Washington is fundamentally overhauling the US Navy’s shipbuilding. The United States no longer wants to accept China’s growing naval lead and is relying on a whole bundle of measures.
As the British trade publication Shephard Media reports, the government, Congress and the Navy are investing in shipyards, streamlining procurement and subjecting current programs to a tough review. Political pressure is high because, according to the Shipbuilding and Repair report, eight key shipbuilding projects are between five months and three years behind schedule.
John C. Phelan, Secretary of the Navy, warned of the consequences of this development in a meeting of the Defense Committee. The USA’s ability to remain capable of acting worldwide is at risk, he said. Mike Rogers, Chairman of the Committee, also found clear words. The way in which the USA buys ships is too slow, too expensive and too bureaucratic, he said.
Billions for infrastructure and optimized processes
To take countermeasures, the Pentagon is relying on more money, among other things. For the coming financial year, the Ministry of Defence has requested $6.1 billion (€5.3 billion) to modernize the infrastructure of the shipyards. However, the draft budget of the House of Representatives only provides for €3.1 billion. The focus is on the Shipyard Infrastructure Optimization Programme with 49 projects, including new dry docks and modernized piers at four major locations. The aim is to reduce maintenance times and make better use of existing capacities.
In addition to physical modernization, the aim is also to improve processes. The Navy Cost Agency is to make contracts more economical and identify potential savings. At the same time, the Navy is setting up an audit system that will make all business processes transparent by 2028. This applies not only to financial management, but also to material flows and the deployment of personnel.
Structural change remains difficult despite backing
Action is also being taken at a political level. In April, President Donald Trump issued a decree ordering the revitalization of the maritime industry. The SHIPS for America Act aims to specifically promote manufacturers and suppliers in the USA. Financial incentives of around €215 million per year are planned until 2034, and small shipyards are also to receive additional funding from a special security fund.
Despite all these efforts, major challenges remain. Supply chains are still considered vulnerable, qualified personnel are in short supply and new technologies place high demands on planning and implementation. The race against China, which is constantly launching new units, remains a major challenge.
Mike Rogers is therefore calling for long-term investment commitments so that shipyards have planning security and can expand their capacities. This is the only way the industry can invest in machinery and skilled workers. The USA is now relying on a combination of financial support, strict controls and political decisions. Whether this will be enough to make up for lost time remains to be seen. What is clear is that without visible progress, the US Navy will hardly be able to maintain its leading maritime position in international competition. (rup)
