Statement Delivered in Public Testimony

Port of Seattle Commission Meeting

Tuesday, 24 September 2013


Good afternoon, Mr. Chairman and members of the Port Commission. lam John Lockwood,
representing Vigor Industrial on Harbor Island.  I appreciate the opportunity to provide these comments
at today's meeting.

With 10,620 jobs, Washington State is the #10 contributor of labor compensation, jobs, and value added
to the country's shipbuilding and repair industry.  In Seattle alone, more than 2120 skilled tradesmen
and women work at Vigor, Kvichak, Foss, Pacific Fisherman, Lake Union Drydock, and other ship and
boat yards. They make an average annual wage of $73,630. That is 45% higher than the national

average for the private sector economy.

I cite these statistics to demonstrate that These Industrial Jobs Matter! They represent a valuable and
irreplaceable slice of our shrinking middle class. Skilled industrial positions provide family wage jobs for
folks without prerequisite four year degrees. They put people to work producing real, tangible, valuable
goods. Further, the continued growth of the maritime industrial base in Seattle is key to helping the
Port achieve the strategic objectives of its Century Agenda. And, as in every successful public-private
partnership, our industry needs the Port's continued strong support with the City, County, and State to
maintain the industrial areas and enclaves at which Our employees work  and produce - every day.

At Vigor Industrial, we're moving ahead smartly.  We're consolidating, modernizing and updating to
become more competitive and employ more people. We're pursuing emerging maritime markets like oil
and gas support in the Arctic and LNG. Our new training center on Harbor Island is turning out young
skilled, certified welders to refresh the industry. We remain committed to reinvigorating the marine
industrial base in Seattle and Puget Sound because These Industrial Jobs Matter!

Thank you, Mr. Chairman.

Attachments:

1.   The Economic Impact of the US Shipbuilding and Repair Industry by the State of Washington

2.   The Economic Impact of the US Shipbuilding and Repair Industry by Congressional District WA-7

THE ECONOMIC IMPACT
OF THE U.S. SHIPBUILDING & REPAIR INDUSTRY
BY THE STATE OF WASHINGTON

Washington is the #10 state contributor ofjobs, labor compensation, and value added related to
the shipbuilding and repair industry in the nation.

0      There are over 10,620 jobs as a result of domestic shipbuilding and repair in the
State of Washington.

0     The contribution to GDP in the State is over $972.8 million annually.


0     Nationally, the domestic shipbuilding and repair industry accounts for 402,010
jobs, $23.9 billion in labor income, and over $36 billion to the GDP. In 2012,
U.S. shipbuilders delivered 1,260 vessels.

0        Including direct, indirect and induced impacts, the economic impacts of the
industry as widespread and can be found in all 435 congressional districts.

0        Each direct job in the shipbuilding and repairing industry leads to another 2.7 jobs
nationally. Each dollar of direct labor income leads to another $2.03 in labor
income in other parts of the economy. Each dollar of GDP leads to another $2.66
in other GDP.

0       Average labor income per job was approximately $73,630 in 2011, 45% higher
than the national average for the private sector economy ($50,786).

Shipbuilders Council ofAmerica (SCA) is the national trade association representing
the U.S. shipyard industry. SCA members constitute the shipyard industrial base that
builds, repairs, maintains and modernizes U.S. Navy ships and craft, U.S. Coast Guard
vessels ofall sizes, as well as vesselsfor other U.S. government agencies. In addition,
SCA members build, repair and service America'seet ofcommercial vessels. Learn
more at www.5hipbuilders.org

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THE ECONOMIC IMPACT
OF THE US. SHIPBUILDING & REPAIR INDUSTRY
BY CONGRESSIONAL DISTRICT WA-7

Congressional District WA-7, represented by Congressman Jim McDerrnott (D), contributes
jobs, labor compensation, and value added related to the shipbuilding and repair industry.

WA-7 is home to 2,120 domestic jobs attributable to the shipbuilding and repair
industry.

The total gross domestic product (GDP) from shipbuilding and repair activity in
WA-7 exceeds $233.7 million annually. GDP reects the income earned by
labor, capital and any indirect business taxes generated by the shipbuilding and
repairing industry, according to PwC.

Jobs related to the domestic shipbuilding and repairing industry in WA-7 receive
total compensation in excess of$l60.9 million annually.

There are over 10,620 jobs as a result of domestic shipbuilding and repair in the
State of Washington.

The contribution to GDP in the State is over $972.8 million annually.

Nationally, the domestic shipbuilding and repair industry accounts for 402,010
jobs, $23.9 billion in labor income, and over $36 billion to the GDP. In 2012,
US. shipbuilders delivered 1,260 vessels.

Including direct, indirect and induced impacts, the economic impacts of the
industry as widespread and can be found in all 435 congressional districts.

Each direct job in the shipbuilding and repairing industry leads to another 2.7 jobs
nationally. Each dollar of direct labor income leads to another $2.03 in labor
income in other parts of the economy. Each dollar of GDP leads to another $2.66
in other GDP.

Average labor income perjob was approximately $73,630 in 2011, 45% higher
than the national average for the private sector economy ($50,786).