Shipbuilding Industry Bears Brunt of Cuts in Pentagon Budget

Tuesday, August 02, 2005
Strained by the demands of a major ground war and a sweeping overhaul of U.S. forces for an uncertain future, the Pentagon faces a severe budget challenge. According to the Providence Journal, while Congress and the Bush administration are working on a very large spending program for the military, the outlay for shipbuilding will be tight -- a prospect that is hurting the industry. The Navy's problem, says one Washington analyst, is not a lack of ships, but a lack of money to keep the shipbuilding industry moving. Congress and the Bush administration are working on a very large defense spending blueprint for fiscal 2006, but it will continue a long string of tight shipbuilding budgets that are pinching the industry hard. "The Navy is really in a pickle," according to another Washington analyst, Robert Work. "They don't necessarily need more ships, but they need more production to keep the shipbuilding industry in place. And how do you do that on $9 to $11 billion a year?"

Observers say that the shipbuilding budget will probably remain around $9 billion to $11 billion for the next several years, its level since early in the Bush administration. Rep. James R. Langevin, a member of the House Armed Services Committee, said, "You really need to produce eight or nine ships each year just to maintain the current fleet." But the House defense bill calls for "only four ships next year," said Langevin. "The challenge for the Navy," said Ronald O'Rourke of the Congressional Research Service, "is how to adapt this transformation effort to the near-term operational demands associated with the global war on terrorism," plus such longer-term demands as "countering improved Chinese maritime forces."

Maritime Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

RIMPAC Exercise Puts LCS Through Paces

It was the middle of May, and the littoral combat ship Independence was operating out of San Diego, testing components of the mine warfare mission package. The mission is one that,

New Superyacht ROCKIT.IT Launched by Feadship

Feadship says it has launched the outstanding 60.35-metre motoryacht ROCK.IT. Created for an experienced owner who has chartered Feadships and appreciated the essence of the brand,

FTA Approves WSF Ferry Terminal Plans

In the latest Washington State Ferries Weekly Update, Capt. George A. Capacci, Interim Assistant Secretary WSDOT/Ferries Division briefs as follows: "FTA approves

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Sonar
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: 0.1656 sec (6 req/sec)