Shipbuilding Cluster Master Plan

Sturgeon Bay Shipbuilding Cluster Master Plan
Door County Economic Development Corporation

City of Sturgeon Bay
Bay Shipbuilding Company
Palmer Johnson Yachts
August 3-4, 2004 Workshop and Meetings
Sturgeon Bay, WI
Published September 30, 2004
Sturgeon Bay, WI
Value Management Study for the
Door County Economic Development Corporation
Table of Contents Boldt Technical Services

has utilized, in whole or in part,
the tools and techniques
Executive Summary...................................................... Tab A of Value Methodology, Theory of
Constraints and Choosing By
Advantages in this study.
Objectives and Issues .................................................. Tab B John E. Koga
CVS #970503
Analysis of Cause and Value Mismatch ..................... Tab C Phone 920-225-6153

[email protected]
Creation and Evaluation of Options ........................... Tab D

Creativity and Idea Bank
Description and Evaluation of 3 Options
Existing Conditions Maps and Properties
1. Option 1........................................................... Tab D-1
2. Option 2........................................................... Tab D-2
3. Option 3..Tab D-3
Recommended Master Plan......................................... Tab E

Description and Impact
Acquisition, Design & Construction Plan Sequence
Real Estate Exchange, Agreements, Construction Costs
Return on Investment Considerations
Suggested Schedule
Conceptual Renderings
Supporting Commentary ..............................................Tab F

Competitive Strategy, Organizational Development and
Collaboration as Keys to Success
Urban Planning and Engineering Commentary
Information About Monetary Grants
Supporting Information................................................ Tab G

Production Process Flow Information
Lifting Platform Information
Appendix ....................................................................... Tab H

Participant Directory
Boldt Team Credentials
Workshop Photos
Sturgeon Bay, WI
Value Management Study
Executive Summary
This Master Plan addresses a shipbuilding cluster in Sturgeon This study is in compliance
Bay and its continuing importance to the citizens of Wisconsin. with federal guidelines for
value analysis of federally
A cluster is defined as a geographically neighboring group of funded projects to the extent
interconnected organizations in a particular field linked by what project information was
available.
they have in common and the ways in which they complement
one another. Behaviorists have studied the benefits of clusters.
These include growth, efficiency, improved ability to compete,
and a positive impact on the community at large. (See Tab F)
Two companies form the current center of this cluster with other
companies and the regional community in supporting roles
helping to define the extent of the cluster.
Bay Shipbuilding Company (BSC), part of Manitowoc Marine

Group, has evolved from building freshwater vessels to building
a variety of ocean going vessels used along all U.S. coastlines.
They also dry-dock and repair a significant portion of the Great
Lakes working vessel fleet as well as Coast Guard vessels.
Palmer Johnson (PJ), having evolved from building wooden

boats to large custom motor yachts, is experiencing accelerated
growth due to their development of a new sportyacht design.
This shipbuilding cluster offers:

Stability of income for families and service providers
Regional employment at PJ, BSC, and their suppliers
Sales revenue to Wisconsin and Midwestern suppliers
Area tourism interested in a maritime experience
Wisconsin tax revenue
Support of national and international trade utilizing the
Great Lakes for commodity shipping because Bay
Shipbuilding Company in Sturgeon Bay in large part
performs the upkeep of vessels
Presence in the international market for vessels
Maintenance of Homeland Security measures by the
Coast Guard and ability to expedite defensive launching
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Sturgeon Bay, WI
Incentives to act swiftly include:

1. Current PJ facilities will not support business growth.
2. PJ does not own waterfront access for launching yachts.
They rely on BSC to launch their larger yachts.
3. BSCs floating drydock is beyond repair, wasting energy
and capital. It is used to repair and launch vessels.
4. BSCs viability demands improving productivity.
5. Both companies compete in markets having competitors
that enjoy government support.
6. Loss of the cluster will harm the region, state and more.
Though Palmer Johnson recognizes the advantages of

belonging to this cluster, it cannot afford to remain under current
operating conditions. They have opportunities to move to a new
locale offering waterfront access. Knowing this would dissolve
the cluster and affect the city, they have agreed to delay that
move assuming the community and others concur with its
importance enough to assist in the solution. As was discovered,
this also requires an exchange of property with BSC.
In brief, the Master Plan includes these recommendations:

Improve BSC berths 2 and 3
Install in BSC berths 4 and 5, a lifting and launching
platform as used elsewhere in the world, usable by both.
Relocate prep and paint facilities for BSC
Construct an additional production facility for PJ
Beautify the general area and site and add parking
The Door County Economic
Preservation of the cluster and implementation of this Master Development Corporation
Plan is especially important because it: commissioned Boldt Technical
Services to conduct this study.
Positions a critical mass of attractive job opportunities It was facilitated by a
attracting skilled workers to live and work in this area. professional Certified Value
Enables Bay Shipbuilding and Palmer Johnson to Specialist-Architect leading a
efficiently improve volume, stability and competitiveness. multi-disciplined team of
Leads to new opportunities for collaboration and professionals in concert with
business and government
innovation, which assures longevity of the cluster. representatives.
Strengthens state and international trade and security.
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Sturgeon Bay, WI
Objectives and Issues

INTRODUCTION
This study was commissioned by the Door County Economic
Development Corporation to prepare a comprehensive master
plan for the growth of Palmer Johnson and Bay Shipbuilding in
the City of Sturgeon Bay.
In the application for business assistance grant, the scope of

work was described as requiring:
A meeting to confirm stakeholder interests
The gathering of file information from Bay Shipbuilding
(or other sources) on property characteristics
Field investigation of existing facilities and operations
Identification of governmental requirements
Preparation of options plans
Review meetings to focus agreement
Report
However it became evident that a description of the scope of

work could not provide full appreciation of the objectives and
issues causing this study. This study required more than a
physical solution. And as the grant application states, the
solution affects more than the City of Sturgeon Bay or even
Door County.
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Sturgeon Bay, WI
THE OBJECTIVES
An exhibit in the Wisconsin Maritime Museum in Manitowoc, WI
telling the history of shipbuilding in Wisconsin describes
Sturgeon Bay as the home of Bay Shipbuilding, the largest and
most modern shipbuilder on the Great Lakes. Bay Shipbuilding
has since encountered a market shift and had to work diligently
to remain a serious contender constructing products and
working vessels for the domestic coastal market.
Palmer Johnson grew from a builder of sailing yachts to one of

the most successful and respected builders of luxury
performance motor yachts. In recent years, they encountered
economic adversity. But under new ownership and true to their
tradition of excellence and innovation, Palmer Johnson has
developed a new yacht design that is attracting attention,
especially in the Caribbean and Mediterranean, the primary
market for large yachts. It is expected to lead to high volume
production and corporate growth.
However Palmer Johnson believes their production facility does

not currently provide the features necessary to capitalize on
their growth potential. They describe resolution of this problem
as absolutely vital to their future.
Bay Shipbuilding believes they do not currently enjoy the

efficiencies of modern technology required to keep them
competitive with their peers. Moreover they state that a
significant piece of their equipment (the floating dry dock) has
very limited useful life remaining and will affect their future.
Interestingly, this same piece of equipment also affects Palmer

Johnsons viability because Bay Shipbuilding launches Palmer
Johnsons larger yachts. Thus linkage of the two companies
exists, though its necessity was also a question to be studied.
A third entity, the general public, will also be affected by the

actions of these two companies. Thus representation of the
public in this study was essential. Questions about the
boundaries (neighborhood, city, region, state or nation) and
impact of the issues on the general public had to be considered.
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Sturgeon Bay, WI
Determining facts surrounding these positions became an

objective of this study.
Furthermore, the study team believed that underlying questions

must be objectively addressed for the credibility of this report:
Any investor, private or governmental, would wonder, Is
shipbuilding worth the investment?
They would ask, Is Sturgeon Bay worth the investment?
Then, Why these two companies?
Why this location?
Appropriate answers in these areas would be required to forge

funding for any satisfactory solution to physical problems.
Solution alternatives would next have to be studied for their

benefits, ramifications, cost and schedule.
To satisfy the scope of work requirements, especially regarding

agreement, the objective of this study became threefold:
Describe appropriate improvements
Clarify the worth of improvement to the cost of improvement
Outline an appropriate action plan.
The comparison of worth of an investment to cost of that

investment describes value. Thus Boldts facilitator used the
internationally accepted Value Management Method as a
platform to address the objectives and discover appropriate high
value solutions.
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Sturgeon Bay, WI
ISSUES and BACKGROUND

The team gathered a large volume of information prior to
commencing the workshop event. Certain aspects will be cited
in this report but, for brevity, the complete record of random
information is not included. It can be made available separately.
The information collected includes

Facts sorted from assumptions and unknowns
Shipbuilding process information (both companies)
Property information
Community and governmental information
Palmer Johnson, Sturgeon Bay, WI

Ownership and Management
Palmer Johnson (PJ) is a Limited Liability Company, that is,
a hybrid between a partnership and a corporation in that it
combines the "pass-through" treatment of a partnership with
the limited liability accorded to corporate shareholders.
British investor Timur Mohamed owns Palmer Johnson.
Mike Kelsey, a Sturgeon Bay native, is President.
Product and Services

Big yachts like those built by Palmer Johnson typically sail
the Caribbean or Mediterranean, not the Great Lakes.
Yacht buyers take delivery of their yacht in Sturgeon Bay by
sending their crew to pick it up. The yacht is then navigated
through the St. Lawrence Seaway.
A 140-foot yacht can cost $15 to 20 million. There are
yachts in the world that cost in excess of $150 million.
PJ has built a variety of sizes over the years. They compete
on the basis of reputation for producing the best of the best.
PJ is well known for large custom aluminum yachts up to
195 feet long and four decks high. Palmer Johnson
constructed the 195 ft La Baronessa, the largest all- La Baronessa
aluminum privately-owned motor yacht in the world. It has
room for 16 crew and 16 guests and can cruise 10,000
nautical miles. It sold for approximately $35 million and
provided hundreds of jobs.
Palmer Johnson constructs and equips the yachts. Service
during yacht ownership is performed by others.
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Sturgeon Bay, WI
Sales Forecast
Though not the only yacht design they would build, PJ plans
to focus on yachts that are 120 to 150 feet long, close to 50
feet high, and semi-custom, specifically their new yacht
design (Cover Drive was the prototype).
Palmer Johnson President Mike Kelsey is predicting high New PJ design
sales volume because of the reaction to their new yacht. He
is hearing from buyers directly, not through brokers. They
are anxious to learn about the new yacht design and its
uniquely stable hull design.
PJ is currently constructing three yachts simultaneously and
wants to quickly escalate production. They hope to ramp up
construction to as many as 12 yachts simultaneously for
years to come. But even at half that number, the increase
will exceed the capacity of the current facility. The job
potential at PJ plus the economic impact on the region would
be very significant with this growth.
PJ is also currently competitive because of the stability of the
Euro relative to the US Dollar. For various reasons, it is
currently about 30% cheaper to buy an American made
yacht. (1 Euro = US$1.23)
Yacht building is very competitive and when one has a
competitive advantage, as PJ has with their attractive new
design, one must recognize the importance of time-to-market
to capitalize on the opportunity.
Production Issues
The primary construction methods of these yachts will
involve aluminum work, fiberglass or composite materials,
exterior finishing (fairing) and painting, interior finishing, fine
furniture grade carpentry and upholstery, technical systems
(engines, mechanical and electrical systems), navigation and
special equipment. Yachts are typically self-contained
vessels including water and waste treatment, high quality
galley equipment, elevators and more.
To put PJs yacht production in perspective, one 120-foot
long yacht has typically required about 100,000 man-hours
of labor over a period of 12 to 14 months.
A typical worker works 1800 man-hours per year. So one
120 yacht requires about 56 man-years.
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Sturgeon Bay, WI
PJ plans to improve production efficiency through

standardization of design features reducing time-consuming
decisionmaking and customization.
Palmer Johnson needs space now and will move to get it.
They would like any plans for the future to include
consolidation of their joinery (carpentry) shop and
warehousing with a new composite fiber shop and aluminum
shop. The goal is to make their operation easier to manage
and more efficient with greater system throughput and
improved working conditions. This requires a building about
180 feet wide and about 400 feet long in addition to the
existing metal fabrication shop.
Assurance of an appropriate low-cost launch area becomes
even more vital at this volume. Palmer Johnson is
landlocked several hundred feet from the water. In the past,
yachts larger than 90 feet were launched using Bay
Shipbuildings 200 Ton gantry crane or floating dry dock.
Bay Shipbuilding considers the risk of launching a yacht
valued in excess of $10 million with the crane to be too high.
The floating dry dock will be unavailable by about 2007-8
unless substantial repairs are made or it is replaced.
Bay Shipbuilding repairs vessels in the floating dry dock all
year. These must be removed to launch a yacht. As a
means of mitigating risk and recover the many costs
associated with launching yachts for PJ, Bay Shipbuilding
has found it necessary to increase launch fees to a level no
longer acceptable to Palmer Johnson.
The maximum yacht weight to be launched in the future is
under 300 tons, but greater than crane capacity.
PJ can launch a yacht in Sturgeon Bay any time except for
9-10 weeks in winter when iced in. Since yachts are
1 of 3 PJ yachts
assembled primarily indoors, the long construction time (12- currently under
14 months) allows yacht construction to be scheduled to construction
avoid winter yacht launching.
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Sturgeon Bay, WI
Employment
PJ can currently employ 175-200 production workers to build
the 3 yachts under construction, but currently only has 150
workers available to them (about a $6 million annual payroll).
Though this appears to be an issue, they believe that word
of good, long-term jobs will encourage the young to enter
this profession and/or bring more workers to the area to fill
their need. On the job training is possible.
PJ is a non-union shop, but offers similar benefits.
Palmer Johnson must also be concerned about efficient
production, as they must already compete against low cost
Southeast Asian labor.
PJs workforce averages 15 years of service. They can
employ a full range of experience of levels.
PJ prefers to use Wisconsin craftsmen to construct the
yachts due to their strong individual work ethic. They say
quality is similar here to other US regions, but Wisconsin
employees are preferred as long as their productivity
remains better. They would want to avoid attracting or
importing workers if they would not be as productive, but
also recognize they must meet their growing need for good
employees.
PJ has expressed an interest in working with high schools
and technical colleges to create an apprentice program to
continue the tradition of yacht building in the local area.
Yachts are built in both aluminum and fiberglass composites,
but also involve nearly every type of technology from
engines to electronics. To compete, a modern yacht
builder needs the ability to work in modern materials
and craftsmen need updated skills. School programs can
assist. Working conditions are relatively clean and bright.
Precision craftsmanship is required. This type of work can
also be attractive to many young people entering the job
market.
Inside Palmer Johnson
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Sturgeon Bay, WI
Past Government Recognition of the Yacht Building Industry

