While many people are focused on growth in the tech and clean energy sectors, it is important to remember that heavy industries like manufacturing and construction are still vital parts of our economy! Shipbuilding is one of those “traditional” industries that often gets overlooked today, but has a history as old as the nation itself. Fortunately, this industry is getting an injection of growth with Austal USA’s decision to invest almost $300 million in expanding its operations in Mobile, Alabama.
This expansion is expected to add over 1,000 jobs, primarily focused on building steel modules that form the bases of U.S. Coast Guard and U.S. Navy ships. Thanks to modern technology, the expanded capacity will be able to shift to producing steel modules for different types of vessels, such as submarines. Previously, the Austal facility in Mobile focused on producing aluminum hulls. The company has declared that its expansion will make it a stronger and more versatile producer for the U.S. military.
The Defense Industry is a Major Employer
The defense industry is a major employer in the United States, supporting up to 2 million jobs. As many as 800,000 or so jobs are directly for defense contractors, or firms that produce military weapons, equipment, and supplies. Austal, a large multinational corporation, is a longtime defense contractor for the U.S. and some of its allies, including Australia, Kuwait, Malta, Yemen, and Trinidad and Tobago. Despite its global reach, Austal seeks to help with local employment by partnering with AIDT to provide job training in Mobile. In fact, a recent call for applicants for Austal job openings stated that no experience was necessary.
Defense industry jobs are considered to be in a precarious position thirty years after the end of the Cold War. Supporters of the industry say that the government should be more supportive of its longtime contractors, including Austal, so that their capacity will be available when sudden increases in need for equipment occur, like the 2022 start of the Russo-Ukrainian War and the 2023 eruption of the Israeli-Hezbollah War. The defense cuts made in the 1990s resulted in the U.S. having less equipment to provide to Ukraine and Israel in their time of need.
Rising Tensions in the Pacific Region Call for Stronger Navy
Austal’s investment and expansion is good news for the U.S. Navy, which is considered to be in a weakened state compared to the Cold War. As China increases its military strength in the Pacific region, many have called for the United States to invest in its shipbuilding capacity to maintain its superpower status. Austal USA is helping the U.S. make a comeback in terms of maintaining peace in the Pacific, which is important as China is increasingly eyeing the possibility of retaking the island of Taiwan. Once the company’s Mobile expansion is producing new Navy and Coast Guard vessels, China may be dissuaded from taking aggressive actions against us or our allies. Industry will help us maintain peace through strength, as former U.S. president Ronald Reagan intended!
Image credit: Austal
