As the principal seaport of the mid-Atlantic States and the head of the intercoastal waterway Norfolk provided a prime focus for shipbuilding and repair activity. Norfolk’s harbor was the distribution point for break-bulk cargo from over-seas, as well as the consolidation point for Virginia’s bounty of seafood, forest and agricultural products. As harbor and coastal vessels made the transition from wood to riveted iron to welded steel, Lyon Shipyard upgraded it’s facilities and the capacity of its railways to accommodate the growing size of its customer’s vessels. Nevertheless, as late as the early 1980’s the rhythmic thump of the caulking hammer could still be heard as some of the fishing fleets few remaining wooden hulls came to be repaired and re-caulked.

Few records remain from the 30’s and 40’s, but it is known that Guy Moon sold his interest to pursue other business opportunities. During World War II, Lyon Shipyard undertook work on small naval and military vessels. Following the war, operations returned to an emphasis on commercial customers, supplemented by repair contracts from the military and other government agencies. Principal customers included NBC Lines, Curtis Bay Towing Company, and the CG Willis Barge Line.

In the late 1950’s, George Lyon, Sr. bought out the last of the remaining partners and became the sole stockholder. In addition to his role in managing and developing the business of the shipyard, Mr. Lyon was active in civic and community affairs. In his neighborhood of Ocean Park, he led the effort to create a volunteer fire department, and was its chief for many years. He was an active member of the Lions Club, and was a long-time member and Chairmen of the School Board of the City of Virginia Beach. He also served on the Vestry of Old Donation Church.

In 1972, George C. Lyon, Jr. joined the company as Vice President. Employment at the time was approximately 25. In 1977, George Lyon Sr. died, and control of the company passed to George C. Lyon, Jr., who continues to manage and oversee its growth and development.

Also in 1977, Craig Brothers Marine Railway, which had been a competitor for decades, was sold to a new owner. The new owner encountered financial difficulties shortly after taking over, and in 1979, Lyon Shipyard was able to purchase its neighbor and former competitor. The acquisition of the Craig Brothers yard more than doubled the land and waterfront area of Lyon Shipyard, as well as providing an additional railway to increase the working capacity of the facility. In 1981, the shipyard officially changed its name to Lyon Shipyard, Inc.

During the recession of the early 1980’s both shipyards and their customers experienced difficult economic times. While these cyclical downturns are stressful, they provided opportunities which would work to longer term advantage. The company initiated ongoing marketing efforts, and, driven by the barge and towing industry’s need for competitive service and pricing, Lyon Shipyard was able to introduce itself to customers who had previously not felt the need to seek competitive bids on much of their work.

Over time, as new contracts were successful completed, Lyon Shipyard was able to gain the confidence of its new customers, and broaden and diversify its customer base.

In the early 1990’s, the shipyard was able to lease a drydock, giving it the capacity to drydock inland and coastal barges up to approximately 350 feet long and 85 feet wide. The size and lifting capacity of this dock has allowed the company to keep pace with the increasing size and complexity of the commercial tug and barge fleet.