As stated in yachtgallery.com by Barb Tierney, legislation has
affected the forecast for builders like Palmer Johnson:
In cooperation with the Marine Industry Association and the Florida
Yacht Brokers Association, Congressman Clay Shaw, has proposed
legislation that will allow foreign vessels to come to the United States for
sale without the current restrictions. Currently a foreign vessel cannot be
offered for sale in U.S. waters without a great deal of restriction or
outright paying the full duty on a consumption entry. The proposed
legislation allows for a third, and far more reasonable option. The
proposed option would allow a vessel to enter to be sold and to stay for a
period of up to 6 months toward that effort. The bill is currently sitting on
the Presidents' desk and is expected to be signed well before the Fort
Lauderdale boat show. [President Clinton signed HR 435 into
law effective 7/10/99. Section 2406 amended The Tariff Act
of 1930 to defer the duty on large yachts imported for
sale at U.S. boat shows. - Boldt]
Another bill by Rhode Island congressman, Patrick Kennedy, would

provide a 20 percent federal income tax credit to the buyers of
recreational boats built in America that are at least 50 ft. long. If
Kennedy's bill becomes law this year, the tax credit would be granted to
buyers of yachts costing as much as $10 million, provided the yacht is
maintained in the US for at least five years.
The bill would indirectly stimulate economic growth by creating

hundreds of jobs. The National Marine Manufacturers Association
reports that every $40,000 in boat sales is equivalent to one job. To
use this calculation further, a yacht such as the $35 million, 195 ft.
La Baronessa, completed in November 1998 at Palmer Johnson's
Wisconsin plant, created about 875 jobs.
Italian and Dutch governments subsidize their yacht builders, which

emphasizes the need for passage of Kennedy's bill. The bill would
also provide $25 million a year for training programs in major yacht
building states to keep up with the fast paced demand for skilled
workers in the yacht industry.
[bold emphasis by Boldt. Also the jobs described are

understood to include subcontractors and suppliers
supporting the yacht builder. Credit ends in 2004.]
Another move in this direction occurred recently when higher education
officials in Rhode Island voted to approve a two-year, full-time
apprenticeship program operated by the Newport-based International
Yacht Restoration School.
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Sturgeon Bay, WI
Competition
There are 20 to 30 custom yacht builders worldwide with
a range of expertise from smaller yachts under 70 feet to the
worlds largest yacht, which is currently 400 feet.
Many shipbuilders enjoy the economic support of their
country or local government because of its economic
impact. For example, in 1949 Feadship Yachts combined
two Netherlands shipyards. The name Feadship stands for
the First Export Association of Dutch Shipbuilders. The
company started out focusing on the United States market
for pleasure yachts, producing 70-213 foot custom yachts.
Canada has recently invested $175 million in its shipyards.
Many states regularly direct tax revenue to the upkeep of
waterways, ports and assistance for shipbuilders. Wisconsin
helped Burger, but still does not assist waterway upkeep.
Burger Boat in Manitowoc is a nearby competitor that also
builds aluminum yachts. [ref: website www.burgerboat.com]
Burger Boat announced in mid-2003 the launching of their
largest yacht, a 127 Tri-deck. They also announced in
January 2004 they were starting construction on Mirgab V, a
144 foot Tri-deck to be based on the French Riviera after
delivery in the summer of 2006. Burger currently employs
over 200 craftspeople, designers, engineers and support
personnel in Manitowoc. Their ships take 15 to 24 months to
build and they are constructing between 4-6 yachts
simultaneously. They typically design custom aluminum
yachts in the 82 165 class. Burger has aggressively
attempted to lure PJ employees to Manitowoc.
A January 19, 2004 press release by Burger Boat
announced a $5 million building expansion project that is the
second phase of a 3-phase expansion program begun in
1999. Phase one was a 36,000 SF expansion with 4 bays.
Phase two is a 70 foot high 42,000 SF structure that will
have two 100 x 210 bays for easily constructing 165 long
vessels. The State of Wisconsin, Federal SBA and the City
of Manitowoc are assisting with the $5 million expansion
project in the form of long-term, low-interest industrial loan,
Block Grant and Tax Incremental Financing program.
According to the press release, Burger's commitment to add
100+ jobs was reported as excellent news to the City of
Manitowoc. Governor Jim Doyle attended.
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Sturgeon Bay, WI
Bay Shipbuilding Co., Sturgeon Bay, WI

Ownership and Management
The Manitowoc Company is a diversified, multi-industry,
capital goods manufacturer with market-leading positions in
each of its three segments: Food Service Equipment,
Cranes and Related Products, and Marine Operations. The
Manitowoc Company began as a Wisconsin ship builder in
1902. It is the #1 provider of ship-repair and new-
construction services on the Great Lakes. It operates more
than 60% of the U.S. Great Lakes drydock footage
including two of the three largest graving docks and two of
the largest shipyards to serve the U.S. and Canadian
freshwater fleets, as well as Coast Guard, military, and
commercial customers.
The Manitowoc Marine Group includes Bay Shipbuilding,
Marinette Marine, Toledo Ship repair, and Cleveland Ship
repair. They service both freshwater and saltwater vessels.
Dennis McCloskey is President of Manitowoc Marine Group.
Pat OHern is Vice-President and General Manager of Bay
Shipbuilding Co.
Product and Services

Bay Shipbuilding Co. (BSC) has quickly become an industry
leader in the construction of OPA-90 compliant vessels,
dredges, and dredging support equipment(scows, deck
barges, tugs, etc.), along with bulk cargo self unloading
solutions. This highly progressive division of Manitowoc
Marine Group specializes in large ship construction projects.
BSC has constructed most of the 1,000+ foot long freighters
that sail the Great Lakes.
In 1999, BSC delivered one of the most sophisticated,
double-hull petroleum tug/barges now in operation.
Bay Shipbuilding is most recently recognized for building
some of the most sophisticated dredging vessels.
Bay Shipbuilding is the only big shipbuilder on the Great
Lakes.
Bay Shipbuilding serves the repair needs of all of the U.S.
Great Lakes shipping companies.
Bay Shipbuilding has constructed ocean-going vessels for
customers on all three domestic coasts.
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Sturgeon Bay, WI
The breadth of services BSC advertises are noteworthy:

- Quality Unmatched in the Marine Industry
- Competitive Pricing
- On-time Performance
- New Construction
- Experienced Workforce
- Floating Dry Dock and Graving Dock Facilities
- Voyage Repairs
- Mechanical and Electrical Repairs
- Hull and Propulsion Repairs
- Boiler and Turbine Repairs
- Survey Inspection Services
- Fabrication and Installation of Self-Unloading
Equipment
- Repower, Retrofit and Conversion Service
- Design and Engineering
- Complete Outfitting
Sales Forecast
The Great Lakes freighters built in the 1970s remain in
excellent condition, in part because freshwater does not
corrode as swiftly as saltwater. In fact the oldest freighter
still in service was built in 1898.
No one is building Great Lakes ships today, even though
there is an active operating fleet on the Great Lakes.
Though an inland port, Bay Shipbuilding today builds
ocean-going vessels for the petroleum industry. BSC is
a leading manufacturer of double-hulled petroleum
barges. These vessels haul along the US coastlines. They
are double-hulled ships with a service life of only about 25
years because they are in salt water.
Due to the 1988 Exxon accident, a law was passed in 1990
requiring double-hulled ships. Then in 1995, the shipping
industry was given 10 years to replace all of the coastal
ships with double hulled ships. This has helped to create a
large market that is compounded by the limited life
expectancy.
There are only 5 other shipbuilders in the United States that
operate a business similar to BSC, none of which are
located on the Great Lakes. The others have a competitive
advantage due to better proximity to the market.
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Sturgeon Bay, WI
It takes one month to get a vessel from Sturgeon Bay to the

State of Washington and working for the client. It takes two
weeks to get a vessel from Sturgeon Bay to New York City.
There will not be any foreign shipbuilding competitors due to
the Jones Act of 1926. This Act, among other things,
requires that all cargo hauled between US ports must be
hauled on US ships that are made in the USA. It adds
stability to Bay Shipbuildings market.
- The Jones Act also protects U.S. interests within its
own waters and ensures that the United States
maintains a fleet of merchant ships. (From
www.shipguide.com)
The industrial revolution in China is causing iron ore mines in
Michigan to reopen. Ore is going through the St. Lawrence
Seaway and is being transferred to ocean going ships.
Bay Shipbuilding primarily serves two markets today:
- Construction of new double-hulled oil tankers for the
US coastlines. These are generally less than 700 feet
in length.
- Repair of Great Lakes working vessels of all kinds
including Coast Guard vessels and tugs.
Bay Shipbuilding has the only operational graving dock that
currently serves 1000-foot long ships.
Bay Shipbuilding could dock additional Great Lakes vessels
during winter if there were adequate space in the area. That
increase would be a significant source of revenue for
docking and a significant volume of wintertime repair jobs.
There is a large difference between the purchase of a yacht
and the purchase of a working vessel. Yacht buyers are
buying style and amenities as well as functional aspects.
The companies that buy oil tankers are essentially buying a
ship as a piece of equipment to perform a task: transport oil.
The primary factor is initial cost of the ship. It has to provide
a reasonable usable life, but trying to sell ships based upon
maintenance benefits or other aspects is futile.
Bay Shipbuilding attends trade shows to attract customers.
They currently receive orders for 2-3 new vessels each year
and could do more if there were space and manpower.
Improving efficiency and effectiveness of existing space and
manpower is a way to construct more vessels and accept
more orders.
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Sturgeon Bay, WI
Bay Shipbuilding also converts Great Lakes vessels into

self-unloaders by modifying the ship and adding conveying
systems. Three (3) such vessels currently ply the Great
Lakes waiting to be converted.
Bay Shipbuilding has excellent customer relations. They are
known for quality, timely service and value. But in this
market, those are baseline benefits required just to interest
the customer. The sale still comes down to price.
No one is building new 1000-foot ships except for US Navy
carriers.
Note also that the BSC and PJ shipyards currently spend
over $50 million annually for outsourced fabrication work
and the purchase of supplies, furnishings and equipment.
Production Issues
To stay competitive, Bay Shipbuilding must reduce their time
to market through production efficiencies. This requires
review of product flow and throughput.
Bay Shipbuilding would not be considered a full-service
shipyard if they could not dry dock vessels and perform
underwater work in the floating dry dock. They would lose a
significant portion of the repair market.
Maintenance of the floating dry dock is no longer
effective. Its repair will NOT increase throughput. It will
be phased out over the next few years. It was built in 1910
through 1925 using riveted steel. It contains water tanks that Floating Dry Dock
must be heated in winter at a cost that has been as much as
$1,500.00 per day. This will increase in the future with the
drastically rising fuel costs. However the floating dry dock is
not used during ice conditions (December 15 to March 15).
The importance of the floating dry dock can also be seen in
its usage: 60 vessels between 1999 and 2003 alone. These
range from 100-foot tugs to vessels longer than 600 feet.
With the pending demise of the floating dry dock, an
opportunity has arisen to improve production efficiency:
the development of a plan for a new launching facility on
their property. It is called a lifting and launching platform.
This is the primary need identified by BSC.
Examples of lifting and launching systems include Rolls-
Royce Syncrolift, Bardex Corporation Shiplift, and Marine
Travelift Boat Hoist, all of which require adequate land area.
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Sturgeon Bay, WI
In addition to helping BSC serve ships up to 400 feet long

