What Happened
Recent Contracts Send Demand Signal To Suppliers Amid Workforce Concerns
The US Navy has awarded contract modifications to General Dynamics’ Electric Boat and HII’s Newport News Shipbuilding for the construction of Columbia-class and Virginia-class submarines, with a total combined value of up to $76.6 billion. According to Vice Admiral Robert Gaucher, the contracts are intended to send a demand signal to suppliers and address workforce concerns, including raises for shipyard workers. The growing submarine backlog is a concern, but the contracts are expected to help alleviate this issue. The news was first reported by Janes.