Fincantieri Marinette Marine is seen April 12, 2024. PC: Fox 11 Online
(WTAQ-WLUK) — President Donald Trump announced the creation of a new office during his address to Congress Tuesday night — the Office of Shipbuilding.
It could mean a major boost to one of Northeast Wisconsin’s hallmark industries.
“To boost our defense-industrial base, we are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding,” said Trump in his speech. “And for that purpose, I am announcing tonight that we will create a new Office of Shipbuilding in the White House and offer special tax incentives to bring this industry home to America, where it belongs.”
The office would be a first in the country.
“First of all, it’s historic,” said Matthew Paxton, president of the Shipbuilders Council of America. “I don’t think there’s ever been an announcement by the president to establish an office in the White House for the sole focus to study the shipbuilding industrial base.”
Fincantieri Marinette Marine serves as one of the U.S. Navy’s defense contractors, including a $1 billion contract signed last May. Fincantieri manufactures ships in Marinette, Green Bay and Sturgeon Bay.
“It’s an exciting time to be in shipbuilding, especially here in Wisconsin,” said Fincantieri Marinette Marine in a statement.
We are enthusiastic about the President’s plans to establish the new Office of U.S. Shipbuilding. As a company with a couple thousand employees in both naval and commercial shipbuilding in NE Wisconsin, this sounds like great news. And it could positively impact our suppliers, partners, and the communities in which we live.
Both the Shipbuilders Council of America and Fincantieri Marinette Marine said they have received and continue to receive bipartisan support. Private shipbuilding could also receive federal funding down the road.
“I take great pride in representing Wisconsin’s shipbuilding industry,” said Democratic U.S. Sen. Tammy Baldwin in a statement. “And in his speech last night, the President acknowledged something I’ve been long fighting for — the need to revitalize the American shipbuilding industry and support American workers and companies.
America used to lead the world in shipbuilding, but for too long, China has cheated the rules, threatening our national security and jobs across the country. I’ve always said I’d work with anyone to deliver for Wisconsinites — so, Mr. President, let’s get to work. The first step is cracking down on China for cheating and holding them accountable — like I have long fought for — so we level the playing field for workers and support Made in America shipbuilding.
Republican U.S. Sen. Ron Johnson addressed the issue on Capitol Hill Wednesday.
“It’s something most people agree on,” said Johnson. “We’ve allowed our navy assets to decline to a dangerous level we’ve got to rebuild those. That’ll certainly help our American shipbuilding and our Wisconsin shipbuilding industries.”
However, the company’s recent labor shortages raises questions about their capability to handle additional projects.
“It’s undeniable that labor is our number one challenge,” said Paxton, referring to the shipbuilding industry as a whole. “But we will step up.”
The Ships for America Act was introduced into Congress last December and seeks to support American-made shipbuilding.
Under the Department of Defense’s proposed budget, the U.S. Navy would spend over $1 trillion ($40 billion per year) over the next 30 years, some entering Northeast Wisconsin’s economy. They would purchase a total of 364 new combat ships through 2054, increasing their fleet from 295 to 390.
Specifics on how much impact it will have locally are still unknown, but it’s likely to increase the workforce, if the company can handle it. Shipbuilding accounts for 8,140 jobs and $800 million in GDP annually, according to the Shipbuilders Council of America.
“If we’re truly going to do some of the things they’re envisioning in,” said Paxton. “Yeah, it’s going to have a big impact across the nation and in Wisconsin.”
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