
October 7, 2022
STURGEON BAY – What is often referred to as the “Shipbuilding Capital of the Great Lakes,” the history of shipbuilding in Sturgeon Bay extends back more than a century.
And just as shipbuilding is important to the region and the industry, so too is the ability and capacity to repair those ships.
For decades, Fincantieri Bay Shipbuilding (FBS) has done its part with those services in its Sturgeon Bay machine shop.
Craig Perciavalle, vice president and general manager of FBS, said the recent announcement of its repair shop expansion aims to further those capabilities.
“It’s no secret we’re a large economic engine to the community and this region,” he said. “And our ability to continue to strengthen our capabilities, modernize our capabilities and better support our customers only strengthens our market share and our position and competitive advantage in the market.”
Part of a larger project
FBS broke ground on a machine shop expansion project earlier this fall, which Perciavalle said is the final piece of a two-year, $70 million update of its facilities.
“Fincantieri marine group (Bay Shipbuilding’s parent company) has been investing a lot of money in our facility over the last couple of years,” he said. “Last year, we finished up what we call Building 433, which is adding capacity in our facility to support government work, and now because that (work is) completed, the next thing we had on our radar, in our strategy, was to upgrade our machine shop.”
Perciavalle said the existing machine shop is old, and “quite frankly, is beyond its useful life.”
“So, this was in our plan to do,” he said. “It’s been in our plan for a while, and now we’re executing that plan. It’s part of our effort of continuing to modernize our facility to better support our customers’ needs.”
Perciavalle said the expansion will “allow FBS to better support the critical repair service we provide the Great Lakes fleet, keep expanding our commercial new construction business and to a lesser extent, grow the government side of our business.”
He said historically, FBS has supported sister-shipyard Fincantieri Marinette Marine as they build warships for the Navy, but commercial repair and new construction remain Bay Shipbuilding’s top priority.
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This rendering shows what Fincantieri Bay Shipbuilding’s machine shop will look like when completed in summer 2023. The shop will allow the company to move more work indoors during the winter months. Submitted Rendering
“Our ability to maintain that strength in the market is good for the maritime industry,” Perciavalle said. “For us to be able to provide that service, keep ships moving and going, carrying cargo and everything they need to do to promote and support the trade in the commerce in the Great Lakes area and beyond.”
Fuel potential growth
Perciavalle said the repair shop expansion will continue to stabilize and grow the business, which in turn creates more opportunities.
“I expect to have growth and employment here starting at the end of this year and going into next year and beyond,” he said. “So, I think our ability to continue to strengthen the business, expand the business and better support our customers, stabilizes and continues to grow the economic impact we have in our community, which is something we do not take lightly.”
Perciavalle said he expects growth in all segments of the business.
“We’re at just more than 500 employees now, and then we peak upward of 1,000 people in the wintertime,” he said. “We’re hopeful we’re going to build on that and grow from there next year and beyond.”
Safer, more efficient environment
Perciavalle said first and foremost, the objective of the expansion is moving work that has normally been done outside, indoors.
“So, getting more work done inside in a climate-controlled environment,” he said. “And then the old building was not in the best configuration to efficiently lay out a manufacturing environment, the environment that we would want in the shop.”
Perciavalle said for FBS, the expansion is a “clean slate.”
“A wide-open building with a reinforced floor and upgraded cranes so that we can reconfigure the equipment in the building and put it in a better arrangement that will make us more efficient to do the job we do,” he said.
The 300-foot building will include two overhead cranes capable of lifting five to 30 tons, as well as offices, restrooms, a lunchroom and a tool room.
“In all aspects, it’s going to create a safer, more efficient and better work environment for our employees, and that’s the priority,” Perciavalle said.
He said not only will the expansion provide an improved place to work year-round, but it will also improve the surrounding area as well.
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Craig Perciavalle is the vice president and general manager of Fincantieri Bay Shipbuilding. Submitted Photo
“We believe the use of this facility will reduce dust and noise impacts for those who live nearby the shipyard,” Perciavalle said.
He said the shop expansion is located next to the company’s large graving dock – which was not done by accident.
“That is where a lot of the machine work (is done) and support is needed for vessels that are on the drydock,” Perciavalle said. “It will help make us more efficient with what we’re already doing, and it could help us add capacity in the future.”
Partnering with A.C.E.
Perciavalle said FBS is working with long-time partner A.C.E. Building Services, Inc., out of Manitowoc, for the expansion.
He said A.C.E. is no stranger to the shipyard, having built or renovated numerous buildings at the 63-acre shipyard over the past 50 years.
“They’ve done a lot of work for us and with us in our facility here,” Perciavalle said.
Stuart Johnson, the COO of A.C.E., said the project will involve approximately 5,000-man hours, plus a site supervisor and project manager.
In addition, Johnson said the company typically has 12-14 team members on-site, as well as subcontractors.