Articles

Davie Shipbuilding Update: We check on the “American Icebreaker Factory” underway in Greater Houston

By Bart Taylor, GHMA

In September last year we outlined the plans of Canadian shipbuilder Davie to invest in Greater Houston’s maritime manufacturing ecosystem. As we reported, the company is underway on a  “$1 billion overhaul of the historic Gulf Copper shipyard in Galveston, Texas, aiming to create the “American Icebreaker Factory”—a purpose-built facility for constructing U.S. Coast Guard’s Arctic Security Cutters.”

I connected with a Davie spokesperson for a quick Q&A:  

Q: It's an exciting time for Gulf Coast manufacturing -- including Davie's plan to create an “American Icebreaker Factory.” What's the current timeline, from build-out of Gulf Copper to staffing to production to delivery of the first vessel? (Recognizing delivery dates are estimates.)

A: We’re taking a phased approach to building out what we see as a transformational capability for U.S. shipbuilding. Over the next 24 months, our focus is on upgrading and expanding the Gulf Copper facility to support large-scale, complex vessel construction. 

In parallel, we’re ramping up workforce recruitment and training so that skilled teams are in place as production capacity comes online. Initial fabrication and early-stage production activities are expected to begin during the build-out period, with full-rate production following as key infrastructure is completed.

While delivery timelines depend on final contract awards and specifications, our goal is to move as quickly as possible from facility readiness to first steel cut, and ultimately to delivery of the first vessel in the latter part of this decade. 

Q: James Davies, President and CEO of Davie, forecast “2,000 direct jobs at Gulf Copper and more than 7,000 statewide,” with a total projected economic impact exceeding $9 billion. Can you provide an update on hiring—timing and talent mix? Who will the company be looking to hire, and when?

A: Hiring is already underway, and it will accelerate in phases alongside the facility build-out and production ramp. As with any major shipbuilding program, workforce growth will start with core leadership, engineering, and project management roles, followed by a significant expansion of skilled trades as construction activity increases.  

We’re looking for a broad mix of talent -- from welders, pipefitters, electricians, and machinists to naval architects, engineers, program managers, and supply chain specialists. Over time, we’ll also expand into support functions including quality assurance, logistics, and operations management.

Our goal is to build a durable workforce with strong local roots, supported by training and upskilling programs in partnership with regional institutions. Those interested in joining the team can learn more and apply through Gulf Copper’s careers page. 

Q: Describe how Houston (and Texas) fit into Davie’s global shipbuilding network and ecosystem.

Texas is central to Davie’s long-term strategy in the United States and represents a key pillar in our global shipbuilding network. Houston offers a unique combination of industrial capability, skilled labor, and access to a deep and diverse supply chain. 

We see Gulf Copper as a growing center of excellence for complex vessel construction, complementing Davie’s established operations in Canada and Europe. By integrating Texas into our broader ecosystem, we can share expertise, technology, and best practices across geographies while strengthening North American shipbuilding capacity. 

Working closely with the state of Texas and regional partners, our ambition is to develop one of the largest and most flexible shipyards in North America, purpose-built for the kinds of specialized hard-to-build vessels that are increasingly in demand.

Stay tuned to GHMA Update for ongoing reports. And let me know what to pass on. 

Bart Taylor is executive director of the Greater Houston Manufacturers Association. Reach him at [email protected]. 

Manufacturing Extension Partnership (MEP) chaos: How Texas and Houston are Impacted

By Bart Taylor, GHMA

Much has been reported recently on the state of the Department of Commerce’s NIST Manufacturing Extension Partnership program, or MEP. The program has been around since 1988, enacted to help small- and medium-sized U.S. manufacturers improve competitiveness, in a nutshell. 

It’s a worthy goal that’s led the efforts of all 50 MEP centers – one per state – including the Texas MEP, TMAC, or Texas Manufacturing Assistance Center. Centers receive federal dollars to offset expenses incurred to support manufacturers.

Yet a blistering report released late in 2024 from Commerce’s own auditor provided critics the opening they were looking for to kill the program – led by the Trump administration, who tried to defund the program in 2016 and today, has doubled down on efforts to scrub the budget of any MEP funding.

Those efforts have been thwarted by powerful friends and allies, including governors, congressional delegations, and corporate influencers. Funds have been clawed back. But it’s short-term funding; today the program is on life-support. 

Centers aren’t waiting around for the final ax to fall. In Massachusetts, the MEP is transitioning to a trade association model. The California MEP, long a network stalwart, simply morphed into a service provider. Every Center is assessing a path forward.  

For its part, TMAC is staying the course. I asked Rodney Reddic, TMAC’s Executive Director, about the Center’s future. “We have strong support from both Democrat and Republican representation across the nation, and we feel that the funding will be restored with the help of ASMC,” he wrote to me. The American Small Manufacturers Coalition (ASMC) is MEP’s Washington D.C.-based lobbyist. Reddic added, “This has happened on several occasions in the past, but we always get the funding restored.”

But truth be told, there’s no shortage of MEP critics. 

I’ve worked with multiple MEPs over the years – including TMAC. It’s been a stellar program, led by good people. Thousands of companies have benefitted. But if the MEP network survives, I think Houston manufacturers would benefit from key reforms.

• Spread the wealth. In Texas, your perspective on TMAC may depend on where your business is located. Support varies widely. TMAC spreads its federally-subsidized resources and services via a network of so-called “sub-recipients” – or regional nodes. In Greater Houston, UH is the new sub-recipient. TMAC and UH have work to do to be a true market-wide influencer here, in Texas’ largest manufacturing ecosystem. 

Others:

• Re-brand the MEP and align it with established, pro-manufacturing agencies. The name is clunky and truly, a vestige of the last century. Before changing the brand, find a home in the Federal bureaucracy aligned with its core mission: advancing US manufacturing. There are lots of potential landing spots, including the SBA, which has been a rumored destination.  

• Reformulate the desired outcomes of MEPs work. Trump’s team may be overly critical, but the current toolkit that many MEPs carry to market is indeed dated. Plus, many MEP Centers are no more than pass-through entities to sell consulting services. Subsidized by tax dollars. Which is fine, unless the Centers are competing with other service providers, which they are. Or if in excluding any vendor from their toolkit, expertise is lost in the process. Which it is.

• Change the way Centers are evaluated. MEPs are evaluated from “surveys” of customers meant to gauge the economic impact of services provided. It sounds great. But the process tends to lead MEPs to sell services it favors or can more easily measure. And collecting the data is a slog. Confirming its veracity is, well, difficult. Reimage the KPIs! 

Even if the Trump administration wins, and the MEP network loses, something new will take its place. Manufacturing Centers of Excellence should be a national priority. Arm it with the tools needed to help Houston and Texas manufacturers compete. You can contact Conrad Soltero, Regional Manager for the Gulf Coast TMAC Region, out of UH, at [email protected].

Bart Taylor is executive director of the Greater Houston Manufacturers Association. Reach him at [email protected].