Deal Could Be Worth $3.16B for NASSCO
DEFENSE: First Contract For Oiler Is $640.2 Million
Brad Graves, SAN DIEGO BUSINESS JOURNAL
Thursday, July 7, 2016
“This is significant for San Diego,” said Kelly Cunningham, economist for the National University System, who called the deal “a true boost to the economy.” “The defense industry can be countercyclical” and can soften the impact from a slowing economy, Cunningham said. Jobs created under the contract are “the kind of jobs you want,” the economist added. They are jobs that bring in new dollars from the federal government, and jobs that bring spending power. Shipyard positions tend to be high-paying union jobs, Cunningham said. Cunningham estimated that San Diego’s shipbuilding and repair industry had $1.75 billion in sales in 2015, up from $1.35 billion in 2013. Total shipbuilding and repair jobs grew from 5,600 in 2013 to 7,300 in 2015.