and 4000 Tons, the lifting platform is a reliable, safe and
economic way to launch Palmer Johnsons yachts. (A
Marine Travelift Boat Hoist cannot meet BSC requirements,
but a Travelift could serve Palmer Johnson if PJ moved
away.)
A lifting and launching platform enables the basic
changes needed to construct and deliver their products
more competitively. It affects the entire process.
Modern lifting platforms can also handle and launch
multiple vessels simultaneously. The existing floating dry
dock can only launch one vessel at a time.
Syncrolift meets BSC needs, is less susceptible to ice
conditions and can be used all year if the slip is aerated.
An important component related to the lifting platform is the
shipyard transfer system that allows vessels in production to Potential Location for
be moved onto the shoreline for any reason including taking Lift & Launch Platform
vessels out of the water for repair. If the transfer system is
included and if the rail is extended the length of Berth 3,
several vessels could be docked and serviced
simultaneously. The Syncrolift will change Bay
Shipbuildings vessel construction and repair process.
Because vessels could be assembled on the platform area,
its provision would allow Bay Shipbuilding to make the large
graving dock open for repairing other vessels, especially the
unscheduled or emergency dockings that annually occur.
This is an opportunity to capture additional revenue. It is
currently used only for assembly of new vessels.
Yard and layout improvements are needed to
complement efficiencies created by the new launch facility
and repair existing berths. These include: the relocation of
the steel prep and component painting buildings, shoring
and dock wall work, and site work such as fill and dredging.
Employment
In the 1970s, Bay Shipbuilding employed 2000 people.
Bay Shipbuilding currently employs 640 people (about a $24
million payroll) but is about 100 short of their needs. Skilled
people walking in the door could have a job today.
The average production employee wage exceeds $16 / hour.
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Sturgeon Bay, WI
Today, Bay Shipbuilding employs 250 to 300 people in the

winter because Great Lakes ships dock there for repair.
These people get laid off if new work is not available.
With the ability to accept new orders for ships, seasonal
layoffs diminish. Bay Shipbuilding could return to
employing 1000 people every year. The work is there but
other shipbuilders get it when Bay Ship is unable to acquire
their share. They have open orders for ships right now
and need space to expedite the work.
Bay Shipbuilding is concerned about the availability of good,
skilled employees. Mechanisms that caused a legacy of
skills from father to son are more rare. Bay Shipbuilding has
tried to encourage trade schools to include shipbuilding in
their curriculum. But the driving force is the ability to
ensure there will be work. It must be obvious to
students and workers that shipbuilding is a good career
to enter. With these changes and Bay Shipbuildings
venture into ocean going ships, they believe the potential for
having a long shipbuilding career is high. The key will be
acquiring ship building contracts through efficient production,
space to build the ships and skilled manpower.
Bay Shipbuilding has stated that on-the-job training is
available. A motivated person coming out of high school
that can think in three dimensions will perform well. A
tradesman laid off from other industries can learn how to
apply their skills to shipbuilding. An array of skill sets can be
put to work building steel ships, installing engines and
constructing the infrastructure. The primary concern is
sufficient work attitude because the company must compete.
Skills employed include ship fitting (like carpentry in metal),
welding, pipefitting, boilermakers, sheet metal and
mechanical systems, electrical, some carpentry and painting.
Bay Shipbuilding has agreements with these unions:
o Carpenters, Boilermakers, Pipefitters, Electricians
When offering overtime to workers does not provide enough
capacity, work is also subcontracted. They have brought in
170 subcontract laborers coming from many parts of the
United States, especially the Gulf Coast.
B-15
Sturgeon Bay, WI
Sturgeon Bay and the Door County Region

Sturgeon Bay is world renowned for its shipbuilding tradition
and remains the premiere shipbuilding port on the Great
Lakes.
It is vital to the Great Lakes system as a repair port
capable of handling vessels 1000 feet long and central to
Lake Michigan, Lake Superior and Lake Huron. (By
comparison, Marinette Marine cannot drydock ships and
Toledo Shiprepair on Lake Erie can only drydock vessels up
to 806 feet by 78 feet. Fraser Shipyards in Superior, WI can
drydock only up to 831 feet by 85 feet in their graving dock.)
The City of Sturgeon Bay is located on the Door County
peninsula approximately 45 miles northeast of Green
Bay and 230 miles from Chicago. Sturgeon Bay is known
for its high quality of life, traditional downtown, maritime
industries, aquatic resources and recreational opportunities,
and tourism amenities. Sturgeon Bay was officially
incorporated on April 7, 1883 and is the county seat.
With a 2000 census population of 9,437 Sturgeon Bay
covers approximately 4,000 acres with 80 miles of streets
and 11 parks.
The City of Sturgeon Bay is a full service city employing
approximately 65 full time employees and more than 60 part
time employees during seasonal periods. The Citys 2004
General Fund Budget is $9,116,947.
Reductions in the shipbuilding industry in Sturgeon Bay
would not only affect the current jobs and families, but
indicates a loss in growth potential that was anticipated
to include another 350 jobs in the next 5 years. This kind
of job growth will not occur without new facilities and
methods and technology.
These two shipbuilders buy products and services from other
companies creating further impact on the area and the state
of Wisconsin.
Shipbuilding remains the largest manufacturing
employment sector in Sturgeon Bay. Many families
would feel any impact to this shipbuilding cluster.
B-16
Sturgeon Bay, WI
Shipbuilding and Wisconsin

From the canoes of the first explorers, to the first steamboat
arriving in Prairie du Chien in 1821, to tall ships in the Great
Lakes that were built in Wisconsin in the mid-1800s,
submarines and war ships built for World Wars, pleasure
craft, military and working vessels still being constructed
today, boats of many kinds have been integral to
Wisconsins history and livelihood.
Many citizens, especially those living away from our
freshwater coasts and/or born in more recent times, may not
understand how connected shipbuilding has been with the
development of diverse industries and companies that exist
across Wisconsin.
Though it began with the use of trees for lumber, the
connection grew to include the manufacture of engines,
castings and other components for all kinds of boats and
ships. It included the need for pipe, steel shapes and plate,
aluminum, technical equipment and most of all, skilled
labor. Indeed some immigrant nationalities are said to have
come to Wisconsin claiming to show the others how ships
should be built.
This may seem like ancient history to the casual observer,
until one checks the facts. For Wisconsin industry
remains connected to shipbuilding and, with smart
management of our resources, there is enough potential for
Wisconsin to gain its share of global shipbuilding for
generations to come.
Here are examples of our involvement with shipbuilding:
- Many ship types and engines were developed here.
- Wisconsin has produced many ships and submarines
for the defense of the United States both during and
after the World Wars.
- Two innovative ideas in the shipping industry
were invented in Sturgeon Bay: self-unloading and
container ship design, both used worldwide. This
might not have happened were it not for the synergy
of the shipbuilding cluster.
- The first cofferdam was done in Sturgeon Bay to allow
ships to back in.
- One ship building boom in the 1970s provided in
excess of 4,000 jobs.
B-17
Sturgeon Bay, WI
- Timber, steel, gears, furnishings and other products

from Wisconsin have been used in ships built here.
Distributors offering sales and service are
headquartered in Wisconsin. Examples include:
Inland Diesel Sales & Start-Up Service
Twin Disc Inc. of Racine
Kahlenberg Signaling Equipment
Kahlenberg Marine Propulsion Castings
McJunkin Corp.
Heyrman Construction
WESCO
L&S Electric Co.
Airgas North Central
Russel Metals Williams Bahcall
Bay Engineering
Service One Transportation
Sturgeon Bay Sand & Gravel
Joseph T. Ryerson Inc.
Badger Roll & Machine
Bay Electronics
First Supply Group
New Tech Metalworks
Endries International
Ferguson
Quality State Oil
M & M Supply
- Millions of bushels of corn, soybeans, and wheat ply
the Great Lakes from farms in the Midwest.
- Millions of tons of coal, salt, cement, petroleum, raw
steel and other bulk commodities consumed daily in
Wisconsin are brought across the Great Lakes.
- Limestone trade on the Great Lakes reached a 6 year
high in 2004. You can see barges leaving WI ports.
- Fluxstone and aggregate are transported by ship.
- Metal stampings, heavy castings and assembled
machinery for industry crosses the Great Lakes.
- Wisconsin is well positioned geographically with our
Nations integrated steel mills.
- Wisconsin can trade in bulk from its ports on the
Great Lakes to other ports on the East Coast.
B-18
Sturgeon Bay, WI
Related Information
Domestic Water Commodity Transport
Studies have shown that water-borne freight is by far the
most efficient and most environmentally safe method for
hauling bulk commodities. If trains replaced Great Lakes
ships using 9.6 million gallons of fuel to deliver 8 million tons
of one product annually, the trains would consume 14 million
gallons of fuel and their emissions would double that of
ships.
Some notes from a 2004 study include:
- The Great Lakes and St. Lawrence Seaway
encompass a region that is home to more than 100
million people (1/4 of the North American population.
- This region accounts for nearly 40% of US
manufacturing and over 60% of Canadas industrial
output.
- It stretches 2,400 miles into the heart of the North
American Continent.
- It represents 20% of the worlds surface fresh water
and 95% of the surface fresh water in the U.S.
- Yet it is an under-recognized resource and under-
valued treasure.
- Great Lakes ports connect us. Its transportation
system is a joint public-private enterprise.
- This report elaborates on many issues too numerous
to include here, other than to say, the public and its
government must not wear blinders and ignore this
waterway. All citizens must recognize it and
understand their relationship to it. They are affected
by it.
The National Waterways Conference (www.waterways.org)
report includes:
- that every $1 invested in navigation infrastructure
increases the US Gross Domestic Product $3.
- Approximately $146.4 billion in federal taxes is
generated by all waterborne commerce at ports.
- If cargo transported on inland waterways each
year had to be moved by another mode, it would
take 6.3 million rail cars or 25.2 million semi-
trucks to carry the load.
B-19
Sturgeon Bay, WI
A study of barging by the Iowa Department of Transportation

provides the following equivalent units:
- One barge carrying 1500 tons =
60
- 15 jumbo hopper railcars = 58
- 58 large semitrailers 40
The same Iowa study also indicates these equivalents:
20
- One 15 barge tow carrying 22,500 tons = 1 15
- 2.25 trains of 100 cars = 0
- 870 large semitrailers Barge Railcar Trailer
(Note: a 1000 foot Great Lakes ore carrier will carry Number needed to carry 1500 Tons
70,000 tons and can discharge it in less than 10 hours.
One barge carries as
An 800 foot straight deck bulk carrier will carry 30,000
much as 15 railcars
tons. Ref: www.great-lakes.net/teach) or 58 semitrailers.
It is also noteworthy to see that a one barge tow is 1,320 feet
long, but the 870 semis would stretch 11.5 miles if bumper- One 800-foot ship
to-bumper. Could there be a difference in energy used and regularly carries as
environmental impact as well? Yes. How much more road much as 20 barges
repair would be required? Immeasurable. Does a ship last or 300 railcars.
longer than a truck or train? Ships last at least 50 years,
trains about 30 years and trucks last about 10 years. Water- Thats 30,000 Tons!
borne freight is essential, economical and
Some carry 70,000T.
environmentally sound.
The Great Lakes Commission performed a study of the
Great Lakes-St. Lawrence River commercial navigation
system. It studied eleven scenarios shifting the routing of
commodities from water to ground surface shipment. Briefly
the findings state:
- To shift nearly 25 million tons of cargo from marine to
rail, an additional 14 million gallons of fuel would be
consumed. Fuel use by rail is 44% greater than for
marine movement.
- An additional 4,321 tons of pollutants would be
generated. Rail emissions were 47% greater than
marine and for some scenarios 100% greater.
- The shifting of less than 1 million tons of waterborne
cargo to truck transport would increase fuel use by
3.4 million gallons and generate an additional 570
tons of air pollutants.
- The vessel to rail shift could result in 36 crossing
accidents, 14 derailments and one train collision.
- The vessel to truck shift would add 1446 trucks per
week to our highways generating 21 million additional
B-20
Sturgeon Bay, WI
vehicle miles and possibly resulting in 141 more

accidents, a quarter of which would be serious to
fatal.
- Vessels on the Great Lakes and St. Lawrence River
are quieter than rail or truck operations and most
noise is far from occupied areas.
- The one thing missing from the study is a projection of
jobs produced to build all the additional trucks, trains
and supporting infrastructure. However it would also
have to project future jobs lost as we consumed fuel
and other resources faster leading to our own demise.
- Commodities considered by this study to be shipped
include:
Potash from Thunder Bay to Toledo
Coal from Superior to St. Clair Michigan
Taconite from Minnesota to Ohio
Cement from Alpena, MI to Detroit, MI
Petroleum from Ontario to Montreal
Petrochemicals from Ontario to Chicago
Grain from Thunder Bay to Quebec City
Paper, wood pulp and other products from
Thunder Bay to Superior
Iron Ore form Quebec to Hamilton, Ontario
Coal from Ohio to Hamilton
Steel from northern Europe to Cleveland with
other routings to Baltimore.
These movements represent only 10
percent of the average annual tonnage
moving on the system.
Clearly, waterborne shipping is vital to the interests of the

