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SCA Weekly Report | July 4-8, 2022

Shipbuilders Council of America

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SCA Weekly Report | July 4-8, 2022





Trusted Internet: Cybersecurity 101 Webinar


Please join Jeff Stutzman, former Director of DoD's DoD/DIB Collaboration and Information Sharing Environment (DCISE) and now CEO of Trusted Internet for Cyber Security 101, a practical approach to satisfying government cyber requirements and protecting yourselves from the most critical threats.


The webinar will take place NEXT TUESDAY, July 12, 2022 at 10:00 AM Eastern Time. A link with more information and to register for the webinar is HERE



SCA Industry Impacts Survey


At the SCA 2022 Winter Meeting, the Industry Partners Committee recommended, and the SCA Board of Directors approved, a survey to solicit input from SCA members on the various impacts on the shipyard industrial base including resulting lingering COVID issues, supply chain disruptions, inflationary costs and federal budget uncertainty, among other industry concerns. 


Member participation in this survey is critical to conveying these adverse impacts on shipbuilding, ship repairing, and the businesses that support and supply the shipyard industry. The results of the survey will be aggregated industry data points to assist SCA's efforts to advocate for the shipyard industrial base to the Pentagon, Administration, and Congress.


The survey should not take any longer than 5-10 minutes to complete, and all results will be blinded and aggregated. This means that all company information will remain anonymous and only viewed by the SCA team.





House Moves to Consider NDAA on the Floor

Next week, the House is likely to begin consideration of the FY23 NDAA on the floor. The House Rules Committee this week posted more than 1100 proposed amendments that may also be considered by the chamber during floor consideration. The Rules committee will meet next week to structure the rule and the amendments under which the bill will be considered.


RELATED OP-ED: Congressman Wittman: Congress Must Deliver an NDAA that Meets the World as It Is





U.S. Coast Guard Awards Next Offshore Patrol Cutter Series to Austal USA

Austal USA has been selected to build the U.S. Coast Guard's next set of 11 Offshore Patrol Cutters (OPCs). The first vessel has been contracted by the US Coast Guard, with options for a further 10 vessels. Construction of the 110-meter OPC’s will take place at Austal USA’s new steel shipbuilding facility in Mobile, Alabama, and is expected to commence in 2023.


The OPCs provide a capability bridge between the service’s National Security Cutters, that operate in the open ocean, and the smaller, Fast Response Cutters that operate closer to shore. The new OPCs are capable of conducting a variety of missions including law enforcement, drug and migrant interdiction, and search and rescue operations.




Rhode Island to Open Solicitation for Up to 1 GW of New Offshore Wind Capacity

Rhode Island Governor Dan McKee has signed a bill that seeks to procure between 600 MW and 1 GW of newly developed offshore wind capacity. The bill, passed by the State Senate in June, requires Rhode Island’s primary utility company, Rhode Island Energy, to open the market-competitive procurement process no later than 15 October 2022. An additional 600 MW to 1 GW of offshore wind has the potential to meet at least 30 per cent of Rhode Island’s estimated 2030 electricity demand and to power about 340,000 homes each year.




Ingalls Shipbuilding to Hire More Than 2,000 Full-time Shipbuilders

Huntington Ingalls Industries (HII) recently announced that the company’s Ingalls Shipbuilding division plans to hire more than 2,000 full-time shipbuilders as part of its future workforce plans. "The new shipbuilders will join a skilled workforce that delivers critical capabilities to HII’s national security customers, including amphibious warships, destroyers and national security cutters. Ingalls Shipbuilding is located on an 800-acre facility, having recently completed a state-of-the-art upgrade that includes covered workspaces to keep shipbuilders dry and cool," HII said.


“With a shipbuilding legacy of nearly 84 years, Ingalls offers careers dedicated to a service mission — building ships that protect and defend our freedoms,” Ingalls Shipbuilding President Kari Wilkinson said. “We are excited to be adding new members to our team and to be providing a variety of stable career opportunities to our community.”


Biden Administration Offshore Drilling Proposal Would Allow up to 11 Sales

Last Friday, President Joe Biden's administration proposed up to 10 oil and gas lease sales in the Gulf of Mexico and one off the Alaska coast over the next five years — going against the Democrat's climate promises but scaling back a Trump-era plan that called for dozens of offshore drilling opportunities including in undeveloped areas.


The proposal brought immediate backlash from both environmentalists — who accused Biden of betraying the climate cause — and oil industry officials and allies, who said it would do little to help counter high energy prices. Gasoline prices are still averaging more than $4.80 a gallon, a strain on commuters and a political albatross for Biden's fellow Democrats going into the midterm elections. That has left the White House scrambling for solutions, including Biden's recent call for suspension of the 18.4 cents a gallon federal gas tax.


Global Supply Chain Pressures Continue to Slide

Global supply chain pressures continued to decline in June but are still at historically high levels, according to the New York Fed’s Global Supply Chain Pressure Index (GSCPI). The GSCPI, first introduced in January, is published monthly and uses a range of transportation cost data and manufacturing indicators to provide a gauge of global supply chain conditions. June’s reading was 2.41, representing the standard deviation from the historical average dating back to 1997, down from 2.58 in May and all-time peak of 4.35 in December 2021.




If you have any questions, please do not hesitate to contact the SCA staff.