Navy’s ‘Risk Averse’ Culture Hampering Shipbuildng, Ship Repair, Says Panel

The U.S. Navy’s shipbuilding efforts face significant challenges due to a culture of risk aversion, according to Matthew Paxton, president of the Shipbuilding Council of America. During a recent House Armed Services Committee hearing, Paxton emphasized that this bureaucratic mindset is hindering the timely delivery of new ships and repairs. The discussion also focused on the need for a national maritime strategy to enhance collaboration between the Navy, Coast Guard, and merchant marine.

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Paxton’s testimony revealed that the Navy’s increasing bureaucracy is affecting ship construction and repair. He noted that the Navy has become more risk-averse, which complicates the shipbuilding process. This culture impacts various classes of vessels, including aircraft carriers and submarines. The hearing also addressed the bipartisan-supported SHIPS bill, aimed at revitalizing domestic shipbuilding and the maritime sector. This bill is expected to be reintroduced in the spring.

The need for a robust maritime strategy is critical. Paxton stated, “We should have a national maritime strategy that stitches together the industrial base with our Navy, our Coast Guard, and our merchant marine.” This sentiment echoes recent comments from Defense Secretary Pete Hegseth, who stressed the importance of increasing ship and submarine production to meet both U.S. and allied obligations.

The current production rate of submarines is insufficient. Under the AUKUS agreement, American shipyards need to produce 2.33 submarines annually, but they are currently delivering only 1.2. Paxton highlighted the disparity between the number of Naval Sea Systems Command (NAVSEA) employees and the builders’ workforce, which can range from 16 to 1 to 2 to 1. This imbalance further complicates the shipbuilding process.

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Moreover, design changes requested by the Navy often lead to increased costs and delays. For instance, the Landing Ship Medium (LSM) project faced escalating expenses due to evolving requirements. Paxton argued that these constant changes create a challenging environment for shipbuilders, often resulting in financial losses before contracts are even awarded.

The testimony underscored the need for a collaborative approach between the Navy and shipbuilders. Paxton called for a partnership model rather than a competitive one, emphasizing that collaboration would lead to better practices and successful acquisition programs. The hearing highlighted the urgent need for reforms to address these ongoing challenges in the Navy’s shipbuilding efforts.