US shipbuilding industry: Don’t outsource construction and repair to Japan and South Korea!
・Reject US Secretary of the Navy del Toro’s proposal
・Oppose outsourcing of US ships
Summary from GrandFleet.
US Secretary of the Navy del Toro
US Secretary of the Navy del Toro has called for “utilizing overseas shipyards” for the construction and repair of ships.
However, Chairman Matthew Paxton said, “It is a mistake to outsource to South Korea or Japan and lay off American workers.”
Matthew Paxton, Chairman of the American Shipbuilders Association:
As expected, the US shipbuilding industry disagreed with the Navy’s plan.
1. It is only natural that the US shipbuilding industry would oppose it.
2. The US shipbuilding industry prioritizes “jobs” over “rationality”
2023 Department of Defense Annual Report:
The Department of Defense released its annual report in October last year.
Chinese Navy fleet size:
The Chinese Navy fleet is over 370 ships (30 ships more than in the 2022 annual report)
It is said that the number will increase to 395 ships by 2025 and 435 ships by 2030.
US Navy fleet size shrinks:
Meanwhile, the US Navy fleet size has decreased from 293 ships to 287 ships.
Shipbuilding plan for the next 30 years:
In March of this year, the US Navy announced its 30-year shipbuilding plan.
1. Achieve 330 manned ships by 2030.
2. Achieve 510 ships (377 manned ships + 134 unmanned ships) by 2045.
It is unclear whether the plan can be achieved because the US has inferior shipbuilding capabilities to China.
Secretary of the Navy del Toro’s claim:
Last September, Secretary of the Navy del Toro called for utilizing the shipbuilding capabilities of allied countries.
1. The time is ripe to partner with Japanese and Korean shipbuilding companies.
2. We should attract cutting-edge shipbuilding companies and modernize the U.S. shipbuilding industry.
Visited Japan and South Korea in March this year:
Secretary Del Toro visited Japan and South Korea in March this year.
Met with Sasebo Heavy Industries, Mitsubishi Heavy Industries, Japan Marine United, Hyundai Heavy Industries, and Hanwha Ocean.
Speech at Sea Air Space 2024:
1. The U.S. builds warships in shipyards that are decades behind the global standard.
2. Japanese and Korean shipyards build high-quality ships, including Aegis ships, at low cost.
Breaking Defense points out:
This idea (manufacturing ship modules overseas) will certainly meet with resistance from the domestic industry.
Matthew Paxton, President of the American Shipbuilders Association:
The president of the American Shipbuilders Association disagrees with the Secretary of the Navy’s plan and writes an article for Breaking Defense.
1. The American shipbuilding industry has ample capacity to meet the needs of the U.S. Navy.
2. However, the U.S. Navy has begun to look overseas to build and maintain combat ships.
The Navy leadership’s efforts are putting the U.S. workforce out of work.
Outsourcing shipbuilding and maintenance is outsourcing sovereignty.
China is the world’s largest naval power:
Currently, the U.S. Navy’s fleet size is not up to the congressionally mandated 355-ship requirement.
China is aggressively pushing to put an end to the U.S. Navy’s dominance.
1. With 370 ships, China has the world’s largest naval power.
2. The gap between the U.S. Navy and the Chinese Navy will only widen if things continue as they are.
Navy leadership vision:
Navy leadership wants to co-build and repair ships in overseas shipyards.
1. This is a tragic mistake for the Navy and the US industrial base.
2. Because it is better to use US workers and shipyards.
Outsourcing to Korea and Japan:
‘Outsourcing to Korea and Japan and firing workers’ is a mistake.
The US government should focus on long-term investments to build the shipbuilding base.
Shipbuilding outsourcing options:
1. Outsourcing may seem attractive, but it is not a real solution.
2. Allies that outsource have lost technical expertise, infrastructure, and engineers.
‘Buy American’ executive order:
Both former President Trump and President Biden have said they want to increase procurement from US companies.
Both Presidents issued ‘Buy American’ executive orders after taking office.
1. This principle should also be applied to Navy ship procurement.
2. All Navy ships should be built and repaired domestically, even after 2025.
Navy leaders should grow the future fleet domestically, not outsource U.S. security.
Hanwha Ocean’s acquisition of Philly Shipyards:
Secretary Del Toro must be overjoyed that Hanwha Ocean has acquired Philly Shipyards.
1. Incidentally, both the U.S. Army and Air Force allow foreign companies to participate in their procurement programs.
2. However, the equipment and systems procured are produced in the U.S. by American workers.