U.S. dredging industry continues with $2.5B in newbuilds
The U.S. dredging industry is highly competitive and saves the taxpayer hundreds of millions of dollars every year.
In 2022, according to The Mike Hooks Report, An Analysis of the FY22 U.S. Federal Dredging Market, compiled in September 2023 finds the following:
- Fifty-two Jones Act Dredging Companies were awarded federal dredging contracts in FY2022,
- On average there were three bidders per project,
- On twenty projects there were five or more bidders,
- Seventy-two percent of the time the private sector industry winning bid was lower than the Independent Government Estimate (IGE),
- Ninety-five percent of the time the private sector industry winning bid was lower than the Government Estimated Awardable Range (GEAR), which is IGE + 25%,
- Fifty-nine projects lower by more than 10%, 27 projects lower by more than 25%, and 15 projects lower by more than 40%.
This means that the U.S. private sector dredging industry is fiercely competitive and is delivering services that saves the federal government, and therefore the taxpayer, hundreds of millions – $670M in FY22 alone, the Dredging Contractors of America (DCA) said.
New construction of Jones Act dredges – U.S. owned, built and crewed vessels have been rolling off the blocks for the past five years and will continue into the foreseeable future – over $2.5Billion in recapitalization.
Let’s review the shipyard order books on the publicly available announcements:
The FY2022 Mike Hooks Report is authored by Michael Gerhardt, Sr. VP of Dredging Contractors of America member company Mike Hooks, LLC.