adjacent to us here in Mobile, Ala.,” Murdaugh advised. “The ability to work quickly and in-person with them on current and future steel requirements by the U.S. Navy and Coast Guard is an asset to Austal that will support our business and economic growth in our community.”
SSAB Americas senior vice president and chief commercial officer Jeff Moskaluk hailed the collaboration as being beneficial to the region’s economic growth.
“Austal USA is a respected and valued partner to SSAB Americas,” declared Moskaluk. “Our participation in such an important and vital project, that will strengthen both the economic and national security of our country, makes this partnership even more meaningful. We are proud to work closely with Austal USA and demonstrate the service, quality and value that is delivered from an interconnected and local supply chain here in Alabama.”
Austal USA in March 2020 broke ground on its new steel manufacturing line to meet the federal government’s demand for steel-constructed ships. The shipbuilder advised that the new line in April will become operational as it is poised to begin construction on the T-ATS program.
Additionally, future Navy and U.S. Coast Guard steel programs will be supported by Austal’s steel production line.
U.S. Rep. Jerry Carl (R-Mobile) applauded the industrial alliance and asserted that the two South Alabama companies would serve to meet United States’ national security priorities.
“Today’s announcement of the partnership between Austal USA and SSAB is a big win for the steel industry and shipbuilding industry in south Alabama,” proclaimed Carl.” SSAB’s quality steel and close location to Austal USA will greatly enhance Austal USA’s ability to construct vessels quickly enough to meet the current and future national security needs of the United States.”
The congressman concluded, “This partnership is great news for our local workforce and economy, plus it will strengthen the national security footprint of the United States. I’m proud to represent Austal USA and SSAB, and I look forward to their continued success for years to come.”
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
U.S. Rep. Jerry Carl (R-Mobile) recently hosted fellow colleague and lead Republican on the House Armed Services Committee Mike Rogers (R-Saks) as the two GOP lawmakers toured Mobile-based Austal USA and Master Boat Builders.
The two shipbuilders are staples of Alabama’s first congressional district and sources of robust economic activity in South Alabama.
Carl, a member of the House Armed Services Committee, noted the contributions of both shipyards to the local economy.
“It was an honor to host my colleague, Rep. Mike Rogers, on tours of Austal USA and Master Boat Builders right here in my district,” stated Carl. “South Alabama is home to many world-class shipbuilding facilities, and the work they do is critical to our local economy and to the defense footprint of the United States. I’m proud to sit on the House Armed Services Committee, where I’m fighting for their continued success each and everyday.”
Rogers touted both company’s respected workforces and deemed the work of both shipbuilders to be of national importance.
“Continuing to invest in and build our maritime fleet is critical for our nation’s future,” advised Rogers. “I was glad to join Rep. Jerry Carl to see the hard work being done right here in Alabama at Austal USA and Master Boat Builders. The people of Austal USA and Master Boat Builders are building a better America.”
Austal USA president Rusty Murdaugh heaped praise on both congressmen for their efforts to support the company’s work in providing products critical to U.S. national security.
“It was a privilege hosting Congressman Rogers and Congressman Carl today,” said Murdaugh. “Congressman Rogers has been a champion of advancing our Nation’s military readiness throughout his career, and his support of Austal shipbuilding has been unwavering.”
He added, ‘Congressman Carl, from day one, has been a staunch advocate of national defense and Austal, our incredibly skilled workforce, and our families. We can’t thank them enough for all their support.”
Echoing Murdaugh’s sentiments was Master Boat Builders president Garrett Rice, who thanked Carl and Rogers for placing priority on supporting Alabama industry.
“Master Boat Builders was honored to host U.S. Representatives Jerry Carl and Mike Rogers to see the high-quality workboats and vessels being built right here in Alabama by our hardworking employees,” said Rice. “As leading members of the House Armed Services Committee, we greatly appreciate Representatives Carl and Rogers’ commitment to Alabama shipbuilding and shipyards across the country, which are critical to our economy and national security.”
