At the beginning of the Second World War, the company handled assembly work for the United States Navy; a 1941 a loan from the navy enabled Gunderson Bros. to build a shipyard. During the same period, continued debts caused the Federal Government to take the original factory as security. Gunderson also constructed lifeboats, landing crafts and other vessels, as well as trailers for the United States Army. A shortage of manpower also led to the first women working in the construction sheds.