United States and could not be replaced by other means
without considerable detrimental effect, if at all.
B-21
Sturgeon Bay, WI
Homeland Security
http://www.dhs.gov/dhspublic/display?theme=21&content=908
The Department of Homeland Security describes the
importance of ensuring that our maritime transportation
system, the waterways upon which it navigates, and the
ports into which the vessels travel are safe and secure.
This includes maritime security, border security and the
Coast Guards Deepwater Mission.
- Bay Shipbuilding Co. can play an important role in
maintaining and servicing Coast Guard vessels,
refitting cutters and building new vehicles when
needed.
- A lifting platform at Bay Shipbuilding would provide a
means to expedite launching and servicing additional
vehicles including those military vessels built at sister
company Marinette Marine, as Marinette Marine
cannot lift vessels back out of the water.
B-22
Sturgeon Bay, WI
Analysis of Cause and Value Mismatch

PROBLEM DEFINITION
The following Sufficient Cause Diagrams describe the Current Reality of the
issues (read boxes from bottom to top using if-then statements)
Palmer Johnsons perspective:
Palmer Johnson
must seek a better
location
and
Current PJ facilities will

Water access is Launch fees
not support the new
not available are too high
market plan
Bay Shipbuilding Companys perspective:
Bay Shipbuilding
could become
less competitive
and
BSC's
BSC's production
infrastructure is
process is less Competitors enjoy
aging, especially
efficient than it government support
the floating
could be
drydock
C-1
Sturgeon Bay, WI
General Public Perspective:
Shipbuilding
workers will
not be
available
Training in
shipbuilding is not
emphasized in
schools
Public funding is
not directed to
assist shipbuilding
Career opportunities
in shipbuilding are
not recognized
The general public does

not recognize shipbuilding
as an important economic
engine
C-2
Sturgeon Bay, WI
Resulting Problem
These conditions will combine to cause the decline of Sturgeon
Bay as a prime center of shipbuilding:
Sturgeon Bay will

decline as a center
of shipbuilding
and
Shipbuilding
workers will
not be
available
Training in
shipbuilding is not
emphasized in
schools
Palmer Johnson Bay Shipbuilding Public funding is
must seek a better could become not directed to
location less competitive assist shipbuilding
in shipbuilding are
not recognized
and and
BSC's
BSC's production The general public does
Current PJ facilities will infrastructure is Competitors enjoy
Water access is Launch fees process is less not recognize shipbuilding
not support the new aging, especially government
not available are too high efficient than it as an important economic
market plan the floating support
could be engine
drydock
If Sturgeon Bay declines as a center of shipbuilding then the

impact at the state level can be described thus:
Wisconsin will
suffer a
preventable loss
and
Highly skilled workers All other revenues

will move away derived from Sturgeon Tourism revenue
seeking opportunities Bay shipbuilding will may be affected
elsewhere diminish or disappear
C-3
Sturgeon Bay, WI
If Sturgeon Bay declines as a center of shipbuilding then the

impact at the national level can be described thus:
The economics, security and

shipbuilding capability of the United
States (and Canada) is reduced
and
Wisconsin will
suffer a
preventable loss
USA may lose
an income
source
The ability to
maintain the Current abilities to
transfer of bulk support Homeland
commodities via Security methods are
the Great Lakes is affected
affected
C-4
Sturgeon Bay, WI
The completed Current Reality Tree:

The economics, security and
shipbuilding capability of the United
States (and Canada) is reduced
and
Wisconsin will
suffer a
preventable loss
USA may lose
an income
source
and
The ability to
Highly skilled workers All other revenues maintain the Current abilities to
will move away derived from Sturgeon Tourism revenue transfer of bulk support Homeland
seeking opportunities Bay shipbuilding will may be affected commodities via Security methods are
elsewhere diminish or disappear the Great Lakes is affected
affected
Sturgeon Bay will

decline as a center
of shipbuilding
and
Shipbuilding
workers will
not be
available
Training in
shipbuilding is not
emphasized in
schools
Palmer Johnson Bay Shipbuilding Public funding is
must seek a better could become not directed to
location less competitive assist shipbuilding
in shipbuilding are
not recognized
and and
BSC's
BSC's production The general public does
Current PJ facilities will infrastructure is Competitors enjoy
Water access is Launch fees process is less not recognize shipbuilding
not support the new aging, especially government
not available are too high efficient than it as an important economic
market plan the floating support
could be engine
drydock
Palmer Johnson has outgrown their Bay Shipbuilding's existing infrastructure is no

existing location longer adequate
Market conditions and customer

requirements have changed
C-5
Sturgeon Bay, WI
One of two conflicting paths will occur with very different results:
The economy and other

factors related to
shipbuilding will adjust
at all levels
The needs of Sturgeon Bay

Sturgeon Bay shipbuilders will relocate,
shipbuilders will be
downsize or do what they are able to do
supported and success will
alone to stay in business
be promoted
Act to ensure Sturgeon Bay Avoid action ensuring

remains a strong conflict Sturgeon Bay as a strong
shipbuilding cluster shipbuilding cluster
The root cause of both the Current Reality Tree and the Conflict
Diagram is the change in market conditions.
BSC's
BSC's production
Current PJ facilities will infrastructure is
Water access is Launch fees process is less
not support the new aging, especially
not available are too high efficient than it
market plan the floating
could be
drydock
Palmer Johnson has outgrown their Bay Shipbuilding's existing infrastructure is no

existing location longer adequate
Market conditions and customer

requirements have changed
C-6
Sturgeon Bay, WI
VALUE MISMATCH ANALYSIS

Function Diagramming assists in analyzing functionality, function cost and
determining value mismatch areas to focus creativity.
Production processes and facilities for both companies were

studied. By describing the processes with function phrasing,
waste and unnecessary function or cost can be exposed.
Function Analysis of Palmer Johnsons Process

As shown in the function diagram, the purpose for building and
delivering yachts is to create something of value to the customer
with resulting margin for PJ. However when every yacht is
custom, the risk of achieving targeted margin is high. Thus the
newer designs will incorporate more standardization.
After constructing the diagram, we selected the function

Launch Yachts for improvement. The cost to outsource this
function to BSC in recent launches has reached $75,000 plus
PJs costs. By breaking this into sub-functions, we sought to
discover cost drivers. BSC informed us that in addition to
assuming liability, BSC was incurring lost time on their work-in-
progress and a large amount of special set up and activity time
to launch each yacht because the current method is not
efficient. The worth of launching the yacht is very high because
without it the sale cannot be completed. However, market
comparable prices elsewhere indicated the current cost to be
unacceptable to PJ. A value mismatch was occurring.
The team discussed Palmers yacht launching track record to

discover whether liability concerns could be statistically justified.
Assuming application of the Standard Normal Curve to launch

history, 1 sigma (one standard deviation from the Mean) would
indicate that only 68% of a population of launches would be
successful. Obviously PJ performs better than that. 2 sigma is
the range in which 95% of the launches would be successful (or
5 of 100 fail). PJ has launched 135 yachts without fail over 30
years. 3 sigma is the range in which 99.7% consistency would
occur (1 out of 300 fails). However PJ also makes other
launches of approximately 110 x 2 per year for 30 years or 6600
service launches without incident of failure. Surely PJs record
C-7
Sturgeon Bay, WI
indicates a launch success consistency better than 3 sigma and

possibly greater than 4 sigma (99.97% success or 3 out of
10,000 fail). Indeed they could be operating even at a 6 sigma
level (only 3 out of 1 million launches fail). But that would
require more than 4000 years of launching yachts to know for
certain! (It is possible to compute the probability and confidence
interval based on the known sample, but not worth the effort.)
One must also note, the single failure could occur as soon as
the next launch. Thus while there is a low probability for failure,
risk does exist. Since a multi-million dollar yacht is involved, it
would seem the exposure could be great. But exposure to
damage is low for instances not requiring launching by crane.
Discussion with Palmer President Mike Kelsey and CFO Tom

Kuffel led to discovering that if the yacht is not lifted by crane,
the greatest potential for serious damage should be much less
than $1 million, and even that is an unlikely amount of repair
cost. The aluminum hull can be easily repaired and painted and
there is precedent for making such repairs. Nothing else on the
ship is likely to be damaged any worse. $1 million dollars
includes a contingency of about 100% within it.
Value Mismatch recap: Yacht Launching Costs

The average rate charged elsewhere to launch a yacht is
approximately $10 to $20 K. Palmer Johnson is currently being
charged $75 K and could launch at no extra cost using their own
rail system if they had water access. This is an extremely high
cost that their competitors do not have to account for. However
there is also high worth because if the yacht cannot be
launched, then it is worthless. However, the value mismatch lies
between the costs of the launching charges experienced versus
the average charge of launching. Because Palmer Johnson
does not have water access, they have no other choice than to
pay $75,000 per launch. This launching fee is making a
negative financial impact that Palmer Johnson can no longer
ignore. They feel forced to find another way to safely and cost
effectively launch yachts due to a correctable misunderstanding.
C-8
Sturgeon Bay, WI
VALUE MANAGEMENT
FAST Function Logic Diagram
Palmer Johnson
HOW? Sturgeon Bay Shipbuilidng Cluster WHY?
Master Plan
Sturgeon Bay, Wisconsin
High Basic
Order
Plan Engineer
Assembly Vessel
Generate Create Deliver

Profit Value Yacht
Plan
Sequencing
Fabricate
Components
Assemble
Yacht
Fit & Join
Components
Finish Finish
Yachts Exterior
Finish
Interior
Install
Amenitities
Install Support
Install Facilities
Install
Purchased
Infrastructure
Components
Install Piping &
Wiring
Install
Equipment
Construct Jigs -
$5 K
Prepare
Yacht for Reuse Jigs -
Transport Transport
$2,500
Yacht
Move Install Rollers -
Yacht - $2,500
$5 K
Launch
Yacht Receive
Yacht - Determine
$20 K Lift Weight
Access
Water -
$75 K Float Hold
Yacht - Harmless
$10 K
Remove
Assume Subrogation
Mitigate
Liability -
Risk
$45 K
Test Prevent
Operations Publicity
Assure
Safety
Assure Test Assure

Dependability Yacht Reliability
Assure
Convenience
Attract
Customer
Satisfy Isolate
Customer Noise
C-9
Sturgeon Bay, WI
Function Analysis of Bay Shipbuildings Process

Development of a function diagram describing Bay Shipbuilding
helped the team understand many aspects of this diverse
company. Three primary profit centers are apparent:
Manufacture of complex ocean-going working vessels
and smaller saltwater and freshwater working vessels
(e.g. tugs, cutters, barges, etc.)
Repair of working vessels, especially those on the Great
Lakes
Berthing of Great Lakes vessels any time of year.
They have also fabricated lock and dam gates and other large
steel objects as appropriate.
Within their process are many functions associated with transfer

and inventory (though short duration in some cases). Not only
are these functions wasteful of time, manpower, equipment, and
energy, they consume space both internal and external to the
facility. Modifications to these functions will result in
improvement of throughput and function cost.
Further function analysis of their process is possible and

advantageous, but is not the primary goal at this time. This
template can be utilized to that end in the future.
C-10
Sturgeon Bay, WI
VALUE MANAGEMENT
FAST Function Logic Diagram
Bay Shipbuilding
HOW? Sturgeon Bay Shipbuilidng Cluster WHY?
Master Plan
Sturgeon Bay, Wisconsin
High Basic Engineer Solicite Tabulate & Issue

Order Vessel RFQ Compare Bids P.O.
Achieve
Employ
Generate Sales Eliminate Plan
Efficient
Profit with Waste Work
Processes
margins
Create Value Ensure
Coordinate Schedule
for Production
Efforts Production
Shareholders Engineering
Reinforce
Ensure
Shipbuilding Purchase Tab &
Berth Berth Solicite Issue
Cluster in Materials Compare
Vessels Space / RFQ P.O.
Sturgeon (JIT) Bids
Condition
Bay, WI
Ensure
Repair
Drydocking
Vessels
Space
Recieve
Manufacture Materials Handle Inventory Store
Vessels - - 15% Materials Materials Materials
45%
Fabricate Blast & Fit &
Units - Receive Burn & Inspect Paint
Prime Weld
30% Steel Cut Steel Units Units
Steel Steel
Outfit Install
Units - Components
20%
Assemble Fit &

