US shipbuilders are without peer in their ability to produce the world's best military ships. To maintain the best Navy in the world, the America must sustain the indigenous capability to continue building these warships. Currently, the Major Shipbuilding Base can provide the nation with the navy ships it needs. Conversely, the US large commercial shipbuilders continue to struggle in reentering the large ship construction market. The study group found that the military and commercial segments of the market are quite different and that a successful large commercial shipbuilding industry is not fundamental to maintaining the naval capabilities essential to national security. An issue is whether the government should award construction contracts without regard to the effect on those shipyards building the nation's naval vessels. This study examined government's role in maintaining an economically viable, nonmilitary shipbuilding industry and provides policy recommendations, including approval of the OECD shipbuilding agreement.
ICAF Industry Studies 1998