U.S. Navy struggles to modernize its shipbuilding amid global competition

In the ongoing efforts to modernize U.S. naval capabilities amid rising global competition, the U.S. Navy is confronting substantial shipbuilding infrastructure challenges. Secretary of the Navy John Phelan recently testified before the Senate Armed Services Committee, emphasizing the urgent need for improvements within the shipbuilding sector. The testimony highlighted a troubling state in which key Navy programs are not only running behind schedule but also exceeding their budgets significantly. Phelan reported that the Navy's top program is currently six months behind schedule and has exceeded its budget by 50%. Experts like Benjamin Plum from McKinsey & Company have pointed out that the aging infrastructure of the U.S. maritime industry is a crucial factor contributing to the current state of affairs. Much of this infrastructure was originally developed during the World War II production surge, leading to concerns over its ability to meet contemporary demands. Plum stressed the necessity of attracting and retaining talent within the workforce while also incorporating new technologies into shipbuilding practices. He noted that modernization efforts have lagged behind advancements seen in shipbuilding centers globally, particularly in Asia. The U.S. is home to 154 private shipyards dispersed across 29 states and the U.S. Virgin Islands, but the lack of recent investment in these facilities has further impeded progress. Plum observed a decline in recognition of shipbuilding as a profession over the past few decades, which has negatively influenced workforce growth and development. Despite these obstacles, there are signs of hope with some shipbuilders beginning to adopt advanced technologies, like automated welding, spurred by demands from core customers. As the Navy works towards addressing these various challenges, Phelan is actively developing strategies to rectify shortcomings. He has embarked on visits to foreign shipyards, as well as domestic ones, with the intent to discover best practices that could lead to enhanced efficiency in operations. The Navy’s commitment to rebuilding its shipbuilding capabilities stands as an essential element in maintaining its operational readiness and competitive edge in the global maritime landscape.