Boysie reveals what floats his boat

The shipbuilding and marine maintenance industry took a hit, like many other Louisiana businesses, following the BP Deepwater Horizon explosion and oil spill. It was especially damaging when the federal government imposed offshore drilling restrictions. But according to Donald T. “Boysie” Bollinger, president and CEO of Bollinger Shipyards, Inc., of Lockport, his company will ride the waves, as jobs tend to rise and fall in that line of work as well as others along the Louisiana coast.

Bollinger Shipyards Inc. was founded by Donald G. Bollinger (1915-2001) in 1946 on the banks of Bayou Lafourche. Following World War II, his two brothers joined him in business and the small company began working with ships to service the oil industry off the coast of Louisiana.

“I grew up in the business and worked all during my schooling. Then I came on fulltime when I finished college in 1971,” Bollinger said.

Since that time the family business has grown to a more diversified corporation generating revenue of approximately $400 million a year and listed as the third largest shipbuilder in the nation – first among tier two level vessels.

“[The oil spill and drilling moratorium] affected the repair business because vessels are not working. If they are not working they don’t break, and we don’t get to do the maintenance on them,” Bollinger said.

This shipbuilder said that talk regarding new construction has been nearly nonexistent because of the lack of activity and because of uncertainty. Since the [BP] blowout, conversation about oilfield work for Bollinger has been silent.

Bollinger was a plaintiff against the federal government following the initial deepwater drilling moratorium, but even this man who has met presidents and talked business with high-ranking government officials carried little influence with his testimony.

“Really, nothing’s happening. If I thought of something I could do I’d be a savior for the industry,” he said. “But I’ve about run out of what I could do to change [the Obama Administration’s] mind.”

Bollinger said that even with the downturn in building and maintenance activity, his business is fortunate in that they have been diverse enough to have non-oilfield related business to keep them going.

Current construction customers for Bollinger include New York City, tug boat operators on the west coast, casino vessels, Coast Guard cutters and overseas service ships. Most shipyards do not have that benefit.

“Shipbuilding is a big, broad subject. The oil field is not going to see any activity until the de facto moratorium goes away. There is always some specialty activity going on. I think the shipbuilding program is dim as far as the number of ships the Navy is talking about building. It is an evolution that never ceases to end,” he said.

Bollinger spoke to more than 200 business leaders at the South Central Industrial Association last Tuesday during their first membership meeting of the year.

“This is the first work week of the new [112th] Congress and what a difference an election makes,” Bollinger said. “Last year we were talking about things going on in Washington that were pretty unnerving to anybody who is in business.” This year, he said, he hopes for improvements.

Bollinger said that appropriations and earmarks on legislation such as healthcare reform and corporate taxes could make conditions more expensive for business. “I’m reminded that with this Congress the pledge of no more earmarks. When you think about earmarks you think of the negative connotations and there are some. But the reality is that earmarks are critically important if you don’t expect to adopt the president’s budget,” he said.

Bollinger said that some earmarks are important to getting business accomplished but are misused when items of a questionable nature are secretly tacked onto other bills of legislation.

As expected, Bollinger addressed the BP Deepwater Horizon explosion and spill of 2010, and said it was destructive in nature to both business and the environment.

“Most of us keep up with the lack of what’s going in Washington. When you think about how many businesses in our community are affected by the policies that are going on in Washington it’s phenomenal,” Bollinger said as he revealed that some officials have recently said they only hope to get drilling permits issued before the third and fourth quarter of 2011.

Among the things indirectly related to the oil spill and drilling bans – both actual and de facto – is a report that tolls on the new section of Louisiana Highway 1 at Port Fourchon to Grand Isle will have to be increased because of a lack of traffic and not enough funds being generated to meet bond obligations for construction of the roadway.

“Nobody would have thought that would be a problem,” Bollinger said. “But [it is an example] of how the spillover affects every single person in this room. Every part of business is affected,” Bollinger said.

While speculation of $100 a barrel oil by this summer – which could translate into $5 gasoline prices at the pump – might be good for the petroleum industry and related businesses it tends to generate an angry response from the general public, this shipbuilder warned. But getting back to work, he said, is the critical element involved to keep the economy rolling.

“I think we are blessed to be living in an area that is not suffering like most of America. This [recession] been going since the financial crisis and housing debacle of 2008. It’s terrible when you have high unemployment around the country and it’s wonderful that we basically have low unemployment [in coastal Louisiana],” Bollinger said.

“If our federal government does not put us out of business and stop us from earning a livelihood, I think we have a good year ahead,” Bollinger said.

The real challenge for Bollinger and other business leaders is to discover ways to solve the challenges before them, and Bollinger admitted there are plenty of challenges in place.

“But I like solving problems. Every day you wake up with new challenges,” Bollinger said away from the SCIA meeting. “Some of these things, like the oil spill, it is not easy to plan for because it is out of our control.”

Bollinger said all in all he is cautiously optimistic and admitted that his business is in better shape than many others, but is still concerned because the economic waters remain rough.

“I’ve never in my life in business have been so uncertain about the future,” Bollinger said. He then stressed that his concerns could be put to rest if industrial leaders and government officials conduct their business in a conservative manner, maintain as much liquidity as possible, and reduce risks. Following those directives, he confirmed, should keep his and other regional businesses afloat.