The U.S. Navy is investing billions to ensure timely delivery of attack submarines by 2028, following delays exacerbated by the pandemic’s disruption of the labor market. The Navy has already funneled $2.3 billion to improve the submarine-industrial base and plans to invest a further $6.3 billion. The goal is not only to meet domestic demand but to accommodate international pacts, like the AUKUS trilateral agreement with Australia and the U.K. Yet, with significant labor challenges in shipyards, the success of these efforts remains uncertain.
Key Points:
- The U.S. Navy plans to spend $6.3 billion to bolster the submarine-industrial base to ensure the timely delivery of attack submarines by 2028.
- Initial investments of $2.3 billion between fiscal 2018 to 2023 aimed to strengthen domestic manufacturing, shipyard infrastructure, strategic outsourcing, workforce development, and advanced manufacturing technologies.
- The Austal USA shipyard in Alabama has taken on some of the manufacturing load to alleviate the strain in the primary shipyards.
- Despite investments, shipyards face major workforce challenges, including high attrition rates and recruitment difficulties.
- The AUKUS pact, an agreement between Australia, the U.K., and the U.S., is expected to further strain the submarine construction sector.
