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Changing Times in the US Dredging Market

Changing Times in the US Dredging Market. Changing Times in the Industry. Limited Projects Limited new work No WRDA Changing client base Contractual Issues Funding Issues. Perfect Storm. Budget Crisis (nothing new) CR’s (nothing new) Continuing Contract Restrictions (new)

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Changing Times in the US Dredging Market

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  1. Changing Times in the US Dredging Market

  2. Changing Times in the Industry • Limited Projects • Limited new work • No WRDA • Changing client base • Contractual Issues • Funding Issues

  3. Perfect Storm • Budget Crisis (nothing new) • CR’s (nothing new) • Continuing Contract Restrictions (new) • Reprogramming (new)

  4. Contractors • Reacting to markets, not making markets • Communication key to efficiency and investment

  5. HQ Partnering • Pre Bid Communication • FEDTEDS • Overdepth/Characterization • Emergency Contracting Procedures • Partnering • Hydrographic Surveys • Continuing Contracts

  6. Subsequent Concerns • Environmental Windows • Silent Inspector • Cost Estimating

  7. Cost Impacts - Environmental • Air Quality • Water Quality • Operating Restrictions • Windows • Threats of fines

  8. Cost Impacts – External Effect Oil Patch Effect • Tugs and Barges (50%) • Labor (25 to 50%) • Fuel (100%) • Lubricant (100%)

  9. Cost Impacts – External Effect China Effect • Steel (40%) • Stainless (100%) • Paint (50%)

  10. Cost Impacts- Mobs Nothing Simple Anymore • Long Pipeline Requirements • Rehandling Equipment • Equipment Modification • Enviro Windows

  11. Cost Impacts - Scheduling • Regulatory • Environmental • Funding

  12. Cost Impacts– Texas Suits • Effects all work in the Gulf and East Coast • Industry fought back and won

  13. Time versus Costs Fixed Cost Recovery • Project Charge • Mobilization Charge • Idle Time

  14. Time versus Costs Variable Cost Recovery • Project Charge • Mobilization Charge • Idle Time

  15. Time Versus Costs Daily Cost Package: • Mobilization • Project Costs – Working • Project Costs - Idle

  16. Time Versus Costs Project Equipment Variations: • Cutter • Clam • Hopper • Backhoe • Blasting • Boosters • Other Support Equipment

  17. New World? - Corps • New Planning and Execution Schemes • Innovative contracting • Innovative Partnering • Corps as Salesmen

  18. New World? - Dredgers • Reanalysis of inventory • Redeployment • New build

  19. New World? - Operators • Under dredged Channels • Less competitive • In need of a plan B

  20. What’s Next? • Future US dredging market is not a growth market. • O&M budget stagnant, Capital work dwindling • Less dredging for more dollars • Need bigger pie to compensate • Trust funds the answer?

  21. What’s Next #2? • U.S. Industry has more capability and capacity than ever before/ • U.S. Industry is more efficient than ever before. • How will we use this efficiency?

  22. Whats next #3 (the end) • Keep dredgers involved in discussions. • Keep us informed of changes to market or projects. • Perpetual market requires that we continue to partner.

  23. Changing Times in YOUR Market

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