New Canadian Shipbuilding Strategy

[Czech_pivo]

The faster we hook ourselves into that ecosystem the better.

It sure looks like that from the 10,000 ft level, without going there and getting into the weeds.

 

[Underway]

We brag about how all regions in Canada are brought into the fold for supplies parts/materials needed for the JSS or AOPS, but yet this leads to much higher costs and timelines to deliver a product. It also reduces the 'ownership' in ensuring that the suppliers deliver consistently a quality product.

Does it? I don't think it does lead to higher costs. That's a function of industrial output from our yards. We build more ships prices go down. Also Hanwha have vertically integrated a lot of their stuff, we haven't done that.

We don't yet know about the full ramifications of how Seaspan is building nor the change Irving is making for CSC. AOPS started rough, but it looks better the long the yard builds. Think about it this way. The average time a Korean has been in a yard building a ship has been 16 years. The longest time a Canadian has been in a yard building a ship has been 10.

We also have a cultural bias in Canada against the big shipyards and big procurement projects with incorrect, incomplete or just assumed incompetence where it may not be warranted. There is a reason Canada doesn't build stuff anymore. Because people want to tear them down when they do.

 

[lenaitch]

“All of our programs are a mess,” US Secretary of the Navy John Phelan told a US House hearing in June.

Because . . .

1. It's all Obama's/Biden's fault.
2. Too many DEI hires.
3. Too many women.
4. All the bad shops and yards are in Blue states and need to be moved.

 

[Czech_pivo]

Does it? I don't think it does lead to higher costs. That's a function of industrial output from our yards. We build more ships prices go down. Also Hanwha have vertically integrated a lot of their stuff, we haven't done that.

We don't yet know about the full ramifications of how Seaspan is building nor the change Irving is making for CSC. AOPS started rough, but it looks better the long the yard builds. Think about it this way. The average time a Korean has been in a yard building a ship has been 16 years. The longest time a Canadian has been in a yard building a ship has been 10.

We also have a cultural bias in Canada against the big shipyards and big procurement projects with incorrect, incomplete or just assumed incompetence where it may not be warranted. There is a reason Canada doesn't build stuff anymore. Because people want to tear them down when they do.

Understood.
I disagree with the distance/cost argument. There is a reason why manufacturing facilities insist on their suppliers co-locating near their facilities - time/distance does directly translate into money/savings.

I'd like to point out again the amount of money that Hanwha dropped into 1 facility, 5 billion USD, of their own money, and compare that to what Seaspan/Irving invested. Lets see if Irving or Seaspan comes back to the Feds in the next 6-15 months about the need to expand this facility or refurbish that facility and directly ask the Feds for 'grants' or 'long term loans with no tax' or 'tax holidays'.

There is definitely a Tall Poppy Syndrome within Canada - not just at a company level but 100% at an individual level.