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
After serving over half a year as Austal USA’s interim president, Rusty Murdaugh has been named permanent head of the Mobile-based shipbuilder. The company announced that the promotion became effective September 9.
Murdaugh, a long-time veteran of the defense industry, joined the company in 2017 as chief financial officer. In announcing the hire, Austal USA said he brings impressive business expertise and sound fiscal management skills to the company’s operations.
The industry professional formerly held leadership positions with Esterline Corporation, Avnet, United Technologies (formerly Goodrich), and Honeywell.
Austal USA board chairman Larry Cavaiola says Murdaugh has played a pivotal role in expanding the defense giant’s contract portfolio.
“Over the course of the last six months, the company has secured multiple contracts under Rusty’s leadership and is well-positioned for continued growth,” said Cavaiola. “Rusty has a clear strategic vision to grow the company’s business and lead Austal USA’s worldwide operations.”
The release states that as interim president, Murdaugh aggressively pursued the incorporation of steel shipbuilding to the Austal USA manufacturing operations. According to the company, he also led Austal USA’s facility expansion in Mobile by acquiring additional waterfront and services capability on the Mobile River.
The newly-announced president said that he sees potential for growth opportunities in the company’s future.
“I am honored to be selected to lead this great company,” Murdaugh stated. “I am excited about the opportunity to lead the world’s finest shipbuilders, and I’m looking forward to the growth ahead in the coming years as we win new shipbuilding and ship maintenance contracts.”
Austal USA says it has submitted a bid to build the U.S. Coast Guard’s Offshore Patrol Cutter and is executing a preliminary design and concept study for the U.S. Navy’s Light Amphibious Warship program. The company also recently secured two services and maintenance contracts, expanding its post-delivery business.
In August, the U.S. Navy announced that it had awarded the company a sustainment execution contract (SEC) to conduct repair, maintenance and modernization of all Littoral Combat Ships (LCS) stationed in San Diego. The award allows the shipbuilder to directly support U.S. military personnel in critical sea-based operations.
Additionally, the company is also expanding its Singapore service center in support of the Navy’s increased role throughout the Pacific region.
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
The U.S. Navy has awarded Mobile-based Austal USA a sustainment execution contract (SEC) to conduct repair, maintenance and modernization of all Littoral Combat Ships (LCS) homeported in San Diego. The award includes all Austal-built Independence-variant LCS as well as the west-coast-based Freedom-variant LCS.
Austal USA interim president Rusty Murdaugh said the contract allows the company to directly support U.S. military personnel.
“I’m proud of the hard work our service team has done to make this award possible,” Murdaugh said. “We are honored that this award puts us in a position to support the Sailors that deploy on these ships to protect and support our country and our allies.”
The contract award builds on Austal USA’s continued investment in the service business. The release says the award will enable the company to further expand its current San Diego service center while offering a greater range and depth of support available to the U.S. Navy. Austal USA is also expanding its Singapore service center to effectively support the Navy’s increased presence throughout the Pacific region. (more…)
The future USS Savannah (LCS 28) successfully completed acceptance trials in the Gulf of Mexico recently, Alabama’s Austal USA announced on Friday.
LCS 28, an Independence-variant littoral combat ship, is the fourth Austal-built ship for the U.S. Navy to complete acceptance trials in the last year, despite the global COVID-19 pandemic. The USS Savannah was built at Austal’s world-class campus in Mobile.
“It’s always exciting to see these great ships return from the Gulf after a successful sea trial event,” Austal USA interim president Rusty Murdaugh stated. “Working together with our Navy teammates Austal’s highly talented shipbuilders have prepared another combat ship for delivery and we look forward to handing her over to the Navy soon so she can join her sister ships on the West Coast preparing for deployment.” (more…)
The U.S. Navy last weekend commissioned the USS Mobile (LCS 26), which was built at Austal USA’s world-class manufacturing operation in its namesake city.
