The U.S. Navy is gearing up for a major fleet expansion, and an analysis by the Congressional Budget Office (CBO) suggests that this ambitious strategy will require about $1 trillion in funding.
To support this plan, the Navy aims to invest approximately $40.1 billion each year in shipbuilding through 2054, accumulating a hefty total that surpasses the $1 trillion mark.
Fleet Expansion Goals
In response to escalating global security challenges, the Navy envisions boosting its fleet of battle force ships to 381 over the next thirty years.
Currently, however, the fleet stands at 295 vessels.
Projections show a dip in numbers, expecting the count to drop to 283 ships by 2027, primarily due to the retirement of 13 vessels that won’t be replaced.
Funding and Budget Projections
The CBO anticipates that shipbuilding efforts will surge in the early 2030s as the Navy pushes to hasten fleet size expansion.
To meet these ambitious objectives, Congress would need to approve funding that is 46% higher than the average annual budget allocated over the past five years.
By 2054, the Navy’s requested budget will soar to $340 billion—up from the current $255 billion.
Within this increase, about $40 billion is set aside specifically for shipbuilding, while an additional $45 billion will address operational costs, maintenance of existing ships, and the development of new weapons systems.
Challenges Ahead
Interestingly, the CBO highlights that its cost estimates for the shipbuilding plan are between 8% and 16% greater than what the Navy has projected.
This discrepancy points to ongoing challenges, including frequent delays in ship construction and cost overruns that have plagued the program.
For the Navy to achieve its fleet expansion goals, American shipyards must drastically improve their efficiency.
Presently, the state of Navy shipbuilding is at its lowest point in over 25 years, struggling with issues like labor shortages and significant production backlogs.
Tackling these challenges will demand a considerable increase in productivity.
Under the current fleet expansion proposal, the Navy intends to maintain steady production levels of aircraft carriers.
Additionally, from 2030 to 2054, there is a forecasted 50% increase in the manufacturing of submarines, surface combatants, and amphibious warfare ships, marking a substantial shift in naval capabilities.
Source: Militarytimes