House Panel Leader: Fate of U.S. Shipyards Uncertain

Friday, April 07, 2006
The chairman of a key House subcommittee rang alarm bells on April 5 over the state of the U.S. shipbuilding industry, saying there are too many shipyards chasing too little work. With an estimated 40 percent reduction in workload since the end of the Cold War, the nation's six major private shipyards have been forced to operate inefficiently at abnormally low rates of production. As a result, the Navy has proposed a new shipbuilding plan aimed at stabilizing the industry and increasing the size of the fleet. Annual shipbuilding funding would roughly double by 2011, reaching $17.4b. But many lawmakers have expressed deep skepticism that a major funding boost is feasible in light of soaring war costs, mounting budget deficits and pressing domestic issues. Without a huge budget increase, the Daily Press reported, the shipyards will have little new work for underused facilities. The result will be excessive overhead costs that drive up the price of ships and hinder the Navy's effort to enlarge the fleet. At a subcommittee hearing on the state of the shipbuilding industry, Navy officials dismissed consolidation as politically impractical and a potential national security concern. The Navy, officials noted, had proposed a winner-take-all competition last year to build a next-generation destroyer. But Congress blocked the plan amid concerns that the losing yard would be shut out of the destroyer business and face closure. (Source: Daily Press)
Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Scorpio Tankers Receive 7 More Newbuildings

Scorpio Tankers Inc. say it has recently taken delivery of seven newbuilding vessels as follows: STI Madison and STI Park, LR2 product tankers, were delivered

LHA 6 'America' Maiden Voyage Completes at San Diego

The Navy informs that the soon to-be-commissioned amphibious assault ship 'USS America' (LHA 6) arrived at its homeport of San Diego after completing its two-month

Austal Delivers Fourth JHSV to the US Navy

The U.S. Navy accepted delivery of USNS Fall River (JHSV 4) from Austal USA yesterday, a week shy of six months from the date they took delivery of JHSV 3. This

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1039 sec (10 req/sec)