Page 23: of Maritime Reporter Magazine (July 1989)

OUTLOOK FOR THE $35-BILLION ANNUAL

NAVY SHIPBUILDING MARKET

Technology Development To Be Given Added Emphasis

By Dr. James R. McCaul, President

International Maritime Associates, Inc.

Navy Shipbuilding Program

Navy ship construction has been

An Overview:

Current 10-Year

Navy Spending Plans

Average

Annual $ ($ in billions) the major business driver for ship- builders and ship systems manufac- turers in this country over the past decade. This article deals specifical- ly with Navy ship construction over the next 10 years. As documented in

IMA's report, the Navy program is entering a period which will dramat- ically impact industry.

As shown in Exhibit 1, the U.S.

Navy over the past eight years has funded construction or conversion of 175 major ships—an average of 22 (continued)

Exhibit 1—Number of Ships/Conversions Funded

FY 1982-1989

Fiscal Year 1982 1983 1984 1985 1986 1987 1988 1989 Total

Carriers 3 — 1 — — 3 — 7

Submarines 2 3 4 5 5 5 4 4 32

Battleships 1 1 1 — 1 — — — 4

Cruisers 3 3 3 3 3 3 5 — 23

Destroyers — — — 1 — 2 — 4 7

Frigates 3 2 1 — — — — — 6

Tenders — — — — — — — — —

Logistics Ships 3 2 2 3 2 4 3 8 27

Amphibious Ships 1 1 2 2 3 — 2 1 12

Mine Warfare Ships 1 1 4 4 3 — — 2 15

Patrol Combatants — — — — — — — — —

Survey Ships 4 — — 4 2 5 — 3 18

Sealift Ships 6 — 5 2 4 2 2 — 21

Misc — _1 J. — — — 3

Total 24 17 23 25 24 21 19 22 175

Source: Department of the Navy •"Shipbuilding (inc. equip. installed on new ships) $10.0

Ship repair/Maint. 5.

Research/Engineering 9.0

Ship Equip, (other procurement —inc. equip, for modernization) 5.0

Weapons 6.

Annual total— $35 billion (Including military construction funds— homeports, cranes, drydocks. etc.—the above total becomes $36 billion-$37 billion annually.) *Note—Depending upon ship type, approximately $6 billion-$8 billion of the $10 billion will be used to purchase equipment to be installed aboard new ships.