Units - Join
Units Weld
16% Units
Finish Complete
Vessel - Installation of
15% Components
Paint
Vessel
Launch
Install
Vessels -
Syncrolift
2%
Test Test
Vessels - Equipment
2%
Test
Structure
Deliver Transfer
Vessels Ownership
Limit
Promote Injuries
Safeguard General
Install
User Safety
Limit Ship Syncrolift
Damage &
Resist Employee
Accidents Injuries
Ensure Select
Ensure Longevity Quality
Dependability Materials
Minimize & Labor
Maintenance
Berth
Vessels Ensure Berth
during Availability &
Winter Condition
Meet client Ensure

requirements Repair Ensure
Drydock
Availability
Ensure
Constructability
Ensure Ease
Access drydock Provide Access
Facility Production Install
space & transfer to multiple
Convenience Flow Syncrolift
system drydock space
Ensure
repair /
construction
drydock
space
Ensure
minimal
maintenance
Propose
favorable
Attract
pricing
Customer/
User
Ensure
on-time
delivery
Ensure
minimal
down-
time
Ensure
ship's
functionality
Ensure
low cost
Satisfy
Customer/
Deliver
User
ship on
time
Ensure
C-11
minimal
down-
time
Sturgeon Bay, WI
The team next focused on the lifting platform, calling it by one of

the potential brand names, Syncrolift. Review of function cost
and function worth revealed two significant value mismatched
groups:
Funding available for high worth items
Training and career promotion available
In order to stay competitive, Bay Shipbuilding has determined

that their new shipbuilding and repair processes must be more
efficient. They believe this can be achieved by installing the
modern technology of todays shipbuilding practices (a
Syncrolift), which, in this case, will replace the floating dry dock,
a piece of equipment that has limited useful life remaining. Its
loss will significantly affect Bay Shipbuildings ability to build,
repair and launch vessels. As shown on the earlier FAST
diagram, loss of the floating drydock will terminate up to 25% of
their business. Its replacement is vital.
The purchase and installation of the Syncrolift comes at a high

cost, yet is of high worth to Bay Shipbuildings business.
However this is not an investment that Bay Shipbuilding can
easily make. The value mismatch lies between the cost of the
Syncrolift and the financial funding that needs to be invested to
purchase, install and maintain a Syncrolift and related structures
rather than a mismatch between product cost and worth.
Review of the function diagram analyzing the Syncrolift would

also seem to indicate that the team technically went on a
tangent by discussing the value of training. Instead the function
logic has exposed that to improve shipbuilding process
efficiency (as shown along the basic function path), the answer
also requires increasing the critical mass of available
shipbuilding jobs in northeast Wisconsin as well as finding
skilled personnel. In doing so, the team determined that career
advertising and training functions have very high worth and
relatively low cost. In addition they currently have very low
actual funding or investment, which further describes them as a
value mismatch.
C-12
Sturgeon Bay, WI
Appreciation for high worth functions must occur to a level

sufficient to garner funding support. Without this investment,
these functions will not occur and failure will result.
ENGINEERING ANALYSIS
Refer to Tab F
C-13
Sturgeon Bay, WI
Creation and Evaluation of Options

CREATIVITY
Through the use of an elaborate Future State diagram and
brainstorming, a list of ideas was identified. To ensure
creativity, ideas were not restricted. The ideas were evaluated
and saved for reference. The needs focused upon during
creativity are documented below.
1. Appropriately positioned land and equipment will
guarantee Palmer Johnson water access for yacht
launching and reduce operating costs.
2. Quick acquisition of an adequately sized production
facility will enable Palmer-Johnson to exploit their current
market advantages with a consequential increase in
employment and purchases of goods and services.
3. Facility changes assuring higher production efficiency
and lower operating cost per unit of throughput will
increase Palmer-Johnsons long-term viability.
4. Facility changes assuring higher production efficiency
and lower operating cost per unit of throughput will
increase Bay Shipbuilding Companys long-term viability.
5. Facility changes increasing capacity to build and repair
vessels will increase Bay Shipbuildings sales revenue
with a consequential increase in employment and
purchases of goods and services.
6. Replacement of the floating drydock is imperative to
preventing reduction of repair work and related jobs.
7. Changes increasing sales volume at Palmer Johnson
and Bay Shipbuilding will flatten seasonal hiring patterns.
8. Agreement to seek collaborative synergy within the
cluster will lead to unforeseen opportunities and benefit
the Sturgeon Bay-Door County area.
9. Significant assistance by public agencies will be
necessary to achieve these goals because of physical,
legal, and financial constraints.
10. Recognition of the importance of shipbuilding to our
nation, state and region will encourage:
a. Workers to seek shipbuilding as a career path,
b. Schools to provide appropriate training,
c. Economic policy beneficial to shipbuilding.
D-1
Sturgeon Bay, WI
IDEA BANK
The following list of ideas is recorded for reference only.
Creative effort sought technical solutions, workforce

development and funding ideas. As of this report, they have
been evaluated and most are no longer in consideration.
Highlighted ideas are captured for future reference. Though
some comments are indicated in the list, they are not
evaluations. Recorded ideas include:
Ideas to Replace Floating Dry Dock

Place Lifting Platform at end of berths 4 and 5.
- These berths have most deteriorated shoreline.
- They are the smallest in width, length and depth and
best to sacrifice since others are deep and piled
- The location is appropriate to end of assembly building
- There is sufficient land adjacent
Place Lifting Platform at end of berths 2 and 3
- Less land width at end
Dig and build new graving dock in lieu of lifting platform
- By extending berths 2 and 3 toward 1st Street
600 feet of length is minimum needed to
construct ships
800 feet of length is minimum needed to repair
ships
Would need a new large crane since the ship
cannot be lifted.
This has other impacts since the ship is not
actually dry-docked.
Construct new Floating Drydock of similar size
Construct new Floating Drydock of smaller size
Maintain existing Floating Drydock
Expand Large Graving Dock back 600 feet (into residential
area) to isolate construction and repair to one location. Must
also extend gantry crane over this area.
- Cuts off 3rd St. and impacts homes
Improve Berth #4 and #5. Put Syncrolift in Berth #3.
D-2
Sturgeon Bay, WI
Increase Berthing Capacity to dock more of the GL Fleet

Note: Minimum berth width must be 80 feet and a berth requires a
minimum of 75 feet along both sides to service the work effort
(material staging and access).
Remove Dunlop Reef to more easily turn ships into berths
Add berths parallel to #15 at #14
- Previously studied and determined to be limited
Create berth of off #1
- Floating dry dock usually placed over shipwreck in
winter, then berth off of that. This idea describes
removing the wreck.
Buy Lawrie Property and cut in a 100 x 600 berth
Move Paint Shop to west end of Building 311. Excavate new
berth inland at this location.
- Berth construction is very expensive ($millions)
Create berth perpendicular to #15 for smaller boats
Berth at the Quarry
Use shoreline in front of office building to the south
- Need permission from Coast Guard but probably
possible during off-season
Remove drawbridge. Moor against it lengthwise as a berth.
Improve berth #2 to attract Coast Guard.
Find better location for Coast Guard buoy tenders.
Ideas for Changing Ship and Yacht Launching

Side launch from berth #1
- What is impact of historic wreck beneath here?
Ideas for Revising Process Layout BSC

Relocate Steel Preparation operation from painting area to
west end of new Burn Shop.
Relocate Paint Shop to south end of Building 211
Relocate Paint Shop to become two buildings, one at each
end of Main Assembly building
Find new way or place to store steel
Install Syncrolift and transfer system. Repair pilings and land.
D-3
Sturgeon Bay, WI
Ideas for Revising Process Layout PJ

Put manufacturing facility where Baird is
Move existing PJ building(s)
Move PJ to a new location on the water
Merge PJ and Bay Ship painting shops to take advantage of
similar needs for equipment such as compressors or electrical
gear
A certain amount of BSC land is currently underutilized. Could
a trade be made? Bay Ship also owns property along 3rd.
Perhaps it could be combined with the RR station property.
Expand existing aluminum fabrication shop to meet current
demand and make this a hub of production. Separate finishing
and painting so it can occur without interrupting production on
other ships. Note that yachts do not move on an assembly
line and painting requires a clean area. In addition, fiberglass
work cannot be done in the same building as aluminum work
because it is a fire hazard. Do all of this to allow for laying up
the next keel. Maintain wide clear span (such as 120 feet) to
avoid potential obstructions.
Using a mix of bay widths (90, 60, 90) for two ships in a 90-
foot wide bay, lengthwise so ships can go end to end, say 300
feet of building length. That way 10 yachts can be constructed
in a 240 ft wide x 300 foot long building. Then add length for
joinery, storage, and composites work (say 2 more yachts) as
well as office space. Maybe another 300 feet of length overall.
Final would be 240 x 600 = 144,000 SF. The short end would
face the water. Make it 45 ft to 55 ft tall. About 60 x 300 could
be lower roofed for offices. This is a building that would
probably not need the existing facility for production.
Ideas for Increasing Tourism

Add a viewing tower in park to enable viewing Large Graving
dock work and gantry crane
Do things that make these yards a tourist attraction
Make it educational that would meet one of our goals
Make it a branch of the Sturgeon Bay Maritime Museum
What if the Shipbuilder of the Month (an employee) talks to
kids at the Visitor Center
D-4
Sturgeon Bay, WI
Ideas for Parking

If one shift for BSC needs 400 stalls and one shift for PJ needs
200 stalls today, but each is working two shifts, then 1200
stalls are required. At 350 SF per stall, 420,000 SF of space is
needed for parking. That is nearly 10 acres. If shift sizes
double over the years, 20 acres will be needed. Where does
that fit?
There were 4000 shipbuilders working here in the 1980s.
Where did they park?
They parked along the streets and in the neighborhoods.
They may have carpooled.
The parking garage across from PJ is rarely full and there is
other surface parking nearby.
Could also use remote parking and bus workers in.
Use existing land south of Berth #2. That could become a
land bank saving that area for future development if needed.
Buy up residences along 3rd and construct an acceptable
buffer line for the next line of houses. It would require surface
parking and a lot of green space. But it has been done well in
other communities.
Build parking ramp(s)
Decrease the demand for parking by encouraging carpooling,
bussing, or adjusting work shift times to avoid the overlap.
The latter alone would cut the need in half.
Allow day shift to park in the City Park or close to boat launch.
D-5
Sturgeon Bay, WI
EVALUATION
Three options were selected from the many ideas and
developed as shown in Tabs 1, 2, and 3. Their detailed
description and evaluation follows.
Description of Options
Option 1
City aspects
- Retain existing 1st Avenue
- PJ to acquire vacated city parking north of PJ
Palmer Johnson aspects
- Retain existing PJ facility
- PJ to acquire property along 3rd from BSC
- PJ to acquire RR property
- Expand PJ facility to property east of 1st Avenue
and west of 3rd Avenue
- Construct 180 x 400 foot facility or one that fits lot
Bay Shipbuilding aspects
- Move Steel Prep Shop between berth #5 and #8
- Paint shop to remain in current location
- Construct Lifting Platform in Berths #4 and #5
- Construct transfer rails and drydock area
- Relocate steel storage closer to Steel Prep
- Convert south yard to parking for joint usage
D-6
Sturgeon Bay, WI
Option 2
City aspects
- Reroute existing 1st Avenue
- Modify Jefferson St. Intersections
- Relocate utilities in 1st Avenue to BSC property
under utility easement
- PJ to acquire RR property
- PJ to acquire some of 1st Avenue
- PJ to acquire property along 1st and 3rd from BSC
- Expand PJ facility into existing 1st Avenue and
former BSC properties
- Construct 180 x 400 foot facility
- BSC to acquire some of 1st Avenue
- Demolish Paint shop. Build new near 1st Ave bend
- Convert south yard to parking for joint usage
- If Palmer Johnson will stay at this Option 2 Plan
location for an agreed upon term and cooperate to
grow their shipbuilding cluster with Bay
Shipbuilding Company, BSC agrees to furnish a
yacht launching method at a reasonable cost to
Palmer Johnson for an agreed upon term with a
plan for acceptable yacht-launchable water access
rights of survivorship should BSC be sold or close
their business.
D-7
Sturgeon Bay, WI
Option 3
City aspects
- Reroute existing 1st Avenue
- Modify Jefferson St. Intersections
- Relocate utilities in 1st Avenue to BSC property
under utility easement to skirt paint shop
- PJ to acquire some of 1st Avenue
- PJ to acquire Lawrie property and fill to elevation
- PJ to acquire property along Lawrie from BSC
- Construct 180 x 400 foot facility on Lawrie/BSC
with direct water access
- Utilize public parking
- BSC to acquire some of 1st Avenue
- Demolish Paint shop. Build new near 1st Ave bend
- Convert south yard to parking
- Develop land along 3rd Ave for parking
D-8
Sturgeon Bay, WI
Evaluation relative to the goals, factors and criteria:

Attributes & Advantages
Factors & Criteria Option 1 Option 2 Option 3
PJ direct Water Access No No Yes
Launch Access Requires assured access Requires assured access Waterfront access if
via Syncrolift at via Syncrolift at property available
acceptable fee acceptable fee
Quickly acquired, adequately Poorly positioned narrow Greatest potential to Properties not easily
sized PJ facility, allowing property with grade meet requirements acquired
efficient consolidation changes and limitations
Improved PJ production Difficult maneuvering Greatest PJ efficiency Difficult maneuvers; Does
efficiency and cost yachts in and out of not readily accommodate
building. Retaining wall. consolidation
PJ Truck Loading Dock Truck access and dock Greatest truck access No loading dock space
space very limited and docking available available
Improved BSC production Moves prep but not paint Improves BSC efficiency Improves efficiency
efficiency and cost shop (significant)
Available Yard Storage Less storage More storage retained Less storage
Replace floating drydock and Best lift and launch Best lift and launch Platform for BSC only; PJ
prevent loss of repair work capability for both capability for both builds own system.
Increase BSC capacity to Some improvement Greatly improved Some improvement but
build and repair capacity also loss of land.
Increase PJ and BSC sales Some potential Great potential Some potential
volume to flatten seasonal improvement for PJ and improvement for PJ and improvement for PJ and
hiring BSC BSC BSC
Encourage collaborative More collaboration Most collaboration Least collaboration not
cluster synergy in spirit desired
Employee parking Some improvement Greatest quantity Low improvement
Utility Relocation No relocation Relocation required Relocation required
Jefferson St. Improvements No improvements Improvements required Improvements required
Reroute 1st Street Possibly no reroute Reroute required Partial reroute required
Acquire RR Station Property Acquisition required Acquisition required Acquisition required
PJ to Acquire part of BSC Acquisition required, but Acquisition required Acquisition required,
property no yard setback available setback issues.
Acquire City & Utility Property Acquisition required Acquisition required Acquisition required
Acquire Lawrie Property No acquisition No acquisition Acquisition required
Option 3 is unacceptable to both businesses. Option 1 is

unacceptable to Palmer Johnson and will result in their leaving
the cluster because they have better options elsewhere.
The advantages of Option 2 are best for both businesses and

the shipbuilding cluster, however it requires the most public
assistance. Preventing some job loss requires helping BSC
replace the floating drydock. That is the unavoidable minimum.
The public agencies must next decide whether the advantages
of maintaining the shipbuilding cluster are worth their support.
D-9
Sturgeon Bay, WI
Recommended Master Plan

