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AEROSPACE NEWS

USN Submarine Chief: Growing Backlog Bolsters Supplier Base

Key Takeaways
  • USN awards contract modifications for Columbia-class and Virginia-class submarines.
  • Total combined value is up to $76.6 billion.
  • Contracts aim to bolster supplier base and address workforce concerns.
  • Incentives include raises for shipyard workers.
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Strategic Implications

The growing submarine contract backlog may indicate a shift in USN priorities towards bolstering the supplier base and addressing workforce concerns. The demand signal sent to suppliers could lead to increased investment in the industry, which may have long-term implications for the US submarine program. The inclusion of incentives for shipyard workers suggests a focus on retaining skilled labor, which could be crucial for meeting production demands.

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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.

Source | Originally Published: August 10, 2024

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AEROSPACE NEWS
JUMPSEAT
AEROSPACE NEWS

USN Submarine Chief: Growing Backlog Bolsters Supplier Base

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Key Takeaways
  • USN awards contract modifications for Columbia-class and Virginia-class submarines.
  • Total combined value is up to $76.6 billion.
  • Contracts aim to bolster supplier base and address workforce concerns.
  • Incentives include raises for shipyard workers.
Sign in to view key takeaways Get full access to in-depth analysis and key takeaways.
Sign In
Silver membership required Upgrade to Silver to access Key Takeaways.
Upgrade
Strategic Implications

The growing submarine contract backlog may indicate a shift in USN priorities towards bolstering the supplier base and addressing workforce concerns. The demand signal sent to suppliers could lead to increased investment in the industry, which may have long-term implications for the US submarine program. The inclusion of incentives for shipyard workers suggests a focus on retaining skilled labor, which could be crucial for meeting production demands.

Sign in to view strategic implications Get full access to strategic analysis and expert insights.
Sign In
Silver membership required Upgrade to Silver to access Strategic Implications.
Upgrade

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.

Source | Originally Published: August 10, 2024

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