For the first two years of the war or more the shipyards of the country had lost their men and the work had become dislocated. Hulls had been on the slips for very long periods and there was no material in existence to finish them. Vessels were lying in the yards awaiting engines, but the engines had never been built, because up to 1917 the Admiralty had made use of the engine shops for naval work. There was great confusion in the shipbuilding industry, not due to the fault of the industry, not really due to any one's fault, but due to war conditions. The output had been checked by urgent work being placed in the same works by different departments. With the introduction of the Controller's Department it was immediately realized that this policy was bad for output as a whole. It was accordingly arranged to allocate yards or separate sections of yards, so that one class of tonnage only would be produced. The result is that forty-seven large shipyards, containing 209 berths, are wholly engaged on ocean-going merchant vessels.

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