Five Factors Behind the Decline of US Military Shipbuilding
US Military Shipbuilding Faces Critical Challenges
The US military shipbuilding industry is grappling with significant challenges, as exemplified by the USS Constellation frigate, which is only 10% complete and already over budget, with a delivery date set for 2026. This situation highlights a broader decline in shipbuilding capabilities, stemming from a combination of historical, economic, and operational factors. Experts warn that reversing this trend will be a formidable task.
Historical Context and Economic Pressures
American military shipbuilding reached its zenith in the 1980s, when the Navy added 150 major warships, including three Nimitz-class carriers and various classes of submarines and destroyers. However, following the end of the Cold War, the US Navy underwent drastic reductions, cutting its fleet in half and closing numerous shipyards. This decline coincided with a broader deindustrialization trend in the country, which shifted the economy towards service industries and led to a significant loss of skilled labor in shipbuilding.
The 1990s saw the closure or downsizing of major shipyards such as Avondale and Fore River, resulting in a monopolistic environment dominated by a few large producers like Huntington Ingalls Industries (HII) and General Dynamics. This consolidation has driven up contract costs significantly. For instance, while the Pentagon allocated $12.1 billion for shipbuilding in 1984 (equivalent to $36 billion today), the budget for 2024 stands at $32.8 billion, yet the output has not kept pace with the investment.
Current Challenges: Infrastructure and Workforce Issues
Today, many US shipyards are burdened by aging infrastructure, which hampers the construction of new vessels and the integration of advanced technologies. The shortage of skilled labor is another critical issue. HII’s Newport News shipyard, responsible for building the Gerald Ford-class carriers, frequently struggles to find qualified welders, electricians, and shipfitters. A recent House Armed Services Committee hearing revealed that poor working conditions and wages that barely exceed those of fast-food jobs are major deterrents for potential workers. This has led to difficulties in retaining talent, further exacerbating the workforce crisis.
Additionally, design flaws in several vessels, including the Zumwalt destroyer and Littoral Combat Ships (LCS), have resulted in costly overruns and delays. The acquisition of Zumwalt destroyers has been drastically reduced from an initial plan of 32 to just three, while LCS ships are already being phased out after less than a decade of service. These issues have created a bureaucratic bottleneck, slowing down the acquisition process and allowing manufacturers to reap larger profits despite the challenges faced by the industry.
The decline of US military shipbuilding is a multifaceted issue rooted in historical decisions, economic pressures, and current operational challenges. Addressing these problems will require significant investment and strategic planning to revitalize the industry and ensure the Navy’s future readiness.
