Fraser Industries CEO Patrick V. Kelly on shipbuilding growth, modernization
Fraser Industries LLC, a 138-year-old shipyard based in Superior, Wisconsin, is gearing up for expansion in the domestic shipbuilding sector. In a recent interview with WorkBoat, CEO Patrick V. Kelly shed light on the shipyard’s strategic plans and partnerships to propel its growth trajectory.
Overview of Fraser Industries and its Market Reach
Fraser Industries stands out as a versatile shipyard, engaged in the repair and construction of vessels for commercial and military clients. With the capability to work with aluminum and steel, Fraser caters to a wide range of customers, making it a unique player in the industry.
Situated in the Duluth-Superior Harbor complex, one of North America’s top 20 ports by tonnage, Fraser benefits from a prime location for repair work. The constant flow of lakers transporting various commodities like taconite, grain, coal, and wind turbine components ensures a steady stream of repair projects for the shipyard.
During peak seasons in January, February, and March, Fraser’s workforce swells to 600 employees to handle the influx of vessels for repairs. To bridge the gap during slower periods, Fraser is exploring new construction projects with partners like Lake Assault Boats, Northern Engineering, and Fraser Shipyards.
Insights into the Great Lakes Shipyard Market
Kelly views the Great Lakes shipyard market as a hub of activity driven by the movement of taconite for steel production. With the resurgence of industrial activities in the United States, the Great Lakes region holds immense potential for business growth. Despite operating at only 50% capacity, the region offers ample opportunities for new ventures and innovative business models.
Fraser’s Partnership with HD Korea Shipbuilding & Offshore Engineering
Fraser’s collaboration with HD Korea Shipbuilding & Offshore Engineering signifies a strategic move to enhance its shipbuilding capabilities. By leveraging the latest technologies and knowledge-sharing with Korean shipbuilders, Fraser aims to increase its production capacity and undertake larger projects in the future.
Formation of the Great Lakes Alliance of Shipyards
The establishment of the Great Lakes Alliance of Shipyards marks a significant development in the region’s maritime sector. By joining forces, multiple shipyards can expedite the delivery of vessels, as demonstrated in the Coast Guard’s Homeland Security Cutter-Light program. The alliance aims to streamline operations, standardize processes, and deliver high-quality vessels within shorter timelines.
Challenges and Opportunities for U.S. Shipyards
While most U.S. shipyards face constraints like limited acreage and workforce shortages, Fraser Industries stands out for its ample land availability and skilled workforce. With a focus on innovation, strategic partnerships, and efficient operations, Fraser is poised to make a mark in the evolving shipbuilding landscape.
In conclusion, Fraser Industries’ proactive approach to modernization, strategic partnerships, and market expansion positions it as a key player in the burgeoning U.S. shipbuilding industry. With a strong focus on quality, efficiency, and collaboration, Fraser is set to sail towards a successful future in the maritime domain. Fraser Shipyards, located in Superior, is facing a challenge when it comes to finding skilled labor. The company believes that there are great people in technical and community college programs in the area. They support six different colleges and programs by providing surplus equipment for training, scrap steel and aluminum, and employees who teach classes after their shifts. Fraser Shipyards also hires graduates from these programs, with some cases of hiring up to 80% of a graduating class. With additional funding, these programs could accept more students, creating a positive cycle of support and employment opportunities.
Looking ahead five to ten years, success for Fraser Shipyards would involve better utilizing their 100-acre campus in Superior, completing expansion projects, adding production space, increasing employment, and incorporating new technologies into the yard. The company also sees opportunities for shipbuilding and repair in other locations around the Great Lakes, such as Lake Erie, Lake Ontario, and the St. Lawrence Seaway. The Great Lakes provide unique advantages for maritime activities, including ideal conditions for testing airborne, surface, and subsurface drone arrays. Lake Michigan, in particular, is seen as a secure location for such testing, with some referring to it as “Area 52” akin to the Air Force’s Area 51.
As the importance of Arctic work grows, operating in and under ice will become increasingly valuable. The Great Lakes provide deepwater, ocean-like conditions, severe sea states, and winter ice, making them a valuable resource for maritime opportunities. Fraser Shipyards envisions participating in expansions and buildouts in the region, leveraging the unique geographic advantages of the Great Lakes for future growth.
