Statement of Chairman Gene Taylor

Subcommittee on Seapower and Expeditionary Forces

Shipyard Modernization Initiatives and Ship Cost Reduction

“The shipbuilding industry has seen remarkable changes in the last 30 years. Computer-aided design tools are now integrated with automatic cutting, welding, and fabrication machines to significantly increase the productivity of many shipyards around the world.

“Congressman Bartlett and I have visited many shipyards throughout Europe and Asia.  I think I also speak for my friend from Maryland when I say that we were amazed at the efficiencies that the world’s commercial shipbuilders have been able to achieve in their construction processes.

            “Unfortunately, I was also embarrassed.  I was embarrassed that in this country we do not currently employ the methods that result in such remarkable shipyard efficiencies.  Our private shipyards, faced with ever-decreasing ship orders, do not have a financial incentive to invest the kind of money needed for capital improvements in equipment, even if that equipment would improve the efficiency of the construction process, increase productivity, and lower the overall cost of ships delivered both commercially and to the Navy. 

            “Sadly, our large shipyards have become totally dependent on Navy orders.  While these are very expensive ships; orders are often small and unpredictable. To complicate matters, some production line processes that may work in commercial yards are not easily transferable to warship construction.

            “However, my visits to the Hyundai shipyard in Korea and the Maersk facility in Denmark convinced me that something must change.  The U.S. shipbuilding industry must modernize in order to survive, if no other reason than for our own national security interests.

“I am confident that government can partner with the shipbuilding industry to invest in capital improvements that would lower the overall cost of ships.  Small investments in capital improvements will pay back significantly in the reduced costs of delivered vessels. This makes sense for the shipyards, and it makes sense for the American taxpayers.

“Today the subcommittee will receive testimony from witnesses representing the Department of the Navy, the shipbuilding industry, and academia on the potential efficiencies that can be realized with the modernization of shipyards that construct vessels for the United States Navy.

            “The Chair now recognizes the gentleman from Maryland, Mr. Bartlett.”