The Independence-variant littoral combat ship becomes the 16th ship Austal has delivered to the Navy over the last five years. LCS 26 was delivered to the Navy in late 2020.
U.S. Senator Tommy Tuberville (R-AL) delivered the commissioning ceremony’s principal address, per a Navy release.
“The United States has been the greatest source of good in the history of the world and we will continue to be a force for good because of the brave men and women that we have here today,” remarked Tuberville — a staunch supporter of Austal who serves on the Senate Armed Services Committee.
Guest speakers for the event also included Governor Kay Ivey, Mobile Mayor Sandy Stimpson and James Geurts — performing the duties of the undersecretary of the Navy. (more…)
Austal USA on Tuesday announced it has earned an Excellence in Safety award from American Equity Underwriters (AEU) for the Mobile shipbuilder’s strong commitment to safety in the workplace.
AEU is the leading provider of workers’ compensation for waterfront employers. The AEU Safety Awards program recognizes the strongest safety programs in the maritime industry nationwide.
“This year’s winners truly are the safest in the industry,” stated Jimmy Burgin, senior vice president and director of loss control at AEU. “The commitment of their management teams, supervisors, safety staff, and employees all combine to create safety programs that are worthy of this recognition.” (more…)
A bipartisan bill in Washington could bring a welcome influx of cash and resources to South Alabama’s shipbuilding industry. Senators and representatives from Mississippi, Virginia, Maine, New Hampshire and Wisconsin have introduced the Supplying Help to Infrastructure in Ports, Yards, and America’s Repair Docks (SHIPYARD) Act, which would appropriate $25 billion toward shipyard infrastructure improvements (you can always count on Congress to fit a tongue-tying, mouthful of a bill title into a catchy acronym).
While the lion’s share of the dollars would go to public shipyards outside of Alabama, $4 billion is reserved for work at private new construction and repair shipyards. Austal’s shipyard in Mobile and the Ingalls facility in Mississippi — which employs scores of Alabamians — fall into both of those categories.
The measure comes amid efforts within Congress and the Pentagon to grow the U.S. Navy as a response to the growth of China’s military power. In 2020, the U.S. Navy released its 30-year shipbuilding plan, which aims to grow its current fleet of fewer than 300 ships to a whopping 546 ships by 2050. Doing so will require an estimated $25.6 billion per year over that period.
While that growth seems sharp and expensive, for Washington seapower advocates, the Navy cannot grow fast enough. In 2017, Congress passed, and President Donald Trump signed, a bill stating that established a U.S. policy to achieve a 355-ship Navy. Under the Navy’s plan, the U.S. will not hit that mark until the mid-2030s. (more…)
Most people know that Alabama’s defense industry is a key driver of the state’s economy and major employer of Alabamians across the state. What can be less apparent is the impact that federal and state politics and polices have on the defense sector. With U.S. Senator Richard Shelby (R-AL), the top Republican on the powerful Senate Appropriations Committee, set to retire at the end of this term, many federal, state and industry leaders are concerned that the flow of federal dollars could dry up.
The first two articles in this three-part series focused on the major challenges the Alabama congressional delegation and state leaders face to maintain North and Central Alabama’s defense sectors. This article will dive into the issues confronting Southwest Alabama, particularly the Gulf Coast’s shipbuilding industry.
The key programs that have driven the shipbuilding industry in Alabama are the Littoral Combat Ship, known as LCS, and the Expeditionary Fast Transport ship. The LCS program has been the more prominent of the two, sustaining thousands of jobs and $1.8 billion in economic impact in the Mobile area. While work continues on previously contracted ships, its builder, Austal USA, fell short in a bid to secure a contract to build the next generation of small surface combatants for the U.S. Navy. Austal will need to secure future contracts to remain afloat (pun intended). (more…)