Posted on June 16, 2025
From official testimony before Congress just this month, service leaders acknowledged all ships—nuclear and conventional—take too long to build; cost far too much; and are delivered too late to sailors.
As importantly, Navy leaders acknowledged everyone is to blame. Finally, “everyone” includes the United States Navy. Outlining the equivalent of a shipbuilding “doom loop,” these Pentagon officials identified many interconnected challenges plaguing US shipbuilding. They include:
- atrophy of America’s shipbuilding manufacturing industrial base,
- contracts signed with pre-COVID prices and expectations,
- workforce shortages related to macroeconomic and demographic trends,
- diminished worker proficiency,
- extensive supply chain disruptions,
- iterative technical requirement updates,
- ship design immaturity, and
- inconsistent industry investment across the shipbuilding industrial base.
What is one of the biggest faults of the sea service itself?
In their own words: “The Navy must continue to provide a reliable demand signal to the industrial base to broaden interest, strengthen commitment, and encourage investment at all levels.”
Correct.
But across Washington, DC, the term “demand signal” has too many meanings to different people. In reality, all should agree there is only one definition.
Demand signal equals ships under contract. A.K.A., Money flowing from the government to the builder to help sailors.
The Navy witnesses went on to explain one of the root causes for today’s systemic challenges in shipbuilding, including “historic underinvestment.” This was of course underinvestment by the Navy in its own shipyards.
Another key reason was industry consolidation after the Cold War ended. The same company consolidation and elimination that was overtly directed by Uncle Sam to these companies.
Queue the start of the doom loop 34-ish years ago.
So what is the path forward? Among many fixes, one of the biggest of all is the work to create “a generational increase in demand for shipbuilding” by revitalizing America’s domestic shipbuilding capacity.
A tall order to be sure but indisputably necessary and overdue.
The Pentagon officials close out their 22-page written statement for the record summarizing the road ahead. With urgency, they note, the US Navy must invest in its industrial base, modernize its shipbuilding and repair facilities, develop a highly-skilled workforce and hold “ourselves accountable” to these extremely ambitious outcomes.
There is no more time for excuses. The entire Navy leadership says they are “committed to improving acquisition processes, employing innovative contracting strategies, and continuing to support industry” to rebuild the fleet now.
Congress must remind the Navy of its own commitment to improve itself at every opportunity going forward, lest it be forgotten too soon and before America’s shipbuilding crisis is solved.
