Inside China Business US Navy is desperate to close the gap with China. Can Japan or Korea save US shipyards
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Two decades of underinvestment in US shipbuilding capacity have led to a crisis in US Navy procurement, and a total loss of the civilian industry. We now have just a tiny handful of American companies that build ships at all, and those who do, build exclusively for the US Navy.
US shipbuilders are non-competitive against dual-purpose shipbuilders from China, Japan, and Korea, who have multiple revenue streams that can finance new investment and best practices. For military ships, Denmark provides a recent case study of developing a best-in-class missile frigate at about a fourth the cost of the US Navy’s latest-generation frigate.
US Navy officials are racing to close the gap with China, the world’s number largest shipbuilder and now the largest navy, and hope Japan and Korea are willing to invest in and upgrade abandoned US facilities.
Resources and links:
US Navy Looking to S. Korean, Japanese Shipbuilders to Revive American Shipyards
CNN, These may be the world’s best warships. And they’re not American
Reuters, U.S. wants Japanese shipyards to help keep warships ready to fight in Asia
‘Desperate’ US Seeks Japan’s & South Korea’s Help To Restart Its Defunct Shipyards; Keep Pace With China
U.S. Navy Secretary seeks Korean and Japanese investment in U.S. shipbuilding
Graphic, U.S. Defense Spending Compared to Other Countries
Sea Forces, Danish Iver Huitfeldt-class Guided Missile Frigate
South Korean Shipbuilder Hanwha Makes $100M Bid to Buy Philly Shipyard, SECNAV Del Toro Praises Deal
Chart: Chinese Navy vs US Navy
Closing scene, Ningbo, Zhejiang
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