The shipbuilding and maintenance industry is in a severe multi-year slump. So it should come as not surprise that the NASSCO (National Steel and Shipbuilding Company) division of Falls Church, Virginia-based General Dynamics has sent layoff notices to approximately 1,500 workers as a warning of possible job loss. However, the most immediate layoff was caused by an unpredictable accident and may result in 350 actual layoffs, including 129 welders, 85 electricians, 84 painters and 82 pipe fitters resulting from accidental damage to a dry-dock facility.
It appears that the July 11, 2018 accident affected a cofferdam that keeps water out of the dry-dock area and the subsequent flooded area impacted a 70,000-ton military ship under construction with 4,000,000 gallons of water. The accident caused will cause a construction delay and push-back the fulfillment of the next contracted project, hence the layoffs.
The company owns and operated three shipyards including Norfolk, Virginia, Mayport, Florida, and the largest full service shipyard on the West Coat in San Diego, California. The company designs, builds, outfits, and maintains ships for both military and commercial customers. And, an increase in military business is anticipated as the Trump Administration reinforces existing military capabilities and adds additional projects to its build-out list.
Are you wondering, Am I Next?