The Door County Economic Development commissioned this
study to determine the best value Master Plan renewing the
existing shipbuilding cluster. This involves the Bay Shipbuilding
Company (BSC) and Palmer Johnson Yachts (PJ).
These very different shipbuilding companies are linked by

history, geography and requirements for skilled labor. They are
also uniquely linked by a common need for water access and a
safe, reliable ship launching mechanism - but for slightly
different reasons. BSC wants to efficiently build vessels upon
the launching platform. Such a platform would also enable BSC
to receive ships for repair throughout the year replacing its
floating drydock. Launching yachts for PJ by platform would
also be easier, replacing current laborious activity by BSC. This
would reduce incentive for PJ to relocate.
Other current needs of these companies relate to production

effectiveness and throughput. Incremental improvements have
a large impact on constructing these large vessels. Both
companies need rearrangement of site and facilities.
The community desires that the end result of such changes

would be improvement in job availability. But the situation
reaches far beyond Sturgeon Bay.
It affects many suppliers. It affects the economics of Wisconsin

and our nation as well as our security. It affects both the United
States and Canada. BSC maintains a significant portion of the
Great Lakes shipping fleet and is important to Homeland
Security. Ships used to work along all three American
coastlines are constructed in Sturgeon Bay. Buyers of Palmer
Johnson yachts come from the United States, Europe, the
Caribbean, Australia, Hong Kong, Singapore and elsewhere.
These many sources can provide 1000 to 2000 jobs in Sturgeon
Bay and create hundreds of millions of dollars in revenue, while
supporting other jobs in the state that result from the purchase
of Wisconsin and other U.S. products by BSC and PJ. This
income will be churned through the public (e.g. retail and
services) at least 7 times.
E-1
Sturgeon Bay, WI
But time is of the essence if this cluster is to achieve market

share while they have relevant advantages. And conditions
favor sustained sales potential.
After study of many alternatives and scenarios, the study

team recommends keeping the cluster intact and Option 2
as the Master Plan. This plan resolves launching issues and
creates practical technical solutions for space and production
improvement.
The recommended plan requires vacation of a secondary street,

however it enables the cluster to be better integrated with its
location, make improvements to the neighborhood and attract
more tourists. It is a win-win-win plan for all involved.
The master plan should also enable Bay Shipbuilding Co. to

construct at least one (1) additional large vessel per year,
increase ship repair revenue through increased efficiency and
avoid losing revenue when the floating dry dock is no longer
serviceable. This will mean additional employment
opportunities and stability. More revenue will flow through
Wisconsin and other supplying areas.
The city should also seek ways to enable berthing more of the
Great Lakes fleet in the area. Not only would this increase the
flow of repair revenue through Sturgeon Bay, it will be a
magnificent spectacle helping attract more tourists in the winter.
The recommended master plan enables Palmer Johnson to

continue constructing yachts in Sturgeon Bay. It also provides
them with the capacity to construct many more yachts and
safely handle modern composite materials so necessary to
modern competitive manufacturing. It will expedite yachts
through their shop and enable laying new keel without delay.
Furthermore it consolidates their joinery and materials handling
reducing waste such as loading/unloading and transporting
products and assemblies. It will be more energy efficient too. In
total their operation will become more efficient and more
competitive.
E-2
Sturgeon Bay, WI
The resulting ability for both companies to meet market demand

will mean more employment opportunities and more revenue
flowing through Wisconsin and other supplying areas.
There is already enough market demand to immediately justify a

couple hundred more employees at these facilities. Sturgeon
Bay would not decline as a shipbuilding and repair center but
rather grow if there is community support that promotes
development of skilled labor.
It depends upon schools telling the shipbuilding story at every

age level and helping to train new workers. It depends very
much upon the private and public economic support for this
opportunity. It is time to build upon this existing industrial
cluster, help it achieve its fullest potential, and develop more
highly skilled jobs in Wisconsin.
The study team heartily recommends installation of the lifting

platform, transfer area, berth renovation, layout changes for
both companies and neighborhood improvements indicated in
this Master Plan.
The drawings and general description of this plan are found

in the tab describing Option 2 with additional important
information in Tabs E, F and G.
E-3
Sturgeon Bay, WI
To further clarify this Master Plan, we are including:

Acquisition, Design and Construction Plan Sequence
Opinion of Probable Construction Costs
Internal Rate of Return (NPV) Considerations
Potential Schedule
Conceptual Renderings
Acquisition, Design and Construction Plan Sequence

Acquisition
Business agreements
City approvals
Establish funding sources
Title searches
Environmental testing and remediation (BSC has Phase 1)
PJ acquires RR property
PJ acquires Sturgeon Bay Utilities property north of PJ
PJ and BSC acquire 1st Avenue
PJ acquires portions of BSC property
Vacate public parking north of PJ
Reroute 1st Avenue
Bidding and Procurement
Design
Obtain soil borings and soundings
Survey site and prepare maps
Plan Jefferson Street modifications
Plan civil, parking and site development drawings
Plan PJ Facility expansion
Plan BSC Paint Shop design
Plan Prep Shop design and/or relocation
Plan shoreline repairs, including shaping berths 2 and 3
Plan lifting platform foundations and installation
Plan transfer area and dry dock area development
Plan all utility and system requirements
E-4
Sturgeon Bay, WI
Construction
Construct interim facility solution for PJ
Ensure floating dry dock available during construction
Establish construction supervision and staging areas
Modify Jefferson Street - detour traffic via 1st Ave

Barricade 1st Avenue and construction perimeter
Install directional signage for public
Clear 1st Ave and remove obstructions
Clear stored BSC steel and misc from area to be developed
Relocate underground and overhead utilities to BSC land

Excavate, cut, fill and rough grade all site
Construct BSC Prep Shop

Construct BSC Paint Shop
Construct PJ Facility Expansion
Install parking lot utilities if required

Reconstruct perimeter curbing, walks, landscaping, etc
Install base and permeable paving at employee parking lots
Install bituminous or concrete paving
Install new sheet piling or equal at berths 2, 3, 4 & 5

Fill behind sheet piling
Install substation/MCC and utilities for lifting platform
Install transfer rail system

Install concrete paving at transfer rails and dry dock
Dredge slips as required

Install foundations for lifting platform
Install lifting platform
Commissioning of systems
Final fencing of sites
Project demobilization and closeout
E-5
Sturgeon Bay, WI
Real Estate Exchange and Business Agreements
Purchaser
Real Estate Transfers PJ BSC City Total
1 Railroad Station Property 1 lump sum
2 Sturgeon Bay Utility Parking Lot 1 acre +
3 First Ave Right of Way 1 acre + 1 acre +
4 BSC to PJ Land Conversion 1.5 acre +
5 PJ Parking Rights on BSC Property 1.5 acre +
6 PJ Yacht Movement Easement with BSC 1 thus
7 PJ Access Lift Platform Easement 1 thus
8 Public Utility Easement on BSC Property 1 thus
(replace 1st St.)
Real Estate Alternatives

1 ALT: Public Ownership of Lifting Platform undetermined
Land and Equipment
2 ALT: Private Property Acquisitions for undetermined
Jefferson St. Modifications, if required
Business Agreements
1 PJ Launching Agreement User's Fee for Yacht Amount per launch through 2006
Launching (2004 - 2006)
2 User's Fee Escalation for Inflation (2007 - 2035) Annual Increase per COLA Index
3 Insurance Premium for Yacht Launch Acquired at PJ Expense
4 Indemnification and Subrogation Clauses Acquired at PJ Expense
5 Water Access Survivor Contingency Plan To Be Determined
Soft Costs Excluded from estimate

1 Site Investigations, Surveys, Soundings
2 Legal
3 Financing
4 Environmental
5 Permits
6 Grant Search
7 Insurance
8 Administrative
E-6
Sturgeon Bay, WI
Opinion of Probable Costs

Design, Engineering and Construction Costs Expenditures
Line items not guaranteed. Breakdowns are approximate PJ BSC City Total
1 Public ROW: Changes to Jefferson St from $ 400,000 $ 400,000
1st Ave Intersection to 3rd Ave. Incl property.
2 City and SB Utility: Relocate 1st Ave Utilities $ 800,000 $ 800,000
3 General Land Contour Revision $ 120,000 $ 680,000 $ 800,000
4 General Site Development $ 100,000 $ 500,000 $ 600,000
(Site Utilities, Parking, Lighting, Landscaping,
Fencing, Signage)
5 Relocate BSC Steel Prep Shop and equipment $ 100,000 $ 100,000
6 New BSC Painting Shop w/ new and relocated $ 1,000,000 $ 1,000,000
equipment. Demo old.
7 New 60' PJ Building w/ 25% mezzanine incl $ 8,400,000 $ 8,400,000
firewall, elevators, cranes, curtain, dock, etc.
8 Convert Berths 4 and 5 to accept Lift Platform $ 7,000,000 $ 7,000,000
(Civil, Structural, Utilities, Area Lighting, 20 ft
Dredging, Hauling, Disposal,
Operation/Toilets/MCC Building)
9 Lift Platform Equipment, Installation, Spares, $ 8,470,000 $ 8,470,000
Training, Ship Hand Equipment
10 Transfer Field and Dry Dock Equipment and $ 5,250,000 $ 5,250,000
Installation
11 New shoreline retention and shaping of Berths $ 4,680,000 $ 4,680,000
2&3, Backfill, Dredge entire slip additional 5 ft
deep incl hauling and disposal.
12 Slip Aeration $ 100,000 $ 100,000
13 General BSC Site Renewal $ 100,000 $ 100,000
14 BSC Plate Storage $ 100,000 $ 100,000
SUBTOTAL All Projects $ 8,620,000 $ 27,980,000 $ 1,200,000 $ 37,800,000
Initial Program Management $ 20,000 $ 70,000 $ 10,000 $ 100,000
Architect and Engineering Fees $ 350,000 $ 1,000,000 $ 100,000 $ 1,450,000
Construction Project Management $ 300,000 $ 1,300,000 $ 150,000 $ 1,750,000
Contingency $ 400,000 $ 3,300,000 $ 100,000 $ 3,800,000
TOTAL $ 9,690,000 $ 33,650,000 $ 1,560,000 $ 44,900,000
E-7
Sturgeon Bay, WI
Internal Rate of Return (NPV) Considerations

Some of the information needed to examine these calculations is proprietary
to those involved, including depreciation schedule and taxes. Other
information to consider is provided below.
1. If the floating drydock is not replaced, an amount of sales in

excess of $2 million annually will be lost. Thus there is an
unavoidable minimum cost necessary to avoid this loss. The
options include building and maintaining a new floating
drydock (too expensive) or building a lifting platform. The
selection affects the view of subsequent calculations.
2. Operation, energy and maintenance costs related to the
existing floating drydock should be considered as
appropriate. Heating costs have been as high as $1500 per
day in the past. This is escalating as gas rates increase.
Also, maintenance efforts cannot sustain the current unit.
Operating costs between the old floating drydock and a new
one may be assumed to be similar. However installation of a
lifting platform will change the composition of operation,
energy and maintenance costs.
3. Winter operation of a lifting platform will require energy for
aeration of the slip. It does not require heat. Labor to
operate a lifting platform is very different from the floating
drydock, and anticipated to be less expensive.
4. Syncrolift has projected the annual maintenance on a lifting
platform to be approximately $100,000.
5. If the floating drydock is replaced with a Syncrolift, the
expenditure will at least include items 8, 9 and 10 shown in
the Opinion of Probable Cost plus a portion of other items,
engineering, CM fees and expenses.
6. Installation of a Syncrolift should enable these impacts to
revenue:
a. Ability to service additional vessels $ 1,500,000
b. Additional sale of one vessel $15,000,000
c. Regular launching of many yachts for Palmer
Johnson, approximately 6 to 12 per year.
7. Installation of a Syncrolift will improve production efficiency.
Since it will allow sale of an additional vessel annually, it is
logical to assume that margins over all annual sales will
have improved.
E-8
Sturgeon Bay, WI
Renderings of Master Plan (Option 2)

The renderings provide insight into this concept, but should not be
understood too literally.
Site as viewed from south
New Palmer Johnson

