Alabama Wins Business Facilities’ Award for Austal USA Expansion Deal

08 Jan, 2025

Alabama has earned Business Facilities magazine’s prestigious “Deal of the Year” Impact Award in the Defense Manufacturing category for Austal USA’s transformative expansions at its Mobile shipyard. These projects, valued at $750 million, will create 2,000 jobs, reaffirming Alabama’s role in bolstering U.S. national security and fostering economic growth along the Gulf Coast.

The dual expansion includes a Submarine Module Fabrication Facility, featuring advanced technologies like digital twins and automation, supporting the U.S. Navy’s submarine production goals. Additionally, a new Assembly Facility for Large Steel Ships will enhance the construction of vital vessels for the U.S. Navy and Coast Guard. Combined, these facilities represent a game-changing advancement in defense manufacturing and innovation for Alabama.

Governor Kay Ivey highlighted the significant impact of Austal’s projects on Alabama’s workforce, economy, and national security. Secretary Ellen McNair echoed these sentiments, emphasizing the recognition as a testament to Alabama’s talent pool and technological capabilities.

Local contributions amplify the impact, with 259 Alabama-based suppliers contributing over $115 million to Austal’s operations in 2023, underscoring the pivotal role of small businesses. Furthermore, 72% of Austal’s workforce resides in Mobile County, reinforcing the project’s influence on the local economy.

The award highlights Austal USA’s transformation from an aluminum shipbuilder to a diversified defense manufacturing leader, solidifying Alabama’s reputation as a hub for advanced manufacturing excellence. Bradley Byrne, President of the Mobile Chamber, celebrated the regional industrial strength and skilled workforce behind this achievement.

These expansions position Alabama as a leader in defense manufacturing, advancing U.S. national security while delivering lasting economic benefits. Austal’s growth signifies an unparalleled partnership between the state and the company, reflecting Alabama’s critical role in shaping the future of innovation and defense.

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