President Donald Trump’s Tuesday pledge to create a new White House Office of Shipbuilding could be a windfall for Mobile, a city where he had some of his earliest campaign successes in 2015.

State and local officials believe Trump’s announcement promising tax incentives to bring more ship production back to the U.S., would be beneficial to Alabama’s Port City.

Mobile is home to Austal USA and a network of shipbuilders employing more than 10,000 workers. It is also the city that played a key role in Trump’s political rise, hosting one of his earliest and most electrifying campaign rallies almost a decade ago.

Related: 6 memorable Trump visits to Alabama

The reactions come after the president vowed to “resurrect the American shipbuilding industry,” which includes both commercial and military vessel building.

Mobile Mayor Sandy Stimpson said Wednesday that he believes the announcement will be a positive for Mobile, where shipbuilding has long been a major economic driver.

He said that Austal USA, with over 3,000 employees in Mobile, is expanding after receiving a $450 million contract with General Dynamics last year to build Navy submarines at its Alabama facility.

“I can speculate that it will be really good for Austal and any kind of shipbuilding we have going on in Mobile,” Stimpson said. “Right now, the addition of doing submarine components (at Austal) puts us in a different category from other shipyards.”

Austal USA did not respond to a request for comment.

Shipbuilding reactions

Bradley Byrne, president & CEO with the Mobile Chamber, said he looks forward to learning more about the president’s initiative, and what it might mean for Alabama’s Port city.

“Mobile has been a center for shipbuilding for 200 years, and today, our region continues to play a critical role in supporting America’s maritime and defense needs,” Byrne said. “We are proud to be home to industry leaders, whose workforce and innovation contribute significantly to our local economy and national security.”

Byrne added, “Any federal initiative that strengthens America’s shipbuilding industry has the potential to create jobs, spur investment and reinforce Mobile’s position as a premier hub for shipbuilding and maritime manufacturing.”

Democratic U.S. Rep. Shomari Figures of Mobile said that in theory, Trump’s announcement has the potential to be “good thing for Mobile.” He said it’s unclear exactly what the president has planned for the new White House initiative.

“Right now, this is just a statement from the president without a plan or any additional details that we have seen,” Figures said in a statement to AL.com. “I support economic development opportunities for Mobile, but it’s currently unclear if this will impact Mobile or the State of Alabama at all.”

U.S. Rep. Barry Moore, R-Enterprise, whose congressional district includes a portion of Mobile County, posted on X, the site formerly known as Twitter, he posted: “Military recruitment is up. American shipbuilders are getting the resources they need. Peace through strength!”

“I welcome the new shipbuilding office President Trump announced last night and the benefits I believe it will bring to our Alabama shipbuilders,” Moore said in a statement to AL.com. “Rapid changes are needed to ensure that taxpayer dollars are used effectively to fund a lethal Navy that counters the growing threat posed by China and adds vessels to our fleet on time and on budget.”

The shipbuilding industry expands beyond Mobile and affects industries that employ coastal Alabamians. Facilities also exist in Coden and Bayou La Batre, and the massive Ingalls Shipyard in Pascagoula, Miss., is only a 40-minute drive to downtown Mobile. That shipyard employs over 11,000 workers and is Mississippi’s largest manufacturer, and the proximity to Alabama gives Mobile County an economic boost.

“We are grateful for the President’s supportive shipbuilding comments to Congress, as we work collaboratively with the government to expand capacity of the industrial base and accelerate throughput in our shipyards to meet a generational increase in demand, in support of the Navy and the nation,” The company said in a statement.

Shares of Huntington Ingalls Industries (HII) were bolstered fewer than 24 hours after Trump’s speech. Shares of shipbuilder Huntington gained 11% to $190.49 in Wednesday trading, on track for its largest daily percentage increase since 2016, according to Dow Jones Market Data.

Bolstering economy

Alabama ranks among the Top 10 in the nation for shipyard employees, with a combined direct and indirect impact of around $1.04 billion in Gross Domestic Product.

Gina Maiola, spokesperson for Alabama Gov. Kay Ivey, said she believes the new White House office will add more jobs to the state.

“Alabama stands ready to continue doing our part to revitalize and enhance this important industry,” Maiola said.

There were over 11,500 Alabama-based jobs directly or indirectly connected to the private shipbuilding and repairing industry, according to a 2021 Maritime Administration report.

“By fully utilizing the existing domestic shipyard capacity, the shipyard industrial base can meet the growing demands of national defense, restore American competitiveness, and create thousands of skilled jobs in communities across the nation,” said Matthew Paxton, president of the Shipbuilders Council of America. “Strengthening the industry-government collaboration is the key to reaching any demand signal to ensure that America remains a global leader in maritime power for decades to come.”

Bridget Wilson, executive director of the Mobile-based Southwest Alabama Workforce Development Council (SAWDC AlabamaWorks), said the creation of a White House Office of Shipbuilding signifies “a strong commitment” to the industry and toward producing ships and vessels critical to national security.

“For our region, which has long been a leader in shipbuilding, this initiative could provide essential resources to enhance training programs, expand workforce development efforts, and bolster the pipeline of skilled workers needed to sustain and grow the industry,” Wilson said.

She said that collaboration among industry, education and workforce partners will be key to maximizing the new opportunities and ensuring that Alabama “remains at the forefront” of shipbuilding.

“Mobile’s shipbuilding sector plays a crucial role in both military and private sector production and targeted federal support could help drive innovation, job creation and long-term economic stability,” Wilson said.

Trump’s announcement could also spur additional economic activity in additional Gulf Coast states like Mississippi, Louisiana, Texas and Florida. Combined with Alabama, the coastal states have 96,000 jobs either directly or indirectly related to the shipbuilding industry. That represents roughly a quarter of the jobs provided by the shipyard industry, according to the Shipbuilders Council of America.

The four coastal states were heavily supportive of Trump during his past elections. Mobile was site of two campaign rallies during his initial run at the White House. The August 2015 event at Ladd-Peebles Stadium drew his largest crowd to a campaign rally at that early stage in the presidential contest. A little over one year later, in December 2016, Trump held a “Thank You” rally at the same site after winning the presidential election.

This story was updated at 3:30 p.m. on March 5, 2025, to include a statement from Rep. Barry Moore.