The US Navy announced tens of billions of dollars for new attack and ballistic missile submarines, as well as more money to support the workforce needed to build them.
Navy shipbuilding projects have faced years of delays and cost overruns, particularly for its top submarine programs, raising concerns as China’s already-massive fleet continues to grow and introduce new capabilities.
The awards total $76.6 billion, covering the new submarines as well as investments in shipyard infrastructure and modernization, workforce support, and supply chains. Fourteen submarines are included: five Columbia-class submarines at around $30 billion and nine Virginia-class Block VI vessels at around $42 billion. The awards were granted to General Dynamics Electric Boat and Huntington Ingalls Industries.
Navy officials have described these submarines as a critical part of US naval power and the service’s plans to recapitalize its fleet.
Vice Adm. Robert Gaucher, director of submarine programs, said in a release that “by securing the continuous production of both the Columbia and Virginia classes, we ensure we will continue to deliver the world’s most lethal, survivable and resilient combat platform to our global Combatant Commanders, while providing long-term stability to our shipbuilding industrial base.”
Gaucher added that “these submarines will assure our allies and deter our adversaries while serving as a key part of our joint forces by projecting combat power into denied areas and defending our nation and its interests for decades to come.”
The total includes some investments that have already been awarded. According to the Department of Defense release, “the Block VI award includes previously announced material awards (including long-lead-time material and economic ordering quantity material). The announcement also includes previously awarded investments in shipbuilder productivity efforts.”
The presidents of General Dynamics Electric Boat and HII’s Newport News both released statements after the award announcement, saying that the investments sent demand signals that would enable the shipbuilders to consistently hire and support workers and strengthen the industrial base.
Unpredictable Navy orders have strained shipbuilders and their suppliers for decades. Shipbuilders have called on the Navy to better plan its programs so that they can hire and retain workers, as well as fund shipyard improvements focused on better equipment, technologies, and systems.
Workforce challenges in US shipbuilding include a wide range of issues pertaining to hiring, wages, training, housing, experience, and retention. The Navy and its industry partners have sought to address these issues by investing in better pay and benefits. The service is also looking at how to automate certain aspects of shipbuilding work.
More broadly, the Navy is also exploring greater cooperation with international partners, like South Korea and Japan, for shipbuilding. In particular, South Korean shipyards, some of the most advanced and busiest in the world, are conducting more maintenance on US Navy vessels.
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