Hello and welcome to the Mobile Matters podcast, powered by the Mobile Chamber, where we’re driving deeper into important topics that make a significant impact. A mobile thriving business community. I’m your host and president and CEO and mobile chamber, Bradley Byrne. On today’s episode, we’re learning more about the growth and announcements we’ve seen coming out of Austal over the past year.

Some very exciting stuff. I’m pleased to welcome Larry Ryder with Austal. Larry, thanks for coming in. Thanks for having me Bradley. So let’s start with you. You’re the vice president of business development and external relations for Austal USA. What does your typical day look like?  Yeah, I think the only thing typical about my day is it usually starts with a plane on a Monday and usually includes a chamber event here in Mobile, but, uh,  We like to hear that.

Yeah, absolutely. Um, no, really, you know, my, my team is responsible for growing the business. So it, uh, every week is something different. We’re working, uh, you know, here locally in Mobile. We’re working in Montgomery. We’re working up in DC where, you know, things happen, um, you know, either with our customers or with the congressional delegations trying to look out to see what’s next and to position the company to continue to grow.

You know, right now you look at our, our yard and our portfolio, we’re building steel ships, we’re building aluminum ships, submarine modules, autonomy.  We’ve got our ship repair facility out in San Diego. So we look totally different than we did five years ago. Um, You know, me and my team are looking to see how we’re going to be totally different in, you know, 10 years from now or five years from now and  how we’re going to grow to 10, 000, a workforce of 10, 000 after we get to 5, 000 here in the next couple of years.

Well, we really like to hear that. So  we have had a lot of announcements for y’all this year, but before we get to that, just go into a little bit of the history of also here in Mobile. Yeah, it’s a good time for that question. Cause we’re about to hit our 25th anniversary here in Mobile. So it’s a pretty exciting time.

We were looking at, uh, you know, at back. It how we got to where we are today with the, uh, with our community here in Mobile. Um, you know, really it was a visionary business leader, john Rothwell, who you’ve met, know our founder. Um, I think it’s pretty audacious for him to sit in western Australia and say he was going to come to the U.

1. And build warships for the United States Navy. Um, But here we are, 32 ships delivered to the Navy later. Um, so it’s a interesting story of coming over here, taking some business risk and really establishing a world class facility. The team that did that, you know, we still have some folks from that time period that are here working in the yard still and some folks like Bill Fister, who led the effort to to select the site and Mobile that proved to be a fantastic decision.

You know, he’s still here in the community. So. You know, that’s how we started here.  Since then, we’ve incrementally built out the facility.  Uh, we started with the, uh, the assembly bays that straddle I 10 that you, you can’t help but see as you, you come into Mobile from, uh, from the east. Um, we then built out the modular manufacturing facility, the MMF, that’s, that still remains the, you know, the heartbeat of the yard.

Um,  a couple years ago, we, we cut the ribbon with, uh, with Governor Ivey on the, uh, the steel panel line, which opened up a whole new You know, scope of work for us to pursue. And, uh, now, you know, we’re getting ready to build out the, uh, the rest of the yard, the two new buildings that will continue to grow the company.

So it’s a, it’s a neat history. The, um, you know, the, the way we got here, it, it was a pretty impressive decision by John Rothwell.  You know, I worked with y’all pretty closely when I was in Congress and back then  you only had aluminum chips. And then in 2020. The Navy, uh, provides some Defense Production Act money for you to be able to go into steel fabrication.

So now that opens up a much wider aperture for you. So More specifically, what type of ships are y’all able to build today?  Yeah. So it, it, it has pretty been interesting. It’d been an interesting time in that transition, the, uh, you know, pivoting from being an all aluminum yard to, uh, a steel and aluminum yard has, uh, been a challenge, but it’s opened up a lot of new programs where we’re still building.

The LCS, we’ve got one more to deliver, LCS 38 Pierre will be the last of 19 ships in that class that you had a lot to do with ensuring it, uh, remained funded and, you know, right now you look out at the Pacific and they’re performing really well. They’re getting ready to deploy into, uh, into the Persian Gulf.

Um, so that’s another big step forward for that program.  Um, we are two more EPFs to deliver in aluminum and then the aluminum line will shift over to the  the Expeditionary Medical Ship or EMS, um, so that will keep the aluminum line going. But then our pivot to steel, the, uh, what’s really new about the yard, we, uh, we started  working the OPC, the Offshore Patrol Cutter Program for the Coast Guard before we We had the funding from, uh, from DPA to, to move into steel.

