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Mare Island Dry Dock's Closure: A Setback for Vallejo's Economy and Workers

Update Mare Island Dry Dock Closes, Leaving 80 Employees Without Jobs On December 30, 2025, Mare Island Dry Dock LLC (MIDD) announced to Vallejo city officials that it would be permanently closing its facility located on Mare Island, effective immediately. With this closure, more than 80 employees—both union and non-union—are facing layoffs, marking a significant economic blow not only to their families but also to the local community in Vallejo and surrounding Solano County. Historical Significance and Economic Impact MIDD has been a part of Vallejo's maritime heritage since its inception in 2013, taking over facilities that had long been central to shipbuilding and repair since the Mare Island Naval Shipyard first opened in 1854. The maritime industry in Vallejo has frequently served as a backbone for the local economy, supporting jobs and generating vital economic activity. According to Michael Bernick, former director of California's Employment Development Department, Mare Island Dry Dock was instrumental in a sector that has been revitalizing in recent years, making its closure all the more troubling. "These good, union-based, good-paying, blue-collar jobs are very difficult to replace," he remarked, highlighting the urgency of the situation. Business Challenges and Closure Reasons MIDD cited "unforeseen business circumstances" as the primary reason for its closure, specifically noting the loss of a vital U.S. Coast Guard contract. The termination of this contract evidently had an immediate negative impact on the company’s financial stability. Congressman John Garamendi has expressed outrage over the situation, raising concerns about the bidding process that allowed a Portland-based rival to be awarded the contract despite their bid being substantially higher than Mare Island's. This points to broader issues of competitive fairness in government contracting that may need reviewing. The City’s Response and Future Directions In response to the closure, the City of Vallejo is stepping up to assist affected employees through collaboration with the Solano County Workforce Development Board, which aims to offer timely job search assistance and retraining programs. Vallejo has also engaged consultants to seek out new federal funding to rejuvenate maritime activity on Mare Island, which could ultimately create job opportunities and bring skilled workers back into the industry. The city is committed to revitalizing its waterfront and expanding commercial activities as it navigates these challenges. Legacy and Community Support MIDD’s message on social media reflected a deep gratitude towards the community, stating that their journey was built on strong relationships and support. The outpouring of community love and emotional reactions on social outlets showcase how intertwined the company was with the local identity. "You became more than business contacts — you became part of our story," their announcement read, emphasizing the community’s role in MIDD's journey. Lessons Learned and Future Outlook As Vallejo grapples with the loss of another significant employer, it highlights critical lessons in business sustainability and the importance of supporting local industries. Moving forward, it will be vital for local leaders to not only assist displaced workers but also to create an environment conducive to attracting new businesses to fill the void left by Mare Island Dry Dock. The twists and turns of this story remind us that community resilience can emerge even from challenging circumstances, provided there’s a strong collaborative effort to adapt and rebuild.