Finishing Building
Lifting Platform
3rd Avenue
Jefferson St
E-9
Sturgeon Bay, WI
Sturgeon Bay Shipbuilding Core Cluster
New Palmer Johnson Property
Lifting Platform Work Area and Dry Dock

E-10
Sturgeon Bay, WI
Lifting Platform
Transfer / Storage
New Bay Shipbuilding

Transfer Rail Area Painting Shop
Transfer Rail Slab
View of Transfer Area

E-11
Sturgeon Bay, WI
Existing BSC Assembly Building
New BSC Painting Shop
Transfer Rail Area
Transfer / Storage
Simplified BSC Production Route
New Steel Prep Building

New Plate Storage Area
3rd Ave view toward downtown Sturgeon Bay

E-12
Sturgeon Bay, WI
Third Ave looking south toward new PJ facility
Overview
E-13
Bay Shipbuilding & Palmer Johnson Site Tours
Bay Shipbuilding Process Flow Information

Bay Shipbuildings business is comprised of 25%-35% repair
and 65% to 75% new salt water vessels (barges, dredges,
tugboats, etc.) construction.
Sister shipyards are Marinette Marine and two in Ohio. Can
trade off work when one is too busy or too slow.
Spend approximately 1.2 million man-hours per year.
Could use another 100 workers tomorrow.
Have a loftsman that reads the blueprints and program the
cutting / welding machines. Was called a loftsman because
they used to be located up in the lofts of the main fabrication
shop.
Process approximately 10,000 tons of plate steel per year.
In 1987 Bay Ship built their last boat and there was not any
ship construction (only repair and conversion) until 1996.
They converted over to industrial fabrication and built locks
and dams and fabricated automobile presses, boiler work, and
fabricated large ductwork.
Bay Ship purchases all of their electrical components,
carpentry / joiner work and ventilation components.
BS does all of their own pipe fabrication.
The Process:
1. Receive plate steel, stiffeners, tubular steel. They
purchase in bulk and then allocate to specific vessels.
2. Store it outside in various locations
3. Blasting / Priming Facility (# 323)
a. Cleaning w/ Wheelabrator (blasts with steel shot).
b. Spray Booth
c. Dryer
G-1
4. Power wash Dry Paint w/ plural component system.

Used to use 5 gallon buckets and is now much more
efficient. Can typically get three units in the paint building
at once and is convenient because they can off load the
components at their end of the facility (# 322).
5. Have small facility next door for smaller units to perform

same operation (# 321).
6. Berth 2 (would like to extend the wall out) and Berth 3
(dredge out and extend the wall).
7. Berth 4 & Berth 5 is where they would like to install the

Syncrolift because it best suits the BSC fabrication shop
and PJ vessel movement. The wooden piles are
deteriorating severely. This is also the best location to
install the Syncrolift because it is less drafty and the main
fabrication shop is located very close.
G-2
8. Building 304 Upper portion is the electrical shop and the

lower portion is for small parts fabrication.
9. This is the blast building. They would like to relocate it to

where the existing wood / pallet pile currently is located.
This used to be their old paint building until they moved
their operations into the new building.
10. This is the storage area for parts that are for repair type of
work or a buffer for new construction materials that are not
designated to any particular ship (# 311).
11. Main Fabrication Shop: Burn Weld Plates Tack
Stiffeners Weld Stiffeners (# 311).
a. Have 10 ton cranes
b. 2 tables that do numerically controlled burning
c. Up to thick plasma burning torches (2)
d. Oxy fuel (1 head mounted on machine)
G-3
e. The new Panel line machine will be on-line by

September, which will yield a savings on the steel
work portion of the entire vessel. The output
capacity is expected to double.
12. Main Fabrication Bay is 100 x 600. Need to remove the

end of the building metal panels and garage door to get
the tugboats out of the building.
a. Currently are fabricating a tug boat inside the
building and fabricating 5 barges for Marinette
Marine that are contracted for the US Navy. The
barges are used as temporary bridges or as a
platform to transport goods to shore when the
waters are not deep enough for their vessels.
b. There are (3) 35-ton cranes and (1) 100 ton crane.
13. Berth 9 and Berth 10
G-4
14. Floating Dry Dock: In the next 5 years, this is expected to

be taken out of commission, or it will be in need of very
expensive repair.
15. Small Graving Dock: Bay Ship uses an old ship with a gate
on the end as a small graving dock to work on smaller
vessels. This requires minimal maintenance.
16. Large Graving Dock: Takes up to 1,000 vessels. There

are currently 12 vessels on the Great Lakes that are 1,000
in length. This is one of two large graving docks on the
Great Lakes and is the only one that currently serves the
Great Lakes fleet. It takes approximately 4 hours to fill it
up and 8 hours to empty it.
17. The Gantry Crane is a 200-ton crane.
G-5
Palmer Johnson Process Flow Information

There are 3 committed motor yachts for 2004. In the past,
they typically launched 3 yachts per year.
All have the same hull design.
Planning on laying the keel for another yacht in late
September.
The Process this is a long process. If the client knows

exactly what they want, it could take 1 to 2 months from the
date of the contract to the start of construction; otherwise, the
typical length of time to start construction from the date of the
contract is 3 to 4 months.
1. Talk to sales: List out the specific requirements and
decide if the requirements are similar to a yacht that PJ
has already designed or determine if the client has
their own naval architect / drawings / specifications.
2. If PJ already has the hull design, the time it takes to lay
the keel from the contract is within a month or two. If
the client has a completely new design, it takes several
months from the date of the contract to laying the keel.
Yacht construction self-contained fully functional motor yacht

(home that is self-contained and floats) with an aluminum hull.
Aluminum grade plate & extrusions (aircraft grade) G64
unrestricted use on ocean except for ice.
Do all of their own work: Piping / electrical / drive line /
propellers / interiors / appliances / plumbing /
monitoring system w/ full navigational electronics /
HVAC / generate own electricity EXCEPT painting.
They purchase the motors, but they install them.
They purchase aluminum sheets and they are subbed
out for plasma burning / cutting into individual pieces.
The pieces are labeled for ease of installation.
G-6
Their purchasing department works with their material

vendors to ensure the materials are received on time.
They keep a limited inventory on hand. They do
purchase their aluminum in bulk, and then allocate the
sheets per boat. The engines are JIT.
PJs central receiving area is rented space that is next
door to the joinery / carpenter shop.
Throughout the entire construction, the yacht stays at
Palmer Johnsons, however is launched at Bay
Shipbuilding.
The exterior (fiberglass) is put out for bid. Some of the
typical contractors are Global Yacht Finishing, R&N
Yacht Finishing and Excaliburs.
The most expensive part of the yacht is the engines.
The second most expensive part is the interiors client
specific. This includes the labor for joinery to build the
interior cabinets & carpentry work. The artwork is
usually very expensive and is owner supplied.
Aluminum: Primer, fairing, two-part epoxy paint, sand
to actual finish shape of boat.
Top Coat (fiberglass): Made of infused fiberglass in
Savannah, GA.
They do as much of the testing of individual systems as
possible outside of the water at PJs for efficiency, so
when they launch the only thing they have left to do is
trial test in the water.
In the past Bay Ship launched via the Gantry crane,
and now Bay Ship wants to launch via the dry dock.
This takes much more time (from 1 day to several
days) and there is a significant cost increase to use the
dry dock, but Bay Ship says it is less risky.
If there is a problem, PJ will tie-up the yacht at Great
Lakes Yacht Services to repair. This does cause some
inconvenience to run back and forth from PJs to Great
Lakes.
For a typical 120 yacht, it takes almost 75,000 man
hours and 12 to 13 months to fully build. This doesnt
include the design time or exterior finishing.
For a typical 145 yacht, it takes about 16 months.
For a typical 196 yacht, it takes about 36 months.
G-7
Palmer Johnson wants / needs to have ready-access to the

water. The launching / access to the Lake is VERY important
to PJ. They deliver all of their yachts via water, except when
delivering to Europe. They are then shipped via a barge. PJ
need a ready way to easily launch their yachts, especially if
the yachts are in need of repair.
Could use a portable crane to launch some lighter yachts from

the City launching site or Great Lakes Yacht Services.
G-8
BAY SHIPBUILDING
NEW VESSEL CONSTRUCTION:
RECEIVE PLATE STEEL & STIFFENERS

STORE PLATE STEEL & STIFFENERS
PREPARE STEEL (BLAST (CLEAN), PRIME & DRY PLATE STEEL)
CUT STEEL
ASSEMBLE COMPONENTS WELD PLATES
TACK STIFFENERS
WELD STIFFENERS
COMPLETE UNIT ASSEMBLY
POWER WASH, DRY & PAINT
SUPER SECTION ASSEMBLY
ASSEMBLE VESSEL (WELD COMPONENTS TOGETHER)
CLEAN STEEL
INSTALL JOINERY / ELECTRICAL / MECHANICAL / CONTROLS
PAINT VESSEL
TESTING
LAUNCH VESSEL
DELIVER VESSEL
C:\Data\Jobfiles 2004\Final Report-093004\Sturgeon Bay-RPT-G-02-BAY SHIPBUILDING Process 091904.doc

PALMER JOHNSON
NEW YACHT CONSTRUCTION:
DRAWINGS / SPECIFICATIONS
RECEIVE SHEETS OF ALUMINUM
STORE ALUMINUM
PREPARE ALUMINUM (GRIND)
LAY KEEL
SUBCONTRACT ALUMINUM FOR PLASMA BURNING / CUTTING FOR SMALLER PARTS / PIECES
WELD ALUMINUM
BONDO ALUMINUM
SAND BONDO
PAINT YACHT
SUBCONTRACT EXTERIOR FIBERGLASS HOUSE
JOINERY WORK IS STARTED
PROCURE ENGINES
INSTALL ELETRICAL / DRIVE TRAIN / PROPELLERS / PLUBING /
MOINTORING SYSTEMS / ELECTRONICS / HVAC
INSTALL INTERIORS & APPLIANCES
TEST INDIVIDUAL SYSTEMS
LAUNCH YACHT
TEST YACHT
DELIVER YACHT TO CLIENT
C:\Data\Jobfiles 2004\Final Report-093004\Sturgeon Bay-RPT-G-03-PALMER JOHNSON Process 100104.doc
Sturgeon Bay Shipbuilding Cluster Master Plan,
Sturgeon Bay, WI
SYNCROLIFT
Drydocking Shiplift & Transfer System
Alternatives
Graving docks
Floating docks
Marine railways
Shiplift
Advantages
Self-protecting against electrical and structural overloads
Permits future expansion
Custom engineered to match the exact requirements of
each client.
Exact synchronization
Fail safe control system
Through life support services
Life span of over 40 years
Warranty
Components
Articulated Platform - supports the distributed weight of
the vessel to ensure shiploads are determinately
distributed to respective hoists.
Wire ropes designed for high strength and long life in a
marine environment where the strands of the rope are
galvanized before they are drawn to their diameter; thus
the plating is ingrained to their surface rater than merely
plated.
Synchronous Electric Motors A.C. synchronous
induction motor that operates at one speed regardless of
its load.
Syncrolift Hoists support one end of a main transverse
beam by wire rope reeve through sheaves mounted on
the beam and at the hoist that is driven by an electric
motor through a gearbox, which drives a bull gear, which
is integral to the wire rope drum.
Transfer System include the following: both single and
two level systems operating on rails that use low profile,
Sturgeon Bay, WI
high capacity wheel assemblies which is made of

hardened cast ductile iron, or rubber tires, or film of air or
fluid, or hydraulic fluid bed.
Load Monitoring System Load Cells at each hoist,
which transmits data to the Programmable Logic
Controller (PLC)
Syncrolift ATLAS (Advanced Technology Loading
Articulated Shiplifts) Control System assists the
shipyard Naval Architects and docking personnel obtain
important additional information on the docked vessels.
Control System (electrical systems and equipment)
include:
One (1) Operator Work Station A personal computer
with a Custom Designed Syncrolift Control Key Pad, 20
VGA Color Monitor, and a color printer
One (1) Motor Control Center (MCC) that contains the
PLC 3-phase power supply will be necessary (not
supplied by Syncrolift), motor starters for each hoist
motor (including 1 reversing contactor with mechanical
interlock with auxiliary contacts), 1 circuit breaker
thermal/magnetic overload unit with aux contacts, 1
current transducer, control supply compartment
containing a disconnect switch and transformer, control
terminal blocks, voltmeter and selector switch. All control
circuits are 110 volt AC or 24 volts AC and the load
monitoring system is 24 volts DC. 1 Hand Held
Controller (HHC) is also included.
Two (2) Audible Alarms Klaxons.
Construction Method Not provided by Syncrolift