Uh, we started with a very small design contract, but it proved a pretty important move because it set us up for, for that win. So now we have two really foundational programs in steel. The Coast Guard’s Offshore Patrol Cutter, or OPC, that we started construction on our first of 11 ships a few weeks ago.

And we have the TAGOS program for the Navy, a Ocean Surveillance Ship. Those two programs are over six and a half billion dollars worth of backlog. So that gives us a nice stable base to work for, work forward from. We’re also building the dry dock AFDM that if you look over across the bay you’ll see those massive pontoons sitting out in the, uh, the yard.

It’s a, it’s a one off major, uh, project. We’re building landing craft for the Navy that will be used to support the Marine Corps landing craft utility. We’re building a towing and salvage ship, uh, TATS program. for the  for the Navy as well.  We’re building autonomous ships over there. We have one more autonomous ship to deliver and then submarine and aircraft carrier modules.

So the portfolio we have today is I think unmatched by any other shipyard. You can’t take a one hour tour in any other yard and see that diversity of of products. So it  was a big change. I think we’re coming through it pretty well. Well, you know, we’ve had a couple of, uh, expansions, uh, groundbreakings with you this year.

Let’s talk about the first one, which was back in July. Y’all announced a 288 million expansion, the final assembly building two, and the shiplift.  And there are a thousand jobs associated with just that one segment of expansion. What will that facility allow you to do?  So that building, Final Assembly 2 or F.

1. 2, provides almost 200, 000 square feet of indoor manufacturing space. That’s where we’re going to do the assembly of our new steel ships. Um, the, the offshore patrol cutter and Tegos will be built in there. The, um, You know, right now the assembly bays we have are designed for aluminum. So these larger, heavier steel ships required a new building.

So it gives us not just more capacity, it gives us capability to build bigger and larger ships.  Once we get through OPC and Tagos get those first ships in there, then we’re We, we designed that building to support the frigate. So when the frigate follow yard comes along, we’re going to be, uh, well suited as a facility to go after that.

You mentioned the, um, the ship lift, the ship lift gives us the ability to, to launch those new heavier steel ships. And that too is designed to support the frigate. So going forward, we’re in a good place. Final assembly, uh, to, you know, that basically doubles the assembly base space that we have in all of our current buildings right now.

So when will that be completed? So that should be completed the end of 26, 2026. Wow. That’s just a couple of years away. It’s a couple of years away. We just had the ground baking a couple of months ago. The, uh, we were driving through there today. The, the, the prep work on this site is going pretty well.

That’s great news. Well, it’s time for a brief sponsor break, but when we come back, we’re going to talk about. A new venture for Austal and that’s submarines. Way cool. We’ll be right back.

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Back on the Mobile Matters podcast, we’re here with Larry Ryder with Austal.  Now, Larry, before the break, we talked about the final assembly building two and the shiplift,  but then in October. You broke ground on the new module fabrication facility for submarine production. Tell us about that project.  Yeah, so that project, MMF 3, Module Manufacturing Facility 3, we just broke ground, as you mentioned, a couple weeks ago.

That facility, combined with Final Assembly 2 that we just talked about before the break, is going to  be about 750 million of expansion underway in our  So it’s pretty exciting. MMF  3 is going to give us the ability to support the Navy’s submarine programs, the Columbia class and Virginia class submarines, two of the nation’s most important submarines.

acquisition programs. Um, there’s been a lot of talk he’s seen in the press about needing to expand the submarine industrial base. Well, the Navy picked mobile is probably ground zero to start that effort in terms of growing the industrial base to try to get those programs up to the delivery cadence that the nation needs.

So we’re building out MMF three, it’s going to be 360, 000 square feet of indoor manufacturing space. It’s going to be optimized to produce modules for both the Columbia and Virginia class programs. What we’re going to do here in Mobile is manufacture and outfit those modules. Then we will put them on a barge and ship them up to electric boat, where those modules will be put into the, uh, to the submarines for final assembly.

Like the final assembly two building, it’s going to provide, it’s going to provide about a thousand jobs, uh, just dedicated to submarine production. So it’s a, a big change for us in some ways in getting into submarines. I don’t think anyone a couple years ago would have talked about Austal as a, a player in the submarine industrial base.

