Alaska boat builders: industry rides economic tide.

• Author: Bohi, Heidi
• Position: MARITIME

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The health of Alaska's boat building and repair business is a direct reflection of the strength of the state's most significant industries. When commercial fishing harvests are profitable, new boats, overhauls and expensive repairs and modifications keep shops and shipyards buzzing. The construction industry, which relies heavily on marine transportation to get building materials and supplies to communities statewide, is currently flat--not such a bad thing considering the economy--and expected to continue on this downward ramp.

As a result, builders in the maritime industry report that reduced funds available for roads, hospitals, schools, houses and other projects can be seen reflected in the decreasing number of orders here, too. Oil and gas, which is lobbying for tax breaks to keep top producers from pulling out, will again spend $3 billion on construction this year and three new oil fields are being developed on the North Slope. The largest construction client in the state, this also translates to steady work for boat builders.

Tourism, which is one of the industries hit the hardest by the recession, relies on boats ranging in size from smaller six-pack boats to tour boats and mega cruise ships. At the same time, 97 percent of all goods arrive via water on commercial ships that are built in Seattle, but at some point on their journeys are likely to require maintenance or repair.

HISTORY

The significance of Alaska's history with marine transportation and boat building is often understated. Although most images are limited to postcard renditions of chubby tugboats motoring toward the setting sun, in fact, Alaska's history is built around marine transportation more than anyplace else in the country. Coastal communities and business rely on container ships, ferries, oil tankers, research ships, barges, lighters, fishing vessels, tenders, tankers, towboats, dredges, cruise ships, tour boats, yachts and skiffs, air boats, dories, hovercrafts and inflatable rubber boats.

Besides the direct benefits from boat building and repairs, there are also equally important sub-industries that contribute to the state's economy: dry docks, floating drilling and production platforms for oil and gas, marine rigging and marine surveying.

Despite the diversity and far-reaching network of boat building and repair, the industry has a history of being touch and go, says Patrick Eberhardt, owner of Coastwise Corp., whether it's the trickle-down effects of the struggling fishing industry being felt, or the lagging statewide construction industry.

Coastwise is one of the state's best-known naval-architecture and marine-engineering firms serving Alaska's maritime industry, offering professional vessel design, marine structural and systems engineering, port engineering and waterborne transportation analysis to public- and private-sector clients. Most prominent Alaska vessel owners, operators and shipyards use Coastwise and the company has been involved in the acquisition of nearly all new public vessels in Alaska.

Looking ahead reveals the same story these vendors have lived before.

"It's hard to forecast because the industry has been sick for so many years," Eberhardt says.

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