Opponents of BIW’s efforts to secure a Maine tax concession to help win shipbuilding contracts over the next 10 to 20 years have been very outspoken in criticism of BIW and General Dynamics. Critics are entitled to their views, but as an experienced BIW shipbuilder, I know there is a strong case in support of BIW’s request.

Growing up in a Bath shipbuilding family, I witnessed firsthand the impact of shipbuilding cycles on the area and my friends’ lives. Later, as a BIW employee I saw employment fall below 3,000 and later gained firsthand evidence of the beneficial impacts to Maine when the shipyard is thriving. Most agree, psychologically and economically, Maine needs a healthy shipbuilding presence in Bath. However, some advocate for shifting from naval to commercial shipbuilding while others oppose tangible forms of state support for BIW efforts to remain competitive.

Following WWII, BIW cycled through periods as a diversified shipyard building surface combatants and several classes of merchant marine vessels, while concurrently undertaking ship repair and maintenance contracts. What’s new today is the fact, merchant shipbuilding in America essentially ended when shipbuilding subsidies were discontinued. Fortunately, BIW was one of the few shipyards to survive and evolve into a world leading and highly specialized organization, focused on major United States Navy construction programs. That change was unpopular with peace activists, but I have always believed BIW builds ships that deter aggression and help keep the peace — hopefully, with freedom and justice for all. Whatever your view, realistically there is no viable alternative market for BIW.

With the award of Aegis cruiser and destroyer contracts in the 1980s, BIW moved into the big leagues of world shipbuilding. That transition required tremendous investments in people, machinery, equipment, technology and buildings. BIW ships are the most complex and sophisticated being built, constructed to rigid specifications requiring a wide variety of employee skills. General Dynamics, recognizing the need to dramatically change BIW’s shipbuilding processes, invested hundreds of millions to attain a leadership position in the industry — to retain that position, it must continue to invest. As a taxpayer of $5.5 million to Bath and $800,000 to Brunswick, our communities are tremendous beneficiaries of BIW’s presence.

What is Maine’s incentive to cooperate in this effort? While our state’s manufacturing jobs are rapidly disappearing, BIW will be hiring approximately 2,000 new employees — for the most part into skilled positions. Average Maine production workers earn approximately $38,000 per year, while BIW production workers average $53,000 and BIW’s average wage overall is $60,000 per year compared to $44,000 for Maine as a whole.

In total, BIW’s annual payroll is approximately $350 million. If BIW is successful in this competition, that payroll should increase. Those dollars flow into Maine from the U.S. defense budget, with spinoff benefits to hundreds of smaller businesses. Impacts of BIW’s payroll and local purchases will multiply many times over — a terrific stimulant to Midcoast Maine and our state as a whole.

Roughly $500 million has been invested to create a “state of the art” shipbuilding facility in Bath since General Dynamics acquired BIW. Without those investments, it is highly unlikely BIW could continue as a viable shipbuilding operation today. General Dynamics is a major U.S. corporation and a leading producer of United States’ Navy ships. Its management has been highly successful — and Maine is indeed fortunate to have BIW, one of our state’s leading economic engines, owned by General Dynamics. Indeed, General Dynamics has used its resources and corporate strength to help BIW and Maine in many ways — just take a close look next time you boat past the shipyard on the Kennebec.

The Department of Defense is committed to strengthening our navy and new ships will be constructed in American shipyards. BIW’s requested shipbuilding tax credit of $3 million per year for 10 to 20 years has gone to our legislature in an effort to help make BIW’s bid as competitive as possible. If approved, BIW’s competitive position will be enhanced via meaningful Maine support — representing a partial offset to the tens of millions Mississippi has provided Ingalls (BIW’s competitor).

$3 million per year for 20 years is a large amount of money. But at stake is a contract to build ships valued in the billion dollar range each — helping create an annual payroll in Maine over 100 times larger than the annual tax credit. Most important, the tax credit (if approved) will pale by comparison to the economic benefits received by Maine people if BIW wins and secures the largest number of ships awarded in this competition — and those likely to benefit most, obviously live within 40 miles of Bath.

Our navy will also receive superior ships if BIW wins — but I admit to lacking objectivity on that important point.

Bill Haggett is Bath Iron Works’ former CEO. He lives in West Bath.