Shipbuilding is a capital intensive and highly competitive business. Remarkably, Jeffboat of Jeffersonville, Indiana, lasted for 184 years. Now, the longest continually operated inland shipyard in the U.S., is reported to be shutting down. Founded in 1834 on the banks of the Ohio River by steamboat builder James Howard, the yard built 3,000 ships in its first 107 years.
In 1938, American Barge Line (ABL) purchased the vacant Sweeny Shipyard adjacent to the Howard Shipyard and named it the Jeffersonville Boat and Machine Company, which would come to be known as Jeffboat. In 1942, the US Navy bought both shipyards and used the facility to build 123 Landing Ship-Tanks (LSTs), 23 submarine chasers, and numerous other craft.
In recent years, Jeffboat has been primarily a builder of towboats and barges. Following a drop in orders and a series of layoffs, the management recently told the shipyard union that yard operations would shut down by the end of May.
In Ohio, I worked at the Lorain yard in the 70s.
The ships got bigger, Lorain couldn’t extend the dry dock past the railroad tracks, so they shut down, people try to blame the union, but that wasn’t the problem.
Alas it is the sign of the times. Bath Iron Works that gets naval contracts is alive by the seat of their pants. Recently it was approved they would get a 43 million dollar tax credit. Companies dont usually need this unless they are hemoraging.
Smaller companies are faring better than the large ones with lower overhead. No it isnt the unions fault. As one of the poor habits of BIW is to lay off a welder before they can get significant retirement or other options.