Victorian Premier Daniel Andrews is seeking urgent discussions with Prime Minister Tony Abbott and Defence Minister Kevin Andrews over hundreds of jobs facing the axe in the state's ship-building industry.

Mr Andrews said Williamstown-based BAE Systems Australia could make up to 800 workers redundant within months because of a lack of orders from the Commonwealth.

The Federal Government recently chose to build two new Navy supply ships overseas.

Mr Andrews said Victoria, South Australia and New South Wales were appealing to the Prime Minister to award work locally.

"What we need to do is all of us together, to put the politics to one side to send a really clear message to Tony Abbott, now's the time to make an order," Mr Andrews said.

"It makes no sense at all to have Spanish companies, Korean companies, to have companies that are so far away from Australian taxpayers, from Australian jobs, making these vessels, making critically important strategic assets.

"Let's never forget that these vessels are paid for 100 per cent by Australian taxes, they should support Australian jobs."

BAE Systems ship builder Nathan Bartolo said the situation was "grim" for the industry.

"It's very sad, my father who has been in this industry for 20 years ... and basically I'd like to go generation to generation, but at the moment it's not looking very good," Mr Bartolo said.

"We're trying to do the best we can, everyone's feeling very down because people have got things to pay for and ... no-one knows where they stand."

Mr Andrews said any savings made by sourcing the ships from overseas would be paid for by lost local productivity.

"If we're not involved in building them, there'll be no place for us in maintaining them and there'll be no industry left to maintain them, if these jobs go, they'll be gone forever," he said.

"The point is, you might make a small saving very early on, but it won't take long through Centrelink payments for all of that saving to be gone."

Opposition urges Andrews to communicate with Abbott

The Australian Manufacturing Workers Union raised the issue with the Federal Government on December 31 last year.

Mr Andrews said he had not had the chance to speak to Mr Abbott or Mr Andrews about the industry's concerns yet.

Opposition MP John Pesutto said Mr Andrews needed to "learn a few lessons about communicating with his counterparts".

"Daniel Andrews needs to understand the difference between a microphone and a telephone when it comes to Victorian jobs," Mr Pesutto said.

"Tony Abbott is just a telephone call away, or better still about an hour away by plane."