Thanks. But it’s really goes to our core capability, our core competency of building modules, serial production of the modules. So we’re going to take that capability and put it against the submarine industrial base and help get those programs onto the delivery cadence.  We’re also going to use MMF3 as a test bed to, or more of a pilot program to incorporate advanced manufacturing capabilities, robotics, uh, internet of things, and those kinds of things that, uh, We will prove the concept out in MMF 3 and then expand it throughout the shipyard.

So, we’re, we’re pretty excited about what MMF 3 means to the yard going forward. Well, you probably understated how important these submarine programs are. It’s the single biggest priority for the Navy. And it’s absolutely imperative to get that Columbia class out there to replace the Ohio class that’s about 50 years old.

So, this goes to the heart of the defense of the United States of America, the nuclear triad and all that. So,  Timeline on this particular facility.  Absolutely. You’re absolutely right. I mean, Columbia is the number one program, you know, it’s a privilege for us to be part of it. We, uh, we’re glad the Navy came to us and saw our capability to support, and we’re working closely with the Navy and electric boat to make sure that, you know, we do our part to get, uh, you know, the lead ship, the district of Columbia out there on time.

Uh, we’re gonna open it up in, uh, operationally in two phases. The first phase, uh, will provide the high Bay area, high Bay area that’s needed, and that will be summer of 26 mm-Hmm, . And then the rest of the building will be fully operational, uh, December 26. So similar to FA two, but we’re accelerating that.

Phase one because of the, as you said, there’s, there’s a need to get those programs up and running. Absolutely. The need for that. So you got two major construction projects going on real close to one another on your shipyard. So how much does that going to cost?  The, uh, the second one is 450 million project and, um, you know, that was funded largely by the Navy.

So, uh,  we’re appreciative of that. But, uh, yeah, we have, you know, between the two programs, we have 750, 800 million of investment going on here in Mobile. Well, that shows the confidence the Navy has in y’all. They wouldn’t just plunk down that money for anybody. So, big shot in arm, but also a real vote of confidence.

I think it’s a vote of confidence in, in Austal, USA, but also in, in Mobile and the region. You know, they, they looked across the country and, and identified where they could find.  and the infrastructure in the community that would support it. So yeah, it’s a, it’s a big deal for us and, and, uh,  a boost of confidence in, in the work we’ve done in the past, but also this whole region and the value that the Navy sees in it.

Well, it’s almost 700 million in just pure construction,  but at the end of the day, we’ll have. 2, 000 new jobs between those two in the Mobile area. So let’s talk about workforce. What are your biggest needs in the shipyard? Workforce?  What do you mean by workforce? What kind of jobs? We have needs pretty much across the board, um, in all the trades.

Right now we’re focused on designers, pipe fitters, pipe welders and outfitters. Um,  those are the current needs, but those needs are going to be growing. Like you said, 2000 jobs over the next 24, 36 months. So we, we have a, a need across all the trades. We have some near term requirements.  You know, we’re fortunate that we have an experienced workforce.

The majority of our folks have been in at the yard over five years. So that’s going to help us integrate these, these jobs. The new workforce is we, uh, you know, be higher on a lot of green folks to, uh, get them trained up and become the workforce of the future. Uh, you know, we have one of the safest yards in the country.

We have some of the best working conditions. We’re indoors, which is going to help with recruiting. But, um, but yeah, we have a big need and we’re working with the community and your folks to, uh,  to attack it. Yeah. We’re committed to trying to help you get the right workforce. And I say the right workforce, you can’t just hire anybody.

People have to have the skills for. What you’re looking for. So if there’s somebody out there listening and they would like to get on and work come work for y’all What would they do?  Well, the first step is to go to the website, Austalusajobs. com,  where you can find a listing of all of the, uh, the open positions.

Um, there’s also some information there about the apprenticeship program that we’re starting up again, that, uh, we’ve done in the past that was very successful.  We’re working with the community colleges, the Alabama Community College system, you know, Bishop State, uh, Coastal, Reed State, Wallace especially, um,  AIDT, working together with, with them to try to put curriculum together.

So people that have different, um, you know, different desires and different trades, whether it’s welders, pipe fitters, that they can get into a curriculum that will, will get them prepared to come join the shipbuilding team. We’re working with, uh,  with your team and others to help get the word out so that, uh, we’re telling the story of what a, what a career in shipbuilding means, that, uh, there is a good career to, uh, to be had with this, uh, in the trades.

You know, I mentioned we’re getting the apprenticeship program up and running again. And, um,  Getting out to the schools, starting to again, tell the story about the value of a manufacturing career. Yeah. You know, I’m amazed when we, when we get out in the schools, learning how little some of the principals and teachers know about what y’all are doing.

