US Navy faces urgent shipbuilding challenges amid global competition
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Jun 25, 2025
The U.S. Navy faces mounting pressure to modernize its shipbuilding infrastructure as global competitors outpace American production.
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Hey folks, and welcome to another edition of Weapons and Warfare for Straight Arrow News
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I'm your host, Ryan Robertson. Just ahead on this week's episode, Beretta is aiming to equip the British Army with their
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next close combat rifle by combining advanced technology with traditional craftsmanship. In our Weapon of the Week, we discover some of the innovative features and thoughts behind
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the effort. And we check in with a recent Weapon of the Week in our Comps Check segment
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as Black Sea Technologies' GARC is put through the paces in the Baltic Sea
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But we're going to start with our debrief and a growing sense of urgency surrounding shipbuilding
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It's a topic we've covered frequently here on Weapons in Warfare, and it's something that sits high on a long list of priorities for Secretary of the Navy John Phelan
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And even though he's only been on the job for a few months, He made a point of it during his recent testimony in front of the Senate Armed Services Committee
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What I've learned is this. We are still the dominant naval power, but our adversaries are closing the gap at a concerning accelerating rate
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We need to make important cultural and strategic changes in order to maintain our competitive advantage
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In plain terms, America is facing unprecedented demand for new warships. So how do we get there
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To start answering that question, I visited with Benjamin Plum, an associate partner at
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McKinsey and Company a global management consulting firm that working to help the U find a path forward Meeting this surge in demand is truly a daunting challenge
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It is going to require us focusing on an aging infrastructure and rehabilitating that infrastructure
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It's going to focus largely on attracting talent and retaining that talent
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getting people excited about becoming shipbuilders. and it's going to require bringing new technology to bear on the business of shipbuilding in a way
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that frankly has never been done. According to a report by Marine Insight, in the U.S., there are
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154 private shipyards scattered across 29 states and the U.S. Virgin Islands. Of those 154, only 10
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are big enough to accommodate the size and scale of America's military shipbuilding ambitions
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The good news, according to Plum, is the U.S. has the facilities needed
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Unfortunately, many of them haven't been updated since the end of World War II
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That means bringing new equipment. It means revitalizing the facilities. In some cases, it means just bringing workers undercover so that they're capable of working out of the elements and doing so efficiently
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So yard modernization is core to our challenge. Of course, that takes money, something Senator Roger Wicker, the chair of the Senate Armed
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Services Committee, recently pointed to when talking about the Trump administration's proposed
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trillion-dollar budget for the Department of Defense. I must say I am deeply disappointed with the administration fiscal year 2026 budget request for the Navy In particular I disturbed about the shipbuilding account which plummeted to billion from last year billion
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That difference is not a small matter. According to a report in Foreign Affairs
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China's shipbuilding outpaces the rest of the world by a large margin
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each year launching more tonnage than all other countries combined. In fact, the U.S. Office of Naval Intelligence says China's shipbuilding capacity
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is more than 200 times that of the United States. One of the primary issues that we have in the United States right now is that our maritime
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infrastructure was built, in some cases, very seriously for the surge in production that
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accompanied World War II. Much of that infrastructure has survived. Much of it is still serviceable
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but it has not seen the same level of investment that Asian yards have seen in recent decades
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And as a result, it is urgently necessary for us to invest in those yards
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Another area of concern Plum points to is the workforce. While the industry may be hiring, qualified people aren't lining up for the jobs
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According to some estimates, the shipping industry has anywhere from 140,000 to 179,000 unfilled jobs
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We have to attract and retain new talent in shipbuilding. Our firm has written quite a bit about the aging out of the workforce
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This means that we have failed to attract new talent to the profession of shipbuilding
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There are many reasons that that happened but I would broadly say that a lack of focus on and a lack of veneration of shipbuilders over the last 30 or 40 years has contributed to that
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problem. Ask anyone involved in the shipbuilding industry and they'll tell you there is no easy way
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forward. But there is a path, one that could help the U.S. get back to where proponents say it should
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be. What I think is encouraging is we are seeing shipbuilders begin to adopt cutting-edge technology
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and we're seeing their core customers really push them to do that. So that means we're looking at
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automated welding in a way that's never been deployed in shipbuilding. It means relying on
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technologies like digital twins to better understand the production environment and to
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better understand the product itself, digital scheduling, right? Shipyards in the past used to
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rely on incredibly manual processes to schedule. Now we're looking at generative AI applications
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that can really reschedule production in real time in a way that increases throughput and
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transparency into production performance. That would be a major piece of the puzzle
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because for all of the possible solutions, the DoD's biggest obstacle might just be time
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Secretary Phelan recently told the Senate Armed Services Committee, the Navy's top program is six months behind schedule and exceeding the budget by 50%
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Despite that, Belen also said he now has a good grasp of the Navy's challenges
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and is working on a plan to fix what's broken, recently visiting three foreign shipyards and seven domestic ones
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to see how things could be done more efficiently
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