How to Break the Navy’s Shipbuilding Doom Loop

The U.S. Navy isn’t making enough new vessels. Here’s what to do about it.

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The U.S. Navy Wasp-class amphibious assault ship USS Boxer (LHD-4), at right, conducts a replenishment-at-sea with the New Zealand Navy oiler HMNZS Aotearoa during Exercise Ssang Yong 24 in the South Korea Strait, September 4, 2024.

Mass Communication Specialist Seaman Kenneth Melseth/U.S. Navy

The U.S. Navy’s shipbuilding seems stuck in a new-construction and delayed-repair “doom loop” from which it can’t recover. Each year — despite steadily rising budgets for shipbuilding — the fleet shrinks and ages. Navy leaders blame the industry that builds ships; the industry points to long-term contracts that don’t flex with wages, inflation, and budgetary uncertainty.

But we don’t have time for finger-pointing. We must reverse this decline as soon as possible. China now boasts a globally present blue-water navy that is bigger than that of the U.S., with competitive tonnage and firepower. Its grey-hulled fleets are wreaking havoc in the Western Pacific. The U.S. Navy can’t keep the peace if it doesn’t have a comparable fleet.

Mackenzie Eaglen

About the Author

Mackenzie Eaglen

Mackenzie Eaglen is a senior fellow at the American Enterprise Institute, where she works on defense strategy, defense budgets, and military readiness.

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