Another U.S. Shipyard to Close?

Claude Berube / July 16, 2010

Can it get any worse for the workers of Louisiana? In just a few short years, Hurricane Katrina devastated New Orleans and the region; BP’s oil spill wrecked havoc with the fishing and tourism industry; and the government’s drilling moratorium is about to impact a significant segment of the Louisiana economy. Adding to all this, earlier this week Northrop Grumman stated that it would close its Avondale shipyard in Louisiana.

In the past decade, the Avondale shipyard built the San Antonio-class amphibious transport docks which has experienced construction and maintenance issues. In announcing its decision, Northrop Grumman cited “shipbuilding overcapacity” as one of the reasons for the closing.

The decision to close the Avondale shipyard raises two issues that Congress needs to address. (more…)