Relationship between Price Competition and Mobilization Capability in Naval Shipbuilding and Repair

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Relationship between Price Competition and Mobilization Capability in Naval Shipbuilding and Repair

R. V. Buck

The report considers the current competitive environment in and mobilization capability of the naval shipbuilding and repair base (NSARB) and includes assessments of (1) how competition and mobilization capability would each be affected by an increase in the number of shipyards in the NSARB, (2) alternative ways of achieving such an increase, and (3) options for maintaining the facilities and trained labor force of important yards whose future is in doubt. Any industry needs a given level of business to remain viable, though there can be purely internal considerations which sometimes govern the decision to remain in business. For shipbuilding, the trend has been to a slightly larger Navy program and no commercial work. In ship maintenance and repair, the tend is toward more Navy ships scheduled in a year, with less overall work required because of improved approach to maintenance management. Resources available are sufficient to meet current initial requirements, but long term wartime new construction would be constrained until supplier production increased. The Maritime Strategy articulated by this Administration, which underlies our pursuit of a 600-ship Navy, has been far more supportive of a modern and efficient shipbuilding and repair base than policies of previous administrations.