The U.S. dredging industry has seen a significant increase in activity and investment, according to the recently released 'The U.S. Dredge Report: An Analysis of the FY23 (Fiscal Year 2023) U.S. Federal Dredging Market’. The report, compiled for Dredging Contractors of America (DCA), highlights the industry’s ongoing $3 billion construction effort for new dredges and associated vessels and equipment. It also presents key data on the results of the FY23 dredging season, showcasing the competitiveness and cost-effectiveness of the American dredging industry.
In FY23, the U.S. dredging industry achieved its highest federal award total on record, with nearly $2.1 billion awarded across various projects. This number represents a 39% increase from FY22 and is 20% higher than the seven-year average of $1.7 billion, the report noted. The industry saw 56 different companies awarded U.S. Army Corps of Engineers contracts, with 22 large businesses and 34 small businesses participating in federal dredging projects.
The report highlights the industry’s competitive nature, with an average of three bidders per project for unrestricted and small business set-aside projects, as well as for hopper dredge projects. Out of 135 projects analyzed, 63% had winning bids lower than the Government Estimate (GE), and 93% were lower than the Government Estimated Awardable Range (GEAR).
The cost savings to the U.S. government from these projects is substantial, the report notes, estimating a total savings of $707,332,283, averaging a 35% reduction in project costs when compared to the GEAR. Notably, 63 projects were completed at costs more than 10% below the base GE, with several projects achieving even greater savings.
A key focus of the U.S. dredging industry is the beneficial use of dredged material, a practice that involves repurposing excavated material for environmental and infrastructure projects. These uses include rebuilding barrier islands, creating and restoring fish and wildlife habitats, nourishing beaches, and covering landfills. The Army Corps of Engineers has set a goal to reuse 70% of dredged material for such purposes by 2030.
In FY23, the industry made significant progress toward this goal, with 66% of federal dredging projects incorporating beneficial use of dredged material, up from 59% in FY22. DCA states this increase reflects the industry's commitment to environmental stewardship and sustainable practices.
As the U.S. dredging industry continues its $3 billion recapitalization, the focus remains on enhancing the capacity and efficiency of the fleet to meet the growing demands of federal and private sector projects. The industry's ability to deliver cost-effective solutions while contributing to environmental sustainability underscores its vital role in maintaining and improving the nation's waterways and coastal infrastructure.
The 'The U.S. Dredge Report: An Analysis of the FY23 (Fiscal Year 2023) U.S. Federal Dredging Market’ was authored by Michael Gerhardt.
