‘Constant State of Triage’: The U.S. Navy’s Shipbuilding Crisis Won’t Be Easy to
John Phelan, the newly appointed Secretary of the U.S. Navy, has raised alarm over significant delays and escalating costs in Navy shipbuilding, prompting an immediate review of all contracts. The Navy currently faces a shortfall of 26 ships compared to its planned fleet size, primarily due to incomplete designs at the start of construction, workforce shortages, and rising expenses. Phelan has labeled these shipbuilding deficiencies a national emergency and is prioritizing workforce issues to enhance production capabilities and counter China’s naval expansion.
Urgent Review of Shipbuilding Contracts
On April 16, Secretary Phelan visited shipbuilding facilities in Hampton Roads, marking his 22nd day in office. This visit aimed to uncover the root causes of the Navy’s ongoing shipbuilding challenges. Phelan announced that all U.S. shipbuilding contracts are under review, citing persistent shortfalls as the catalyst for this investigation.
A report from the Government Accountability Office (GAO) last summer highlighted various factors contributing to delays in the delivery of new Navy ships. It noted that best practices dictate that designs should be finalized before construction begins. However, both the Navy and the Coast Guard have frequently failed to adhere to this guideline, resulting in increased costs and delays. Over the past decade, the Navy has attempted to rapidly acquire a new class of frigate to replace the underperforming Littoral Combat Ship. Unfortunately, the Navy’s decision to start construction without completing the frigate’s design has led to significant setbacks, with design work lagging over a year behind schedule.
The Navy had aimed for a fleet of 313 ships by the end of this year, but current projections indicate it will only have 287, falling short by 26 vessels. The GAO report and other sources attribute these shortfalls to delays, rising costs, and workforce shortages, all of which hinder the Navy’s ability to build and maintain a capable fleet. This situation has led to descriptions of the Navy’s shipbuilding efforts as being in a “perpetual state of triage.”
A Call for Immediate Action
Phelan has characterized the shipbuilding crisis as a national emergency, urging a more urgent response to the situation. He stated, “We are at a tipping point,” attributing the challenges to underinvestment from previous administrations and various requirement issues. President Trump has expressed a desire for more warships at sea, but Phelan described the current state of naval shipbuilding as “unacceptable.” He emphasized the need to catch up with the demands of modern naval warfare.
According to Phelan, the primary issue affecting shipbuilding is a shortage of skilled workers, rather than supply chain or budget constraints. He advocates for a comprehensive government approach to address this workforce gap. Phelan aims to resolve these workforce shortages within his first 100 days in office, recognizing that significant time and effort will be required to expedite shipbuilding processes.
Furthermore, Phelan highlighted the necessity for proper investments to develop a robust maritime industrial base capable of competing with China’s shipbuilding capabilities, which currently outpace U.S. production rates. The Secretary’s commitment to addressing these challenges signals a critical moment for the U.S. Navy as it seeks to restore its maritime dominance.