Site Preparation All dredging, filling, grading, bulkheads
and other civil work.
Piers Footings, pilings, pile caps, hoist foundations, pile
cap for running of the electrical cables required at each
hoist, etc.
Transfer System Foundations footings, pilings,
drainage, etc.
Installation of Shore Rails and Fittings
Construction and Installation of Syncrolift platform that is
assembled between the piers that consist of eight (8) pre-
assembled modules.
Sturgeon Bay, WI
Two Main Transverse Beams (MTB), connecting

steel and end cantilevers, two through seven each
consist of one MTB and the connection steel. The
modules are completely painted prior to assembly in
the final location.
The platform itself is assembled from the shore end
outward and is suspended from the pier concrete
using temporary support beams.
The relevant hoists, wire ropes and decking are then
installed. The sheave bearings are then lubricated.
The hoist is aligned, gearboxes filled with oil and
bearings are lubricated.
The control equipment is set into place and the
power is connected.
The electrical cabling is then completed between the
control equipment and the hoists.
The ropes are reeves onto the hosts.
The control wiring and controls are then checked.
The temporary platform supports are then removed.
The flexible platform joints are checked for proper
seating and the platform decking is bolted into final
position.
The platform rails are cut, fitted and secured to the
platform.
The limit switches are adjusted and the limit switch
striker plates at the platform are secured.
The platform is run down to set the final down limit
switches.
The hoist jacking bolts are backed off and the hoist
mounting bolts are torqued as well as the rope clamp
bolts.
The civil engineer is on site to take all necessary
elevations at each hoist pile cap and along each
quay when the platform is loaded and tested.
The elevations will be taken again when the load ahs
been removed to ensure that the quays have
returned to the original elevation and to ensure that
rails have not settled.
Sturgeon Bay, WI
Warranty
Guarantee the hardware and system against defects for
3 years
Guarantee that the system will operate within 3% of the
lifting capacities and speeds.
Physical Characteristics
390 long x 85 wide (4000 ton)
Steel depth of 10.3
Clear width between piers is 86
Shore end and sea end cantilevers are 4
Hoist spacing is 28
Lifting speed of 0.5 ft/min.
Electrical power required is 600 kVA
Vertical travel distance is 39
Docking operations take between 30 and 60 minutes
Sturgeon Bay, WI
Pre-Event & Workshop Photos
1
Sturgeon Bay, WI
2
Sturgeon Bay, WI
3
Sturgeon Bay Shipbuilding Master Plan DIRECTORY OF CONTACTS
Door County Economic Development Corporation and City of Sturgeon Bay
Planning Team
Boldt Study # 88766
Role Name of Organization Mail Address City/State/Zip Contact Title General Phone Direct Phone Fax Cell Phone Email Address
Project Coordinator Door County Economic 185 E. Walnut Street Sturgeon Bay, WI 54235 William Chaudoir Executive Director 920-743-3113 920-743-3113 920-743-3811 920-559-3113 [email protected]
Development Corporation Ext. 203
City Partner Rep City of Sturgeon Bay P.O. Box 47 Sturgeon Bay, WI 54235 Jay Krauss Administrator 920-746-2903 920-746-2905 [email protected]
City Partner Rep City of Sturgeon Bay P.O. Box 47 Sturgeon Bay, WI 54235 Martin Olejniezak Community 920-746-2910 920-746-2905 [email protected]
Development Director
City Partner Rep Northeast WI Dept. of P.O. Box 12645 Green Bay, WI 54307 Dennis Russell Area Development 920-498-6302 920-458-6313 [email protected]
Commerce Manager
Shipbuilder Partner Palmer Johnson Yachts P.O. Box 109 Sturgeon Bay, WI 54235 Mike Kelsey President 920-743-4412 920-746-6351 920-743-1799 [email protected]
LLC
Shipbuilder Partner Palmer Johnson Yachts P.O. Box 109 Sturgeon Bay, WI 54235 Tom Kuffel Controller 920-743-4412 920-746-6360 920-743-1799 [email protected]
LLC
Shipbuilder Partner Bay Shipbuilding 605 N. 3rd Avenue Sturgeon Bay, WI 54235 Pat O'Hern Vice President & 920-743-5524 920-746-3238 920-743-2371 920-493-2439 [email protected]
Company General Manager
Shipbuilder Partner Bay Shipbuilding 605 N. 3rd Avenue Sturgeon Bay, WI 54235 Jon Schauske Operations Manager 920-743-5524 920-746-3373 920-743-2371 [email protected]
Company
Shipbuilder Partner Bay Shipbuilding 605 N. 3rd Avenue Sturgeon Bay, WI 54235 Todd Thayse Director of Contract 920-743-5524 920-746-3403 920-743-2371 920-493-1819 [email protected]
Company Services
Lead Consultant Boldt Technical Services 2525 N. Roemer Rd. Appleton, WI 54912-0419 John Koga, CVS AIA Architect/Certified 920-739-6321 920-225-6153 920-739-0037 920-470-0867 [email protected]
PO Box 419 Value Specialist
VE Consultant Boldt Technical Services 2525 N. Roemer Rd. Appleton, WI 54912-0419 Theresa Lehman, AVS Value Practitioner 920-739-6321 920-225-6313 920-739-0037 920-470-7256 [email protected]
PO Box 419
Market Perspective The Boldt Company 2525 N. Roemer Rd. Appleton, WI 54912-0419 Tom Clark Marketing Manager 920-739-6321 920-225-6213 920-739-5868 920-470-8240 [email protected]
PO Box 419
Counselor Strategic Solutions 501 S. Nicolet Rd. Appleton, WI 54914 Shipra Seefeldt Counselor 920-730-2705 920-832-4519 [email protected]
Consulting LLC
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Robert Givens, PE Civil Engineer 920-735-6900 920-830-6100 [email protected]
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Jeff Sanders Urban Planner 920-735-6900 920-830-6100 [email protected]
Additional consultants available to the team:
Technical Engineer Boldt Technical Services 2525 N. Roemer Rd. Appleton, WI 54912-0419 Marvin Rivers Structural Engineer 920-739-6321 920-225-6111 920-739-4408 920-470-7474 [email protected]
PO Box 419
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Roger Arnold Geotechnical Engineer 920-735-6900 920-830-6100 [email protected]
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Don Brittnacher Environmental Engineer 920-735-6900 920-830-6100 [email protected]
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Larry Miller Surveyor 920-735-6900 920-830-6100 [email protected]
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Sandra Carpenter Transportation Engineer 920-735-6900 920-830-6100 [email protected]
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Todd Schneider Engineer Technician 920-735-6900 920-830-6100 [email protected]
Technical Engineer OMNNI Associates One Systems Drive Appleton, WI 54914-1654 Kris Lyons Engineer Technician 920-735-6900 920-830-6100 [email protected]
Sturgeon Bay, WI
Boldt Team Profiles

John Koga, CVS, AIA, LEED AP
John Koga is Director of Value Optimization for Boldt providing
consulting services throughout the United States. Johns 30 years of
experience in design and construction management includes 10 years
in the practice of value management. He is a graduate of the
University of Illinois, a registered architect, a LEED Accredited
Professional, a certified value specialist (CVS) and member of SAVE
International, CSI and AIA as well as President of the Wisconsin
Chapter of SAVE. John was mentored by Howard Ellegant, CVS, and
earned a Value Engineering specialists diploma from the University of
WisconsinMadison while studying under Prof. Emeritus Tom
Snodgrass, CVS. John has conducted more than 100 value studies
throughout the United States for federal, state and private clients.
John is certified to teach Value Management. He also practices
Constraints Analysis, Risk Analysis and Choosing By Advantages.
He has written many published professional papers and trade articles.
Theresa Lehman, AVS, AC, LEED AP

Theresa Lehman has earned recognition by SAVE International as an
Associate Value Specialist. She is an honor graduate of Milwaukee
School of Engineering with a Bachelor of Science in Construction
Management. Theresa is a full time value specialist and has co-
facilitated Module I training sessions. Theresa has earned recognition
by the USGBC as a LEED Accredited Professional, by AIC as an
Associate Constructor, and has had training in Lean Construction by
the Lean Construction Institute. Theresa is a member of CSI
(Construction Specifications Institute), AIC (American Institute of
Constructors), AGC (Associated General Contractors), and SAVE
International. She is currently the Vice-President of the Wisconsin
Chapter of SAVE International.
Tom Clark:
Tom Clark is a marketing professional with more than 10 years of
experience providing insight and direction on core marketing
principles. Tom has an Associate of Science degree in Marketing with
an emphasis on marketing research and promotion, Tom has helped
lead a corporate growth initiative that has seen results within the first
12 months of implementation. Tom is an active member of the Sales
and Marketing of Professional Services Association and past Vice
President of Sales and Marketing Executives of Northeast Wisconsin.
1
Sturgeon Bay, WI
Shipra Seefeldt, M.S.E., LPC, LCSW

Shipra Seefeldt is President of Strategic Solutions Consulting, LLC,
based in Appleton, Wisconsin. She has a Masters degree in
Counseling from UW-Oshkosh and a Bachelor of Arts degree from
McGill University in Montreal, Canada. Shipra has taken her skills as
a Clinical Psychotherapist and combined that with her extensive
training in Organizational Development and Industrial / Organizational
Psychology to come up with her unique brand of consulting from a
behavioral science perspective. Shipra was the CEO of a mental
health agency for seven years and she is licensed in the State of
Wisconsin as a Professional Counselor and a Clinical Social Worker.
She is a member of numerous professional organizations. Shipra
works with organizations, teams and individuals by providing
organizational development consulting in the following areas: strategic
planning and competitive strategy, the creation of high performance
teams, change management, leadership development, executive
coaching, conflict resolution, succession planning, diversity in the
workplace, and issues dealing with personnel psychology.
2
Sturgeon Bay, WI
Robert Givens, PE, PH

Robert Givens specializes in site planning and design as well as water
resources engineering. He completed his Bachelors degree in Civil
Engineering from Bradley University and his Masters degree in Water
Resources Engineering from the University of Wisconsin-Madison.
Bob has worked on site planning and design for public and private
sector facilities; including design of drainage facilities, water
distribution, sanitary sewer collection systems, bridges, and highways.
Bob serves on the water resources committee for the Wisconsin
Chapter of the American Public Works Association and helped to
prepare technical guidance manuals for County stormwater and
erosion control regulations. Bob has been a conference speaker for
the UW-Extension for erosion control on large construction sites and
is licensed as a Professional Engineer and Professional Hydrologist.
Jeff Sanders
Jeff Sanders is a Principal Planner with OMNNI Associates
specializing in community planning and design. Jeff graduated Cum
Laude from the University of Wisconsin-Green Bay with degrees in
Environmental Policy and Planning and Urban & Regional Studies. He
has spent more than a decade working with Local, State, Federal, and
Tribal governments to integrate principals of sustainability into
planning and development efforts. His areas of expertise include land
use planning, natural resources planning, meeting facilitation,
environmental education, and grant writing, where he has written
funding proposals in excess of $20 million since 1994. Jeff is a
member of the American Planner's Association, a past appointee to
the Village of Ashwaubenon Parks and recreation Board, and current
President of Sustainable Green Bay.

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Sturgeon Bay Shipbuilding Cluster Master Plan

Door County Economic Development Corporation

Table of Contents Boldt Technical Services

Analysis of Cause and Value Mismatch ..................... Tab C Phone 920-225-6153

Creation and Evaluation of Options ........................... Tab D

1. Option 1........................................................... Tab D-1

2. Option 2........................................................... Tab D-2

3. Option 3..Tab D-3

Recommended Master Plan......................................... Tab E

Supporting Commentary ..............................................Tab F

Supporting Information................................................ Tab G

Appendix ....................................................................... Tab H

Bay Shipbuilding Company (BSC), part of Manitowoc Marine

Palmer Johnson (PJ), having evolved from building wooden

This shipbuilding cluster offers:

Incentives to act swiftly include:

Though Palmer Johnson recognizes the advantages of

In brief, the Master Plan includes these recommendations:

Objectives and Issues

In the application for business assistance grant, the scope of

However it became evident that a description of the scope of

Palmer Johnson grew from a builder of sailing yachts to one of

However Palmer Johnson believes their production facility does

Bay Shipbuilding believes they do not currently enjoy the

Interestingly, this same piece of equipment also affects Palmer

A third entity, the general public, will also be affected by the

Determining facts surrounding these positions became an

Furthermore, the study team believed that underlying questions

Appropriate answers in these areas would be required to forge

Solution alternatives would next have to be studied for their

To satisfy the scope of work requirements, especially regarding

The comparison of worth of an investment to cost of that

ISSUES and BACKGROUND

The information collected includes

Palmer Johnson, Sturgeon Bay, WI

Product and Services

PJ plans to improve production efficiency through

Past Government Recognition of the Yacht Building Industry

Another bill by Rhode Island congressman, Patrick Kennedy, would

The bill would indirectly stimulate economic growth by creating

Italian and Dutch governments subsidize their yacht builders, which

[bold emphasis by Boldt. Also the jobs described are

Bay Shipbuilding Co., Sturgeon Bay, WI

Product and Services

The breadth of services BSC advertises are noteworthy:

It takes one month to get a vessel from Sturgeon Bay to the

Bay Shipbuilding also converts Great Lakes vessels into

In addition to helping BSC serve ships up to 400 feet long

Today, Bay Shipbuilding employs 250 to 300 people in the

Sturgeon Bay and the Door County Region

Shipbuilding and Wisconsin

- Timber, steel, gears, furnishings and other products

A study of barging by the Iowa Department of Transportation

vehicle miles and possibly resulting in 141 more

Clearly, waterborne shipping is vital to the interests of the

Analysis of Cause and Value Mismatch

Current PJ facilities will

Bay Shipbuilding Companys perspective:

General Public Perspective:

The general public does