The State of U.S. Shipbuilding

Defense Posture and Global ThreatsHouse Armed Services Subcommittee on Seapower and Projection Forces · March 11, 2025 · 119th Congress
The House Armed Services Subcommittee on Seapower and Projection Forces held its first hearing of the 119th Congress to examine why Navy shipbuilding programs are running years behind schedule and billions over budget. Begins at ▶ 0:20:49
Transcript
Highlights

Title

State of U.S. Navy shipbuilding: delays, cost overruns, and workforce shortages

Purpose

The House Armed Services Subcommittee on Seapower and Projection Forces held its first hearing of the 119th Congress to examine why Navy shipbuilding programs are running years behind schedule and billions over budget. Witnesses from the Navy, CBO, GAO, and CRS testified on the causes — workforce shortages, unstable ship designs, industrial-base atrophy, and inconsistent Navy requirements — and possible fixes, including wage increases, multi-year contracting, and allied shipbuilding partnerships. Begins at▶ 0:20:49

Who spoke

• Chairman Trent Kelly (R-MS)▶ 0:20:49: Opened the hearing noting the Navy's requirement for 381 ships versus a 30-year plan that won't meet it by 2050▶ 0:22:20, cited the Constellation-class frigate's three-year delay▶ 0:22:50, and touted the new White House shipbuilding office and his bipartisan SHIPS Act▶ 0:23:51; later asked Dr. Seidle about sending clearer demand signals to industry and Navy progress on GAO recommendations▶ 0:51:34.

• Rep. Joe Courtney (D-CT), Ranking Member▶ 0:24:51: Cited Article I Section 8's mandate that Congress "provide and maintain a Navy"▶ 0:24:51, credited the subcommittee's National Sea-Based Deterrence Fund and submarine industrial-base funding (started at $20M in 2018, now $6B)▶ 0:26:52▶ 0:27:22, and warned that rolled-steel prices are up 26% since January due to tariffs▶ 0:29:24; later discussed Columbia-class design maturity (87% complete at first steel) and praised MARAD's Vessel Construction Manager model▶ 1:46:33.

• Dr. Brett Seidle, Acting Assistant Secretary of the Navy for RD&A▶ 0:31:24: Said deliveries run 1–3 years late with costs rising faster than inflation▶ 0:33:26, attributed this to manufacturing atrophy, workforce shortages, and industry consolidation since the Cold War▶ 0:33:56; later said labor is the number-one issue and that wage differentials with retail work must widen▶ 1:09:12, and cited over $4 billion invested via the Maritime Industrial Base program office (DERPA-MIB)▶ 1:03:39.

• Dr. Eric Labs, CBO Senior Analyst for Naval Forces and Weapons▶ 0:35:27: Said cost overruns for 46 ships under construction tripled from $3.4B to $10.4B in one year▶ 0:35:58, and that Navy tonnage under construction rose 80% from 2014–2024▶ 0:36:58; noted attack submarines now cost $4.5B (up from $3B) and destroyers $2.5B (up from $1.9B)▶ 0:38:28, and that the Navy lost 234 ship-service-years between 2019–2040▶ 0:38:28; called labor the central roadblock, with shipyard attrition around 20–30%▶ 0:38:59▶ 0:39:29.

• Ms. Shelby Oakley, GAO Director, Contracting and National Security Acquisitions▶ 0:40:59: Said the Navy has no more ships today than in 2003 despite two decades of shipbuilding plans▶ 0:41:29, and that the Constellation frigate's design was unstable before construction began, causing at least a 3-year delay▶ 0:42:30; noted GAO has nearly 60 open recommendations▶ 0:44:31 and that Columbia-class integrated enterprise plans haven't been updated since 2019▶ 1:12:13.

• Mr. Ronald O'Rourke, CRS Naval Affairs Analyst▶ 0:46:32: Called this the most significant combination of shipbuilding challenges in his 41 years at CRS▶ 0:46:32, described a "current American Naval system" with three structural flaws and proposed a "potential new American Naval system" with five elements including federated shipbuilding and continuous production▶ 0:48:03▶ 0:49:03; later detailed South Korean and Japanese shipbuilding practices worth adopting▶ 1:27:50▶ 1:29:21.

• Rep. Rob Wittman (R-VA)▶ 1:01:38: Said "the names have changed but the song remains the same" over two decades▶ 1:01:38, and pressed witnesses on integrating shipbuilding and repair workforces and fixing design completeness, citing Constellation's design being only 15% complete versus a planned 85%▶ 1:02:39.

• Rep. Donald Norcross (D-NJ)▶ 1:06:40: Argued offshoring hollowed out the commercial shipbuilding base, protected only by the Jones Act▶ 1:07:41, and got all four witnesses to agree wages are the top labor issue▶ 1:09:12.

