The U.S. Navy is doubling its planned order of naval ships from shipbuilders in Wisconsin and Alabama, which could bring 5,000 jobs to Wisconsin.
The Navy has given contracts for 20 ships to two companies, Marinette Marine Corp. in Marinette, and Austal USA in Mobile, Ala., Sen. Herb Kohl, D-Wis., announced Thursday.
Initially, the Navy ordered 10 ships from companies in each state but plans to make an additional 10 ships came about after a significant lowering in production costs, Kohl said in a statement.
Kohl said what makes these Littoral Combat Ships important is not only their functionality, but also how cost effective they are.
“One of the reasons that the Navy has decided to change its plans for the LCS is because Marinette and its prime contractor Lockheed Martin have done an amazing job of driving down costs for the taxpayers,” Kohl said.
Congress still has to approve the request for building the additional 10 ships.
Each new contract for more ships has the possibility of creating new jobs in the state. Marinette Marine estimated they will create 1,000 jobs, but Kohl’s estimate includes jobs created outside of the company by the contract.
Companies gained the naval ship contracts by working with the Secretary of the Navy.
“Marinette Marine and Lockheed Martin have worked hard for our sailors and our country – and their success shows,” Kohl said in a statement.
Since the company is near the border of Michigan and Wisconsin, it is likely many of the new jobs will go to Michigan residents, Sen. Carl Levin, D-Mich., said in a statement.
Levin said the contracts will be beneficial for taxpayers, workers in Michigan and Wisconsin and also for national security.
According to Levin, this increase in work could have an effect on the larger economies of both states.
There will be a large economic impact in the Menominee-Marinette region and across Michigan, Levin said, while Michigan suppliers will benefit as well.
Despite the proximity of this decision to the midterm elections, University of Wisconsin political science professor Charles Franklin said this decision has nothing to do with Republican gains.
According to Franklin, this contract is the result of months of work by legislators looking to create jobs.
Franklin said while he does not think this will have a huge impact on Wisconsin’s unemployment levels or economy, bringing more manufacturing jobs to the state is an important goal.
“All sorts of manufacturing contacts are, of course, an incremental addition. I don’t think there’s any expectation that this is tens of thousands of jobs,” Franklin said.
However, even small jobs gains help, Franklin said.
Franklin mentioned Oshkosh Trucks, a Wisconsin company that builds armored vehicles for military use in Afghanistan, as an example of military manufacturing contracts that have brought work to Wisconsin. Franklin added jobs gains such as this are just one step in restoring Wisconsin’s job market.