So. We’ve had to educate the educators so that they can in turn work with the students to get them into these great careers. And they are careers. Absolutely. A lot of times people say jobs. I say, no, this is a career. This is a lifetime thing. It’s so great for a young person, a young man or young woman to get into this.

So a company as big as Austal is  going to have a pretty big impact economically on our community. What can you tell us about that?  Yeah, so we’re, we’re definitely focused on growing the economy here with us. Um, right now we have about 250 suppliers in Alabama, over half of those are here locally. Um,  majority of those are small businesses.

We’re just wrapping up a study right now with the University of South Alabama that calculates in 2025 our economic impact. We’ll generate 6, 000 direct and indirect jobs, 450 million in earnings, and 1. 4 billion in revenue. That’s in Mobile County alone. And then as we, as we go to the, uh, to the region, the state, and nation, those numbers grow even bigger.

So, yeah, like, I think we’re a, going to continue to be a big contributor to the local economy and, and grow with the economy. Well, particularly with some of these programs, like the submitting programs are long term programs, so. This economic impact isn’t a flash in the pan. This is something that’s going to be here for a long time.

We’re going to be here for a long time. We’ve got 25 years under our belts. We’re, uh, you know, we’re, like I said, we’re a team. Growing to 5, 000 and we’re looking to see how we turn that 5, 000 into 10, 000. 10, 000 is beginning to sound like World War II when we had to basically hot bunk people in beds and during shift work.

So, um, but we’ve got more time to do it in so we can do it a little more, uh,  relaxed manner than we had to during World War II.  We do have time, but and, but there is the need too. We really need to Build out this defense industrial base. It’s, you know, been in decline over the last few decades as you know Well, and uh, I think Austal in the region are well positioned to be part of that Well, I do too, but it there’s there are challenges there, but I just feel like we’re going to meet those challenges I have enough confidence in this community Have enough confidence in y’all and have enough confidence in the navy that we’ll get that done But you know, you don’t just have an economic impact.

You have a pretty important impact as a community partner so What are y’all doing out in the community besides, besides just creating jobs? No, that, that kind of gets to the fun part. The, um, you know, we try to be a good partner across the community. We’re involved in a lot of different organizations and charities.

Um, you know, my team leads the community outreach program for the company. And, you know, I think a lot of, you know, Jess Wofford, she does a great job leading that for, for my team. Um, we have a great workforce and each quarter we. We go through and look at the different events and programs that, that our folks have been involved with as leaders of local organizations and charities.

And, you know, it’s just really an incredible list to go through each quarter and see what our folks are doing just on their own, you know, not even, um, You know, as part of an organized hostile event, but you know, from a hostile corporate perspective, we’re supporting over 50 organizations locally. We try to be involved in  obviously the chamber and, you know, partners for growth and the different initiatives, um,  you know, the different downtown mobile lines, all those,  um, types of events that work to grow the community as well as the charities.

Um, our biggest single event, The most fun event, my pet project that I love working is our golf tournament, our annual hostel charity golf tournament. That’s coming up again in March. And that.  allows us with our, you know, our team of vendors and suppliers and partners out in town. We put about 220, 000 out of that event alone into charities, and we just announced the charities for for this coming golf tournament.

We’ve got 14 great charities picked out all locally. So, yeah, we do place a lot of emphasis on Making sure we’re giving back and supporting the initiatives to grow the company and, and be part of the community in, you know, in more than just hiring a workforce. Well, y’all are more than great chamber members.

Y’all are leaders in the community in many ways. And, um, and we appreciate so much what y’all do both here at the chamber and around. So is there anything you wish people in Mobile knew more about also that we haven’t covered?  Well, I think we’ve covered it pretty well. The, um, you know, we, we really enjoy being here, part of the community.

We, um, you know, working with you and your team is, has been great. You know, Mayor Stimson and his team, our delegation up in, uh, in Montgomery, and then working with Congress, our delegation on both sides of the, uh, the, uh, uh, The house or the capitol, the uh, the senate and the house. So I, I think we um, you know, we, we do understand that we’re in a great position here.

We’ve got a great team to work with and we’re looking forward to continue to, to grow.  Well, we’re looking forward to growing with you, Larry. So thank you so much for being here. We look forward to seeing these projects go up along the waterfront. Our next episode will feature our manufacturer and innovator of the year, From the heart of the mobile business community.

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