• Rep. John Dearl (Mark Green?) / "Dr. dearl" of Tennessee▶ 1:10:42: Asked Oakley about Columbia-class submarine delays, over a year late and hundreds of millions over budget▶ 1:10:42, and about tracking supplier investment effectiveness▶ 1:12:43.

• Rep. Jared Golden (D-ME)▶ 1:15:14: Asked O'Rourke about a proposed Navy shipbuilding "lessons learned" center, an idea he first raised 10-11 years earlier▶ 1:15:45; asked Oakley about amphibious ship availability shortfalls affecting Marine Corps requirements▶ 1:17:45.

• Rep. Jen Kiggans (R-VA)▶ 1:20:16: Representing Hampton Roads, asked about incentivizing naval architecture careers and using allied partners (South Korea, Japan) to help build Military Sealift Command ships given only two AOE oilers remain▶ 1:23:17.

• Rep. Jack Bergman (R-MI)▶ 1:25:48: Asked bluntly whether the Navy is structured to fix shipbuilding (witnesses said no)▶ 1:26:19, and pressed O'Rourke on specific South Korean and Japanese practices worth importing▶ 1:27:50.

• Rep. Ronny Jackson (R-TX)▶ 1:30:51: Asked about automation, AI, and robotics increasing shipbuilding capacity, and whether organized labor resists automation▶ 1:31:21; Seidle said he hasn't seen labor pushback as a problem▶ 1:33:22.

• Rep. Clay Higgins (R-LA)▶ 1:36:23: Warned that inconsistent contracting and endless design changes burden smaller shipbuilders▶ 1:36:23; pressed Oakley on Navy overdependence on foreign shipyards and the Jones Act for "crucial vessels"▶ 1:39:56.

• Rep. James Moylan (Guam)▶ 1:41:29: Highlighted Guam's closed 1997 ship repair facility with equipment still on-site▶ 1:42:29, and asked O'Rourke and Seidle about reauthorizing the Guam shipyard lease to support Indo-Pacific repair and battle damage repair▶ 1:44:00.

Key moments

• Labs: cost overruns for 46 ships under construction tripled year-over-year, from $3.4 billion to $10.4 billion▶ 0:35:58, and CBO estimates the Navy's 364-ship plan would cost $40 billion/year through 2054 — 46% above the last five years' average▶ 0:36:28.

• Labs: aircraft carriers now take 11 years to build (up from 8), attack submarines 9 years (up from 6), and destroyers 9 years (up from 5)▶ 0:37:58.

• Oakley: the Navy failed to stabilize the Constellation-class frigate's design before construction, causing at least a 3-year delay and stalled construction while the Navy and shipbuilder determine if it can even be built as designed▶ 0:42:30.

• Norcross got unanimous agreement from all four witnesses that wages are the top labor issue driving shipbuilding workforce shortages▶ 1:09:12.

• Courtney noted rolled-steel prices have risen 26% since January due to tariff impacts on shipbuilding commodities▶ 0:29:24.

• O'Rourke: Japan, South Korea, and China account for over 90% of world commercial shipbuilding (roughly 40-50%, 30%, and 20% respectively), while the U.S. commercial sector survives mainly via Jones Act intra-U.S. trade requirements▶ 1:26:49▶ 1:30:51.

• Oakley: Columbia-class and Virginia-class submarine programs share builders and industrial base, so Columbia's material and workforce problems directly threaten Virginia-class delivery; the Navy hasn't updated its integrated enterprise plan since 2019 despite a 2022 GAO recommendation▶ 1:12:13.

• Bergman asked witnesses point-blank whether the Navy is currently structured to fix shipbuilding, repair, and design — the panel answered no▶ 1:26:19.

• Labs: between 2019 and 2040 the Navy will have lost 234 ship-service-years, shrinking the fleet by 20 ships (mostly attack submarines and destroyers) in the critical 2027–2030 period▶ 0:38:28▶ 0:38:59.

• Seidle: MB (maritime industrial base) investments have funded over 700 projects with 300 suppliers across 33 states, yielding an 11% performance improvement▶ 1:32:52.

Metadata

CommitteeHouse Armed Services Subcommittee on Seapower and Projection Forces
Chamber / CongressHouse · 119th Congress
DateMarch 11, 2025
TypeHearing
Witnesses
Dr. Brett Seidle — Assistant Secretary of the Navy for Research, Development and Acquisition, U.S. Navy
Dr. Eric Labs — Senior Analyst for Naval Forces and Weapons, Congressional Budget Office
Ms. Shelby Oakley — Director, Contracting and National Security Acquisitions, Government Accountability Office
Mr. Ronald O'Rourke — Naval Affairs Analyst, Congressional Research Service
Videoyoutube
Transcript183 caption blocks · 15,864 words · 1:52:24 runtime
EventCongress.gov 118011